Mark Wright’s Blog

With the current financial crisis, everyone seems to be complaining about how much money people are making.  I have never had a problem with how much money someone made.  If someone is willing to pay it, then you should be willing to take it.  People complain about athletes in particular.  Are the salaries incredible?  Without a doubt but if someone is willing to pay that amount, chances are they believe they will collect on their investment.

One of the big stories as of late is the huge contract that basketball coach John Calipari signed to take the helm for the University of Kentucky program.  The thought is that as states are taking federal money during a tough economic time and then paying Calipari a boatload of money. 

Here is the issue that most people don’t understand.  College basketball is a business.  If the program has the right coach, the university can fund pretty much most of their other sports programs, even the ones that don’t generate revenue. 

The University of Kentucky is one of the most storied basketball programs in the country.  It generates a ton of revenue for the university.  The investment in Calipari will ultimately pay huge dividends, if he wins.  Besides, the majority of his contract is paid through sponsorships, radio and television contracts as well as conference revenue sharing.  Only about $400,000 is actually paid by the university.    

I know of a similar situation the University of Texas with their football coach Mack Brown.  People in Austin were constantly complaining about how much money he makes but the reality is that he is probably underpaid.  The Longhorn football program generates millions of dollars.  It is one of the richest programs in the country if not the richest in terms of generating revenue. 

Yes there are a lot of professions that are underpaid.  Teachers and law enforcement are two that come to mind quickly.  However in this case, I don’t think this was a bad investment for Kentucky basketball.  If you are generating revenue, you should be paid accordingly.  Do I believe there are people out there that are overpaid?  Absolutely!  However, some people are worth the money.