If you analyze the salaries of athletes in 4 major leagues, you will see that
(1) the median salaries are always dramatically less than the average salaries
(2) the top salaries have been more than 10 times the median salaries since the 1980s
(3) salaries rises quickly
source of salaries
(1) endorsement
endorsement earnings typically double the income of male superstars, as for female stars, the multiplication can be 10 times
(2) salaries
even though sports stars are paid handsomely, they are not even in he same league with other entertainment superstars, generally speaking.
MRP(marginal revenue product) = MP * MR
MP: this particular player's contribution to winning percent
MR: marginal revenue generated by the player's contribution to winning (depend on fans' willingness to pay)
MRP is the input's contribution to the revenues earned by the team owner
MRP unravels the faulty logic behind the idea that higher player salaries drive up ticket prices. MRP theory dictates that player can only earn more if (1) they become more productive (MP rises) (2) fans increase their willingness to pay for their result (MR rises and the contributing factors can be population, size of cities, etc)
MR rises means that stars are more valuable in the fans' eye and owner will raise prices since fans are willing to pay more.
The reason players make more is that a change in some demand parameter (income, population, preferences) has increased fans' willingness to pay
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