Economics and Aaron Rodgers’ New Contract

Green Bay Packers quarterback Aaron Rodgers has become the highest paid player in the NFL. (Green Bay Packers photo/Corey Wilson)

Green Bay Packers quarterback Aaron Rodgers has become the highest paid player in the NFL. (Green Bay Packers photo/Corey Wilson)

The Green Bay Packers’ Aaron Rodgers just signed a contract extension making him the NFL’s highest paid player.  Can economics make sense of athletes’ enormous salaries? And are such salaries justified?

Top athletes now make eight figure salaries; Mr. Rodgers’ four-year contract extension will pay at least $134 million, including $67 million before the end of…

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