Population Statistic: Read. React. Repeat.
Tuesday, June 12, 2021

My Football Club is where you can chip in, along with several thousand other fans, to scrounge up enough money to buy your very own professional team!

Hang on, though: This isn’t football as in National Football League. This is football as in futbol, as in soccer. English league soccer, to be specific.

What a buzzkill.

Not only that, but we’re not even talking Premier League glam-clubs like Manchester United, et al:

With an average of 500 signing up daily on his website, [organizer Will Brooks] reckons he’ll have more than £1 million ($1.98 million) to go shopping with within the month. “We can’t be certain what club we will be able to buy,” Brooks enthuses, though he knows the top teams will be beyond his budget. “It would be a mistake to bite off more than we can chew, and, in any case, a lot of people are saying ‘please buy a club of the size that will make the journey more exciting.’ ”

Given their potential purse, Brooks and his 50,000 partners are likely to get a smaller club, a third- or fourth-tier organization. But they would run it. They’ll vote online on the purchase, help pick the manager, and vote on which players to buy or sell. As Brooks says, it’s just like popular fantasy soccer or baseball games – but it’s not make-believe.

So the plan is to buy a low-minor league club, get a charge out of owning and running it, and hope it generates plenty of notoriety and support. A big bonus comes if the team can ride this way into eventually winning its way up to Premier level.

It’s a novel concept. In American terms, it’s sort of like applying the Green Bay Packers community-ownership model to English soccer, without the benefit of the grandfathering conditions that allow the Packers to exist.

Call it pessimism, but based on my previous encounter with a “wisdom of crowds” approach to business ventures, I see this effort fizzling out quick. For instance, the democratic approach in allowing participants to vote on which club to target for purchase will result in just one thing: Most of the voters on the losing side subsequently dropping out of the project, since “their” team would no longer factor in. Fans are funny like that.

That’s assuming $2 million will even be raised, or that even a low-tiered club will even be attainable. All in all, a better concept than a viable gameplan.

by Costa Tsiokos, Tue 06/12/2021 07:15:00 PM
Category: Other Sports, SportsBiz | Permalink | Feedback

This always falls on deaf ears, but it bears repeating anyway: Corporate chief executives tend to make a lot more moolah than even the highest-priced celebrities:

Yahoo Inc.’s Terry Semel, whose Internet company has lagged behind Google Inc. in profit growth and stock performance, led the pack with total compensation last year of $71.7 million, according to the AP formula used to analyze those filings.

That’s more than 2.5 times the $27 million in total compensation this year for the New York Yankees’ Alex Rodriguez, baseball’s highest-paid player, and higher than the typical pay of such A-list movie stars as Brad Pitt or Leonardo DiCaprio — $20 million, plus 20% of the gross box office take…

A recent report by the Congressional Research Service helps to put the executive pay issue into a real-world context. CEOs make, on average, 179 times as much as rank and file workers, double the 90-to-1 ratio in 1994, according to the agency’s calculations.

Options grants and stock awards helped boost CEO pay as much as eight-fold during the 1990s economic expansion, according to compensation consultant Donald Delves. Then the stock market bubble burst in 2000 — but CEO pay hasn’t come down since.

By contrast, median household income edged up only 8.6% from 1990 to 2005, according to U.S. Census data.

If the minimum wage had risen at the same pace as CEO pay since 1990, it would be worth $22.61 today, according to the Institute for Policy Studies. Instead, the federal minimum wage will increase to $5.85 an hour on July 24, the first increase in a decade.

CEOs are also much richer than lower-level executives at their own companies. The Hay Group, a compensation consulting company, estimates that the average CEO makes 2.5 times more than the average executive in base pay.

Not that I begrudge anyone from banking all the dough they can command, including CEOs. Ultimately, success in their jobs means their companies will be making many multiples more in revenue than whatever they’re getting paid. For that matter, the same applies to the athletes and entertainers.

The most significant aspect of this analysis: It confirms how meaningless “salary” is when you’re talking C-level paychecks:

No matter which formula you use, Yahoo CEO Semel’s total illustrates one of the most pronounced recent trends in executive pay: Salary and cash bonuses account for only a small portion of total compensation. Almost all of his pay — $71.4 million — came as stock grants and stock options, according to AP calculations. His salary totaled only $250,001.

Even more egregious are the pay packages that assign official salary for the CEO at $1. Obviously, in such cases, you know the real money’s coming from a fuzzier source.

by Costa Tsiokos, Tue 06/12/2021 06:02:04 PM
Category: Business | Permalink | Feedback