BETWEEN THE LINES: Chasing the almighty dollar
In the 1996 Movie "Jerry Maguire," Cuba Gooding’s character uttered that now-infamous line, “Show me the money.”
That particular phrase is quite symbolic of the times, especially when it comes to professional sports. Both the NFL and the NBA have entered lockouts in their failure to renegotiate labor contracts.
Although there were several contract issues, by far and away the most important for the NFL was how to divide the revenue in the extremely profitable world of professional football. This time around, cooler heads prevailed and the contract was signed, sealed and delivered in time to avoid any loss of games other than the Hall of Fame game in Canton, Ohio.
The NBA has a far different problem in that many of the franchises are losing money, hence the need to come up with a more favorable labor agreement. Even wealthy owners cannot perpetually lose money. Experts are almost uniformly in agreement that part of the regular season will be lost since both sides are far apart and unwilling to compromise.
Money issues are also a driving force in college football as teams seek to realign themselves into conferences that will generate more revenue for their respective universities.
As this column goes to press, the Texas A&M University Aggies along with Missouri are seeking entry into the illustrious SEC, thus placing the Big 12, who will be losing both Nebraska and Colorado this season, in serious jeopardy.
The move by the folks at College Station could well have been driven by the University of Texas’ decision to initiate the Longhorn Network this season, a move that was precipitated somewhat by ESPN’s lucrative offer of $15 million a year.
With the blink of an eye the Big 12 could be history.
The unfolding events will now force Texas and Oklahoma to make quick decisions about their respective futures. Given that scenario, Texas could become an independent, which could prove a risky venture if the football team founders and fails to be a perennial top 10 team.
However, the most profitable collegiate athletic program in the nation has a lot going for it.
As it turned out, Joel Gray may have been a visionary when he sang, “Money makes the world go around" in the 1972 film version of "Cabaret."
There seems to be a dichotomy working here.
On one hand, the sports world is trying to decide how to get a bigger piece of the pie while at the same time the world is experiencing massive debt and financial uncertainty.
If truth be told, the economy is not a zero-sum game where if someone wins another must lose.
The financial success of sports does not mean that revenue is necessarily lost by other businesses.
The key ingredient is the necessary economic growth to sustain it. As Shakespeare so appropriately remarked, “Aye, there’s the rub.”
Could it be that we are on a financial collision course that will drastically change the dynamics of the world as we currently know it? That will depend on how our political leaders handle the tough decisions in the near future.
Assuming a business-as-usual approach is not going to get it done, and the consequences will be far more serious than how to divide the financially successful sports pie.
Laughlin is a Christian Libertarian. He is an economist, teacher, father, husband and most recently a grandfather. He has written a weekly column for The Tribune for 12 years. He and his wife Gina reside in Meadowlakes. To contact him, email ablaughlin@nctv.com. He is an independent columnist, not a staff member, and his views do not necessarily reflect those of The Tribune or its parent company.