Posted on: Sunday, June 22, 2003
Football salaries reflect big-time business
| Paying top dollar |
| Editorial: Two ways of viewing UH's $4 million man |
By Ferd Lewis
Advertiser Staff Writer
Analysis
"It costs money to make money and that's what this is all about," UH President Evan Dobelle said of the decision to pay football coach June Jones $800,016 a year for the next five years.
Advertiser library photo So stifling had the room in the UH-Manoa Campus Center become Friday that regent Ted H.S. Hong requested moving football coach June Jones' contract higher on the agenda so most of the crowd could leave and allow the over-burdened air-conditioning system to function.
The ability to draw a crowd even while he was golfing on Maui is said to be part of why the school is making Jones the highest-paid state employee at $800,016 per year plus the potential for $125,000 more in incentives.
"It was business," said Kitty Lagareta, the regent with a "Warriors Rock" sticker on her binder. And, for a lot of college football coaches, business has been very good lately.
Jones' five-year contract, while an eye-opener here, might not even place him in the top 25 percent among his NCAA Division I-A brethren. The so-called "Millionaires Club" alone those whose packages reach or exceed $1 million per year numbers about 30.
Indeed, last week two coaches Jones and Jim Tressel of national champion Ohio State received new, multi-million dollar packages. Tressel will earn $1.3 in 2003 escalating to $1.8 million by 2008.
Jones' attorney, Leigh Steinberg, who has negotiated other college deals, claimed the UH-Jones contract is in tune "with the economic realities in Hawai'i."
"It costs money to make money and that's what this is all about," said UH President Evan Dobelle. Dobelle said he thought Jones' contract was a "good deal" in light of Alabama paying Mike Shula, who has no head coaching experience on any level, $900,000. Jones was a head coach for parts of four seasons in the NFL before taking over at UH in 1999.
Amid rapidly escalating salaries that have raised the national average to nearly $600,000 per year, the Knight Commission, a group of current and past education officials, has asked schools to "consider coaches' compensation in the context of the academic institutions that employ them."
Meanwhile, faculty senates in several conferences have demanded their institutions slow the "insanity" of the so-called "arms race."
But Richard G. Sheehan, a University of Notre Dame business economist who authored, "Keeping Score; The Economics of Big-time Sports," said that will be tough to do without a "salary cap."
The closest thing, legislation that set a ceiling on some assistant coaches' salaries, resulted in a federal jury's award of $67 million against the NCAA in 1998.
Sheehan said schools look for competitive advantages to win on the field. "Ten years ago it was through making life better for the players through better dorms, etc. But gradually the NCAA has put constraints on those perks."
Since there is a limit to how much schools can compensate players, Sheehan said a heated and high-priced competition to attract and retain the best coaches has emerged.
At Notre Dame, for instance, the school nets about $14 million from football, making Tyrone Willingham's reported $1.5 million salary a good deal.
But there are growing concerns that salaries have spiraled beyond the actual value they bring a school and the NCAA has commissioned a comprehensive baseline study to determine what is a defensible number based upon revenue.
In the meantime, a 2001 study by the Des Moines Register indicated that the teams of the 22 highest-paid football coaches average earnings $1.2 million produced an average of $21.7 million in revenue for their athletic departments. On average, the coaches received about 5.6 percent of the revenue their programs generated.
Which is why Jones' contract raised eyebrows in the Western Athletic Conference, where he will not only be the highest-paid coach but has a salary that will more than double and even quadruple that of several of his rivals.
One administrator in the conference exclaimed: "Can they afford that?"
In his presentation to the regents, UH athletic director Herman Frazier said the Warrior football program is worth $5.6 million annually to the school through "ticket revenue, premium seat donations, pay-per-view, over-the-air TV, radio and misc." income.
"Over five years, that's roughly $28 million," Frazier said. In addition, he said, "We buy national TV exposure and a positive image for the state." In 2003, UH is scheduled for four national TV appearances, Frazier pointed out.
Of course, some coaches can also cost too much to fire. Speculation was that John Mackovic's $800,000 base salary made it impractical for Arizona to fire him after a player uprising last season. Frazier declined to say what kind of termination clause Jones' contract contains.
On the flip side, should Jones be attractive to another school, Frazier said the coach would have to repay half a year's salary to buy his way out of the remainder of the contract.
"This is about business," said Frazier.
The University of Hawai'i Board of Regents conference room was packed to overflowing with even a prominent committee chairman from the state legislature sitting on the floor.
UH football coach June Jones may be the highest-paid state employee, but nationwide he's well down the list. See chart.