or the exemption from laws and public policies so comprehensive. Despite
large and growing revenues, the sports industry benefits from substantial
public subsidies, which also appear to be more substantial than in other
sectors of the economy and in other countries.
This chapter analyses the nature of the paradox, and looks at why intrusive
regulations are accepted, or even welcomed, by producers and consumers;
why subsidies are paid with little oversight or taxpayer protest; and why
governments are such willing providers of support to the industry.
Section 11.1 describes the historical evolution of the major team sports in
Australia. It relates how modern commercialized spectator sports began in the
second half of the nineteenth century with the increased discretionary
income of workers in the USA, UK, and Australia, and makes comparisons
with the USA and UK. In all three countries, by 1900 the most popular events
were team sports, organized into leagues, but with distinctive industry struc-
tures. Sections 11.2 and 11.3 outline how labour regulations and public policy
have effectively reduced the cost of both labour and capital for professional
sports teams in Australia relative to the rest of the world. Section 11.4 records
how with innovations in transport and broadcasting, the revenues of the
Table 11.1Fifty Highest-Paid Australian Sports Stars, 2014, million $A
Name Sport Pay Name Sport Pay
Andrew Bogut Basketball 16.2 Matt Jones Golf 2.31
Adam Scott Golf 15.5 Mitchell Starc Cricket 2.2
Jason Day Golf 10.65 Geoff Ogilvy Golf 2.17
Marcus Ambrose Motor racing 5.68 Steven Bowditch Golf 2.08
Tim Cahill Soccer 5.5 Julian Wilson Surfing 2.0
Grant Balfour Baseball 5.18 Mark Bresciano Soccer 2.0
Patrick (Patty) Mills Basketball 4.61 Mark Webber Motor racing 2.0
Shane Watson Cricket 4.5 Craig Lowndes Motor racing 2.0
Dante Exum Basketball 4.34 Joel Parkinson Surfing 1.8
Mitchell Johnson Cricket 4.1 James Courtney Motor racing 1.8
Michael Clarke Cricket 4.0 George Bailey Cricket 1.8
David Warner Cricket 3.8 Aaron Finch Cricket 1.8
John Senden Golf 3.43 Stuart Appleby Golf 1.77
Steve Smith Cricket 3.1 Stephanie Gilmore Surfing 1.75
Marc Leishman Golf 3.07 James Whincup Motor racing 1.6
Mile Jedinak Soccer 3.0 Taj Burrow Surfing 1.5
Brett Holman Soccer 3.0 Josh Kerr Surfing 1.5
James Faulkner Cricket 2.8 Israel Folua Rugby union 1.5
Mick Fanning Surfing 2.7 Will Power Motor racing 1.5
Aron Baynes Basketball 2.7 Brett Lee Cricket 1.5
Daniel Ricciardo F1 2.6 Alex Leapai Boxing 1.5
Ryan McGowan Soccer 2.5 Gary Ablett AFL 1.5
Cadel Evans Cycling 2.5 Zac Purton Horseracing 1.5
Brad Haddin Cricket 2.5 David Hussey Cricket 1.4
Glenn Maxwell Cricket 2.5 Karrie Webb Golf 1.28
Source: BRW rich list, http://www.brw.com.au/p/business/brw_top_sports_earners_list_for_6VLF7mok4PMxzOxHAMb9KK
(accessed 18 July 2015).
Richard Pomfret