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Insanity on coaching pay

Started by hog1984, December 01, 2017, 01:03:06 pm

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hog1984

What has enabled football power house institutions to pay these outrageous salaries? It goes deeper than ESPN payouts. ESPN couldn't do this if not for their ability to extract more fees from advertisers, etc.

But where is the advertiser's money coming from? I think it is a direct result of QE2. i.e. the federal reserve creating money out of thin air, or better stated, on an electronic device. Basically this is inflation, yet has not reared it ugly head in the financial markets.

The typical Hogville participant probably doesn't live in the  $1 million plus financial world, but ESPN does. And what are they doing this month? Contracting their expenses by ridding themselves of talent. They are losing subscribers at an alarming rate. Less subscribers, means less revenue from advertisers. Some say this is because ESPN has become a pc mouthpiece.

If you have read this far, you are probably asking why I bring this up. Arkansas may have supporters willing to fork over millions of dollars for our football program, but let's think about what the downside is for inflating our football baseline cost to a level beyond what we can afford. Coaching salaries north of $6 million at UofAR is insanity.

I don't think the money train is going to continue to increase. I think we are witnessing the beginning decline of ESPN's conference payouts.

Ok now you can smite me. Hey I think Gus would be a great coach for Arkansas Razorbacks, but can we afford $6 million+?



Billy Bats

It's what the free market will bear.  We are capitalists and that's part of the deal.  Arkansas is a $120m/year program.  $6mil is worth it for a great coach. 

 

31to6

Quote from: Billy Bats on December 01, 2017, 01:05:13 pm
It's what the free market will bear.  We are capitalists and that's part of the deal.  Arkansas is a $120m/year program.  $6mil is worth it for a great coach. 
The difference between a top-20 program and everyone else is way, way more than $6M/yr.

Kicking Wing

Fear and the ego/unrealistic expectations of the average fan paying for the sport.  It will crash eventually.  There is nothing magical about the guys that command the big contracts that makes them better suited than the best guys in D2.  Connections, reputation, hype.... al part of a free market system for hiring coaches.

Salted Pork

When football starts to decline as a viable sport due to head injuries, so will coaches' salaries. The sport has only a few more years, if that, as the apex sport in America. It will then become what boxing is today.

hobhog

If we don't get Gus at least we should save some cash. The salaries and more importantly the buyouts are nauseating.

davglo35

Salary Cap. One yr contracts only. P5 coaches $100,000 per game for a win. $25,000 for a loss. Playoff = $200,000 win $50,000 loss.
Top tier bowl  $100,000 win $25,000 loss.
National championship...$200,000 + $100,000 bonus. :)

Captain Hogthrob

Jimbo raised the boats. People want to compete because that brings in millions. As long as someone can pay they will pay. It's called capitalism and it's awesome.
Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.
-- Ralph Waldo Emerson

a0ashle

We are in a football bubble, college and pro. It will burst, it's a matter of when not if.

DeltaBoy

TV money is driving this!
If the South should lose, it means that the history of the heroic struggle will be written by the enemy, that our youth will be trained by Northern school teachers, will be impressed by all of the influences of history and education to regard our gallant dead as traitors and our maimed veterans as fit subjects for derision.
-- Major General Patrick Cleburne
The Confederacy had no better soldiers
than the Arkansans--fearless, brave, and oftentimes courageous beyond
prudence. Dickart History of Kershaws Brigade.

nwahogfan1

I would love to get the best up and comer and pay him $1.5 million a year plus $250K per win and  $500k for bowl wins and a million for a SECC but even if we got a coach to agree to that if he was successful he would be gone for the really big guaranteed money in a couple years.  It is a bidding frenzy out there.

After losing our butt getting rid of CBB and Nutt I would hold a tighter rein on these buy outs.  I can live with $4+ million contracts but no more huge buy outs.   

nwahogfan1

Quote from: a0ashle on December 02, 2017, 09:01:56 am
We are in a football bubble, college and pro. It will burst, it's a matter of when not if.

I agree.   Only a matter of time.

hogsam

Sexton is going to want a contract as good for Gus as he got fisher. 10 year 7.5 million guaranteed.

 

onebadrubi

Quote from: hogsam on December 02, 2017, 09:19:21 am
Sexton is going to want a contract as good for Gus as he got fisher. 10 year 7.5 million guaranteed.

No he's not.  He knew the situation. Aggie land was In and their level of stupidness.  He knows very very few schools would do such a think to lock themselves up for a decade like that

a0ashle

Quote from: nwahogfan1 on December 02, 2017, 09:15:33 am
I agree.   Only a matter of time.

I legitimately feel bad for all the other sports that will take the brunt of lost football revenue.

donbro

Quote from: Salted Pork on December 01, 2017, 01:43:59 pm
When football starts to decline as a viable sport due to head injuries, so will coaches' salaries. The sport has only a few more years, if that, as the apex sport in America. It will then become what boxing is today.
You do realize that boxing has a global appeal. Just because it may appear to be on a decline in America  does not mean it's on the decline everywhere else. Boxing is a top 10 sport globally.

a0ashle

Quote from: donbro on December 02, 2017, 09:29:47 am
You do realize that boxing has a global appeal. Just because it may appear to be on a decline in America  does not mean it's on the decline everywhere else. Boxing is a top 10 sport globally.

To your point, top Boxers still get PAID!

Not to your point, Football isn't near boxing globally.

Con el Cerdos

Quote from: a0ashle on December 02, 2017, 09:24:53 am
I legitimately feel bad for all the other sports that will take the brunt of lost football revenue.

Perhaps then we will return to true amateur sports in college. 

Martygit

I wonder what the elimination of the tax deduction for contributions to college sports programs, which is purportedly in the new tax bill passed by the Senate last night, will do to the amount of money available to pay these kinds of salaries?

https://www.businessreport.com/article/lsu-ad-says-house-gop-tax-plan-disastrous-college-sports

"At issue in the Tax Cuts and Jobs Act is one obscure but significant clause that gets rid of a tax break for people who donate to colleges in exchange for seating rights."

RIP OTR, REV

GlassofSwine

Quote from: a0ashle on December 02, 2017, 09:01:56 am
We are in a football bubble, college and pro. It will burst, it's a matter of when not if.

Already starting to deflate in the NFL, viewership is dropping, ad revenue dropping, and frankly the product on the field is declining.

Inhogswetrust

Quote from: hog1984 on December 01, 2017, 01:03:06 pm
What has enabled football power house institutions to pay these outrageous salaries? It goes deeper than ESPN payouts. ESPN couldn't do this if not for their ability to extract more fees from advertisers, etc.

But where is the advertiser's money coming from? I think it is a direct result of QE2. i.e. the federal reserve creating money out of thin air, or better stated, on an electronic device. Basically this is inflation, yet has not reared it ugly head in the financial markets.

The typical Hogville participant probably doesn't live in the  $1 million plus financial world, but ESPN does. And what are they doing this month? Contracting their expenses by ridding themselves of talent. They are losing subscribers at an alarming rate. Less subscribers, means less revenue from advertisers. Some say this is because ESPN has become a pc mouthpiece.

If you have read this far, you are probably asking why I bring this up. Arkansas may have supporters willing to fork over millions of dollars for our football program, but let's think about what the downside is for inflating our football baseline cost to a level beyond what we can afford. Coaching salaries north of $6 million at UofAR is insanity.

I don't think the money train is going to continue to increase. I think we are witnessing the beginning decline of ESPN's conference payouts.

Ok now you can smite me. Hey I think Gus would be a great coach for Arkansas Razorbacks, but can we afford $6 million+?


Coaches salaries affecting inflation is analogous to a thimble full of water in the ocean. I remember when gas was 19 cents a gallon. It isn't now. Yes we can afford $6 million. Inflation is a fact of life over a time. HOW they try to control it is what is important. IF you want to talk about insanity of salaries then talk about CEO's salaries in the US relative to the rest of the worlds country's companies CEO's.
If I'm going to cheer players and coaches in victory, I damn sure ought to be man enough to stand with them in defeat.

"Why some people are so drawn to the irrational is something that has always puzzled me" - James Randi

a0ashle

Quote from: Con el Cerdos on December 02, 2017, 09:40:56 am
Perhaps then we will return to true amateur sports in college.

I hope, but if it's too bad you'll see low level sports shutdown to maximize the $$$ they make in a reduced revenue model.

Con el Cerdos

Quote from: hog1984 on December 01, 2017, 01:03:06 pm

I don't think the money train is going to continue to increase. I think we are witnessing the beginning decline of ESPN's conference payouts.

From a broadcast money point, it will end sooner than later.  Probably after the current contracts of the major conferences expire.

Change is coming, capitalism or not.


As a point of amazement, our former AD/HC Frank Broyles had a net worth of just
$4 million at his death.  No way of knowing, but I doubt that JFB earned $10 million from the University of Arkansas, in his lifetime.

Inhogswetrust

Quote from: Con el Cerdos on December 02, 2017, 09:51:27 am
From a broadcast money point, it will end sooner than later.  Probably after the current contracts of the major conferences expire.

Change is coming, capitalism or not.


As a point of amazement, our former AD/HC Frank Broyles had a net worth of just
$4 million at his death.  No way of knowing, but I doubt that JFB earned $10 million from the University of Arkansas, in his lifetime.

Capitalism always has change. Sometimes good sometimes not so good.
If I'm going to cheer players and coaches in victory, I damn sure ought to be man enough to stand with them in defeat.

"Why some people are so drawn to the irrational is something that has always puzzled me" - James Randi

 

Mr Jade

Quote from: donbro on December 02, 2017, 09:29:47 am
You do realize that boxing has a global appeal. Just because it may appear to be on a decline in America  does not mean it's on the decline everywhere else. Boxing is a top 10 sport globally.

Not nearly the same level of popularity worldwide or in the US as it was in the year 1900. Boxing has gone way, way down.

Contact sports are probably the future of sports, soccer, basketball, maybe baseball making a comeback.
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hog1984

Quote from: Inhogswetrust on December 02, 2017, 09:48:40 am
Coaches salaries affecting inflation is analogous to a thimble full of water in the ocean. I remember when gas was 19 cents a gallon. It isn't now. Yes we can afford $6 million. Inflation is a fact of life over a time. HOW they try to control it is what is important. IF you want to talk about insanity of salaries then talk about CEO's salaries in the US relative to the rest of the worlds country's companies CEO's.

Like Sam Walton said after Black Monday, "It was paper when we started out, and it's paper afterward,"

Grunt

Quote from: Billy Bats on December 01, 2017, 01:05:13 pm
It’s what the free market will bear.  We are capitalists and that’s part of the deal.  Arkansas is a $120m/year program.  $6mil is worth it for a great coach. 
zackly
The above is likely to be highly biased and may not be defensible.

Torqued pork

Remember the shock and outrage when Saban signed his first contract with Bama? I bet Bama fans are still upset about it. Not

elksnort

I'm very much a capitalist. But greed can and will ruin capitalism.  Capitalism and democracy are meant for Reeseville respectful and responsible people. These freaking agents are the Cockroaches.

BearsBisonsBoars

Coaching salaries are in a bubble right now. I think the Fischer deal will be looked back upon as one of the first steps in its popping.

Football has hit its zenith and now the (grid)iron is mixed with clay. The greater accessibility has provided an avenue for competing sports to steal attention. All this while technology muddled the revenue streams for media companies. The sport competition will weaken the traditional money supply for football (boosters).( If you don't believe me, look at the newest generation of Waltons and how they spend their money). It substitutes media dollars for boosters, but that's a weak reed to lean on in the end.

Football probably won't go away, but soon it will be like baseball with its best years behind it.

Inhogswetrust

Quote from: elksnort on December 02, 2017, 10:30:08 am
I'm very much a capitalist. But greed can and will ruin capitalism.  Capitalism and democracy are meant for Reeseville respectful and responsible people. These freaking agents are the Cockroaches.

Trying to get all you can in salary negotiations when there is accountabiltiy is not greed.
If I'm going to cheer players and coaches in victory, I damn sure ought to be man enough to stand with them in defeat.

"Why some people are so drawn to the irrational is something that has always puzzled me" - James Randi