SPORTS SALARIES

March 9, 2009

Fans are partially at fault for the rising sports costs, they have accepted the salary numbers of great stars. Actually, we all see athletes to be larger than ordinary people, or we wouldn’t pay SO MUCH money for their named merchandise. Something else to realize is that teams won’t actually spend the advertised numbers. Sally Jenkins talked about the Albert Haynesworth contract saying that it is worth less than it appears to be: “$100 million over seven years doesn’t really mean $100 million; it actually means about half that. Haynesworth’s agreement has a “poison pill” in the fifth year that makes it closer to a four-year deal worth $48 million.” HOW-EVAH. $48 million is STILL SIX POINT NINE MILLION DOLLARS A YEAR. It’s baffling: One day a team lays off dozens of employees in the legal, marketing, information technology, public relations, game-day operations, television and even the cheerleading staffs. Then, suddenly, it shells out huge sums for free agents. In one 24-hour spending binge, the Redskins extended $182 million in contracts to just three players, including that whopping $100 million over seven years to Haynesworth. Although it’s hard to understand and not very PC to say so, some people are simply far more valuable than others because players MAKE MONEY for owners- administrative assistants and seasonal security guards do not. And that’s the name of the gane. “Some people can generate income, and some can’t,” Michael Josephson, founder of the Josephson Institute of Ethics, said. “That’s inherent in business. I may have to lay off 10 janitors, but I still have to pay my top salesmen a bonus, because if I lose my salesmen I lose everything.” It’s the responsibility of any front office to put the most competitive players on the field, and to control costs and efficiency in a bad economy without harming the essential product: the team.

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