Questions and Answers
Who was Sherwood Blount?
Guy in charge of paying players under the table
Who was the first player to talk to the media and why?
Sean Stopperich. Was not happy with the way he was being treated.
Who was the second guy to talk to the media and why?
Bill Clements. Wanted to get the program going in the right direction.
What was the death penalty for SMU?
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What penalties did the university impose on the football program?
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What connection was there between business success and sports salaries?
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What was the first thing almost all the interviewed athletes did upon getting paid?
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In the section of the documentary, titled 'Bling Bling' what is the main point the director is trying to make?
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In your own words, what does keeping up with the Joneses mean?
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What point is the director making about having multiple cars or huge entourages?
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What does a guaranteed contract in the NBA or MLB mean?
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How does being competitive actually hurt athletes off the playing field?
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Who are the hustlers that the documentary 'Broke' is referring to?
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What are at least two examples of things the players are asked to invest in?
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What happens when the investments don't work out?
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What is the only thing agents should be worried about for their players?
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What four people should players hire?
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What type of people are the biggest thieves according to the documentary?
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What is the divorce rate for professional athletes?
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Why do you think the divorce rate is so high for professional athletes?
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What is the length of the average NFL career?
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Why do some of the players say they aren't surprised when former players get addicted to drugs?
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At what age do most former athletes go flat broke?
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What is the main idea of the 'Game Over' section?
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How is the accumulation of wealth different for professional athletes than for regular people?
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What should be done differently to prevent the athletes from having financial difficulties?
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What is the difference between a strike and a lockout?
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What is the difference between a restricted free agent and an unrestricted free agent?
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What is the difference between an arbitrator and a mediator?
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What are the two forms of arbitration?
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Explain how 'final offer arbitration' works. Why does FOA restore the incentive to compromise?
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For sports franchises, where does the monopsony power come from? (Three parts)
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Study Notes
Sherwood Blount
- Oversaw illicit payments to players in college athletics.
Sean Stopperich
- First athlete to speak to the media, expressing dissatisfaction with treatment.
Bill Clements
- Second athlete to address the media, aiming to steer the program positively.
SMU Death Penalty
- Football program faced a one-season termination, impacting scholarships and gameplay.
University-imposed Penalties
- Entire second season canceled during the death penalty.
Business Success and Sports Salaries
- Increased business profits allowed for higher athlete salaries.
Initial Spending of Paid Athletes
- Common purchases included vehicles, homes, and luxury items.
"Bling Bling" Section
- Highlights athletes' tendencies toward extravagant spending.
Keeping Up with the Joneses
- Desires to match or surpass peers financially.
Multiple Cars and Entourages
- Criticizes the unnecessary obsession with wealth and status symbols.
Guaranteed Contracts in NBA/MLB
- Includes signing bonuses, ensuring a secure financial future.
Competitiveness Off the Field
- Athletes view all aspects of life as competitive, potentially harmful.
"Hustlers" Reference
- Refers to investors who exploit athletes financially.
Investment Examples
- Athletes are often asked to invest in ventures like car washes and diamond mines.
Failed Investments
- Results in desperate searches for new opportunities and deals.
Agent Responsibilities
- Agents should primarily focus on securing favorable contracts for players.
Necessary Personnel for Athletes
- Important hires include an agent, accountant, financial advisor, and attorney.
Biggest Thieves in Finance
- White-collar criminals are identified as significant threats to athletes' finances.
Divorce Rate Among Athletes
- Stands at approximately 60% within three years of marriage.
High Divorce Rate Causes
- Driven by inflated egos and lifestyle pressures.
Average NFL Career Length
- Athletes typically have careers averaging 3.5 years.
Addiction Risks for Former Players
- Many exhibit tendencies towards substance abuse due to past trauma.
Age of Financial Ruin
- Most athletes go broke between the ages of 40 and 45.
"Game Over" Section Insight
- Highlights the prevalence of financial collapse among professional athletes.
Wealth Accumulation for Athletes
- Distinct from regular individuals as they experience rapid wealth changes.
Financial Difficulty Prevention
- Advocates for financial literacy programs tailored for athletes.
Strike vs. Lockout
- Strikes are initiated by workers, while lockouts are enforced by teams.
Free Agent Types
- Restricted free agents have original teams’ rights; unrestricted can sign with anyone.
Arbitrator vs. Mediator
- Arbitrators influence decisions; mediators facilitate without imposing opinions.
Types of Arbitration
- Includes binding (mandatory) and non-binding (optional) arbitration.
Final Offer Arbitration (FOA)
- Both sides submit offers; the arbitrator selects one, incentivizing compromise.
Monopsony Power in Sports Franchises
- Arises from lack of competition, structures of free agency, and the reserve clause.
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Description
Explore the complex financial landscape of college athletics with a focus on illicit payments, athlete responses, and the consequences of the SMU Death Penalty. This quiz delves into the impact of business profits on athlete salaries and the culture of luxury spending among players.