Incentives for the Coach

It’s a bummer to hear that Coach Tad Boyle’s salary for taking the Buffs to the Big Dance this past season was only $165,830. That is only three times as much as the average for Colorado wage earner, but it is a pittance compared to coaches at the country’s top programs.

After his first season at CU, Boyle was recruited to coach elsewhere, but declined to stay at CU – for a meager salary of $165,000. There is more to the story – his total compensation package includes incentives.

According to the Daily Camera (March 15, 2012) there are six people on the Boulder campus who have multi-year contracts. Tad Boyle is one of the six.

The Board of Regents has directed campus officials to structure these six contracts in a manner that focuses on incentives, rather than large salaries. This is similar to salesmen who are paid commissions or executives who receive other types of performance incentives. In other words, the coach gets a cut of incremental revenue he/she is able to generate for the school. When viewed from that perspective, most will find the concept of his total compensation package to be more palatable.

The breakdown of Boyle’s salary follows:
Base – $165,830
Public relations – $180,000
Fundraising – $96,000
Sponsorship support – $108,000
Summer camps – $35,000
Country club – $6,480
Academic performance incentive – $34,000 in 2012 ($68,000 other years)
Welfare and development incentive – $33,000 in 2012 ($66,000 other years)
Outreach and reputation incentive – $33,000 in 2012 ($66,000 in other years).
The total package is worth $691,310.
This is a lot more than $165,000, but still well below the total for coaches at other major programs.

The breakdown of Boyle’s incentives follows:
15 regular season wins – $30,000
17 regular season wins – $20,000
19 regular season wins – $30,000
Pac-12 tournament semifinals – $75,000
Pac-12 tournament win – $30,000
NCAA tournament appearance $105,000.
These incentives, totaling $290,000, were earned by Boyle this past season.

Other incentives that were available included:
NCAA second round appearance – $30,000
NCAA third round appearance – $30,000
NCAA fourth round appearance – $30,000
Final four appearance – $105,000
National championship – $750,000.

A lackluster season, with 15 wins, will result in a $2,000 bonus per game won. If two additional games can be won, or 17 wins, then $10,000 is awarded for each of those two wins. The value of a game won in the Big Dance is $30,000 per game.

If you were the coach, how would you deal with the pressure of coaching a game that included a $2,000 bonus if you won? $10,000 for each game won? $30,000 for each game won? or $750,000 to win the national championships?

By offering incentives, colleges are able to contain and manage their costs. At the same time, the likelihood of transgressions is much greater when results are tied too closely to incentives. For additional information take a look at USA Today. They typically prepare a database of coach’s salaries and incentives in conjunction with March Madness.

 

Women’s Sports Touted as Contributor to Colorado Economy

On February 17th, the Denver Post reported “Women’s sporting events to be economic blockbuster for Denver.”

In the article, which was posted in the business section, Rich Grant of Visit Denver stated, “Women’s sports are becoming a huge economic engine, and Denver is poised to be known as a major center for this.” In particular, Grant was referencing the Colorado Crossroads volleyball tournament and the NCAA Women’s Final Four.

The Colorado Crossroads tournament is one of 9 national events where teams can qualify for the USA Junior Nationals. The Post reported that it will draw 11,000 players and 33,000 spectators over a two week period in late February and early March. The projected impact is about $22 million, with most of the benefit accruing to rooms, food, taxis, rental cars, trinkets, and other souvenirs.

The tournament reportedly hosted about 100 teams ten years ago, but is expected to attract 1,100 teams from 34 states this year. This speaks to the growth in the popularity of volleyball, the increased impact of USA Volleyball, and greater interest in women’s sports.

The NCAA Women’s Final Four will be in Denver April 1-3. In addition to the three games, the playoffs are billed as a three-day party, including events at the Colorado Convention Center prior to the tournament and a concert by Jewel. The direct economic impact is expected to be about $20 million. As with the volleyball tournament, the businesses that will feel the impact are hotels, restaurants, transportation, and retailers.

There is still hotel space in Denver during the Final Four and tickets were still available at the time the article was published. The Post cited enthusiasts who projected that hotel and tickets would pickup in the weeks ahead.

The two events attract very different crowds, which speaks to the diversity of the appeal of the region. The volleyball tournament will attract families to the area, who will likely spend less per person because of budget and time constraints. The Final Four is a special activity, which will have more corporate appeal. It will attract a crowd that is more likely to have time to explore the city and spend more in the local economy on a per capita basis.

The first event portrays Colorado as a place to be for participant sports, while the latter positions Denver as a location for the country’s top sporting events. The Final Four is expected to be covered in 177 countries.

As well as discussing the impact of the Colorado Crossroads and Final Four, the Post listed the economic impact of other previous sporting events:

2012 Women’s Final Four – $20 million – projected (direct benefits only)
2012 Colorado Crossroads -$21.9 million – projected (direct benefits only)
2008 NCAA Frozen Four Men’s Hockey – $15 million (direct benefits only)
2007 Rockies World Series (Games 3 and 4) – $10 million (may include direct benefits)
2006 AFC Championships $21 million (may include indirect benefits)
2005 NBA All-Star Game – $30 million (may include indirect benefits)
2004 Mountain West Conference Men’s Basketball – $4 million (
2002 Grand Prix Denver – $30 million (may include indirect benefits)

Comparisons of these events should be made with caution. Most likely these impact studies were calculated using different models. While the major source of impact for all events is food, room, transportation, and the purchase of goods and services, different methodologies may produce results that may not be comparable.

As mentioned above, some of the studies include direct impacts only while others include a much broader contribution to the economy (direct and indirect impact). This is like comparing apples and apple pie – they are different.

While it is important to understand the challenges in producing valid and reliable economic impact studies, the real point is that one-time special activities, such as sporting events, conventions, or film production can have a short-term positive impact on local economic activity. (This does not guarantee they have a positive fiscal impact on the economy.)

Of equal or greater importance are the intangible benefits of an event. Quite often they far exceed the economic activity. The above events have portrayed Denver in a positive light and helped mold the perception that it is a great place to live, work, and play.

 

Want to Turn Pro – What are the Chances?

Do you want your son or daughter to earn an athletic scholarship that will allow them to pursue a career as a professional in their sport?

The NCAA research department has compiled data that sheds light on the prospects of achieving that goal. As will be shown below, the chances of going pro are greatest for athletes who pursue professional careers in baseball or hockey.

Men’s Basketball
• Less than 1 in 35 high school seniors play in the NCAA.
• About 1 in 75 NCAA seniors get drafted by an NBA team.
• 3 in 10,000 high school seniors play in the NCAA and are drafted by an NBA team.

Women’s Basketball
• About 3 in 100 high school seniors play in the NCAA.
• Less than 1 in 100 NCAA seniors get drafted by a WNBA team.
• 2 in 10,000 high school seniors play in the NCAA and are drafted by a WNBA team.

Football
• About 1 in 16 high school seniors play in the NCAA.
• Less than 1 in 50 NCAA seniors get drafted by a NFL team.
• 8 in 10,000 high school seniors play in the NCAA and are drafted by an NFL team.

Baseball
• About 3 in 50 high school seniors play in the NCAA.
• Less than 9 in 100 NCAA seniors get drafted by a MLB team.
• 1 in 200 high school seniors play in the NCAA and are drafted by an MLB team.

Men’s Ice Hockey
• About 11 in 100 high school seniors play in the NCAA.
• Less than 1 in 26 NCAA seniors get drafted by a NHL team.
• 1 in 300 high school seniors play in the NCAA and are drafted by an NHL team.

Men’s Soccer
• Less than 3 in 50 high school seniors play in the NCAA.
• Less than 1 in 50 NCAA seniors get drafted by a MLS team.
• 1 in 1,250 high school seniors play in the NCAA and are drafted by an MLS team.

The data presented above and in the table below was updated on September 27, 2011 and posted at www.ncaa.org. These percentages are based on estimated data and should be considered approximations of the actual percentages (NCAA disclaimer).

Clearly, academics have to be important to most of the athletes who participate in college programs.

 

Sports Illustrated Vault – Top Men Covers

Which male athlete has most frequently graced the covers of Sports Illustrated?

The answers can easily be found in the SI Vault (http://sportsillustrated.cnn.com/vault/). The website includes a database that allows sports enthusiasts to conduct searches on articles, covers, galleries, and swimsuit issues. These searches provide an interesting perspective on what has been important in sports since SI began publishing in 1954.

The purpose of the following analysis is to identify the male athletes who most frequently adorned the SI covers and to look for other interesting trends. In December, 50 male athletes were selected for analysis. Their names, as listed in the charts below, were placed in the advanced search engine (exact phrase). Note that slightly different frequencies occurred when the names were placed in the general search box. It was also necessary to be aware of multiple athletes with the same name, such as Bill Russell, and adjust the search accordingly.

Keep in mind, the purpose of this analysis is not to identify the best athlete; rather the intent is to point out the athletes that adorned the SI covers most often. Athletes such as Lou Gehrig passed away before SI began publishing, so his coverage is minimal compared to current players. There are a number of factors that can determine whether an athlete makes the front cover or just receives mention in an article or picture gallery. The following questions address these factors:
• When did the athlete play?
• Did they participate in a team sport or an individual sport?
• How long has their sport been in existence, for example snowboarding is a relatively new sport?
• Did the athlete play in a major sport or a minor sport?
• Did the athlete play in a small market or a major market? Did they compete internationally?
• Who did the athlete have as sponsors and how well were they marketed?
• Was the athlete a flashy player who drew attention, such as John McEnroe, or were they a steady performer like Brian Gottfried?
• How has the interest level in their sport changed over time? Are people as interested in that sport as they once were?
• Were there lockouts or strikes during an athlete’s career that prevented additional exposure?
• Did the athlete experience injuries that reduced media coverage?
• Were there other events that were more significant or overshadowed the significance of an athlete’s performance?
• Was it a “slow sports day”, which allowed for certain athletes to receive greater coverage?
It is interesting to note who has been on the cover most frequently, but it can be equally as intriguing to consider the factors that may have caused or prevented greater coverage.

The data suggests that there are a handful of athletes who are media icons. Michael Jordan is one of them. He was on the SI cover 58 times followed in a distant 2nd and 3rd place by Tiger Woods and Muhammad Ali. Based on the data below, Tim Tebow will likely become the next icon if he turns out to be the real deal.

Woods tops the list for being in the most articles (6,983) followed by Jordan, Nicklaus, Mickelson, Manning, Favre, Bonds, and Brady. The latter group was each mentioned in 2,700 to 3,700 articles. The group of top 10 athletes represented football (3), basketball (3), golf (2), boxing (1), and baseball (1).

(Analysis of the SI database is included in the December 2, 8, and 20 blog posts. The three discussions identify the sports, major sporting events, male athletes, and female athletes to most frequently adorn the front cover.)

Sports Illustrated Vault – Top Sports and Event Covers

Are you a sports enthusiast looking for a way to take a walk down memory lane?

Sports Illustrated has just the ticket – the SI Vault – Your Link to Sports History(http://sportsillustrated.cnn.com/vault/). The website includes a database that allows sports enthusiasts to conduct searches on SI articles, covers, galleries, and swimsuit issues. These searches provide an interesting perspective on what has been important in sports since SI began publishing in 1954.

In December I conducted a couple of searches in the database to answer the following questions:
• Which of 15 sports was featured most often on the cover?
• Which of 3 major sporting events was featured most frequently on the cover?
• Which of a group of 7 topics was most frequently discussed in SI?
As well, the purpose of this study was to also provide a moderately rigorous analysis of the SI database to identify interesting trends, i.e. the process is not rigorous enough to publish in an academic journal.

The analysis methodology was simple. The category names listed in the charts below were placed in the advanced search engine (exact phrase). Note that slightly different frequencies may result by placing the category names in the general search box.

The results shows that football has been featured on the front cover most often. Although baseball is our national pastIn fact, it ended up second, slightly ahead of basketball.

After the top three, the numbers drop off quickly. Golf, boxing, and hockey were 4th, 5th and 6th, followed by track, tennis, and horse racing. Although track, hockey, soccer, and tennis fall below boxing in the number of covers they had a greater number of articles written about them.

The World Series and Super Bowl had essentially the same number of covers; however, the World Series has been in existence for much longer than the Super Bowl. The Super Bowl will likely become the major sporting event that most frequently graces the SI covers. The Final Four was a distant third. The gap between the number of SI covers for it and the World Series will probably be narrowed in the years ahead.

Both the Super Bowl and World Series had a similar number of articles written about them as the sports of hockey, soccer, and tennis. That illustrates the importance of these 3 athletic/entertainment events.

A sample of 7 topics was selected to try to understand the extent to which SI covered the darker side of sports and athletics. Scandals made the cover 5 times and drugs made it 4 times. Although betting and politics did not make the cover, they received significant coverage in the articles.

With the end of the football season on the horizon, the SI Vault may provide a way to spend Sunday afternoons until the golf course gets open.  Give it a try.

(Analysis of the SI Vault database is included in the December 2, 8, and 20 blog posts. The three discussions identify the sports, major sporting events, male athletes, and female athletes to most frequently adorn the front cover.)

Losers in the NBA Lockout

As the NBA lockout drags on, the negative impact on NBA communities increases. While it obviously effects the millionaire owners and players, they are only a handful of people. They will be just fine.

The list of real victims includes:

The day to day NBA employees – The NBA has sales, marketing, administrative, and executive staffs that guide the organization. With decreased revenue from no games , there will be decreased payrolls, i.e. fewer employees. As well, the NBA offices outsource to local firms for research, printing, consulting, and other services. That business is gone until the season begins.

The team employees in each of the NBA cities and the companies who they outsource business to. The cast of characters and negative impact is similar to the national office

The part-time event workers – There are a number of behind the scene part-time workers who make the events possible. This includes the folks who mop up your spilled beer and sweep up the popcorn you dropped on the floor. As well there are the ushers, janitors, parking lot attendants, and the concessionaires who sold you the beer and popcorn. While these folks are paid in the $10 to $15 per hour range, their part-time wages are often critical to their families. There are thousands of part-time workers in this category.

The special services workers – An NBA game includes people who provide special services for the event that add to the game-day experience. How could you forget the cheerleaders and team mascots? Not to mention the scorers, the scoreboard operator, the announcer with the booming baritone voice, and the folks who put on the light show and play the blaring music. And there are half time acts, such as the scantily clad dancers and the acrobatic dogs who catch Frisbees. In addition, there are the radio and television broadcast teams, their staffs and crews, and the lost advertising premiums associated with coverage of the games. There is a trickle-down effect; the lost wages
associated with these workers are not being circulated throughout the community.

Local businesses – there are local restaurants, hotels, bars, t-shirt shops, and other businesses that will experience a decline in revenue because of the loss of game-day traffic throughout the season. The loss of revenues will result in decreased purchases from their suppliers.

The list goes on… What about the cities with new arenas? The cities that would like to build new arenas? What about the teams that are struggling with attendance? Will the lockout cause disillusioned fans to stay away long after the players have returned to work? Will the lockout cause future ticket prices to escalate to make up for lost revenues?

The desire for increased revenue and wages on the part of a few, sometimes referred to as greed, has created an ugly scenario for many innocent victims.

Contenders or Pretenders – What is University’s Actual Goal?

The Boulder Daily Camera has always had top-notch sports writers. On Friday August 21, 2009 Neill Woelk wrote a timeless article entitled “CU must decide if ‘competitive’ is actual goal.”

Woelk’s focus was on the University of Colorado Athletic Department; however, his commentary applies to the academic side of the university as well. In fact, Woelk’s editorial makes the case that higher education is a tough business. Although he doesn’t say it, many colleges and universities have encountered challenges similar to those facing CU.

A lot has changed since Woelk penned his column in 2009 – CU has new coaches in its marquee sports and a new practice facility for basketball and volleyball. As well, the Buffs are now part of the PAC-12, and Commissioner Larry Scott has aggressive plans for the conference – and CU.

Despite these and other changes, the basic question is still pertinent – CU must decide if it really wants to be competitive (in athletics and academics). If competitiveness is their choice, they must find a way to finance that decision.

Woelk’s comments from 2009 follow:

It seems that every few years, the question arises concerning the University of Colorado and its athletic department.  What exactly, are the expectations that should be associated with CU’s programs?

It’s pertinent again today because the upcoming year might just be one of the most important in years for CU’s athletic department.

Important because CU’s fortunes in the “marquee” sports-football and men’s and women’s basketball-have been less than productive in the win-loss column in recent years. Important because a positive step forward by each of those programs is vital to the long-term viability of not only each individual program, but vital to the overall success of the entire department.

And, important because it’s time for the school-not just the athletic department, but the entire administration – to decide whether the Buffs should actually compete in the Big 12 or simply be merely a member of the conference with no expectations attached.

By no means is this the first time such a question has been asked. Fact is, it’s been an issue at CU for decades, and the answer has ebbed and flowed as administrations have come and gone.

It’s no secret that the zenith of Colorado’s athletic successes coincided with the presidency of Gordon Gee (now the president at Ohio State). Gee and then-athletic director Bill Marolt built a foundation for success at CU that set the stage for Bill McCartney’s 1990 national championship team, the opening of the Dal Ward Center in 1991 and what turned out to be maybe the most successful overall stretch ever for CU athletics in the ensuing half-dozen years.

That stretch also set the stage for CU to earn a seat on the national stage across the board. While some members of academia – not all, but some-are loath to admit it, successful athletic programs benefit a school in myriad ways. The marketing potential of successful athletics can’t be over-stated, and CU reaped the benefits in the ’90s.

(If you need to see the correlation between athletics and top-ranked public institutions, check any of the annual lists compiled by a variety of magazines. The top 20 always includes such schools as Virginia, Cal, North Carolina, Washington, Illinois, Utah, Texas, and Florida. Those same schools, of course, all boast successful athletic programs.)

It’s also no secret that when Gee left in 1990, CU’s ability to excel on the field began to slowly erode. McCartney had recruited well enough to keep CU nationally competitive for the ensuing six seasons, but support from the administration was never the same. The result was that maintaining competitive facilities became more difficult, as did the ability to attract the athletes necessary to compete in one of the nation’s most competitive conferences. By the end of the decade, CU had slipped significantly.

Gee’s departure is one of the reasons McCartney finally left in 1994, when support from the administration waned. It’s also one of the reasons Marolt followed suit just a couple of years later, and that lack of support is at least in part behind Rick Neuheisel’s departure after the 1998 football season.

And, it’s one of the reasons CU’s fortunes have since see-sawed, with the successes of the 1900s becoming more and more a memory rather than a constant.

How do administrations play a role in athletic success?

In the case of schools such as Colorado, it means making the playing field relatively level, wherever possible.

Clearly, CU will never compete on a financial basis with schools such as Texas, Nebraska, Michigan, etc. Those schools are economic heavyweights, with the booster dollars to provide whatever is necessary to facilitate success.

But CU can make sure its athletic programs are not hamstrung in other areas, such as academic admissions, necessary facilities, and the day-to-day process of doing business.

Check out CSU’s latest football press guide. In glossy color, it boasts of a $13 million indoor practice facility and a $7 million academic and training center. It’s by no means a Taj Mahal, but it keeps CSU competitive in its conference.

CU can make no such claims in the Big 12.

It terms of admission, I’ve never, ever advocated that CU accept the NCAA’s bare minimum standards. CU should be proud of its academic excellence. No shortcuts allowed.

But there are also cases in which some student athletes are on the cusp and are turned away. That’s not wise. Exceptions can and should be made. It was standard practice under Gee, and the university certainly seemed no worse for the wear.

By no means should Colorado compromise or taint the quality of its reputation.

But if CU officials – and fans and donors and students – do indeed want Colorado to actually compete in the Big 12, the administration should make that clear. Colorado should never hide behind the facade of claiming to be a productive member of one of the nation’s premier conferences if that isn’t actually the case.

Instead, CU administrators should consider another conference, because in the Big 12, the majority of schools see being competitive as a positive experience rather than a burden.

 

Bilingual Athletes

It is easy to forget that professional sports are international and that English may be a second or third language for many athletes. Frequently, foreign golfers, tennis players, and skiers speak eloquently when they are elevated to the podium to be receive their championship trophies and speak about their accomplishments. It is easy to forget that not everyone speaks English.

It is fairly easy to have an interpretter for individual sports. How does a coach communicate when he wants a basketball player to set a screen or play shortstop instead of second base, particularly if players on the team are from several different nationalities?

The December 22, 2009 Daily Camera published a quote on this topic attributed to Esquire magazine. Houston Rockets center Yao Ming was quoted, “I haven’t done much trash-talking. But last year, I did complain about a call. Nobody could believe it. So I said, ‘I’ve spent a lot on English lessons. I want to get my money’s worth.'”

Ming’s humorous comment on raises some interesting questions:
• What is being done by recreation programs and coaches to reduce the impact of the language barriers on their players?
• How many world-class athletes cannot advance to the next level because of language barriers?
• If this is occurring, what can be done to reduce the number of athletes lost in the process because of language barriers?
• Should players be required to speak English before participating in U.S. professional leagues? Should teams be required to have interpretters?

If nothing else, Ming’s comment illustrates how U.S. professional sports have become international.