Robert "Lefty" Grove and the Business of Baseball
Last year, three players, Manny Machado, Bryce Harper and Mike Trout, signed contracts worth in excess of $25 million per year to play baseball. When baseball players sign such record breaking contracts, you often hear someone complain about our nation’s priorities, decrying that we value sports stars more than teachers. Of course, paying big money for star players is nothing new in baseball. In 1925, Connie Mack paid $100,600 so Robert “Lefty” Grove could play for his Philadelphia Athletics. That would be worth approximately $1.5 million in 2020. This was the highest amount paid for a player at that time, exceeding even the $100,000 the Yankees paid the Red Sox for Babe Ruth in 1920 (estimates place the value of the Babe Ruth sale between $1.3 million and $1.5 million adjusted for inflation). The problem, however, is that Lefty Grove received none of that money. In 1925, Mack paid Grove a mere $6,500 (worth approximately $97,000 in 2020...