Need a reset of college football coaching salaries

[18IsTheMan]

I think most college football fans have a sense that college coaching salaries are out of whack, spiraling out of control in the last 15-20 years. But here's some context for that.

Dabo Swinney's ~$11 million annual salary is 15% of Clemson football's total revenue. 15%! Ryan Day's is a more modest 8% of the team revenue. Even Shane Beamer's salary accounts for 3.8% of our total revenue. To put that in perspective, here is the percent of total revenue for the highest paid professional coaches:

NFL: Andy Reid's $25 million/year salary is 4% of the Chiefs total revenue
NBA: Steve Kerr's $17.5 million/year salary is 2.3% of the Warrior's total revenue
MLB: Craig Counsell's $8 million/year salary is 1.1% of the Cubs total revenue

More context: The CEO of Coca-Cola makes $25 million/year, or 0.05% of the company's total revenue.

The highest paid CEO in the country, Stephen Schwarzmann of Blackstone, Inc only pulls down a total compensation that is 8.6% of the company's total revenue. His actual salary (minus dividends, etc) only accounts for 2.45% of the company's total revenue.

The CEO of Walmart, which has the highest revenue of any company in America, has a salary that is .004% of company's total revenue.

I know some will say it's what the market demands, but is it really? Why would the market for college football demand coaching salaries that far outpace those of the highest paid professional coaches and CEOs in terms of total revenue? It makes no sense, business-wise. The Coca-Cola CEO would be making nearly $7 billion/year if he brought in 15% of the total revenue. Folks have lost their minds in the past about how much corporate CEOs make, but in terms of % of revenue, it's peanuts compared to many college football coaches.

It simply can't be what the market demands. It's largely an ego/pride thing. Schools take pride in saying they have the highest paid coach and coaches take pride in it as well.

 

[PrestonyteParrot]

Their argument will be the job is tougher now with NIL and the transfer portal. We deserve it.
I think I could deal with it until they fire me and send me packing with a big payoff.

 

[18IsTheMan]

Their argument will be the job is tougher now with NIL and the transfer portal. We deserve it.
I think I could deal with it until they fire me and send me packing with a big payoff.

Do you think Dabo Swinney is under more pressure than the CEO of Coca-Cola?

 

[PrestonyteParrot]

You think Dabo Swinney is under more pressure than the CEO of Coca-Cola?

None of them are under pressure, especially Dabo. Except maybe the A-B CEO???
They could all walk away and be set for life.

 

[18IsTheMan]

None of them are under pressure, especially Dabo. Except maybe the A-B CEO???
They could all walk away and be set for life.

Well, pressure is relative, for sure.

Just can't see the rationale for college football coaches being the highest paid in the country in terms of % of total revenue.

 

[PrestonyteParrot]

Well, pressure is relative, for sure.

Just can't see the rationale for college football coaches being the highest paid in the country in terms of % of total revenue.

Oh, I agree completely. They have always been overpaid but now it's on steroids.
To your point on bragging rights, this is just like the facilities race/wars and who has the best.

 

[Harvard Gamecock]

Why should HC's volunteer to take less money ? They are accepting what the schools are offering, Who among us would willingly take less money if voluntarily offered
If a reform was to take hold, it would have to begin with the amalgamated effort of AD's around the country.
Now with competition at a premium not seen before due to expanded playoffs, expanded conferences, transfer portal and NIL, expect these salaries to become much higher.

 

[18IsTheMan]

Why should HC's volunteer to take less money ? They are accepting what the schools are offering, Who among us would willingly take less money if voluntarily offered
If a reform was to take hold, it would have to begin with the amalgamated effort of AD's around the country.
Now with competition at a premium not seen before due to expanded playoffs, expanded conferences, transfer portal and NIL, expect these salaries to become much higher.

Of course they shouldn't volunteer to take less, unless they cared about the game. None of them do. They may bluster about this and that, but one of the biggest drivers for NIL and the portal was the fact that coaches make so dadgum much money. The same coach who bemoans the impact of NIL on the game will turn right around and sign an extension with a lucrative raise. They're all greedy piglets.

It's just illustrative of how out of whack things are.

 

[PrestonyteParrot]

Why should HC's volunteer to take less money ? They are accepting what the schools are offering, Who among us would willingly take less money if voluntarily offered
If a reform was to take hold, it would have to begin with the amalgamated effort of AD's around the country.
Now with competition at a premium not seen before due to expanded playoffs, expanded conferences, transfer portal and NIL, expect these salaries to become much higher.

Not expecting them to take less money and that is not the problem. They think they deserve it is the problem and the AD's have gone along with it without pushing back.

 

[Harvard Gamecock]

Not expecting them to take less money and that is not the problem. They think they deserve it is the problem and the AD's have gone along with it without pushing back.

This is exactly my point. The fault lies with the AD's

 

[18IsTheMan]

Not expecting them to take less money and that is not the problem. They think they deserve it is the problem and the AD's have gone along with it without pushing back.

Problem is, you'd have to have 100% of ADs in agreement. If even 1 AD said "nah, we're gonna pay however much we have to" then another AD would feel pressured to do the same and then another and you're right back where we are now.

 

[18IsTheMan]

The original tipping point for salaries goes back to Bowden and Spurrier. Bowden was bumped to nearly a million annual and the UF and SOS had to top that by pushing Spurrier over $1 million annually, and then doubling that after SOS won the title. It was off to the races after and coaching salaries became a metric of their own as a bragging right.

 

[1Mcreekcock]

Well, pressure is relative, for sure.

Just can't see the rationale for college football coaches being the highest paid in the country in terms of % of total revenue.

Nope, CFB coaches are not even close to the highest % of total revenue. We have a Gamecock coach making a much higher %.

 

[18IsTheMan]

Nope, CFB coaches are not even close to the highest % of total revenue. We have a Gamecock coach making a much higher %.

Well, that's an entirely different can of worms.

 

[1Mcreekcock]

Well, that's an entirely different can of worms.

I'm certainly not trying to open a can of worms...Dawn is the best in the game but..... As Americans we have an obsession with celebrities. Recently we had a young lady make a couple 100 mil to sing to a large % of young girls in the audience. 50 years ago I would have said no parent would be stupid enough to pay $2000 for their 12 year old daughter to be entertained for a couple of hours.

Perspective...too many people have lost it. Can't put the blame on the people snatching the money out of the hands of fools...blame the fools.

 

[Gradstudent]

I wish I had the pressure of a job that gave me a massive multi year contract and would still pay me after I'm fired, I would love that pressure, LOL.

But I may not end up performing that well and get fired early,

 

[adcoop]

Unless fans show a decrease in interest, "it is what it is."

 

[Rogue Cock]

Why should HC's volunteer to take less money ? They are accepting what the schools are offering, Who among us would willingly take less money if voluntarily offered
If a reform was to take hold, it would have to begin with the amalgamated effort of AD's around the country.
Now with competition at a premium not seen before due to expanded playoffs, expanded conferences, transfer portal and NIL, expect these salaries to become much higher.

And the ADs collectively doing that would be guilty of collusion and a violation of the Sherman Antitrust Act.

 

[Yard_Pimps]

I believe a lot of y’all are over looking a lot of things. Everyone not just coaches are worth what people are willing to pay them. I don’t see them as over paid at all. Especially in the cases of the dabos, Sabans, and Kirby smarts of the world. They exposure of the school that is gained from winning is hard to measure in dollars. I’ll use Clemson as an example over the last 10 years. Look at clemsons number of applicants and acceptance. Look at the town and how much it has grown. Even they admit that’s in part to the winning football team. Someone said coaches salaries were responsible for NiL. That couldn’t be further from the truth the millions the schools and industry are making drive that. They deserve a part of the pie. This system would not be tolerated in any other industry. The Supreme Court harped on that and they are right.

 

[gamecock stock]

No question that coaches' salaries are ridiculously too high. But, you'd have to see people not going to the games, not watching on TV and not listening on the radio for the pressure of escalating salaries to ease. I just don't see that happening. The fact is that people like to be entertained. Sports is entertainment. Tom Cruise got $12 million for the Top Gun movie. Margot Robbie got $12 million for the Barbie movie. Ridiculous, too. But people lined up to see those movies.

 

[KingWard]

However fallacious a person might regard current AD compensation, it's still market-driven. Leave it alone or you will get into things you don't want to get into. Changes happen when something becomes unsustainable. Obviously we aren't quite there yet.