Athlete Perks — Are They Worth It?

Three years ago, Forbes Magazine ran a story on the 40 highest-paid athletes in the world. The top 5 were as follows:

1. Mike Tyson: $75,000,000
2. Michael Jordan: $30,000,000
3. Michael Schumacher: $25,000,000 (to make $30,000,000 in 1998)
4. Shaquille O'Neill: $120,000,000 with a 7-year contract
5. Emmitt Smith: $10,500,000 signing bonus.

At the time, these numbers were considered extreme, even obscene. People balked at the idea that athletes would be worth such enormous sums of money. Yet, despite the cries of excess, athlete salaries today are higher than ever. In fact, the numbers above seem paltry when compared to the following, reported by The Sporting News in December of 1998:

1. Alonzo Mourning: $112 million
2. Juwan Howard: $100.8 million
3. Mike Piazza: $91 million
4. Bernie Williams: $87.5 million
5. Mo Vaughn: $80 million

Before you start to think the numbers are extreme, remember: huge salaries aren't the only perks that athletes are benefiting from. Some of the other payoffs include:

• Private Jets
• Exemption From Team Regulations
• Roles in Movies Or TV Series
• Tapping Into Owners' Connections
• Luxury Box Seats
• Luxury Suites

Chances are, you've heard some of this before — many of the packages awarded to athletes have become the stuff of sports legend. Los Angeles Dodgers pitcher Kevin Brown became the first baseball player to break the $100 million barrier last year, with $105 million and a seven-year deal. In addition, he received: 12 private jet rides to take his family from Georgia to LA for games; access to the set of Star Wars (and an autographed poster from George Lucas); and a hotel suite for road games. Many fans find themselves disgusted at the excesses, especially if the players don't perform to the fans' expectations.

Perks don't always take the form of box seats and contracts — one NBA player, Boston Celtics star Ron Mercer, took advantage of the lockout lull and went to work in an action movie produced by his new agent, rapper Percy Miller ("Master P"). In the hockey world, superstar Wayne Gretzky is allowed to use the Rangers' logo in commercials for products he is paid to endorse. These perks are above and beyond the salaries, contracts, and luxuries offered by the teams.

Dollar signs are plentiful in sports, and athletes aren't the only ones cashing in. Coaches, general managers, broadcasters, agents, commissioners, and more are benefiting from the rising bar. Division I coaches at top schools can make in excess of $1 million. The Boston Celtics' Rick Pitino makes $7 million a season, and Denver's Mike Shanahan received a 3-year contract extension and $2.4 million a season. Jerry West, General Manager of the Los Angeles Lakers, gets more money in one year than he made in his entire career as a player.

Why, you ask? Athletes (and others) are getting bigger benefits because of a higher level of competition. When a star athlete comes to the auction block, the price is driven up by the other bidders. More than one official has admitted that athletes get paid so much because: "If we don't pay it, someone else will." But are they worth it?

The answer is yes. We want them to reap the benefits. We want to scratch our heads in disbelief when yet another player, coach, or manager negotiates a record-breaking deal. If we didn't, then why would we continue to pour our money into the sporting industry? It all comes down to the basic premise of spectator sports: entertainment. And, as long as we derive enjoyment from watching the lifestyles (as well as the games) of our star athletes, coaches, and teams, they will continue to benefit from our attention — positive or negative.