This guy is straight up getting paid

Since this week has a great NHL feel to it, I decided to stick with an NHL player for the $ Pioneer. Based on my last post, you’d think that there weren’t any guys in the NHL who were getting paid substantially. But don’t worry, I found a guy.

Behold, Alexander Ovechkin. He’s a forward for the Washington Capitals, and he’s the highest-paid player in the league right now. His salary is colossal.

Last season, the young goal scoring machine was resigned to the Capitals for 13 years and $124 million, by far the largest contract in the history of the NHL. He’s also the first player in league history to go over $100 million in a contract.

It’s not that he doesn’t deserve a healthy portion of this contract. Here’s a look at his career stats.

No matter the pay, we salute you Alex Ovechkin. You’re this week’s $ Pioneer.

These guys technically don't get paid a lot...

Not everybody in America is down with hockey. That’s fine. Nobody’s judging. 

The 2000s have been tumultuous for the National Hockey League. In eight years, the sport has seemingly decreased in popularity, endured a lockout that canceled a full season, and then witnessed a rebirth that a lot of people failed to notice.

No matter your theories on whether professional hockey is entertaining or not, there is an odd trend at work in the financial area of NHL life. Compared to other professional sports, the NHL’s current salary cap of $56.7 million is way low. Compared to a lot of other professional athletes, hockey players’ salaries are way low. Yet, it seems that the NHL is overspending again. It’s like some sort of a bizarro world.

$56.7 million is a number that needs to be put into perspective to truly get the idea of how tiny a number it is. Perpetual doormat Major League Baseball teams like the Kansas City Royals have a larger payroll than the biggest players in the NHL do. While Detroit is spending $55 million this year to field the best team in the NHL this season, bottom feeders like the Charlotte Bobcats and the Washington Nationals are spending near or over that amount to be two of the worst teams in their respective sports. It’s an incredible trend.

Here’s a link to another blog that does a great job of giving insight into how NHL salary caps and payrolls have changed over the years. Notice that the author thinks NHL player salaries are skyrocketing. I can’t say I agree with this logic, seeing as how the current “skyrocketing” salary cap isn’t even close to what a lot of teams pay for a worse record.

For comparison’s sake, I have to include some other money guidelines in the other major sports.

NBA—The highest a team’s salary could go under the 2008-09 cap is $71.150 million. that is nearly $20 million more than the NHL. Put it into the perspective of full contracts, and LeBron James will make more over the duration of his current contract than some entire NHL teams.

NFL—The 2008 salary cap for teams is a staggering $116 million. That is by far the highest of the professional sports (that have salary caps).

MLB—Baseball doesn’t have a cap, which is why only a handful of teams are in the running for the top free agents every winter. Bottom line, the top pro baseball players are dwarfing NHL team salaries. Just compare Alex Rodriguez’ current deal to that of the top NHL team.

In conclusion,  while it may seem like NHL salaries are getting out of control, the reality is that they’re still, by leaps and bounds, the lowest of the four major professional sports.

You know who I’m talking about: the guys who aren’t fortunate enough to have the pay checks, talent or maybe even the agents to pull off some of the largest, most incredible contracts in sports.

Today, I’m celebrating the guys making the league minimum, or close to it. You may find some names you recognize.

Exhibit A–Chris Douglas-Roberts–New Jersey Nets. He’s only a rookie this year, so his contract wasn’t going to huge anyway, per NBA rules. But still, he’s a fairly prominent name in the world of basketball over the last year because of his stellar work at Memphis. This season, the swingman is making $442,114. We salute you, Chris.

Exhibit B–Juan Dixon–Washington Wizards. I love to talk about journeyman players. My buddies and I like to drop the names of players who haven’t made a big impact on the sport and joke about them. While I greatly respect Juan Dixon for his work at Maryland in college, he’s amounted to being a true journeyman in the NBA. Appropriately, he’s making $998,398 this season.

Exhibit C–Ryan Ludwick–St. Louis Cardinals. This guy had a productive season last year, making the NL All-Star team. But here’s the deal: Ludwick has bounced around in his career, and had the best season of his life at age 30. He hasn’t just bounced around MLB teams either. He’s been in and out of the minor leagues for most of his career. Last season, he made $411,000.

Exhibit D–Josh Hamilton–Texas Rangers. I saw this guy’s name next to his salary and did an instant double-take. Hamilton was the feel-good story of the year in baseball, and put up numbers that could very well earn him AL MVP this week. Really, he’s been very productive his last two seasons. In 2008, he’s making a grand total of $396,830. Wow.

Exhibit E–Barrett Ruud–Tampa Bay Buccaneers. Ruud wasn’t much of a household name until the current season, where he’s put together a heck of a year, anchoring one of the NFL’s best defenses from the linebacker position. This season, Ruud’s making a miniscule (by pro sports standards) $523,840. Compare that to a player such as recently-benched Cleveland Browns quarterback Derek Anderson, who recently got a $7 million signing bonus in the offseason. That’s a signing bonus, not based on any 2008 games. People who aren’t even playing are making more money up front than Ruud will make for an entire 2008 season of toil.

Oy, how the other half lives.

Even though he’s only 31 and still at the top of his game, Yankees third baseman Alex “A-Rod” Rodriguez is a sports money pioneer. The reason? His 2001 free agent contract with the Texas Rangers that paid him $252 million. A quarter of a million dollars for an (at the time) shortstop with a sweet swing. It doesn’t sound so bad in today’s sports contract climate, except for a few reasons.

1.) It was the Texas freakin’ Rangers. This was a team who, at the time, had zero pitching, zero pieces to put around Rodriguez in the everyday lineup, and some pretty poor structure at the top. Basically, this insane contract was offered to appease the fans who had to be growing tired of watching their team lose for years.

2.) A-Rod only stayed for a few seasons. Sure, he won a couple AL MVP awards, but the Rangers lost a ton of games and committed themselves to paying one player more than most entire rosters. Oh, the things the Florida Marlins could do with a $252 million payroll.

3.) The contract set a dangerous precedent for position players seeking new deals after 2001. $252 million was a big reach for any player at the time, but look how high MLB contracts have risen since that offseason. Now, you have starting pitchers who only play one day a week making $137 million. You’ve got centerfielders (Carlos Beltran) pulling in over $100 million based off of one great season. Detroit Tigers third baseman Miguel Cabrera cashed in just before the start of this past season for $150 million, and he hadn’t played a single regular season game yet. Basically, the A-Rod contract in 2001 changed the landscape of what players could realistically ask for, or at least sped up the trend.

That’s why Alex Rodriguez is this week’s $ Pioneer.

You know how it works. Teams wear old uniforms, use old logos. It’s a great money-making scheme for the major professional sports leagues. It’s a chance for fans of all ages to take in the history of their favorite teams and bask in some of the ugliest color and logo combinations ever devised.

This week, I’m having a throwback on this blog. I’ve always heard the stories from my dad and older generations about how much pro athletes got paid before free agency, before sports became media driven, before agents and signing bonuses. When my dad was growing up, he lived across the street from Cleveland Browns linebacker Jim Houston, who I believe is now in the Hall-of-Fame. Houston was one of the best players on the Browns team, yet lived in a ranch-style house in Middleburg Heights, Ohio, surrounded by the middle-class citizens. That is a stark contrast to today’s star athletes, who own houses on celebrity islands on the coast of Florida.

Basically, I wanted to display for you just how much different player salaries were in decades past than they are now. Here’s a list of some star players who made next to nothing by today’s standards, as well as some general numbers for you to chew on.

1.) Nolan Ryan, Hall-of-Fame pitcher who tossed seven no-hitters in his career. He signed a contract in 1979 that made him baseball’s first million dollar player. That’s right, Nolan Ryan was the first pro baseball player to make a million. In 1979, that was considered a gigantic contract. What would a guy like Ryan be worth now? My guess: $150 million.

2.) Rickey Henderson, Hall-of-Fame center fielder and the greatest base stealer of all time. In 1990, Henderson became the highest paid player in baseball, making $3 million. Today, a guy who produces like Henderson did in his prime gets a minimum of $100 mil.

3.) The average MLB player in 1970 earned about $30,000. That’s not a typo.

4.) In 1985, the average NBA player salary was $330,000.

5.) In 1972, Wilt Chamberlain, considered one of the best basketball players ever, made $200,000. In today’s NBA, there are third string point guards buried at the end of the bench who are making at least $100,000.

6.) Walter Payton, considered by many to be the greatest running back to ever play (Next to Jim Brown, of course), was the NFL’s highest-paid player in 1980, working for a $500,000 contract. That number is the total, not pay for just one season. In 2008, Payton would be on a $70 million contract with a signing bonus of close to $30 million.

7.) Here’s a more recent one for you. In the mid to late 1990s, at the height of his game, Michael Jordan played with a contract that was just a shade over $33 million. Jordan is widely considered the best basketball player to ever play, hands down. Just to illustrate for you how much salaries have grown in the past 10 years, point guard Stephon Marbury, a lockerroom cancer, ball-hog and generally weird guy who’s currently sitting the bench waiting for a trade, will make $21 million…THIS SEASON…Jordan has six NBA titles, five MVP awards, won the scoring title more times than can be counted, won two gold medals and became the most profitable marketing machine in the history of pro sports. Marbury will best be known for throwing his name on $8 shoes at Steve and Barry’s. That is case and point of how much player salaries have increased over the years. There are some scary numbers out there.

That about wraps it up for “Throwback Week” at the blog. Hopefully Wilt Chamberlain isn’t rolling over in his grave as I type this.

the highest-paid starting pitcher in baseball

This site has a real theme going when it comes to rising free agency costs in professional sports. Today’s post is no exception.

In the NBA, more and more money is being thrown at big men, many of whom don’t produce to equal their wage. In the NFL, rookies who haven’t played a single down professionally are getting an increasing amount of guaranteed money written into their contracts.

Next up is a rather alarming trend any baseball fan has noticed over the past decade: starting pitchers are getting paid a lot of money through free agency, and the number has skyrocketed over the past five years. And yes, I’ve got examples.

Here are the top five starting pitchers in Major League Baseball as of right now in terms of earnings:

1.) Johan Santana (New York Mets)–$137.5 million (signed in 2008. Has pitched very well for the Mets. Will be in the running for NL Cy Young.)

2.) Barry Zito (San Francisco Giants)–$126 million (signed in 2007. Has grossly underperformed since coming to SF.)

3.) Mike Hampton (Colorado Rockies/Atlanta Braves)–$121 million (signed in 2001. Has barely played in the last five years due to injury.)

4.) Kevin Brown (Los Angeles Dodgers)–$105 million (signed in 1999. Got injured often, never lived up to the contract.)

5.) Carlos Zambrano (Chicago Cubs)–$91.5 million (signed in 2008. Had a very nice 2008 season.)

And, just for kicks, here’s the top single-season wage earned by a pitcher all-time:

1.) Roger Clemens (New York Yankees)–$28 million (2007 season. Didn’t even pitch the whole year.)

Judging by those numbers, it’s safe to say that as the years have gone on since 1999, starting pitchers have been making more and more money in free agency. The same is true for different positions in every sport. The major difference about baseball is that players make the most money out of all the professional sports. In the NBA, there are only a handful of players who make close to $100 million. In the NFL, you can count them on one hand. In MLB, there are a plethora of players who earn around or more than that amount. Starting pitchers are among them. With the exception of Zambrano, the rest of the top five shows that salaries have increased big time in a fairly short stretch. There are reasons for this. Allow me to explain.

1.) Pitching wins championships–In the MLB playoffs, look carefully at the teams who win. Last season, the Red Sox won the World Series because they had dominant starting pitching at the front of the rotation and a solid bullpen. Josh Beckett was nearly unhittable, as was Jon Lester at times.

My favorite all-time example of the tired phrase “pitching wins championships” is the 2001 Arizona Diamondbacks. Their two horses, Curt Schilling and Randy Johnson, basically single-handedly beat the New York Yankees in the World Series due to their command performances in nearly every game. They started nearly every game of the seven-game series, and even pitched with no rest out of the bullpen towards the end. When Arizona won the Series in Game 7, guess who got series co-MVP? You guessed it, Schilling and Johnson.

Basically, pitching does indeed win championships, and that is why general managers and owners who can afford these high-priced starters will do so.

2.) A great starting pitcher will take pressure off a great offense–Look at the Mets. Before they got Johan Santana, they were a great offense that couldn’t stop anyone else from scoring. They choked in 2007 because they had nobody in the starting rotation that could act as a stopper and take pressure off the lineup to drive in a mass amount of runs. In 2008, they collapsed again, but this time they had an ace in Santana who could take the ball every fifth day and almost always get a win. The Mets’ offense responded well to it in the second half of the season, despite not earning a playoff spot.

Teams that are well-balanced like Boston have great lineups that wouldn’t quite be the same without good starting pitching to take the pressure off. Starters are making more money year by year because they are an intrical part of any TEAM’S success.

3.) The domino effect–What this means is that salaries are going up, and will continue to go up. Over the past 10 years, this fact has been true, and it’s only a matter of time before a starter is making a quarter billion dollars for throwing a baseball fast for two hours every five days. That’s just the reality.

I like to call this trend “The Barry Zito Effect” because if you’ve got one pitcher who signs a contract for $100 million or more, the next best free agent at the same position who feels he deserves more (Santana) will most likely find a suitor who will pay more. Zito set the bar high with his Giants contract, and, because he’s been abysmal since joining the team, other starters will continue to cash in more and more based on his dollar amount and lack of production. It should be interesting to see wha C.C. Sabathia gets offered this winter. Smart money says it will be in the realm of Santana’s deal, and probably even more than that amount.

In Major League Baseball, quality starting pitching is a must for any team to contend for a title. Because of this, the best guys are getting increasingly large contract offers, which is driving up the price tag. Right now, $126 million for Barry Zito is considered a huge contract. 10 years from now, what will the most ludicrous number be? The way the trend is leaning now, we’ll find out sooner than later.

Kosar, a product of Miami University, or, as it’s more affectionately known, “The U,” was drafted in the 1984 supplemental draft by the Cleveland Browns. Upon getting picked, Kosar was given a $1 million contract, at that time the richest in NFL history for a rookie. The number was almost unheard of at the time.

While Kosar did indeed develop into a solid quarterback, leading the Browns to three AFC championship games and eventually winning  a Superbowl with the Dallas Cowboys, he is one of the reasons why rookies today make so much money before playing a single NFL down. Hence, Kosar is a money pioneer.

Here’s the story associated with the picture above.

1.) Jake Long–#1 pick, Miami Dolphins, 2008–five years, $57.5 million

2.) JaMarcus Russell–#1 pick, Oakland Raiders, 2007–six years, $61 million

3.) Vince Young–#3 pick, Tennessee Titans, 2006–six years, $58 million

4.) Michael Vick–#1 pick, Atlanta Falcons, 2001–six years, $62 million

And here’s where the fun part kicks in. It’s not so much the incredible amount of money rookies have been getting paid in the last decade, but how much GUARANTEED MONEY they’re getting. In ’01, Vick got a $3 million bonus just for putting his John Hancock on his new contract. Of Young’s $58 million, $25.74 million–almost half of the total amount–was guaranteed. Russell currently has $31 million (just over half of his total contract for those of you keeping score) guaranteed to him. Long has around $35 million coming his way, too. And these are only some of the higher profile examples. There are guys like Brady Quinn, a late first round pick, who cashed in on deals similar to the aformentioned and are receiving loads of guaranteed cash.

And these increasingly large contracts, despite the examples I gave, are not position specific. Long is a left tackle. Calvin Johnson, a receiver with the Detroit Lions, is making a lot of guaranteed money. There are running backs such as Darren McFadden who are inking similar contracts. The overlying fact here is that guaranteed money is a fairly new phenomenon in the NFL, and it’s really dividing people within the league.

There are pros and cons to all of the guaranteed cash floating around the NFL universe:

1.) It helps the players because football is a brutal sport that will take years off of lives and could leave players injured for life. The guaranteed money could help a high-profile pick out in the event that he gets severely injured and can’t play for a really long time or ever again.

2.) It shows a sort of commitment from the franchise to the player. A rookie contract to a high draft pick that contains $30 million in guaranteed money kind of says to that player “we’re committed to you wearing our uniform and helping bring us a championship.”

3.) In a way, it shows a commitment from the franchise to the fans. If your owner/general manager is willing to heave $60 million at a player who’s never played a single down in the NFL and gaurantee $31 million of it to said player, it shows in a way that management is committed to putting a winning team on the field. It’s a bit of a good PR move.

Here’s where the guaranteed cash hurts teams:

1.) If a player gets severely injured, he gets paid. In return, the organization and its fans get nothing.

2.) If a player doesn’t live up to the hype and underperforms, he gets paid. In return, the organization gets nothing on the field, and fans will grumble that the player wasn’t worth the money and the team isn’t getting things right. This happens all the time. Just listen to any sports talk radio show.

3.) These contracts to unproven players could cause some dissention among teammates. Veterans who have proven their worth to the team and the league as a whole and are currently in a contract that pays less than what these rookies are making surely will not be happy. Some have even came out and said so. These people include Tennessee’s center, Kevin Mawae.

And here’s another dangerous part of all the guaranteed money going out. Just like in the NBA and Major League Baseball, the rookie contracts are getting bigger with each passing year. It’s almost becoming the ultimate game of one-upsmanship. Jake Long’s agent probably said in April, “if JaMarcus Russell could get $31 million guaranteed without playing a single down, I’ll bet I could get Jake $35.” This is the mentality that agents use. It helps get them a larger cut, and it also gives their clients more security in such an unsecure sport. Indeed, rookie contracts are only going to get bigger. How much longer until a rookie QB gets paid $50 million in guaranteed money?

There are players in the NFL, and I’m talking very good players, who are making less than current rookies.Here’s a blog from 2007 showing that Tom Brady, a guy who has won three Super Bowls, makes less than Russell, who’s won all of about three or four games in two years. The lists of player earning disparity goes on and on.

Basically, NFL rookie contracts are getting out of hand. And the trend is only going to continue and get worse. While it’s good for player security, it can ultimately be very destructive for the teams. Money is being doled out to these youngsters under the premise that they’ll be “franchise players” in the near future. If they don’t pan out, nobody wins.

Here’s a more current story from Yahoo Sports about Long’s contract and the trend as a whole.

Your $ Pioneer

From here on out, I’m making it my goal to post this segment once a week to give some insight into how professional athletes’ salaries got to the ginormous levels they’re at today. After all, that is the purpose of this site. 

Today’s subject is THE GUY as far as money in sports goes. It’s not because of the physical amount of money he made in his day (which, by today’s standards, is next to nothing) but because of what he represented.

That man is none other than former St. Louis Cardinals centerfielder Curt Flood, and the year was 1970.

Here’s Flood’s story for background into why he’s such a pioneer for player contracts.

In a nutshell, Flood is the guy that started it all. When you see Alex Rodriguez sign a $250 million contract on a televised press conference, it’s because of Curt Flood that it’s even possible.

When it comes down to it, the current precedent in the NBA is to pay your power forwards a pile of money, and pay your centers even more. While it’s true that there are currently a number of great power forwards in the league (Kevin Garnett, Chris Bosh, Carlos Boozer, Amare Stoudemire, etc.) who are earning a lot, and, for their talent, deservedly so, the more disturbing part of the current NBA is how much overrated centers are currently earning.

When I say that certain centers in the league are overrated, I’m going solely off of the stat sheet. There’s no stat for ‘number of picks set’ or ‘genuinely nice guy,’ but there are plenty for points, rebounds and blocks, which are the hallmarks of any good big man, especially a center. An overrated center to me is someone who doesn’t contribute solidly in at least one (more likely two) of those categories on a regular basis. If a guy who starts every night in the post averages 5.5 points and 4.5 rebounds, but is currently on a contract of $35 million over four years, I’d say that guy’s an overpaid, overrated center. The way the league has changed since 2000, stats such as those I just listed have been matched with huge dollar amounts, and with greater frequency.

Let’s take a look at some of the more extreme contracts out there to help illustrate the point that center contracts are ballooning despite low in-game production……….

1.) Erick Dampier (Dallas)—Dampier is one of my favorite examples for this topic because he embodies low production with a large pay check. In August of 2004, he signed with the Mavericks for seven years and $73 million. He received the high bid because in his last season with Golden State in 2003-04, he averaged highly productive 12 points, 11 rebounds and nearly 2 blocks per game. Since ’04, his numbers have never reached that peak. In fact, in four seasons in Dallas, he’s never averaged more than 9.2 points and 8.5 rebounds. Last season, he finished with 6 points and 7 boards a game.    

2.) Desagana Diop (Dallas)—Diop is another nice example here because his big contract came just a couple months ago. Mavericks fans should be a bit troubled, though, because this is the second center the team has signed that is making way more than his production should allow. In July, Diop signed for five years and $32.39 million. This contract, while not nearly as large as his teammate Dampier’s, is troubling because Diop has never averaged more than 3 points and 5 rebounds a game in his entire seven-year career.    

3.) Ben Wallace (Cleveland)—Let me start out by saying that there was once a time when Ben Wallace was a bargain at any price. He used to be a perennial rebound machine and Defensive Player of the Year. But that was during his time in Detroit. In 2006, he became an unrestricted free agent and was snatched up by the Chicago Bulls for $52 million over four years. He also turned 32 in the same year, so, as players who get past their peak age start to do, his skills declined. He went from a prolific rebounder and defensive anchor to being just average. In 2006-07, he averaged a semi-respectable 6.4 points and 10.7 rebounds, but last season, his numbers took another dive, this time to 4.2 points and 7.4 rebounds. For a guy who averaged better than two blocks a game for most of his career, in the last two he hasn’t averaged more than one. The Bulls became fed up with his low production and general attitude, so they traded him to the Cavaliers at last season’s trading deadline. At 34 years old, Wallace is suddenly not the force to be reckoned with he was just three years ago.    

4.) Raef LaFrentz (Portland)—LaFrentz’ contract, which he inked with none other than the Mavericks in July of 2002, has paid him $70 million over the last seven years. This may be the mother of all outrageous center contracts, because LaFrentz has been one of the least productive, oft-injured players in the NBA over the last five years. Only three times in his 10-year career has he played in 80 games. And since signing his albatross contract with Dallas, he’s been traded twice—first to Boston and then to Portland. Last season in Portland, he played in only 38 games and averaged 1.6 points, 1.8 rebounds and half of a block.    

5.) Jerome James (New York)—James had a nice playoff run with Seattle in 2005, which made the free agent’s (at the time) stock soar. The Knicks were quick to snatch him up, paying him $30 million over five years. Here’s what the Knicks have gotten from James since the 2005-06 season: 88 games, 2.3 points per game, 1.7 rebounds per game and 0.3 blocks. Wow. Since July it’s been reported that the Knicks have hoped that James would just retire. I don’t believe he has yet.    

So, those are just five examples. But there are plenty more out there. The aforementioned players truly embody high cost for low production in terms of NBA big men, and it’s definitely a trend that is still developing in the league. Basically, centers who don’t contribute all that much on a game-by-game basis will continue to get more money in future contracts. There are several reasons for this…..

1.) Contract years—These are difficult on league G.M.s because in a contract year, a player will usually put up much better stats than in the years prior. Dampier and James are fantastic examples of this. A mere flash of solid play in a contract year will almost automatically net a player a fat contract in today’s NBA. Sadly, it’s less often that a player delivers after signing, especially in the case of centers.

2.) G.M. Fear—Since 2000, the league has undergone a shift in playing style and philosophy. For decades, big men ruled the paint and were high in number. The 1990s could’ve been considered the age of centers, with the likes of Hakeem Olajuwon, Patrick Ewing, David Robinson, Shaq O’Neal, etc. roaming the paint in the prime of their respective careers. But since 2000, dominating big men have been gradually replaced by smaller, quicker, better-shooting guys that resemble more of the style of ball played overseas. As of today, there are very few true centers in starting lineups around the league. Because of this, seven-footers are given a lot of overhype by NBA G.M.s looking to add size to overcome the growing number of outside-shooting post players. It’s definitely out of fear of not being tough enough in the post that people such as Mark Cuban or the recently-fired Isiah Thomas have splurged so much on so little production. Just the threat of being larger inside has garnered huge contracts.

3.) The “Hey! Look what that guy’s making!” effect—Basically, it’s a snowball effect. If a Jerome James can get $30 million to play hardly any games and average less than two points a game, then a guy with more ability could easily rake in closer to $50 million, and he and his agent will demand as such. This same thing happens in Major League Baseball and the National Football League. Contracts will get higher as more guys sign for top-line money.

Next NBA offseason, you can expect contracts to rise even more.