#OWS

sports economics/finance

The Economic Implications Of The NFL’s New Review Rules

The NFL rules committee has spoken, but all I am hearing is a cash register ringing.

The owners approved automatic instant replay review of all turnovers. This means a coach no longer will have to use one of his instant replay challenges to seek review of a turnover. Last year all scoring plays were relegated to automatic review.

If you recall, when the scoring play review went into effect there was an immediate uproar. The implementation did not go smoothly at first. However, things were quickly revamped, and soon it was often tough to notice that the play was be reviewed upstairs. The league agrees and has found there to be only a small impact on the pace of games.

This decision to review turnovers by the owners isn’t all that surprising. Although, either all replays should be in the hands of the officials, or all replays should be in the hands of the coaches. It plays into the strategy of the game, and was actually an entertaining new twist to the game. But that’s a whole other post in itself.

Still, with that being said, this next decision is a bit more baffling.

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Don’t Lend Mark Brunell Money

Mark Brunell is broke. Now we know why he refuses to leave the NFL. It isn’t a competitive fire burning under his ass, it’s the creditors nipping at it.

I don’t really want to see anyone lose all their money. However, when “all their money” means something north of $50M — I don’t feel too bad. According to the reports, Brunell doesn’t have a drug problem. He isn’t a deadbeat dad. He doesn’t even have a gambling issue. Well, that last one is borderline.

Brunell lost all his money in failed business ventures. One was ironocally called Champion LLC, which purchased high-end investment properties. When the real estate market crashed, Brunell lost his entire investment. Another failure was Brunell’s cliche investment in a Whataburger franchise. His entire investment was lost once again. All totaled, there are $24.7M in claims against Brunell.

The Action News reporter who penned this story still has a little thing for Mark all these years later. Take a look;

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The Economics Of Kobe Bryant Playing For Italian Club Virtus

It’s official. Kobe is the next American superstar to make the move to Italy. The first batch being the cast of the Jersey Shore, of course. Bryant and Virtus have agreed to a $3 million contract. The contract will be for the first 40 days of the Italian league season. According to reports that will equate to about 10 games.

For Kobe that will equate to about $300,000 per game, or $75,000 per day. I compared these numbers with Kobe’s $83.5 million contract with the Lakers, over the next three seasons. The Lakers deal breaks down to about $340,000 per game, or about $76,000 per day using 365 days. These numbers line up nearly identically with the Virtus deal.

Again, here is how it looks:

Lakers Virtus
Total Contract $83,500,000 $3,000,000
Per Game $339,431 $300,000
Per Day $76,256 $75,000

It seems like someone did these same calculations when coming up with the Virtus contract.