Why Teams Overpay Superstars

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Why Teams Overpay Superstars

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Is a $700 million contract ever actually "worth it"? In this episode, we peel back the sticker shock to reveal the hidden accounting of superstar contracts. We’ll explain why teams happily "overpay" for stars like Shohei Ohtani or Lionel Messi, using concepts like the "Loss Leader" strategy and deferred money accounting. You’ll learn the difference between a player’s salary and their Enterprise Value, how the Luxury Tax actually works, and why a bad contract on the field might be a goldmine in the gift shop. Stop looking at the box score—the real game is on the balance sheet.

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