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Sending Subliminal Signals In Our Nation's Capital

Rich-rod-thumbs-up_medium

RichRod sez: Just say "no" to coaching salary caps.

The Knight Commission on Intercollegiate Athletics, which works as a kind of fun police for BCS football programs, continues their claim that college football will ruin us all:

"We need to do more to make NCAA data clear and transparent to university trustees, alumni and the general public, so they can have a better understanding of the fundamental problems," Kirwan said. "Better data and more transparency help us debunk the myths that have led to excessive spending on coaches' salaries and other areas of intercollegiate athletics."

Okay, never mind.  I actually kind of like this idea.  The report cites the NCAA statistic that only six D1 athletic departments made money last year, a number that is completely meaningless because each one calculates their revenue, fix and variable costs differently.

They are hard-line against excess spending on football and basketball, though, which is downright un-American.  Or is it?  They asked Penn State's Tim Curley:

Star-divide

Penn State Athletics Director Tim Curley said that supporting broad-based programming is becoming increasingly difficult for Division I programs as competitors put more resources into fewer programs.

But you have to leave the press release* and go to an actual newspaper (kind of) to get real quotes:

"The economic realities facing athletics will have a major impact on sponsorship and participation in the years ahead and, without changes, the number of sports will be reduced, mostly at the men's Olympic-sports level, many of which could return to club status," Curley said.

But this gets even better: to understand the full story you have to go to a third source*, the AP (which I can strangely only find on the website of a Mobile CBS affiliate).  The Knight Commission has been occasionally suggesting that congress or some other governing body should step in and cap coaching salaries to control costs.  Curley (at the same meeting, from what I can tell) is on the other side of the fence this time:

"This area of salaries is very complex," said Penn State AD Tim Curley. "I just don't know if going to Congress for that exemption is the appropriate thing to do. The bottom line is we're in a competitive marketplace no different from the universities are in a competitive marketplace for presidents, provosts, deans, other people on campus."

This is really interesting.  Penn State pays their head football coach an incredibly cheap $500K per year.  RichRod is making $2.5 million, Ferentz is making something like $2.84 million, and JimmyVest is at or around $3.5 million.  Why would Curley want let these schools pay some of the highest salaries in college football when he knows he has another 2-4 years left of Paterno at a fifth of that and a very good chance of getting Bradley or LJSR to take over at something comparable?

It doesn't make much sense, especially for a guy who is self-funding his entire department, unless he isn't so sure about (1) wanting to promote one of the assistants to HC, or (2) being able to retain them for such a low salary.  The other side of this is that, if it come down to it, Penn State could compete in a bidding war with just about anyone right now, and probably win 98% of the time.  It's not a bad option to have in your back pocket.

 

Note: if you are tired of hearing me comment on the news industry just skip the footnotes.  I understand.

*Although what is really sad here is that it's not a press release at all; the first story I linked has a byline from Kate Hairopoulos of The Dallas Morning News, on the website of The Dallas Morning News.  She drops a couple of really insightful things like, "Just don't know that there's much anybody can do about it." and then literally copy/pastes the entire press release.  Here is some free advise for newspapers: that isn't the model of the future.

**Long live the aggregator, i guess.

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It's also possible

that Curley doesn’t want a cap at his own position.

by KevinHD on May 14, 2009 8:24 AM EDT reply actions  

Shell game

They’ll never, ever cap coaching salaries. Ever.

(Ever.)

Besides, even if they did find a way to cap a coach’s salary at, say, $1,000,000, the universities would find a way to supplement it. Joe Paterno can bring in $500,000 and it’ll be a bargain. Why? Well, partially because he leads a relatively simple life in State College, but also because he has his hands in a bunch of other moneymaking projects and doesn’t really need $2.5M in straight salary. If you’re a transient coach like 98% of the guys who sign these huge deals, you’re not attached to the community to the point where things like real estate deals are a viable/safe investment. I doubt RichRod is snatching up houses to flip in Detroit. But if you’re Joe Paterno and have been in one place for 60 years, that sort of thing becomes pretty easy.

But even if they capped salaries, there’s sponsorship money, booster money, Nike/Adidas money, etc. There’s no way to keep track of it all.

--
Black Shoe Diaries

"Never. We would never shoot nuclear weapons at Decepticons." -- Gen. Jack Jacobs

by Run Up The Score on May 14, 2009 9:03 AM EDT reply actions  

Basically, these creeps are patting each other on the back

And talking about what a great job they’re doing protecting the student-athlete while smoking $100 cigars and drinking $1,000 scotch. It’s a joke. They may as well hand out pacifiers and little blankets to all of us so we can sleep at night.

How do you pretend to address a problem without actually giving enough of a shit to change things? Blue ribbon commission. The article could’ve been two sentences long:

NCAA vice president Wally Renfro agreed that reform won’t come unless the top schools get behind it. “Until those institutions feel the need to make a change,” Renfro said, “it’s not likely that you’re going to see it.”

Okay, so who’s going to tell the big SEC schools, Ohio State, Michigan, Oklahoma, Texas, and USC to clean up their act? I trust tobacco companies’ cancer research more than I trust anything having to do with reforming the NCAA. Sure, they’ll bomb SMU back to the stone age, but they’ll never touch Alabama or USC.

--
Black Shoe Diaries

"Never. We would never shoot nuclear weapons at Decepticons." -- Gen. Jack Jacobs

by Run Up The Score on May 14, 2009 9:12 AM EDT reply actions  

Getting Congress involved . . .
The Knight Commission has been occasionally suggesting that congress or some other governing body should step in and cap coaching salaries to control costs.

What a great idea. Congress is really good at controlling costs.

WTF, is the Knight Commission purposely trying to ruin college football?

by CvilleLion on May 14, 2009 9:29 AM EDT reply actions  

Given the number of private schools in the NCAA ...

Would that even be legal? For public schools, you can justify a government-imposed cap because they’re funded by the government, but I’m not convinced the government can justify any restrictions on what a private-school employee is paid.

by SpartanDan on May 14, 2009 4:20 PM EDT up reply actions  

One thought

maybe Curley is against capping salaries because he knows he’s got a steal in Joe Paterno. That allows him to spend money in other areas. If Tressell’s salary is reduced to $1.5 million then Ohio State suddenly has an extra $2 million they can invest in other areas.

by BSD on May 14, 2009 9:53 AM EDT reply actions  

If that's the case

Curley would be once again prove himself to be quite short-sighted.

Joe is always the exception to the rule. He’s content to make 500K a year, because he’s so set for life. Not to mention any other outside profits he gets. He probably can’t give away the money he makes. I doubt the guy has any major expenses.

But the next coach, be it in house or from outside, is going to get a lot more money. You can’t pay people a quarter of what their peers make and expect them to stick around long. Sure, there’s loyalty attached to jobs, but if someone told you that you could work at a comparable position, as the head coach of a major football program, and get paid 4 times as much, I’d guarantee you’d be strongly considering that. At some point, Penn State is going to have to pay a coach what they are worth.

My thought is that Curley knows that when necessary, Penn State could win a financial arms race with most programs. We’ve got one of the most passionate fan bases that don’t seem to mind shelling out thousands of dollars for the right to be eligible to buy tickets and parking spots. We’ve got great facilities and a huge alumni base that happily donates to those initiatives. Penn State could afford to pay the coaches that kind of money if necessary.

I also can’t believe I’m thinking that Tim Curley may be that shrewd and clever.

by shadowfax on May 14, 2009 10:22 AM EDT up reply actions  

Guys are smart.........

wouldn’t be completely surprised if Paterno has an agreement with the school that requires the AD to funnel some portion of budgeted money for Paterno’s salary to a fund that has been growing for quite some time. This fund will be used to easily pay for or supplement the HC position at PSU for years to come. Sort of like endowing a scholarship. I make this comment only half in jest.

Eric Watters Atlanta, Ga.

"If you hear Ric Flair is in town......WOOOOO........you KNOW things are takin' place".

Ric Flair

by ech2os on May 14, 2009 10:22 AM EDT reply actions  

And by budgeted........

I mean an amount greater than the 500k they are paying him.

Eric Watters Atlanta, Ga.

"If you hear Ric Flair is in town......WOOOOO........you KNOW things are takin' place".

Ric Flair

by ech2os on May 14, 2009 10:22 AM EDT up reply actions  

It already exists.

--
Black Shoe Diaries

"Never. We would never shoot nuclear weapons at Decepticons." -- Gen. Jack Jacobs

by Run Up The Score on May 14, 2009 10:36 AM EDT up reply actions  

Really.

Never heard of it before. Is that common knowledge ?

Eric Watters Atlanta, Ga.

"If you hear Ric Flair is in town......WOOOOO........you KNOW things are takin' place".

Ric Flair

by ech2os on May 14, 2009 12:16 PM EDT up reply actions  

Here you go.

http://live.psu.edu/story/27582

Although it says “excluding salary supplements” for coaches. But you know, it’s just one pile in multiple piles of money.

Income from the Malloy Paterno Head Football Coach Endowment will be directed, at the head coach’s discretion and with approval from the director of athletics, to purposes ranging from academic support and special medical care for team members, to expenses associated with recruitment of student athletes and coaching expenses, excluding salary supplements. Penn State intercollegiate athletics receives no state support for its programs and must cover the cost of fielding 29 varsity teams from ticket revenues and private giving.

--
Black Shoe Diaries

"Never. We would never shoot nuclear weapons at Decepticons." -- Gen. Jack Jacobs

by Run Up The Score on May 14, 2009 2:04 PM EDT up reply actions  

Right.

I forgot about that. I was thinking along the lines of Paterno actually saying…….don’t give me 2 million a year, but give me 500k and we’ll take the rest of it and endow the position for when I’m done.

Eric Watters Atlanta, Ga.

"If you hear Ric Flair is in town......WOOOOO........you KNOW things are takin' place".

Ric Flair

by ech2os on May 14, 2009 2:51 PM EDT up reply actions  

I was thinking the same thing

"It was an attrition football game and you know we like that."

by showtime on May 14, 2009 9:34 PM EDT up reply actions  

Salaries

Are you sure you are comparing apples and apples on the coaching salaries? I don’t know the details of Joe’s contract, but I am fairly sure RR’s salary is in the $3-500k range, with the balance made up by TV/radio/adidas money. I don’t doubt Joe is underpaid relatitve to his peers, but the difference may have more to do with how active a coach is with side stuff (appearances, radio shows, etc) rather than pure salary compensation.

by Wlvrn99 on May 14, 2009 10:32 AM EDT reply actions  

I tried to take out the one-time payments.

That is a very fair number for RR. And maybe ‘salary’ isn’t the right word, because there are (essentially guaranteed) bonuses that get added in. Also, I think you would be very surprised at how much of the ‘side stuff’ JoePa does. For a guy who doesn’t recruit away from home much he sure does speak at a lot of dinners.

Part of the story’s point is that no one is counting things the same way, so that makes it hard to compare these guys on a totally level playing field. I do think those numbers are very close, though.

by KevinHD on May 14, 2009 12:52 PM EDT up reply actions  

Facility Spending

I think in general Universities’ usage of athletic funds receives a bad wrap. I honestly think that if you poll the average person on the street, they believe that money received by the University from networks, etc goes directly into the AD or some other mythical head honcho’s pocket. Yes, these guys do make a healthy salary, but then again, they have high profile positions with an average tenure of nine months. If anything, the real evil here may be money poured into lavish facilities meant to essentially wow recruits, as Curley alluded, and not the salaries of the coaches. If the average engineering student learns in a small plastic chair with a one square foot writing surface attached, I doubt student athletes require leather EZ chairs to view game film on an 80 inch HD TV. Then again, if your offense is HD…. might be necessary.

by cpm126 on May 14, 2009 10:52 AM EDT reply actions  

I Just Love the DickRod Picture

Nothing gets me happier than logging on to BSD and seeing that slickster giving the PSU faithful the thumbs up and that poop eating grin!

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 11:07 AM EDT reply actions  

Hell DickRod would be a good guy to play Jimmy Bakker

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 11:40 AM EDT up reply actions  

Picture FAIL!


Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 11:42 AM EDT up reply actions  

Maybe Curley is a believer in the

American dream. You work hard, you do a good job and the market sets a salary based on a whole crap load of variables.

I guess now that we are capping Bank exec salaries of companies who were forced to take TARP money, giving UConn coaches hell for making “too much”, it is time for gov’t regulation of coaching salaries.

If we are capping salaries, why don’t we start with Hollywood? Why does Will Smith need to make $20M per pic +gross.

One man doing the work of 100's for the good of 1000's

by rahpsu92 on May 14, 2009 11:12 AM EDT reply actions  

I think the government should regulate bloggers’ salaries.

by KevinHD on May 14, 2009 1:04 PM EDT up reply actions  

Yeah! They have backyard grottos! IN THIS ECONOMY?!

Penn Staters belong at Penn State. The problem with a lot of kids is they just don’t know they are Penn Staters yet. -jesse. @ BSD

by TheK-GunNeedsReloaded on May 14, 2009 1:18 PM EDT up reply actions  

How do you guys split up the BSD riches?

I assume it’s something like 50/50/50.

Kath?

by psuphiman80 on May 14, 2009 2:02 PM EDT up reply actions  

I think it is more like

100/100/100

It is the power of Zug that allows this.

by The JuggerNitt on May 14, 2009 5:56 PM EDT up reply actions  

Why'd you have to say Capital?

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 11:31 AM EDT reply actions  

We are witnessing

the slow trudge toward professionalizing an amature sport. I truely believe many of the people involved with these mega-programs are playing their hands with the goal of adapting the NFL’s lucrative business model to NCAA football.

A major component to that is how we pay head coaches. If you can pay head coaches NFL money, you can lure NFL-type coaches to come and take the reigns for a few years. As other people have said, the transient nature of the NFL HC position necesitates this high salary — because the HC becomes the CEO of a corporation. And just like a CEO, everything is in the short-term.

The problem is that when you constantly structure your goals on a 4-6 year basis, you become short-sighted, and unconcerned with how short-term actions affect the health and longevity of a program or institution decades down the line. Joe understands this, and he’s a living testament to what happens when you continue to structure your goals on a long-term basis.

Anyway, my point is more NCAAF becomes like the NFL, the worse off everyone will be except those who stand to benefit financially from this transition.

"We hugged as grown men do. It was a great moment. Then, it was business as usual." -- LJ Sr.

by millzners on May 14, 2009 12:21 PM EDT reply actions   1 recs

So what you are saying..........

is that the BCS Championship in 2030 might be played in Wembley Stadium ? :)

Good post. Well put.

Eric Watters Atlanta, Ga.

"If you hear Ric Flair is in town......WOOOOO........you KNOW things are takin' place".

Ric Flair

by ech2os on May 14, 2009 1:03 PM EDT up reply actions  

Head Coach salary caps

would make it much tougher to acquire a highly rated new HC. Most coaches would stay with their current school until fired or retired. I would think the replacement HCs would then have to come from the assistant coaches ranks with little HC experience.

by ageing lion on May 14, 2009 12:27 PM EDT reply actions  

This is exactly why salary caps are a GOOD thing

b/c they weed out the greedy, short-sighted guys who are in NCAAF for the quick cash and career advancement. That’s fine in the NFL, a professional enterprise where grown men go to work everyday; but we’re talking about NCAA — rosters full of kids who will never play a down of professional footbal at any level.

Many of these kids are given the rare opportunity of a free education at a good quality university they would otherwise have no means of attending. The HC’s is supposed to help guide these kids through the perils of being a college athlete and help them graduate.

As soon as you chase these highly-rated HC’s (for example, Charlie Weis, Rich Rod, etc.) what you’re really doing is hiring a hot shot who has no regard for the university, the athletic program, or the kids’ futures. They’ll do whatever is necessary for short-term gain, and as soon as they find something better they’ll bounce (like Rich Rod already did, and like Weis reportedly almost did).

"We hugged as grown men do. It was a great moment. Then, it was business as usual." -- LJ Sr.

by millzners on May 14, 2009 2:11 PM EDT up reply actions  

I am adding nothing of importance to this thread.

Anyway, I like the fact that the words “Cap” and “Caps” have been used so often in this thread. Tee hee hee.

Have a "great HD day!" - Jay Paterno

by ReadingRambler on May 14, 2009 1:08 PM EDT reply actions  

You're a hateful bastard

I was thinking of rooting for the pens going fwd, but you’re the last straw I’m not sure I can put upon the camel’s back.

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 1:53 PM EDT up reply actions  

Don't get your ovaries in a bunch!

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 1:58 PM EDT up reply actions  

uh-oh

Mr. Easy on the pile. Go get em, Laura!

And, I’m in the process today of untangling my soft white cotton crosbypanties (have to use them to dab my busted lip) (ewwww)

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 2:09 PM EDT up reply actions  

Ovechkin on a breakaway last night: stoned

Crosby on a breakaway last night: goal

Just thought that was interesting.

Have a "great HD day!" - Jay Paterno

by ReadingRambler on May 14, 2009 2:11 PM EDT up reply actions  

Well with your ovaries functioning properly you can really "Rock the Red"

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 2:14 PM EDT up reply actions  

again

ewwwwwww.

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 3:56 PM EDT up reply actions  

Seriously

Doesn’t he have a coaching clinic to go to or something?

j/k. Way to let your hair down, Mr. Easy!

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 10:48 PM EDT up reply actions  

Hell it is the offseason, let's cut loose

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 15, 2009 7:40 AM EDT up reply actions  

p.s.

Just when do you add anything of importance to a thread, senor kot?

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 1:53 PM EDT up reply actions  

Sorry

Can’t talk right now. I’m going golfing with Ovechkin.

Have a "great HD day!" - Jay Paterno

by ReadingRambler on May 14, 2009 1:55 PM EDT up reply actions  

ras afras afras ras rass

Hey, this game is fun too and you can make it fun. --j. odrick
But I’m biased towards tailgating, as you may imagine. -ts
Ignore the accolades – just enjoy the games. -bb&w

by jtothep on May 14, 2009 1:54 PM EDT up reply actions  

News industry comments...

I actually like the news industry comments and the fact that you are very thorough in your footnoting. You’re more entertaining to read than Adam Rittenberg’s Big Ten blog. Although that probably has more to do with the fact that this is a Penn State-first blog.

by LowcountryLion on May 14, 2009 2:02 PM EDT reply actions  

LowcountryLion? Lowcountry as in South Carolina Lowcountry?

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 14, 2009 2:06 PM EDT up reply actions  

Near Hilton Head

Success without honor is like an unseasoned dish, it will fill you up but it won't taste good. - Joe V. Paterno

by carolinaeasy on May 15, 2009 7:40 AM EDT up reply actions  

Maybe Curley

is happy seeing other schools try to compete in this escalating arms race, knowing that PSU won’t get caught up and will have a healthier bottom line going forward.

by Tailgate Shogun on May 16, 2009 5:32 AM EDT reply actions  

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