Tuesday, December 6th, 2016

A Weak Dollar Can Help Sports

http://sports.espn.go.com/nba/news/story?id=3501488

For the past year or so, I have suspected that as the Dollar gets weaker and the Euro gets stronger more athletes will go and play in Europe or other parts of the world. This is because with a weak dollar other countries can now afford American talent.

The only reason that America has attracted the best athletes in the world over the past 30-40 years is because we have been able to pay them higher salaries to create the best and most competitive leagues in the world (with exception of Soccer). As the rest of the world catches up, you will see more talented Americans leave the USA and play elsewhere around the globe.

What potentially is a bad thing for American sports leagues and franchises might end up being a good thing for American sport in general. Distributing American talent around the globe will help create stronger leagues in other countries. A stronger league is a more competitive league. When people “buy” sport they are in essence consumers of competition. This consumption of a higher level of competition will inspire kids who never would have otherwise thought to play sports. In the end, these kids might end up coming to America to play or may just strengthen the newer leagues at home.

Economics is an interesting force. Let’s see how it helps the spread of American sports and talent throughout the globe.

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