It seems like a strange coincidence -- the most popular and lucrative athletic subdivision governed by the NCAA (Football Division I-A) also happens to be the only one that does not decide its champion through some kind of playoff-bracket system. Instead, the national champion is decided entirely by the BCS National Championship Game. Which two teams get to play in the Game, one may ask? All Division I-A teams are ranked by a complex amalgamation of opinion polls and computer-generated statistics (further explained in detail here: http://www.collegefootballpoll.com/bcs_explained.html). From there, the top two ranked teams at the end of each season are invited to play in the Championship Game. Every year, however, there is controversy as to which teams are going to be ranked in the top two. Since a significant portion of the ranking system depend on media and coaches polls, it has been criticized as very subjective. Some have even mocked the system as "the only sport where an election decides who gets to play in the championship." Opponents to the current system want a playoff system in place, and look to the success of the NCAA Men's Basketball Tournament. Others defend it as the only realistic way to decide the champion without prolonging what is already a very long football season.
However, in December 2009, in a surprising move, the United States Congress passed "The College Football Playoff Act of 2009" (See: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.390:). Led by Senaor Joe Barton (R-Texas), the bill would prohibit the promotion of the Division I-A postseason game as the "National Championship" game unless it is the result of a playoff.
The legislation was met with heavy resistance from supporters of the current system, as well as BCS officials. "With everything going on in the country, I can't believe that Congress is wasting time and spending taxpayers' money on football," Bill Hancock, the BCS executive director, said in a phone interview. "We feel strongly that managing of college sports is best left to the people in higher education" (http://www.ocregister.com/articles/bcs-223234-playoff-college.html). Supporters of the bill have also been vocal. "We're pleased that Congressman Barton's bill is moving forward because it will require the BCS to choose — either make college football's championship a competitively earned honor or admit that it's currently the equivalent of being elected homecoming king," stated Matthew Sanderson, a founder of Playoff PAC, a political action committee aimed at electing members of Congress who favor a college football playoff system.
While it is debatable whether Congress has more pressing issues to worry about, to say that it is "none of Congress' business" like some opponents, is simply incorrect. The Commerce Clause of the United States Constitution (Article I, Section 8, Clause 3) states that: "[The Congress shall have power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes." The fact of the matter is, is that college football and its associated Bowl Games have become a multi-billion dollar commodity whose popularity reaches coast to coast. Therefore, Congress is more than justified in attempting to regulate something that has a profound effect on interstate commerce such as the Bowl Games do. Though the view that Congress needs to stay out of sports is understandable, the legislators can and should look at any issue in the country with such huge economic impacts throughout the country.
Saturday, May 1, 2010
Spiraling Out of Control: College Football Coaches' Compensation
On December 10th, 2009, Mack Brown -- the incumbent football head coach at University of Texas -- signed the biggest contract ever awarded to an intercollegiate athletics coach (http://sports.espn.go.com/ncf/news/story?id=4728932). Coming in a hefty price tag of $5 million per year, Mack Brown's yearly compensation package is larger than those of some Fortune 500 CEOs:
* $4.5million -- Joel Staff -- Reliant Energy Corporation
* $4.2million -- George Buckley -- 3M Corporation
* $4.1million -- Mark Parker -- NIKE
* $4.1million -- James Skinner -- McDonald's
(http://www.forbes.com/lists/2006/12/TotComp_12.html)
It is interesting to note that Reliant Energy Corporation is a wealthy enough business to own the naming rights to an NFL stadium (Houston Texans' Reliant Stadium), yet still pays its CEO less than the highest paid college football head coach. Certainly, as previous articles on Economics of the Collegiate Gridiron has discussed, it is true that some college football programs are capable of bringing in revenues comparable to that of Fortune 500 corporations; nonetheless, the issue is that the NCAA and its athletic conferences stand firmly on the notion that its leagues and sports are intended to be amateur, nonprofit, and for the benefit of its student-athletes. How did coaching college football suddenly become so lucrative? A New York Times article entitled "Coaches Receive Both Big Salaries and Big Questions" published in 2004 reads:
"Is Alex Rodriguez worth $250 million to play baseball?" said Skip Bertman, L.S.U.'s athletic director and former baseball coach. "Of course not, and it's not a question of whether a baseball player or a coach is worth that much. The issue is what is the market value."
(Source: http://www.nytimes.com/2004/01/01/sports/ncaafootball/01SALA.html?pagewanted=1)
The truth is, in present day society, the correct question to ask is not, "is the product worth the price?" but rather, "what does the market think the product is worth?" Therefore, as the NYT article suggests, the upward spiral in head coaching salaries in college football is probably attributed to the rising wealth of college athletic programs, and the increase in the willingness-to-pay of the viewers and fans of the sport. Some readers may not think that it is too bad; after all, the athletic programs certainly will not attempt to spend more than they make, so the rising salaries of coaches can only be a good indication of the financial health of the sport. This explanation may make pure economic sense, but there is a macroeconomic issue that must be addressed: tax-subsidies
According to Senator Charles Grassley (R-Iowa), college coaches have enjoyed major increases in pay when other university-employed staff members and students have faced tuition increases, salary reductions, hiring freezes and layoffs during these tough economic times (http://www.usatoday.com/sports/college/football/2009-12-10-coaching-salary-concerns_N.htm?csp=obinsite). Furthermore, athletic departments of universities are completely tax-exempt; therefore, one could argue that it is the American taxpayers who are partially footing the bill for coach salaries.
It is difficult to simply state whether the rise in NCAA football head coaches' salaries is simply a market-driven phenomenon or an unethical practice that is contradictory with the NCAA's amateur spirit (which also caused a great deal of public outrage). However, if the justification for high salaries is simply "supply-and-demand," the athletic departments should not use its tax-exempted funds and tax-deductable donations from its alumni base to fund its coach salaries. After all, most things in the United States that are governed by the "supply-and-demand" principle are NOT tax-exempt.
Tuesday, April 27, 2010
NHL Playoffs: Detroit Red Wings @ Phoenix Coyotes Game7 Live Blog
An explosion of goals from the Red Wings. And at the end of the 2nd period, it is 4-1 Red Wings. I hate to say it, 'Yotes fans, but it's looking like Detroit vs San Jose in the next round....
NHL Playoffs: Detroit Red Wings @ Phoenix Coyotes Game7 Live Blog
Phoenix scores DIRECTLY off of the faceoff! Fiddler simply slaps the puck forward as the puck is dropping for the faceoff and it zooms over Howard for the first Coyotes goal. Will this shift the momentum towards the Desert Dogs? 2-1 Red Wings, 11mins left in the 2nd.
NHL Playoffs: Detroit Red Wings @ Phoenix Coyotes Game7 Live Blog
The Red Wings have seized complete control of the game both offensively and defensively. The Coyotes, on an offensive faceoff, take a hard shot from the point. Wings goalie Jimmy Howard makes a huge blocker save to keep the score at 2-0.
NHL Playoffs: Detroit Red Wings @ Phoenix Coyotes Game7 Live Blog
1 minute after the goal. The Coyotes get a powerplay of their own on a Zetterberg tripping penalty. The Coyotes give up a shorthanded breakaway, forcing a Coyotes defenseman to take a penalty to stop the break. The teams are 4-on-4, with 16minutes left to go, but Datsyuk on a fast-break scores a goal for the Red Wings. 2-0 Wings with 15minutes left in the 2nd.
NHL Playoffs: Detroit Red Wings @ Phoenix Coyotes Game7 Live Blog
The Wings get an early 2nd period powerplay and they score 10 seconds into the PP. It's 1-0 Red Wings 18mins left in the 2nd period in Game 7.
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