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Saban’s Contract Worth Every Penny

When folks see that a college football coach is scheduled to make $40 million over nine years, most probably think, “that’s too much.”

When folks see a coach who might make up to $4.7 million per year, again, most probably think it’s way out of line.

But in the case of Nick Saban it’s not.  In fact, Saban is worth every penny of his new contract.



Think about it this way:

Season ticket sales are up in Tuscaloosa.

Ticket demand is so high, UA is expanding Bryant-Denny Stadium and adding about 10,000 seats.

The folks buying those tickets will also increase the amount of concessions sold at games. 

The amount of souvenirs bought in and around the stadium will also increase.

More fans will also mean more money for parking.

Sales of official Alabama merchandise has increased. 

So have donations from Alabama’s boosters.

Then there’s the increased exposure for the University.  A 30-second ad in a BCS bowl has cost more than $500,000 for 30 seconds over the past few years.  So what is the value of Alabama appearing in a BCS bowl game last year… and most likely being in the BCS mix again this season?  Four hours divided by 30 seconds times $500,000?



Saban is bringing Alabama more money and more exposure than its previous coaches.  Some have estimated the total jump in revenues alone to be near $20 million when the stadium is reconfigured next year.

By my book, 20 million minus 4.7 million is still a 15.3 million growth over previous seasons.

And even if those estimates are off a bit, there’s no question that Saban is bringing in more cash for UA than UA is paying him in return.

An understanding of a coach’s monetary value is necessary when making a judgement about his salary.  When Saban’s true value is taken into consideration, it’s pretty clear that his deal with Bama is a good one… for both parties.

 


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