Betfair Official Blog

Sport should remain a free market but which millionaire sportsmen can justify their salaries?

Pablo Luna - Moonlighting for Betfair. Pablo looks at the issues of regulation in sport, salary caps and wonders whether the likes of Federer and Woods really do earn their corn

Despite economic gloom around the world, business has prospered in the Premier League throughout the January transfer window when a record £150m was spent on new players. That figure is more than double the previous record of £70m set in 2006 and follows a record summer transfer window in 2007 when clubs spent £500m. With that in mind can we morally justify the salaries of a few cosseted footballers? It is a tricky conundrum.

Football is a multi-billion pound, supply and demand industry and there is nothing that gets fans more animated than the perceived enormous salaries that some footballers receive. I empathise their gut feelings but want to remind them that this represents less than 2% of all players. Most players toil throughout their short career span. In any case I would rather the money in football go to the artistes rather than empire-building, toy playing, fat cat chairmen.

Capping or pegging stars' salaries is unrealistic and not an option, it is unworkable as long as television revenues continue to rise. For better or worse, sport is now commerce. Should English football be dim enough to introduce capping then the best players in the Premiership will play in Spain or Italy and our league would suffer accordingly.

I believe in a free market and hate regulation but do have a social conscience. I would abhor government or any other intervention. In grudging and reluctant contradiction I do find some salaries in the Premiership grotesquely obscene (John Terry £130,000 per week) but - that is the market place football lives in!

It is important to differentiate between wages and sponsorship because they are not from the same direct source. Wages come directly out of the pocket of the fans and there lies a responsibility. Those who secure Sponsorship do not impinge their lavish lifestyle on the turnstile supporter. It is patently true however that the salaries of athletes in every sport have risen disproportionately.

Britain's richest sports star earner is David Beckham (£112m) and his weekly pay packet is pocket money compared to the £20m-plus he earns every year from the likes of Vodafone and Gillette etc. I believe he is one English sportsman who has maintained his discipline and form throughout his career and I do not begrudge him his rewards. Despite malicious remarks about his intellect he has demonstrated his brilliance at manipulating the media - he is a sports marketer's dream. His work as an ambassador for UNICEF is fantastic and I would remind those who revile him to remember this fact! He has given back - big time!

Tiger Woods is another sport colossus whose fabulous fortune has been amassed by sponsorship whilst sustaining his dedication and hunger to succeed on the golf course. Tiger is the only professional to hold all four major championships at the same time. His five-year deal with Nike is worth $98m alone. He is an inspirational role model to all nationalities and has given back to the sport he has plundered by spectacularly raising its profile! Could he be the first sports billionaire? He is already close to surpassing previous richest Michael Jordan. I commend him and congratulate him.

Other sporting icons like Roger Federer have made vast amounts of money but I remain unconvinced he has given tennis back the necessary percentage of his worth. His 12 Grand Slam Titles and his equalling of Björn Borg's record of five consecutive Wimbledon single titles in 2007 make exceptional reading. This versatile tennis player with no weaknesses has been dominant since 2003 but I do not think I will mourn someone who does not put bums on seats or excite. I am not saying he is boring but when I see him on television I reach for the off switch. I would not consider paying to watch him (I do watch and enjoy the better matches on television and have been to Wimbledon once). That said, tennis is not my first sport (or even fourth or fifth) so it is possible that I am being a bit unfair.

Another in the same category as Federer is Michael Schumacher, statistically the greatest driver the sport has ever seen. Has he enhanced Motor Racing? This colourless character idolised Ayrton Senna but who idolises Schumacher? Was he a bore? I think he was.

These great sportsmen are the tip of the iceberg however and I would advise that we do not get anxious about their bank balances, sport is market driven and our personal value of them is inconsequential!