Pay for Performance in the NFL

The salary of professional athletes is a widely debated topic across the United States in this current period of time. Many people are undecided on the matter; are the wages that professional athletes are paid reasonable, or ridiculous? Though it is commonly argued that these athletes don’t deserve the impressive salaries they receive, when all the facts have been stated, it is only logical to say that they do.

One problem NFL players face is learning how to budget their money. Once they get drafted into the NFL they receive large salaries that dramatically alter their lives. The average professional athlete in the U.S. makes more than most people earn throughout their lives (MunKNEE). Receiving such large salaries changes both the way people live their lives and how they spend their money. Suddenly they have the capability to buy expensive cars, fancy clothes, and buy out clubs for a night. The majority of professional football players spend large amounts of money on items that show off their wealth, so once new players join the league they feel the pressure to match up to the others. Scott Bercu, a financial accountant for NFL players, agrees that athletes spend their money like crazy. He sees players earn a $5 million dollar salary, but by the time they pay their agent and taxes they are left with only $2 million. The rate at which these players spend their money does not match up to their $2 million dollars left in the bank (MunKNEE). Even though these players make large salaries, they are not in the business for many years. The average career span of NFL players is 3.5 years (MunKNEE). They have a short amount of time to make there millions in order to live after their career, but if they don’t make there millions fast and learn how to save it then they will not survive. Overspending and becoming wrapped up in the glamorous life is too

In the United States, sports are seen as an escape from the real world and have become a huge entertainment industry. One of if not the most popular and profitable sports in the country is college football. In every state across the country, thousands of people pack into stadiums on Saturday to see their favorite team play. For many universities, one of the departments that makes the most revenue is the athletic department. Even here at Coastal, which is not a big time college football program, the university makes large amounts of money off of the football team and the players are not compensated monetarily. A majority of the time, the atheltes

I will be using a dummy variable in my analysis that I feel can have an impact on attendance. This variable is whether or not the team shares its state with another baseball team. There will be an obvious negative effect on attendance if there is more than one MLB team in a given state. A zero is going to represent a team that is the only team in their state and a 1 will represent a team who shares its state with one or more teams. The data for this dummy variable will come from www.rodneyfort.com/SportsData. The summary statistics here show a mean value of .70 with a standard error of .4608.

The crowds they bring in during games and how they play will determine their popularity and skill which determines their pay. As Chris Mueller stated, “ If we stopped going to games and buying officially-licensed merchandise, then these numbers would obviously have to go down to balance out the budget.” If everyone were to suddenly lose interest in the NFL, their profits will decrease a lot which will lead to loss of players, showtime, and ultimately the

The budget Project has given me a look at the money I will make and how my money plan will turn out for my future. A football player makes a lot of money when it is football season. They make $ 38.20 an hour. In one year, they would be up to $79,460.The four quarters that I will be on the football field would be an understatement to say they are a little

This process included, isolating the influence of offensive and defensive inputs, followed by predicting the relative production efficiency for each team. (Callan & Thomas 2014) According to Callan and Thomas (2014), “Research-Based estimates indicate that on average, Texas high school football teams play well below potential, which in turn is linked to coaching inefficiency.” (Callan & Thomas 2014) As mention prior Callan and Thomas feel that Texas High school football is a viable option to uses the production frontier model. Callan and Thomas wanted to know if an efficiency-based prediction measure would help in determining the levels of coaches’ salaries. According to Callan & Thomas (2014), “Ultimately, it was found that and efficiency-based prediction measure did help to explain the level coaches’ salaries, although the quantitative effect is relatively small.” (Callan & Thomas

The article that will be summarized is “Does pay for performances diminish intrinsic interest?” This article looks at par for performance and the effects on intrinsic interest of employees to see if there is a positive or negative correlation between the two. “Organizations around the world have increasingly moved toward linking pay more strongly with performance to encourage and sustain employee contributions to the success of the organization. Moreover, while many organizations have expanded their use of plans that reward team, business unit, and corporate performance, the predominant basis for pay for performance continues to be individual performance.” One major issue perceived with pay for individual performance (PFIP) is that it undermines the intrinsic interest of the employees. There are theories stating the working for increased pay lowers those working for intrinsic rewards. Pay for performance is an extrinsic reward. Extrinsic rewards are given by another person and usually are promotions and pay increases. In this article they focus on raising ones pay as the extrinsic reward and its effect on intrinsic anatomy of the workers where pay for performance is utilized.

Performance- related pay (PRP) links reward or salary progression to some form of performance rating. This could be part of a performance management or appraisal system, or it could be based on an entirely separate appraisal of performance exclusively for pay purposes (Armstrong 2001). PRP often requires a number of procedures in order to work including: regular target-setting (establishing specific objectives for the individual), annual appraisals of the worker’s performance against pre-set targets and paying each worker a bonus according to the degree to which the targets have been exceeded (Stimpson 2014). PRP has been used for a long time in the private sector, traditionally being used as a more of a reward for

Traditionally, all incentive plans are “pay-for-performance” plans. They pay all employees based on the employee’s performance (Dessler). Compensation is a primary motivator for employees. People look for jobs that not only suit their creativity and talents, but compensate them both in terms of salary and other benefits accordingly. Compensation is also one of the fastest changing fields in Human Resources, as companies continue to investigate various ways of rewarding employees for performance. It is very important for organizations to make sure that the incentive plans are well structured to need the needs of the employee and in return make the organization profitable. Giving incentive pay to employees that has not earned them destroys

Numerous studies evaluate the effectiveness of pay-for-performance and find that it successfully improves employee productivity and performance. A study

Compensating employees financially will often result in better performance and higher levels of motivation. Pay for performance plans are the most popular incentive plans in businesses today and would be ideal for Plastec to integrate into their new compensation plan. "For a compensation plan to motivate performance, employees must believe that good performance will lead to more pay, want more pay, not believe that good performance will leads to negative consequences, see that other desired rewards besides pay

The ?pay for performance? story is no different. Eighty percent of employers give the two most popular pay-for-performance vehicles, merit pay and annual incentives, low marks for effectiveness. The majority indicate that true pay for performance differentiation is not materializing in the most purposeful pay for performance program of all: annual incentives.

It can take many forms, including bonus programs, stock options, and one-time awards for significant accomplishments. Some companies choose to pay their employees less than competitors but attempt to motivate and reward employees using a variable pay program instead. According to Shawn Tully in Fortune, "The test of a good pay-for-performance plan is simple: It must motivate managers to produce earnings growth that far exceeds the extra cost of [the program]. Though employees should be made to stretch, the goals must be within reach."

Is performance related pay (PRP) really a motivator for employees and is it an effective way for organisations to gain and retain high performing staff. This is questionable especially as organisations differ in size, organisational culture (therefore differing needs), the ability and/or resources to manage an effective process to support PRP. This study will explore whether performance bonuses offer a win-win for both the organisation and the employees, using primarily the public sector, with reference to the private sector.