Under a free agent structure the wage paid to a professional athlete is likely to be close to his

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Under a free agent structure, a professional athlete's wage is likely to be close to his marginal revenue product. This is because the athlete's compensation is based on the value they bring to the team, as measured by the additional revenue they generate. The marginal revenue product is the additional revenue generated by the last unit of labor, in this case, the athlete. Therefore, the athlete's wage will be close to their marginal revenue product, as teams will want to pay them enough to retain them while not overpaying and incurring losses.

Under a Free Agent Structure the Wage Paid to a Professional