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View Full Version : Calipari's perks (aka what a Sweet 16 is worth)



FuManShoes
04-01-2009, 07:11 PM
To the fool who suggested reaching Sweet 16s amounts to accomplishing nothing in the tournament, I present some of the performance perks Kentucky is promising Calipari:


Hundreds of thousands of dollars in incentives for reaching certain milestones, such as a 75 percent graduation rate or better ($50,000), winning the Southeastern Conference ($50,000), winning the SEC tournament ($50,000), making the NCAA tournament round of 16 ($100,000), making the Final Four ($175,000), or winning the national title ($375,000).


http://sports.espn.go.com/ncb/news/story?id=4034862

hls97
04-01-2009, 07:35 PM
When you make the kind of money Cal is making at Kentucky, does an extra $50k even enter into your thinking?

I can't see Cal saying, "gee, if only we make the Sweet 16, I will make an extra $100k. I can add that to my stack that currently takes up the south wing of my mansion."

I hope Cal flames out at UK.

CelticZag
04-01-2009, 07:45 PM
Money is money. Worst thing he does with it is give it to charity. Middle of the road, it goes to his kids' and grandkids' college savings. Best thing he could do is get a BMW M6.

edcasey
04-01-2009, 08:35 PM
My understanding is his base pay from the university is 400,000 the rest is from booster clubs and the incentives by reaching milestones....so yes the 50,000 would make a difference......but it is also a classic use of positive goal reaching that type A personalities thrive on and try to reach...thus why most succesful people are goal driven A personalities

skan72
04-01-2009, 09:16 PM
My understanding is his base pay from the university is 400,000 the rest is from booster clubs and the incentives by reaching milestones....so yes the 50,000 would make a difference......but it is also a classic use of positive goal reaching that type A personalities thrive on and try to reach...thus why most succesful people are goal driven A personalities

Why would the 50,000 make a difference if he is making something over 3 million guaranteed each year?

mgadfly
04-02-2009, 06:26 AM
$50,000 is still one sixtieth of his annual pay. I know I'd stop to pick up $1500 if I saw it sitting on the road, or work a little harder to earn $1500 in bonus money.

It would at least be on my mind.

hls97
04-02-2009, 07:13 AM
$50,000 is still one sixtieth of his annual pay. I know I'd stop to pick up $1500 if I saw it sitting on the road, or work a little harder to earn $1500 in bonus money.

It would at least be on my mind.

But the marginal value of 1/60 of Cal's pay is much, much lower than it is for you. When you have on the order of $10M plus saved up, $50k just doesn't mean that much.

hls97
04-02-2009, 07:15 AM
Wrong. He has guaranteed pay of well over $3M a year.

These are incentives that would be tacked on to that amount and are, therefore, insignificant to him (or at least should be).

mgadfly
04-02-2009, 07:25 AM
But the marginal value of 1/60 of Cal's pay is much, much lower than it is for you. When you have on the order of $10M plus saved up, $50k just doesn't mean that much.

I'd agree that the value to someone making that much money may not be equal, but I'd disagree that $50k "just doesn't mean that much." It meant at least enough for them to haggle over and include in the contract.

I'm not arguing that it will increase his performance, he'll want to meet all of the incentives because of his ego (and I'm not implying that is a bad thing). But $50k is $50k and that is not insignificant.

mgadfly
04-02-2009, 07:28 AM
Wrong. He has guaranteed pay of well over $3M a year.

These are incentives that would be tacked on to that amount and are, therefore, insignificant to him (or at least should be).

At what point does money become insignificant (or should become insignificant)?

If you make $2m or more per year it is all the same? If you make 500k or more per year it is all the same? I'm not sure how much money you have to make before it loses its relevance.

I will admit that I negotiate employment contracts for a living, so I may be biased based on my experiences with clients. I've never had anyone, no matter how large the figures were that we were dealing with, just sneer at $50k.