Helena Frye
When it comes to the world of professional sports, one of the most intriguing questions is which sport pays its athletes the most. In North America, two of the most popular and lucrative sports are baseball and basketball. While baseball, represented by Major League Baseball (MLB), has long been one of the highest-paying sports, basketball, specifically the National Basketball Association (NBA), has emerged as a strong competitor in terms of player salaries. So, does baseball pay more than basketball? The answer is a bit complex and depends on various factors, including league structure, salary caps, and the global appeal of the sport.
| Characteristics | Values |
|---|---|
| Average Salary of NBA players | $7 million per year |
| Average Salary of MLB players | $8.32 million |
| Average Salary of MLS players | $594,390 per year |
| Highest-paid MLS player | Lionel Messi ($20.4 million) |
| Highest-paid player in 2019 | Lionel Messi (over $80 million) |
| Highest-paid player in 2020 | Roger Federer ($106.3 million) |
| Highest-paid MLB player | Andrew McCutchen |
| Highest-paid NFL player | Kyler Murray ($138 million) |
| Highest active pitcher earnings | Justin Verlander ($409 million) |
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What You'll Learn
Average NBA salary vs MLB salary
NBA players are some of the highest-paid athletes in the world. The average NBA player salary for the 2019-2020 season was $8.32 million, up from $4.6 million in 2015-2016. Steph Curry of the Golden State Warriors topped the NBA salary list for the 2019-2020 season, earning $40.2 million.
In comparison, the average MLB salary for the 2021 season was $4 million, down from $5 million in 2017. In 2021, the highest-paid MLB player was Mike Trout, who earned $37.1 million. This was less than 11 NBA players, including Steph Curry, who earned $45.8 million.
The difference in salaries between the NBA and MLB can be attributed to several factors. One factor is the salary cap, which is a semi-fixed limit on team spending. In 2011, the NBA's salary cap was 33% of the MLB's luxury tax threshold, but this increased to 52% in 2021. Additionally, the NBA operates under a "soft cap," where teams can exceed the salary cap to retain their players, leading to higher salaries for star players.
The NBA's collective bargaining agreement has also contributed to the increase in player salaries. The agreement has resulted in higher yearly salaries and signing new contracts for players at all levels of the league.
It is worth noting that the average salaries in both leagues do not include endorsement deals, which can add millions to a player's income.
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Reasons for pay disparity
While NBA basketball players had the highest average 2019-2020 salary of North American sports leagues, at $8.32 million, MLB players were a close second. This answer will explore some reasons why there may be a pay disparity between the two sports.
Firstly, the league structure of the NBA and MLB differs, which can affect player salaries. The NBA has smaller roster sizes, which means that there is more money to pay each player. In addition, the NBA has a larger fan base outside of the US, which contributes to its commercial success and ability to pay players higher salaries.
Secondly, the rules around "guaranteed money" for players differ between the two leagues. NBA players are able to make more money off the court than MLB athletes due to their larger global following and the highly commercialized nature of American sports. This means that NBA players can secure lucrative endorsement deals that add millions to their income.
Thirdly, salary caps in the NBA and MLB may contribute to the pay disparity. The NBA has a higher average salary per player, which suggests that the salary cap for individual players is higher in this league.
Finally, the relative stagnation of baseball salaries compared to the steady rise of salaries in the NBA may also contribute to the pay disparity. Over time, NBA salaries have increased, while MLB salaries have remained relatively stable. This trend is reflected in the career earnings of active players in both leagues, with MLB players earning more in the past, but the trajectory suggesting that NBA players may surpass them in the future.
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Soccer players vs NBA players
Soccer, or football, is the most popular sport in the world, with a vast global audience. However, top soccer players tend to earn less than their counterparts in the NBA. There are several reasons for this disparity in pay.
Firstly, the NBA has a more concentrated market with only 30 teams, while soccer has numerous teams and leagues worldwide. The NBA's league structure, with smaller rosters of 13 players at most and only 5 starters, allows for a greater concentration of money towards superstar players. In contrast, soccer clubs have larger squads, and the development of players can be costly.
Secondly, the NBA benefits from its strong international presence and popularity in the United States, the largest sports market in the world. This attracts lucrative endorsement deals and sponsorship opportunities, resulting in higher overall athlete compensation. Basketball's popularity also leads to higher television rights deals, further increasing revenue for NBA teams.
Thirdly, the salary cap system in the NBA influences how much teams can spend on player salaries. While the cap is designed to ensure competitive balance, star players can still command significant salaries through various contract mechanisms. In soccer, the salary structure varies significantly depending on the league, with some leagues offering much higher salaries than others.
It is worth noting that soccer generates more revenue overall than the NBA. However, the money is distributed across many more players, clubs, and leagues. Additionally, soccer transfers can involve massive sums, impacting the financial landscape of the sport.
While soccer players may not earn as much as NBA players on average, the highest-paid soccer players, such as Cristiano Ronaldo, Lionel Messi, and Neymar, still surpass the earnings of the top NBA players like Steph Curry and LeBron James.
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NFL salary growth vs MLB
The NFL has seen a massive increase in revenue over the past decade, with a $6 billion increase from 2010 to 2022, bringing in a total of $14 billion in revenue in 2022. The MLB, on the other hand, made $9.46 billion in revenue in 2022, a much smaller increase of $430 million from the previous year. The NFL's higher revenue has resulted in skyrocketing salaries for its players, with the median salary in the NFL increasing by 25% in the last decade, compared to only a 21% increase in MLB salaries over the same period. The average salary for an NFL player is $1.9 million per year, while the average MLB salary in 2023 was around $4.9 million.
The salary structure in the MLB is quite different from that of the NFL. MLB contracts are typically long-term and guaranteed, ensuring players receive their full salary even if they suffer injuries. In contrast, NFL contracts are often performance-based and shorter in duration, with more money tied to performance incentives rather than guaranteed salaries. This makes financial planning more critical for NFL players, who also face the challenge of shorter careers due to the physical demands of the sport.
The number of players on a team also impacts the salary structure. NFL teams have larger rosters with 53 players, while MLB teams typically have 25 players. This means that MLB players have more opportunities for endorsement deals and league revenue sharing. As a result of the Collective Bargaining Agreement (CBA) between the NFL and the NFL Players Association (NFLPA), the NFL shares 48.5% of its league revenue with its players. In comparison, the MLB does not have a salary cap, and while it has a competitive balance tax (CBT) to levy penalties on high-spending teams, the disparity in payrolls between the highest and lowest-spending teams in the MLB is much higher than in the NFL.
While the average MLB salary is higher than the NFL's, the top-paid athletes in the NFL tend to be quarterbacks, who can earn astronomical salaries. The highest-paid NFL athletes are all quarterbacks, with Matt Ryan of the Atlanta Falcons earning an average of $30 million per season, plus $5 million in endorsements. In comparison, the highest-paid MLB player in 2018 was Clayton Kershaw, who earned $35.57 million as part of a $215 million contract. It is worth noting that the career earnings of top MLB players can surpass those of NFL players, excluding quarterbacks, due to the longer careers and guaranteed contracts in baseball.
In summary, while the MLB maintains higher average salaries than the NFL, the NFL has experienced more significant revenue growth and salary increases in recent years. The salary structure, contract length, and guaranteed nature of contracts differ between the two leagues, with the MLB providing greater financial stability for its players. The number of players on a team and the presence or absence of a salary cap also impact the salary growth and earning potential in the NFL and MLB.
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NIL compensation in college sports
NIL, which stands for Name, Image, and Likeness, refers to the means by which college athletes are allowed to receive financial compensation. NIL deals allow athletes to profit from their name, image, and likeness through marketing and promotional endeavours, such as autograph signings, product endorsements, and social media posts.
Historically, college athletes were prohibited from making deals to profit from their fame and were not allowed to make money off their athletic abilities. This was due to the NCAA's stance on "amateurism", which stated that student-athletes cannot be compensated beyond scholarships and stipends. However, in 2021, the NCAA changed its rules to allow students to profit from their NIL. This change was brought about by a combination of NCAA rule changes and state laws, with 29 states currently having some sort of NIL legislation in place.
Despite the change, the NCAA still does not allow schools to pay players directly. This means that college coaches cannot offer money as an incentive for high school athletes and athletes cannot receive compensation directly from their university based on athletic achievements. Instead, athletes can hire professionals to help with marketing, legal issues, tax laws, and other business dealings, and many schools offer training and resources to help athletes navigate NIL deals.
The NIL landscape has resulted in top college athletes signing deals with major brands such as Nike, Adidas, and Under Armour, as well as non-athletic brands such as T-Mobile, Sam's Club, and Amazon. These deals can be extremely lucrative, with the top NIL earners making several million dollars a year. For example, Colorado quarterback Shedeur Sanders has a valuation of $4.7 million, including a Nike deal.
While the NIL market has provided new opportunities for college athletes, there are concerns about the potential negative impact on the amateurism of college sports and the lack of national standardization for NIL legislation, which may affect recruiting.
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Frequently asked questions
It depends. NBA basketball players had the highest average 2019-2020 salary of North American sports leagues, at $8.32 million. However, baseball players in the MLB had the second-highest average salary, with NFL players coming in third.
NBA players also tend to make more money outside of their salary than athletes in the MLB. This is partly because NBA players have a bigger fan base outside the US.
Yes, there are exceptions. For example, Kyler Murray has chosen to play in the NFL and has so far earned $138 million, with another $32 million expected in 2025. It is predicted that he will make a total of $157 million over the next four seasons.
Basketball players are paid more on average. The average salary for an NBA player is around $7 million per year, whereas the average salary of an MLB player is around $5 million per year.
