The High Cost of Being Reckless

When the average guy is reckless it usually only costs him a nominal fine or maybe a marriage. To them of course it is a big deal, but it is a bag of shells compared to what it costs a big time athlete. These guys pay a much higher price.

Tiger Woods, as anyone who hasn't been living in a cave for the past year knows, took recklessness to a whole new level. Though not condoning his behavior, it is one thing to have an affair, its another to have slept with the amount of women and to go to the lengths he did while married. The public will at first act disgusted with your behavior when they learn of an affair, but once you start winning again all is generally forgotten. In Tiger's case his indiscretions cost him not only his family, but a list of endorsement deals longer than most people knew he had.

A year ago today Tiger had endorsement deals with Nike, EA Sports, Gatorade, Accenture, GE, AT&T, Gillete, Tag Heuer, American Express and many others. Since then he has been dropped by Gatorade, Accenture, GE and AT&T; He is no longer appearing in ads for Tag Hauer or Gillette even though they still sponsor him; AMEX has put him on the bench as well. This cost him about $25 million last year, according to CNBC. It also cost IMG, his management firm, $4.6 million. Not to overemphasize how much damage Woods has caused, but a study by UC Davis estimated the loss of market capitalization of the firms he sponsored to be upwards of $12B

He still was able to keep his most valuable endorsements with Nike ($30 million), Gillete ($15 million), EA Sports ($8 million), the values according to NowPublic.com. Other endorsements he still has with Golf Digest, NetJets, Tag Heuer, TLC Laser Eye Centers and Upper Deck in tact according to his website. Fnancially he will not ever be in trouble unless his soon to be ex-wife, Elin Nordegren, is able to win the $750 million she is seeking in a divorce settlement.

While Tiger will still make a considerable chunk of change this year, it will be nowhere near the $100+ million he enjoyed the past few years. At least he may still have Rachel Uchitel.

Gilbert Arenas was the best and most popular player on the Washington Wizards. He was, in fact, one of the most liked and talented players in the whole NBA at one point. He then decided it was a good idea to bring guns to an NBA arena and point them at teammates during an argument. Even Tiger Woods shook his head at Gilbert the day that news broke. In a recent pole taken by Forbes, Gilbert Arenas ranks among the top ten most disliked people in the sporting world by Americans. He is on the same list as Ben Roethlisberger, Michael Vick, Tiger Woods and Alex Rodriguez.

He probably will not lose his contract, but he was suspended indefinitely without pay. This will cost him $147,200 per game and a total of $9,429,505.41 for the rest of the 2009-2010 season, according to ESPN. NBA commissioner David Stern said "Although it is clear that the actions of Mr. Arenas will ultimately result in a substantial suspension, and perhaps worse, his ongoing conduct has led me to conclude that he is not currently fit to take the court in an NBA game. Accordingly, I am suspending Mr. Arenas indefinitely, without pay, effective immediately pending the completion of the investigation by the NBA."

Michael Vick, though not losing the most money, has to be the worst offender on this list. He didn't cheat on his wife, he isn't married; he didn't bring guns to an NFL stadium, though he was caught with marijuana in Miami's airport. His actions didn't even really destroy people and companies either. He brought only himself down, and maybe Arthur Blank's Falcons. When he signed a 10 year, $130 million contract with the Falcons in 2004 he became the most highly compensated player in league history.

He repaid Arthur Blank by smoking pot, giving Falcons fans the middle finger while walking off the field and running Bad Newz Kennels, a dog fighting ring. He was the lead trainer, financier and exterminator. He had friends with him, but he clearly ran the show. In exchange for shooting, electrocuting, drowning, choke slamming and fighting dogs to death after their birth via forced rape on a rape stand he received an indefinite ban from the NFL, the voiding of his contract and an 18 month prison sentence. He also lost endorsement deals with Nike, EA Sports, Coca-Cola, Powerade, Kraft, Rawlings, Hasbro and AirTran, according to Wikipedia.

To add insult to injury, he had to repay $20 million of the bonus money he received while with the Falcons because he admitted using it to fund gambling on the dogs his organization trained. In the US, professional athletes are banned from gambling because of the potential detrimental effects caused by gambling that were exhibited by the 1919 Black Sox.

Michael Vick subsequently declared bankruptcy and ended up having to accept a 2 year contract worth $1.6 million the first year, $5.2 million the second year and with $3 million in incentives according to ESPN. Shortly after he signed an endorsement deal with Nike that was then refuted by the company in spite of his agent announcing it.

Michael Vick clearly lost a lot of money, well over $100 million dollars. He did it because the exhiliration of dog fighting and abuse was more inviting than the on field rush that would be enough for most people. He is the only person discussed here to spend time in jail for his actions. That he is in the NFL is a blessing for him and hopefully he appreciates it much more this time than he did the first time around.

What will all these lessons do to stop future philanderers and potential criminals from losing their massive contracts and endorsement deals? Probably not much if you look at the likes of Ben Roethlisberger, Alex Rodriguez and David Beckham.

Long Term Contracts, Good or Bad?

Every off season there are a few free agents that are the cream of the crop, the top of the food chain. Those that command high priced, long term deals that allow them to have the financial security that they need and guarantees to the team paying them that their prized possession will be their's for an extended period of time. When these deals are signed both sides are all smiles and everyone is optimistic about the future. More often than not though, things sour before the end of the deal. In light of the Albert Haynesworth fiasco, its time to ask a simple question: why do teams and athletes keep doing this to themselves?

First, we have to look at free agency from the beginning. Before free agency, teams owned their players like indentured servants. They paid them what they felt like paying them and the players had to take it or leave it. Some of the best players of past generations had to work all off season to be able to pay their bills, hall of fame Yankees had off season jobs selling suits in men's stores in the 50s, unthinkable to athletes these days.

In the 70s a revolution of sorts happened in Major League Baseball, Free Agency. Players all of a sudden had the freedom to play wherever they chose and were able to dictate how much they made instead of the other way around. Reggie Jackson was the first major player on the free agent the market. Being the best player of his day he used this leverage to sign a record contract to leave the Baltimore Orioles and join the NY Yankees for $2,960,000 over 5 years. He repaid them by helping them to two titles and three world series over those 5 seasons and then left acrimoniously to play for the Angels. Free agents have had results as mixed as Reggie since his days in the Bronx Zoo.

Derek Jeter signed a 10 year $189 million dollar contract with the Yankees before the 2001 season started. Since then he has been a 7 time all star, 4 time gold glove winner, 4 time silver slugger, world champion, and recorded his 3000th career hit (becoming both the all time MLB leader in hits for a shortstop and passing Lou Gherig as the Yankees all time hit leader). From both points of view this was a great deal. Derek Jeter is the consummate professional, is the face of the franchise, has not had off the field issues like other athletes and ranks among the highest paid athletes in the world, hardly a bust.

Jason Giambi signed a 7 year $120 million dollar contract only a year later and did not have quite the same experience as Jeter. Not only did Jason Giambi become a symbol for steroid use after confessing both in court during the BALCO case and publicly during a press conference, but his production had more ups and downs than his relationship with Yankee fans. He justified his high contract by hitting .314 with 41 HR and 122 RBI. After that his time with Yankees was nothing short of a disaster with inconsistent power, almost no ability to hit the opposite way, an inability to run and what was the worst glove of any first baseman in baseball by the time he left. He also won no titles while with the Yankees, which happens to be a problem with their fans. He turned into one of the biggest free agent busts in recent memory.

Rick DiPietro was drafted first overall by the Islanders in the 2000 entry draft. After a few inconsistent season of bouncing back and forth between the IHL, AHL and NHL he signed a 15 year $67.5 million dollar contract, officially the longest contract in sports history. He is unique in doing so because he never tested the free agent market and did not appear to gauge his value to other teams. Since then he has not played an entire season because his being often injured and his play has ranged from him being named to an all star team to giving fits to Islanders fans with his lack of on ice awareness. He is not quite a bust yet, but that is only because he still has more than a decade to prove himself worthy of what is a below market contract.

This brings us to Albert Haynesworth. He first came into the national consciousness by stomping a Dallas Cowboy in the face with his cleats during the 2006 season. For that he received the longest suspension in NFL history, 5 games (out of 16) without pay. It was the opinion of many that he should have been suspended the rest of the season.

On the first day of free agency during the 2009 off-season, he agreed to a 7 year $100 million dollar contract ($41 million guaranteed and $32 million paid in the first 13 months) with the Washington Redskins. It took him only one season to wear out his welcome. He often came off the field looking winded appearing to take himself out of plays only now admitting because of how out of shape he was. All last season he said he had an injured ankle or knee in spite of it being obvious he was simply overweight.

One would think that after having admitted he played overweight and out of shape, he would feel a sense of remorse and that he owes both the Redskins and their fans a debt a gratitude. That he should show up in the shape of his life and play like he is being paid to play, as the best DT in the league. Instead, he cashed his $21 million roster bonus on April 1st and refuses to show up for mandatory off-season workouts because he does not like the defensive scheme of Jim Haslett, the new defensive coordinator since it does not allow him to be the impact player that only he still sees himself as.

Does this sound familiar? It should. Last season he complained about the defensive scheme as well, saying that he could not "survive another season in this system if it stays the way it is." Two seasons, two defensive schemes and nothing but complaints. It sounds to me like he has lost the motivation to play the game and just wants the lifestyle instead of working for it like everyone not named Jamarcus Russell.

He has alienated many in the NFL, including his own teammates, former NFL players, fans and his new coach Mike Shanahan. Anyone with a microphone or a Twitter account in front of them has said that his actions are selfish, classless and show his true lack of moral character. Shanahan tried to trade him in the deal that brought former Philadelphia Eagles franchise QB Donovan McNabb to the Redskins and was laughed out of the room. He has since publicly stated that he told Haynesworth he would release him if that's what he wanted.

Instead, Albert told his coach he was committed to the 'Skins and took the $21 million roster bonus without showing for any team activities. Clearly, he is not committed to the team and only wanted owner Dan Snyder's money. Quoth Darnell Dockett via his Twitter account: “Did I just hear this correctly? Albert Haynesworth will not be (at) mandatory minicamp? And he wants a trade? After signing 100 millon dollar contract?” He then followed up with “That’s why I tell y’all I’m nothing like these dudes. For 100 million my ass will play 4-3, 3-4, 5-9, 4-8 and still whip ass!”

The Redskins obviously have a problem on their hands. They have a player that does not want to be there anymore who they signed to a contract larger than anyone will pay the remainder of to whom they just paid a $21 million roster bonus. They could release him, but $21 million is a large matzoh ball to leave stuck in your throat. That Haynesworth has never been happy in DC is obvious, that he chased the money is also crystal clear. This could be the largest bust in NFL history if it is not sorted out soon.

What to do next? Any ideas? The Redskins have none, Albert is content to sit out and further alienate every and any one, he's been paid. Athletes should sign one or two year contracts that allow them the flexibility to determine their future and still make the money they demand from teams. This would insulate them against coaching/franchise ownership changes, perhaps not liking their situation (ala Milton Bradley with the Cubs) or simply not fitting in. Sign a one year deal with a team, if you like the situation sign a 5 year deal in the next off season.

Then again, what to do if you are an elite athlete who is injured at the end of your two year deal and are unable to continue your career? This is a question no one has a reasonable solution for, whoever can come up with one will hit the jackpot.