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Home > Terence Moore > Archives > 2008 > June > 03 > Entry
DEL.ICIO.USIf anything, pro athletes are underpaid
The Atlanta Journal-Constitution
Matt Ryan was the wrong choice. If you have the opportunity to draft the next Warren Sapp in Glenn Dorsey with the No. 3 pick overall in the NFL draft, you do it. Instead, the Falcons did the historically risky by taking a quarterback that high in the first round.
That said, nobody is overpaid. In fact, most folks are underpaid. Others are within several pennies of what they should be making, including shortstops, point guards, defensemen and even quarterbacks making something like $72 million.
I was an economics major in college, so trust me when I say Ryan isn’t overpaid, OK? Neither is any professional athlete, and there are many reasons why.
Here are just five of them.
USA, USA, USA
We’re talking about supply and demand, free-market system, survival of the fittest, rugged individualism. All the American things that have generated cringing through the decades from Lenin to Mao to whoever invented the salary cap.
In this country, whatever somebody is willing to pay you, then that’s what you’re worth — and likely more. The economic structure in professional sports is just a microcosm of this process, where attendance records and ticket prices have kept rising this century in the NFL, the NBA and baseball.
That’s why, with the Falcons playing before a stuffed Georgia Dome for the past six years, Michael Vick ($130 million) was Matt Ryan before Matt Ryan.
No soup kitchen here
The next owner of a professional sports franchise to go bankrupt after paying a bunch of money to one of his players will be the first. Owners give all of that money to certain players, because owners have all of that money to give.
Such is especially true in the NFL, where Forbes magazine estimated this year that five franchises are worth more than $1 billion. According to Forbes, the Falcons are ahead of only Minnesota in total value in the league, but the Falcons still are worth around $796 million.
Not only that, Arthur Blank, the co-founder of Home Depot whose worth is placed at $1.3 billion by Forbes, bought the Falcons in 2002 for $545 million.
You do the math.
It doesn’t work that way
Essentially, this is how the average fan thinks when — oh, say — a quarterback who hasn’t played a second in an NFL game gets something like $72 million.
How can they pay that guy all of that money when you have school teachers barely making it? The same goes for nurses, law-enforcement officers and others around the minimum wage with oil prices soaring by the millisecond.
Sorry to deliver the truth, but if that quarterback we just mentioned didn’t get $72 million, it wouldn’t translate into higher salaries for school teachers, nurses or police officers and relief at the gas pump for the weary. It would translate into more money in the pocket of that owner.
A bleacher seat or the mortgage
Here’s Part II to our previous point: The average fan also thinks that, if an owner doesn’t give something like $72 million to a quarterback who hasn’t played a second in an NFL game, such a scenario would lead to friendlier ticket prices.
Not.
There have been a slew of studies through the years to show there is no correlation between the rise of players salaries and the rise of ticket prices.
Owners traditionally will raise ticket prices no matter what. And get this: Despite Ryan’s supposedly outrageous contract, the Falcons even lowered ticket prices for next season in the upper parts of the Georgia Dome.
Just wait
These things work themselves out. We’re back to the free-market system. For instance: Blank just put a $72 million bull’s-eye on the back and front of Ryan’s jersey. That means before the Falcons’ season reaches Halloween, Ryan has to start, and he has to play well.
If Ryan becomes a pumpkin, that means he wasn’t worth all of that money, but only to Blank. It’s nobody else’s business, because it’s nobody else’s money.
Permalink | Comments (41) | Post your comment | Categories: Falcons/NFL
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By Najeh Davenpoop
June 3, 2008 5:37 PM | Link to this
It’s funny how the same people who probably vote for pro-free market political candidates just can’t stand it when the same free market pays pro athletes salaries beyond any they can dream of. Here’s a hint: if you think pro athletes are overpaid, quit watching pro sports. Watch college instead, where athletes can be exploited all you want while people who could never dream of playing a sport profit big time. I completely agree with this article, although I’m probably one of the few who do.
By Herschel Talker
June 3, 2008 5:44 PM | Link to this
Terence is definitely not underpaid
By The Grinch
June 3, 2008 5:59 PM | Link to this
Terrence, nobody’s gonna come watch games to see Dorsey when the offense is scoring 13 points a game with Redman/Harrington and no o-line. Unless Stafford or Tebow come out early next year, there isn’t gonna be anyone as good to take as Ryan was this year. NOBODY is going to the dome now; now is the time to get butts in the seats instead of losing money hoping the dome will be full watching a guy who plays 20 snaps a game for the defense. Wrong again.
By Just a thought...
June 3, 2008 6:10 PM | Link to this
I would agree with the general premise of this blog, although maybe the shock over Ryan’s salary has more to do with what he is making in relation to other NFL players and not the public at large. There are veterans that have put life and limb on the line for their teams and don’t make that much.
By UGA_kid
June 3, 2008 6:15 PM | Link to this
Mr. Moore, You sir, should go back to wherever you got your economics degree and allow them to rescind your degree, because clearly it was not worth their time or your money. Price does not always equal value, especially in the case of pro athletes. You are not dealing with a free market where everyone has an opportunity to place a bid and come up with an equilibrium price for the players. That allows for outliers in value, with some players being overvalued and some being undervalued. Matt Ryan, who agreed to a contract making his salary comparable to top NFL performers such as a certain New England quarterback, seems to be a bit of an outlier to me. My second point is that according to your source’s mathematics of the team having been bought for 565 mill and now being worth 796 mill. That is only a 6.52% return on investment according to team value. Keep in mind that the value of any asset is the present value of its future cash flows so these numbers have accounted for all cash flows involved at the time. An asset with a 6.52% return on investment would be dropped quickly on wall street as this is a pretty weak return. Anyways, your article just kinda struck a nerve with you beginning it claiming you have an economics degree and thus all theory held within the article is automatically infallible.
By Ravi
June 3, 2008 6:19 PM | Link to this
I’m glad to finally see someone use free market economics when discussing player salaries. Its a simple matter of supply and demand. If you don’t like it, move to North Korea.
By Sullyzz
June 3, 2008 6:22 PM | Link to this
Terence…leave the dead horse alone. How many more Ryan bashing articles are you going to write? We get it already…you wish that the Falcons had drafted Dorsey instead!
By A.Richey
June 3, 2008 6:48 PM | Link to this
Matt Ryan makes more than Tom Brady.That in itself is beyond any common sense to smart football fans.
By Big Bull essie Jack
June 3, 2008 6:51 PM | Link to this
I,m just glad that I don,t have to watch Dorsey high step it and arm pump it every time he makes a play.I’ll drive from out of town to watch Matt Ryan play and grow in this league, But I wouldn’t do the same for “Horsey Dorsey”. That’s the economics Mr.Blank is looking for!
By JD
June 3, 2008 7:14 PM | Link to this
The fact that they already signed Ryan means that they want him to be there for ALL of training camp so he will be starting from WEEK ONE, Terence. And that’s well before Halloween.
By Proud dawg
June 3, 2008 7:17 PM | Link to this
Terrence, you, my friend, are overpaid! It is because of the journalists, such as yourself, at the AJC why I do not pay money to subscribe… Once again, the intelligent readers online see through your thinly veiled racism. I do not care what professional athletes are paid… If the product on the field is worth my hard earned dollar then I will spend on it (supply and demand, duh?) Are you sure you got an economics degree from Notre Dame or was it home economics? Might want to check that diploma once more?
By rob
June 3, 2008 7:19 PM | Link to this
Terence . At least now I understand why your a lousy sports writer .Youi know as much about football as most econcomics majors ,squat. Why dont you get a job with the City of Atlanta . you would fit right in the way they handle there budget.
By EataPeach
June 3, 2008 7:49 PM | Link to this
So Glen Dorsey is the next Warren Sapp!?? Says who!??? Perhaps Matt Ryan is the next Peyton Manning, or Tom Brady. However, I will settle for just being a good quality QB
By EataPeach
June 3, 2008 7:59 PM | Link to this
“Matt Ryan was the wrong choice. If you have the opportunity to draft the next Warren Sapp in Glenn Dorsey”
I couldnt read any further!
Terrance with your ability to identify and project talent-I really dont understand why you aren’t the GM or VP of Player Personnel for some NFL team.
Your musings, amuse me!
Matt Ryan has as much of an opportunity to excel as Dorsey does.
As strange as it may sound, I will trust the evaluative ability of our PROFESSIONAL football staff to that of a newspaper reporter!!
By Falcons Fan
June 3, 2008 8:28 PM | Link to this
If anyone is overpaid its T Moore.
How does he keep his job writing this same crap over and over.
Dorsey is short and injury prone.
Time will tell. Ryan was the right choice for anybody with any sense, as Smith and Dimitroff.
Get a real job Moore. I think public works needs some garbage men.
Maybe you should go see if Arther will let you in his office again.
OK Hillary
By michaelgee
June 3, 2008 8:44 PM | Link to this
TM, Here is the realization. Who got Glenn Dorsey? KC, right.
In one season KC will see their folley. What folley is that? Here is the truth.
KC chose Brodie Croyle over Matt Ryan. A bigger mistake than us taking Vick over LT.
When Dorsey can score TD’s, then he will be bigger than Matt Ryan. The Chiefs got caught up in the Dorsey hype, fwiw, one player does not a defense make. Aundray Bruce and Brian Bosworth please stand up.
KC drafted Glenn Dorsey, injury plagued in college and “today” seems to be a great pick, but during the 2008 regular season when Brodie Croyle shows that he is not a top tier NFL QB, the Cheifs will get to see that they could have drafted Matt Ryan and had a QB for their future.
SO what is KC now? They will be no more than we would have been had we bet the farm on a single defensive player to save the franchise again.
Matt Ryan can be the impact player and LEADER by finally giving us a QB who can read defenses and make decisions vs the duck and run non-thinking Vick era.
Face it, when Vick was here we were at best a .500 team.
Dorsey may never be the dominant D player he is projected to be, he is awfully short for the NFL.
If you truly are an Economics major, please note that you need to produce something worth reading vs your usual rambling and stumbling.
By tugglefan
June 3, 2008 9:20 PM | Link to this
This is why you work for a newspaper and Mr.Blank owns the team, go figure.
By TMAC
June 3, 2008 9:33 PM | Link to this
I agree with your article Terrance. However, IMO if Glenn Dorsey turns out to be the greatest Defensive Tackle of all time and Matt Ryan is just merely good, than drafting Ryan was/is the right move! Get over it!
By shadaway
June 3, 2008 10:01 PM | Link to this
I am a teacher and the idea that anyone whose job starts with the word “play” is not overpaid greatly offends me. Measure the value that is contributed to society, not to the entertainment of the society, and then tell me there is nothing wrong with what is being paid to these people. I am a die-hard Braves and Falcons and Thrashers fan (I don’t like basketball), but there is no way that they deserve the millions they get paid.
By Bumblebee Tuna!
June 3, 2008 10:11 PM | Link to this
I’m actually with you for a change, Terence, with a single catch - Glenn Dorsey could be the next Warren Sapp as much as Matt Ryan could be the next Joe Montana. Neither of those guys has played a down in the NFL. If you rewind a few years, you will recall that many talent evaluators thought Charles Rodgers was a can’t-miss prospect at WR.
Oops!
Glenn Dorsey (and any other player for that matter) is one injury away from being an undecorated member of NFL history with mountains of potential. Heed your own words of wisdom - IF Matt Ryan is a bust, the only person who truly suffers is Arthur Blank. The Falcons faithful will fill the seats regardless of the draft pick.
By Aqua Man
June 3, 2008 10:14 PM | Link to this
Hey, TM… would you like a little water to chase down all the support you’re getting? I’ve got plenty but you may have to move to the Pacific. No worries, mate. The Aussies have a great sense of humor.
By DHD
June 3, 2008 10:20 PM | Link to this
Can we PLEASE have a Falcons article without mentioning “you know who?” PLEASE????? Just one??????
By Randy
June 3, 2008 10:30 PM | Link to this
Ryan may not be overpaid but you are definitely over published Mr. Terrence ” I get published by being negative” Moore!
By Pum Pum Driller
June 3, 2008 10:37 PM | Link to this
Mr. Moore’s point about the historically risky nature of drafting a quarterback so early in the draft is actually supported by factual evidence. I invite any of you who say that his is simply a “racist” swipe at Matt Ryan to check the record. Please research the last 10-15 drafts and chart the careers of all quaterbacks drafted within the top ten picks. This list should include the likes of Ryan Leaf, Akili Smith, Andre Ware,Peyton Manning, Mike Vick, Byron Leftwich, Donovan Mcnabb, more… Peyton is pretty good. McNabb is solid/spectacular. Others? Point granted! I hope that Matt is solid and grows to be splendid. We just don’t know yet. However, 19 interceptions and 21 sacks as a senior QB playing in the ACC is suspect. Will see how he handles the shift up in speed with the pro game.
By Pum Pum Driller
June 3, 2008 10:38 PM | Link to this
Mr. Moore’s point about the historically risky nature of drafting a quarterback so early in the draft is actually supported by factual evidence. I invite any of you who say that his is simply a “racist” swipe at Matt Ryan to check the record. Please research the last 10-15 drafts and chart the careers of all quaterbacks drafted within the top ten picks. This list should include the likes of Ryan Leaf, Akili Smith, Andre Ware,Peyton Manning, Mike Vick, Byron Leftwich, Donovan Mcnabb, more… Peyton is pretty good. McNabb is solid/spectacular. Others? Point granted! I hope that Matt is solid and grows to be splendid. We just don’t know yet. However, 19 interceptions and 21 sacks as a senior QB playing in the ACC is suspect. Will see how he handles the shift up in speed with the pro game.
By Terence Moore
June 4, 2008 9:22 AM | Link to this
A. Richey brings up a point that is being expressed by many. He said Matt Ryan is making more than Tom Brady. In fact, Ryan is making more than most NFL veterans, regardless of position.
That’s actually great for NFL veterans. Gene Upshaw, head of the players union, correctly pointed out that Ryan’s contract will serve as a catalyst to help raise the salaries of NFL veterans.
That’s the way the free market works.
By Richard
June 4, 2008 9:33 AM | Link to this
Michaelgee, you’re an idiot.
The Chiefs did not pick Croyle over Ryan. Ryan was gone by the time the Chiefs were on the clock. Ryan wasn’t an option for them.
Dorsey is short for the NFL? So is LaDanian Tomlinson. So is Maurice Jones-Drew. So is Steve Smith. So is Zach Thomas. How’s “short” working out for those guys?
By Dean
June 4, 2008 9:36 AM | Link to this
Terence, you should have stuck with economics! How can you say that Matt Ryan is the wrong pick? There’s no way to know that right now. Fact is, we need a franchise quarterback, and he was there for the taking. Get behind Ryan - he’s done nothing to make you think he can’t be a success. He has a great work ethic, he’s smart, he has a good arm…or are you still hoping Mike Vick will reappear in a couple of years to save the franchise?
By The #1 Underpaid
June 4, 2008 9:55 AM | Link to this
I am a teacher… I am what you call UNDERPAID. I could care less about some pro athelete being considered underpaid because they are all OVERpaid. They cannot say they are any better at what they do than I am at what I do. It just shows where our nation’s priorities are placed.
By Peachtree John
June 4, 2008 9:56 AM | Link to this
I always enjoy Terrance’ column. True, there seems to be a string of racism put forth to the reader and true, the thought process seems to come from left field many times, but this is entertainment. I often look for Terrance’ column just to see what the “rant” of the day is. One would hope that if the Falcons new QB pans out and leads us to the football promised land, Terrance will acknowledge the wisdom of the choice, but then that might not sell as many newspapers. Enjoy.
By Mangos Jerry Mangos
June 4, 2008 10:11 AM | Link to this
Mr. Moore,
This is not a good or bad critique of your column posted today. Just a quick question. I notice that you always refer to something happening before Halloween in every other column and then follow this up by stating that the person may or may not become a pumpkin shortly after. Quote: “That means before the Falcons’ season reaches Halloween, Ryan has to start, and he has to play well.If Ryan becomes a pumpkin, that means he wasn’t worth all of that money, but only to Blank.” I have looked back at many of your columns in the archives and it is peppered throughout many many of your posts. Was this your favorite holiday as a child? Were you never allowed to celebrate it like the other kids in you neighborhood and this has somehow worked its way into the deep recesses of your mind? Normally I wouldn’t ask what seems to be such a trivial question but I’ve been reading your columns for a long time and it seems like you write this in every other one these days. So to sum up, what the heck is up with all the Halloween references?
Inquisitive minds want to know!
By Buzz
June 4, 2008 10:23 AM | Link to this
Moore, From your writing, we can tell you’re not an English major. From your argument, you clearly never took a class in logic.
To jokingly paraphrase Rick Pitino, “Michael Vick is not walking thru that door!” And it’s not solely because he’s in jail. He’s also unfit to play QB at this level.
By PMC
June 4, 2008 10:26 AM | Link to this
Terrance, I wanted Dorsey too. but come on man it’s June 8th.
THis is a ridiculous column for June 8th. It’s done. The contract is signed, no one in the world has any idea of what worth he will have in the future or Glenn Dorsey for that matter.
It’s June 8th. How about an NBA article or something remotely relevant right now. Thanks, P.
By Buzz
June 4, 2008 10:28 AM | Link to this
Moore, You are a great reason why the whole of this awful, joke of a paper is greater than a sum of its parts.
By PMC
June 4, 2008 10:33 AM | Link to this
Well done with the economic discussion though Terrance, even though I don’t find this timely the only thing that’s going to bring ticket prices down is supply and demand. Honestly I don’t care how it relates to the rest of the league 500 bucks for 2 horrible upper GA Dome level seats to watch this rag tag bunch play this year is still a lot to pay for my entertainment dollar. It’s almost better spent on NFL Sunday Ticket wings and beer at a local pub watching other teams play during home games.
CHeers,
By nahjay davnpooh
June 4, 2008 10:37 AM | Link to this
who opens a column with an inflammatory statement that has nothing to do with the topic? to make matters worse, this is AT LEAST the third column he’s said the EXACT same thing. he won’t let it go. that’s pathetic. it’s a shame that ajc columnists think columns have to be inflammatory. i know, i know, don’t read it if you don’t like it, but i am an atlanta sports fan, and i won’t ignore it.
this man is a bitter n to the i to the double-g to the e to the r, son.
MATT RYAN FOREVER.
By Submariner683
June 4, 2008 11:13 AM | Link to this
Enough is enough about the risky pick of Matt Ryan, Mr Moore. Yes, as many have said, Pum Pum Driller included, high 1st round draft picks have been risky.
But some of the best quarterbacks in history have also been 1st round picks and I don’t see anything written about them. Marino, Bradshaw, Elway, Jim Kelly, Troy Aiken, the list goes on. All Hall of Fame quarterbacks picked in the 1st round and as in the case with Aiken and Bradshaw, overall #1.
Let’s look at the last 3 Superbowl winning quarterbacks, E Manning, P Manning and Big Ben. Hmm…, all 1st round picks, those teams made mistakes picking them that high.
Yes, there are more examples of busts, especially in recent history, than success stories with QB drafting. And I’m not saying that Ryan is the next Manning or Bradshaw or whatever. Statistically, he’s more likely to become the next Tim Couch than the next Manning.
With all this in depth knowledge you have Mr Moore, where should the Falcons or any team draft a QB? What round or pick # is sufficient to get you next franchise quarterback? Do it the Patriot way and win the lottery in the 6th round with Brady? Hope to find another Montana in the 2nd round? You’re the expert, please enlighten us when you make the QB pick? All the experts from this year said that there is no QB coming out next year that will be as good as Ryan is this year. And if the Falcons didn’t pick a QB this year, they’d be needing one next year. Or should the Falcons hope to get a franchise QB through free agency? Or hope that Redman and company have those skills to be the QB for the next 4-6 years?
We know you love Dorsey, to say he’s the next Warren Sapp is no less accurate as saying Ryan is then next Akili Smith. Neither have played a down in the NFL. And at least Ryan is healthy and didn’t play on a super team like the Tigers were. That team was loaded on defense. Dorsey has already had some health issues, not what you want in DT.
And ask yourself, which position was more of a need? You can argue both, but I think most experts would say that Quarterback is a more significant position than DT. You can ask ANY GM if they’d rather have Tom Brady or the absolute BEST DT in the game, I’m sure all 32 teams would pick the QB and be shot if they didn’t.
A quarterback has a much bigger impact on the game than a DT. It’s just a fact.
By Social Security
June 4, 2008 11:36 AM | Link to this
All of You Matt Ryan Lover’s will have a bad taste in your mouth’s after you see him perform this year. It’s nice to see that you all have high hopes. But he stinks!
By 1eyedJack
June 4, 2008 11:45 AM | Link to this
The fact of the matter is that the NFL draft is a crap shoot. The field is littered with top 10 draft picks who went bust; including DTs and QBs. What makes a player successful at the college level may not transcend to the Pro level. Only time will tell. As for the salary, Arthur could have negotiated this thing out until 4 weeks into the season and come away with a better deal, but the season would be lost for Ryan and probably for the Falcons. Blank/Demitroff are trying to make a statement which I beleive is this: The Falcons are going to do everything they possibly can to turn this franchise into a winning franchise and that starts right now. I beleive that the 72 mil is a statement that we have our quarterback of the future, we want him happy, and we want him to be prepared to start that first game of the season.
By zippy
June 4, 2008 12:10 PM | Link to this
terence, get a real life - pro athletes should all get the same contract but with incentive clauses for performance….that way, if your statistics are the best for a particular year, you get paid the best, but if you’re injured or play like crap, you only get a base salary….i’m tired of paying high prices to see a pro sports game due to under-achieving, over-paid sports figures…….
By FalconChief
June 4, 2008 12:12 PM | Link to this
The next Warren Sapp huh? I hope not. I don’t think the Falcons want an adulterer drug user who has more kids with other women than he did with his wife. Make sure you know the person before you place them as the gold standard.