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Archive for the ‘Money’ Category

9 SEC football coaches make over $2 million a year

Posted by ZA on November 10, 2009

If you aren’t sure which conference is the most aggressive in college football, then this should make it obvious.  There are nine head football coaches in the SEC Conference that have a salary of $2 million dollars or more per year.  Four of those nine are going to make more than $3 million dollars this year.

Highest Paid Head Coaches in SEC (2009)
1. Urban Meyer (Florida) – $4 million
2. Nick Saban (Alabama) – $3.9 million
3. Les Miles (LSU) – $3.75 million
4. Mark Richt (Georgia) – $3 million
5. Bobby Petrino (Arkansas) – $2.8 million
6. Houston Nutt (Ole Miss) – $2.5 million
7. Gene Chizik (Auburn) – $2 million
8. Steve Spurrier (S. Carolina) – $2 million
9. Lane Kiffin (Tennessee) – $2 million
+ Source USA Today

What does that list tell me?  That Kentucky, Mississippi State and Vanderbilt need to pay their football coaches more money if they want to compete in the SEC.  Kentucky is only paying Rich Brooks $1.6 million and Miss State is paying new coach Dan Mullen over $1.2 million.  Of course Kentucky has an excuse because they just gave John Calipari a $4 million dollar per year salary to coach the Wildcats basketball team.

A few other interesting facts from the USA Today article:

* In 2009 there will be 56 NCAA football coaches making $1 million or more in salary.
* In 2009 there are 9 NCAA football coaches making $3 million or more in salary.
* 47% of NCAA Division 1 head football coaches make more than $1 million per year.
* Average pay for those head coaches is $1.36 million per year.
* That average pay is up almost 30% over the past two years.
* The average 2009 salary of assistant football coaches at Tennessee and Texas are over $325k.

Posted in College Football, Money | Tagged: , , , , , , , , , , , , | 1 Comment »

Top 10 Richest Athletes in the World

Posted by ZA on July 1, 2009

The economies of the World may be slumping, but the business of sports is still booming.  The top leagues, teams and athletes will all still be pulling in plenty of money this year.  From rich team contracts, to astronomical earnings, to lucrative endorsement deals.  There will be lots of cash pouring into the bank accounts of the top athletes in sports.   But which athletes are the richest?  Which are the top earning athletes in the World today?  CNNSI has recently released their 2009 list of the Fortunate 50, which is a list of the 50 top earning athletes in the United States.  They also published their list of the top 20 earning International athletes.  Below is a compilation of the two lists, so it is a list of the top 10 earning athletes in the World today.

Top Earning Athletes in World:
1. Tiger Woods ($99MM)
2. Phil Mickelson ($52MM)
3. David Beckham ($45MM)
4. Lebron James ($42MM)
5. Kimi Raikkonen ($40.1MM)
6. Manny Pacquiao ($40MM)
7. Lionel Messi ($39.9MM)
8. Alex Rodriguez ($39MM)
9. Fernando Alonso ($35MM)
9. Valentino Rossi ($35MM)
9. Shaquille O’Neal ($35MM)
10. Kevin Garnett ($34.7MM)


Posted in Athletes, Endorsement Deals, Golf, Money, NBA, Soccer | Tagged: , , , | 29 Comments »

Rich fans should not buy sports teams

Posted by ZA on June 1, 2009

The owner of one of the England’s top soccer clubs is selling the team in a fire sale to recoup some of the money he’s lost.  Mike Ashley is the billionaire owner of sportswear chain, Sports Direct, who bought then EPL team Newcastle United in 2007.  Ashley paid over $200 million dollars for the football club at the time, but now is asking a mere $155 million just to rid himself of the club.

Ashley said his decision to buy Newcastle has been “catastrophic for everyone” and claims to put over $180 million dollars to square their books.  So if he is able to find a buyer at his current asking price, then his total loss will be close to a quarter of a billion dollars.  That’s what happens when a rich fan has the means to buy their favorite club; they make their decisions like a fan would and wind up paying $100 million plus per year to rent the team.

During Ashley’s time as owner, Newcastle fans have revolted at the decision to fire a popular team manager and now they have to watch as their squad gets relegated from the EPL to the lower division.  That relegation removes tens of millions of dollars off the value of the club and punishes the fan base who will now have to hope their team can soon return to the top English soccer league.

So what is Ashley’s reason for why these huge issues have befallen his club?  Ashley said he did “regret” buying the team.  He went on to say that, “I was just a fan…I never said I was an expert in football clubs.

Ashley went on to lament about how much money he has lost in this situation.  But Ashley made the decision to buy Newcastle and the mistakes that cost him that money, so he had choices in this matter.  The other, less wealthy, fans of Newcastle didn’t have a choice in this situation.  They watched a rich guy buy their favorite club, turn it inside out to the point it is now relegated; and now they have to watch him try to sell it off to whomever is willing to buy it.  Who knows what they’ll get with the next owner…things might not get better quickly.

That is why fans should not buy their favorite teams.  They will be prone to act on emotion, rather than make the sound business decisions that the team needs to stay successful.

Posted in Money, Soccer | Tagged: | Leave a Comment »

Pretty sweet deal for Calipari at Kentucky

Posted by ZA on April 3, 2009

You surely heard that John Calipari is now the highest paid coach in college basketball.  Calpari’s new deal to coach the University of Kentucky Wildcats is an 8-year deal that will pay him approximately $31.65 million dollars.  It eclipses Billy Donovan’s $2.5 million per year deal at the University of Florida, which was the previous record in men’s college hoops.  Coach Calipari will have a $400k per year base salary and then make his additional millions from the Wildcats broadcasting and endorsement deals.  But Calipari’s deal with Kentucky has some other nice incentives.

John Calipari’s contract incentives & perks:
* $50k bonus – academic achievements by team
* $50k bonus – winning SEC Tournament
* $175k bonus – making the Final Four
* $375k bonus – winning the National Championship
* 2 automobiles
* Paid expense account
* 20 lower-level tickets to all UK home games
* Membership at country club
* $3 million per year buyout if he is fired

The total package from Kentucky is well past the $4 million per year average that he is being paid.  And we have not even yet mentioned the buyout that the Wildcats will be paying on the previous coach’s contract.  So Calipari better win and he better win quick, because the revenue he produces from a successful program will be necessary to pay him.

Did Kentucky get a good deal in hiring Calipari? He has been successful everywhere he has coached, so I cannot argue with his track record on the court.  What does trouble me about Calipari coming to Kentucky is his “shady” past that includes questionable recruiting methods, extremely low graduation rate for his players and a history of off-court problems for Calipari’s athletes.  Will Kentucky Wildcat fans be able to overlook some of these transgressions that seem to follow Calipari from his last two schools?  Probably so, as long as he is winning.

[Assist: Sports Business Daily]

Posted in College Basketball, Money | Tagged: , , , | Leave a Comment »

Which 20 college hoops teams make the most money?

Posted by ZA on April 2, 2009

What are the top 20 “richest” teams in NCAA division 1 college basketball? Data below is taken from a December 2007 list by Forbes on the wealthiest programs in college hoops.

Top 20 highest earning teams in college basketball (National Championships won):
1. North Carolina (4- 1957, 1982, 1993, 2005)
2. Kentucky (7- 1948, 1949, 1951, 1958, 1978, 1996, 1998)
3. Louisville (2- 1980, 1986)
4. Arizona (1997)
5. Duke (3- 1991, 1992, 2001)
6. Indiana (5- 1940, 1953, 1976, 1981, 1987)
7. Illinois (None)
8. Kansas (3- 1952, 1988, 2008)
9. Wisconsin (1 – 1941)
10. Ohio State (1- 1960)
11. Texas (None)
12. Missouri (None)
13. North Carolina State (2- 1974, 1983)
14. UCLA (11- most recent in 1995)
15. Oklahoma State (2- 1945, 1946)
16. Michigan State (2- 1979, 2000)
17. Maryland (1- 2002)
18. Syracuse (1- 2003)
19. Arkansas (1994)
20. Xavier (None)

No surprises at the top, those are the “blue bloods” of men’s college basketball.  I was a little surprised to see Wisconsin and Ohio State so high, but those athletic departments are really strong (Texas, as well) and their fan support is strong in all sports.  NC State has struggled for a few years, but seems to be back on-track towards being one of the “name” teams in college basketball.  Some might think of them more as football schools, but Oklahoma State and Arkansas fans are both serious about their hoops teams.  Nice to see Xavier slip onto the list at #20, they’ve had a great run over the past decade.  They play in the Atlantic 10 Conference, so they are the only school on the list that is not from one of the power conferences (ACC, Big East, Big 12, Big Ten, Pac 10).

EveryJoe points out that only 4 of the schools on the list (Illinois, Missouri, Texas, Xavier) have never won a National Title in men’s college basketball.

Which programs did not make the list, but are still the top 10 all-time in wins?
* Temple (#6 all-time in wins)
* St. John’s (#7)
* Penn (#9)
* Notre Dame (#10)

Posted in College Basketball, Money | Tagged: , , | Leave a Comment »

We are in worst stock decline since Great Depression

Posted by ZA on November 20, 2008

When will the stock market rebound?

My broker sent this chart to me today in an email.  He said it was “positive news” and a reason for “hope”.  I like his enthusiasm, but long for the days in our relationship when he played a role that was more Warren Buffet than Tony Robbins.  I guess these days his only hope is to go the Dr. Phil route with clients; laying us down on the couch to hear our pain and then trying to fix it.

Stock Market Rebound?

When will the Stock Market rebound? The trillion dollar question.

Our current “decline” surpassed 50% this week, so we’re not in the midst of the worst decline since the Great Depression.  Our second worst decline in history.  Truly amazing!  And scary.  I hope we can turn this thing around soon.

Posted in Money, Random Stuff | Leave a Comment »

Thomas Friedman knows “How to Fix a Flat”

Posted by ZA on November 13, 2008

Why do I find myself agreeing with Thomas Friedman so much?  Not sure, but I like his books and I like his columns in the New York Times.  His recent NY Times column offers his ideas on the proposed government bailout of the Detroit auto industry.  It’s a worthwhile read, I found myself nodding a lot.  I even liked his somewhat far fetched idea about bringing in Steve Jobs.  It could work, right?

Posted in Money, Random Stuff | Leave a Comment »

The Pickens Plan for Oklahoma State football

Posted by ZA on October 21, 2008

Billionaire T. Boone Pickens is finally getting a proper return on his investment.
No, not his oil investments – he’s already made billions of those.
And not his green energy wind farm investments – he’s still waiting for those to mature.

He’s getting ROI from the $200,000,000.00 he pledged to his alma mater, Oklahoma State University.  The $200 million was provided a few years ago to pull the Cowboys athletic programs from middle of the pack to the top shelf.  This season the money is finally working for the OSU football team, who knocked off Missouri and have climbed to 7th in the latest AP poll.

T. Boone said, “Now I’m getting my money’s worth.”

Next step for T. Boone’s Cowboys is their biggest game of the year so far against the #1 ranked Texas Longhorns in Austin.  A few weeks after that the Cowboys will face their hated in-state rival, the Oklahoma Sooners, in the Bedlam Series.  Both of those games will be extremely difficult for OSU to win, but if they do then Pickens will really be getting ROI.

Pickens said, “The two biggest games for me are the OU game and the Texas game.  I’d like to beat both of ’em.  That’d be a real thrill for me.”

Are you listening Coach Mike Gundy and Athletic Director Mike Holder?  T. Boone wants a couple of victorious.  Heck, if you do it – it might earn your programs a few million extra.

Posted in College Football, Money | 1 Comment »

Who wins in this global financial crisis?

Posted by ZA on September 30, 2008

Financial markets in the United States, and in certain othter markets around the Globe are in crisis mode.  So sometimes you’ve got to take a humorous look at the situation.  A partner at Sansome Partners made a graph to “handicap” the current financial situation, one that equates this current situation to the NCAA Tournament – a single elimination knockout tournament.

I added my picks for who is going to win the Global Financial 4.  I’ve got Warren Buffett leading his Berkshire Hathaway team to a resounding victory over JP Morgan in the Financial 4.

Who wins the Financial 4?

Who wins the Financial 4?

Credit for the graphic: Mark Slavonia at Sansome Partners & Techcrunch.

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$700 Billion Bailout for Dummies

Posted by ZA on September 29, 2008

If like me, you are not interested in reading the 100+ pages that detail what is part of the $700 billion bailout of Wall Street.  Then might I suggest the write up by Silicon Alley Insider which highlights the key details of the bailout package Congress passed.

If you could “play God” for a day, how would you handle the bailout?

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