Originally Posted by
Kedsy
You say you're asking a question, but you appear to be attempting to justify your own conclusion. You started with a tenuous theory based on questionable assumptions, and yet you continue to argue with everyone who disagrees with you (which appears to be pretty much everyone).
Well, Kedsy, I appreciate your taking the time to respond, if not the discourteous tone. Most of those disagreeing have just said “It won’t work” and left it at that. You provided some reasons for your conclusion and that is helpful. Our disagreement seems to come down to two main points.
Originally Posted by
Kedsy
Big endorsement deals go to players whom the advertiser's target audience admires. Why would they admire the player? I can think of four things: (1) skill; (2) good looks; (3) personality; and (4) exposure. You are speaking only about the fourth item; the other three are more or less constant whether you stay one year or four.
This is our first area of serious disagreement. You say that public admiration is based on four factors, three of which are constant. I say that exposure is not one of four but is the process by which the other three become known to the public. You say that we are talking about the person’s skill, good looks and personality, which are constant. I say that we are instead talking about the perception of those qualities by the public. Whether that perception remains constant is the subject of public relations. It does not remain constant by some law of nature. But let’s move on.
Originally Posted by
Kedsy
And I would argue that exposure is the least important of the four -- especially since a lot of pro basketball fans don't really pay much attention to college ball, and the likelihood is the player will be playing in a different region of the country, so the only exposure that matters is national (rather than regional).
This is our second major area of disagreement. You are saying that when a player leaves college and sits down to negotiate an endorsement contract the company who is deciding how much to offer him does so without reference to how much public recognition and how large a fan base the player has already, and this is because basketball fans don’t really pay much attention to college ball and the ones who do are restricted to one region. To illustrate how much we disagree, I am quite certain that John Wall’s $25 million endorsement deal was driven by national fan interest, and that the national buying public was paying a great deal of attention to him and to Kentucky. I say that a team like Duke appears on national television twice a week and has an avid national audience. Furthermore, as we close in on the national championship a contender is ablaze in the media spotlight – television, print, Internet.
I say that if one person gets an endorsement deal of X and another person gets 1000X, the difference cannot be entirely accounted for by three constants (the person’s actual skill, good looks and personality) but is rather primarily controlled by a variable: public perception. It’s about appearances, and while it is certainly reality-based (it will be difficult to convince the public that an unskilled player is the equal of a skilled player, and it’s going to be hard to get around being inarticulate) it is also undeniable that if there are two players of comparable skill, looks and personality, one of them can be much better known and admired than the other and consequently able to command much higher endorsement and speaking rates. But let’s move on.
Originally Posted by
Kedsy
Not only that, but Kyrie (assuming that's who you're talking about) is getting plenty of national exposure now, even though he isn't playing.
Yes. The more the better.
Originally Posted by
Kedsy
Especially when you take into account the time value of money, the additional exposure from staying in school for three more years cannot possibly outweigh three additional years of salary and endorsement money. I don't think there is any rational argument that would support your contention.
Well, let’s take the simplest example. Person A makes $4,900,000 per year in salary and $100,000 per year in speaking and endorsement fees for a total of $5 million per year. (If you have different information about the average endorsement rates for the top picks over the last ten years please provide the link. All I could find was this: http://jonesonthenba.com/2008/06/top...gures-for.html which made it look like there is a steep dive after the big names at the top.) Person B begins three years later. He receives the same salary but $5,100,000 in annual speaking and endorsement fees, for a total of $10 million per year. We will assume that salary and fee payments are received at the beginning of the year, 10% interest is received at the end of the year, compounded annually, and there are no subtractions for living expenses or taxes.
Code:
Year end Person A Person B
Year 1 5,500,000 0
Year 2 11,550,000 0
Year 3 18,205,000 0
Year 4 25,525,500 11,000,000
Year 5 33,578,050 23,100,000
Year 6 42,435,855 36,410,000
Year 7 52,179,441 51,051,000
Year 8 62,897,385 67,156,100
Year 9 74,687,123 84,871,710
Year 10 87,655,835 104,358,881
The above does not take into account the fact that a person who is well-known will continue receiving endorsement and speaking fees long after he retires. Nor does it take into account the enjoyment or other benefit a person might receive from his college experience and from being a higher profile celebrity for the rest of his life.
Now, since some people do walk out of college eligible for $5 million in annual endorsement and speaking fees (it is clear that celebrities who are articulate and engaging are paid handsomely for public appearances and delivering speeches) I proposed a discussion to center around what steps a top player could take, if any, to turn himself into the level of celebrity who can command these amounts.
Suppose, just briefly, that the buying public is paying attention to college basketball, and that for public relations purposes the public’s perception of an athlete carries the most weight, and that this public perception can be modified significantly. A top college player is inundated by publicity, especially if he plays for a high-profile team and the question is this: if he did not dash away from the spotlight at the first opportunity but rather stayed and basked for years in the intense media attention and acclaim that the top players get, and also took steps to actively cultivate his image, such as by becoming a spokesman for a popular national cause, are there conditions under which it would be worth the gamble and what would they be?
You have told me that you disagree with my presuppositions. You say “No, a person is what he is. Three additional years of intense media attention in college would not affect the endorsement/speaking rates he could command, regardless of any other PR efforts, even if anybody were paying attention.” OK, I get it. And if everyone else shares your view of the matter then I’ll stop posting in this thread. Sometimes there is such a chasm between the presuppositions of two people that continuing the dialogue is nothing but an exercise in futility, and you and I appear to be there.