Sports are business. Reasons: (1) owners manage the teams based on profit maximization (2) Owners would rather pressure state and local governments to root the bill of stadiums. If sports are not business, wealthy owners could just give the players what they wanted, let fans into stadiums for free, and every one would be happy. Part of the return may be in terms of his love of sports, but there is an undeniable business aspect to the investment as well.
Although overpayment may be in the eye if the beholder, there is no doubt that athletes make a lot of money. Team revenues continue to grow, providing the basis for such demands in the first place.
Two hypotheses that have been important and fundamental to research in the area:
(1) competitive balance:
fans prefer their team to win but they also prefer close game outcomes and season finishes to blowouts.
(2) invariance principle:
player drafts and "the player reserve system" then in place did nothing to competitive balance. Instead, these mechanisms simply redistributed the value of talent away from players and toward owners.
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