The Lockout Thread UPD 1/6 - framework of new CBA agreed to
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12-23-2012, 04:55 PM
Join Date: Jan 2007
Location: Sunnyvale, CA
Originally Posted by
You have Pegula, Illitch, Karmanos and Chipman for love of the game. Maybe Snider and Jacobs.
I agree with a lot of your post and love the graph. I was aware of the trends represented by the graph. I think that attributing talent to CEO's is misplaced. They get paid whether their performance is bad or good. In a sense they are paid for the risk, because it is incredibly difficult to get another CEO job if the performance is bad, generally early retirement although they have wonderful golden parachutes for the most part. Those golden parachutes are part of the compensation. And if I look at CEO performance, their goals are misplaced; they are too short term and narrowminded. They do not aim for the good of the American economy as a whole and some of their actions are extremely detrimental to that goal.
LS had an excellent link to an article which broke down labor into three categories, executives, talent and production. The upshot is that players tend to fall into the talent category; more like researchers into new directions for production which is well compensated. They aren't executives and they aren't production workers.
IMO, the trend in sports ownership is changing. It is no longer an expensive hobby. In part, I think it was brought in by the repeated collapses of the market which had sold itself on capital appreciation. Full speed ahead, appreciate that capital and disregard the cash losses. Eventually the losses catch up. Investors are significantly more wary of pie in the sky projections and this has trickled down to pro sports. The other trend is in pro sports itself, starting with the advent of free agency. Agents have been playing the capital appreciation card on star players and escalating salaries under the protections that free movement (somewhat free movement depending on CBA agreements) has provided, garnering compensation that is not justified immediately by production in most cases (butts in seats). What we are seeing now is the backlash to the oversale of those projections. It is a cycle and the owners are curbing their irrational exuberance. The last few CBAs across all leagues have favored ownership. I do think it will be a while before the system hits equilibrium.
I agree that it's not a perfect comparison. There really isn't one considering pro sports operate under a unique economic model, but I believe Gomez still got paid
"This is not a nick or a scratch, this is an open wound" - Doug Wilson.
Last edited by Led Zappa: 12-23-2012 at
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