Babe Ruth Signs for $70,000 a Year

On March 4, 1927, Babe Ruth signed a three-year contract with the New York Yankees worth $70,000 per season, making him the highest-paid player in baseball history. The deal, struck with owner Jacob Ruppert during spring training, totaled $210,000 and reflected the commercial reality Ruth had created. He was not just the best player in the game. He was the biggest draw in American sports.

Ruth had earned $52,000 the previous season. The jump to $70,000 was enormous, nearly doubling what most star players made and dwarfing the salary of the average American worker, who took home roughly $1,300 a year. Ruth's leverage was simple. The Yankees had built their dynasty around him, and fans packed stadiums wherever he played.

The contract would cover what became the most storied stretch of Ruth's career. In 1927, the first year of the deal, he hit 60 home runs, shattering his own single-season record of 59 set in 1921. The 1927 Yankees, often called the greatest team ever assembled, swept the Pittsburgh Pirates in the World Series. Lou Gehrig hit behind Ruth and drove in 175 runs. The lineup earned the nickname "Murderers' Row."

Ruth would later push his salary even higher, to $80,000 per year in 1930 and 1931. When a reporter asked him if he thought it was right to earn more than President Herbert Hoover, Ruth reportedly replied, "I had a better year than he did." Whether the quote is apocryphal or real, it captured the scale of Ruth's presence. He was the first athlete whose salary became a national conversation.