Month: October 2013

Sebastian Vettel Earns Sweet Bonus For Winning Title

sebastian-vettelRecently crowned F1 Champion Sebastian Vettel is set to receive quite a lucrative bonus from his Red Bull team. The German driver clinched his fourth title in India last weekend.

Sebastian’s current base contract with Red Bull Racing pays him approximately $14 million a year. For winning the title, he will receive another $6.9 million in compensation, taking his total to just under $22 million.. This is a significant increase on last year’s bonus, when he received an extra $4 million for the title.

Despite Vettel dominating F1 in recent years, he is not the highest paid driver. Ferrari’s Fernando Alonso is set to receive nearly $45 million this year, while Mercedes’ Lewis Hamilton is on track for around $38 million. Red Bull’s other driver, Mark Webber, is on a salary of $7 million per year.

At 26, Vettel has plenty more racing ahead of him. He may be in line for a bump in pay in the future, but money isn’t the only thing driving him. He enjoys his time away from the track, and has in fact turned down several lucrative endorsements in favor of free time.

Sebastian wasn’t the only person at Red Bull Racing who received a bonus, with each employee receiving a bonus of roughly $16,000.

*Sebastian Vettel is self-managed*

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Breaking Down Kobe Bryant’s Next Contract

sign1Arguably one of the greatest players of all time, Kobe Bryant is entering the last year of his contract with the Los Angeles Lakers. He is currently the highest paid player in the NBA, due to make $30,453,000 this season, which is nearly $8 million more than the next highest paid player, Dirk Nowitzki.

Kobe is currently recovering from an injury which will prevent him playing the full 2013-2014 season. No-one is underestimating Bryant’s ability to return to his dominant self, but at the same time he is 35 and heading to the twilight of his career.

There has only ever been one other player who has made over $30 million in a season – Michael Jordan. With the new Collective Bargaining Agreement (CBA), it seems this is where it will end. Kobe’s pay has escalated thanks to previous CBAs. He can receive a 5% pay rise on his salary this year, which would put his pay at around $32 million. I think both Kobe and the Lakers know this is unfeasible.

So what will Kobe’s next contract look like?

Kobe is focused on winning. He wants another championship. However, he also wants to get paid his worth. Even if he was to hit free agency there would be no club willing to part with $32 million a year for Kobe, let alone over 3 or 4 years. The Los Angeles team isn’t at the championship level it was a few years ago, and this may persuade Kobe to seek opportunities elsewhere. The Lakers do have approximately $50 million in cap space next season, so if there was a way to fit Kobe in and sign quality players, the team could be in contention for finals.

As suggested by Sportingnews, Kobe could take a pay of approximately $20 million per season, which would leave room for a max deal player and another player on roughly $10 million. This would add quality to the Lakers side and maintain the legacy of Kobe as a one team player.

If Kobe was to leave the Lakers his personal brand could be tarnished. He already has a significant contract with Nike, which includes his own shoe, a best seller worldwide. By switching teams, many fans may choose to opt for another brand. Not to mention jersey sales. When Jordan signed for Washington, how many people bought his new gear?

In closing, I believe a 3 year, $65 million deal will see Kobe stay at the Lakers. This still ranks him as one of the highest paid players in the NBA, putting him in the same pay range as LeBron James.

NFL Star Loses Endorsement By Tweeting About The Competition

vernon_davisESPN’s Darren Rovell has reported that San Francisco 49ers star Vernon Davis has lost his endorsement with Vita Coco after publishing a tweet supporting a competitor. Vita Coco is a worldwide leader in Coconut Water. Vernon signed with the company in August of last year, and re-signed with the company a mere 10 days ago. It was on the same day that he published the following tweet stating he uses Body Armor, a ‘super drink’ packed with twice the electrolytes of a normal sports drink. Here is the tweet which caused VitaCoco to terminate their agreement:

What lesson can be learned by this? Simple. Don’t endorse a competitor of a company that is paying you to endorse their product. No doubt VitaCoco would have had clauses in their agreement with Vernon stating he was not to promote a drink in the same industry through any channel.

This is is a similar situation to that of soccer star Ronaldinho, who lost his sponsorship with Coca-Cola after drinking from a can of Pepsi at a press conference.

Never Be Dormant! How To Network In Sports Business

networksNetworking can be tough. It can be daunting, intimidating and seem like an impossible task. But this isn’t a business for the fainthearted. Opportunities aren’t just going to fall on your lap without hard work.

As someone who is still trying to gain employment in this field, networking is paramount. If someone knows of your skills and capabilities, they may consider you for a position in their company, or know someone who is looking for a candidate like you.. However, it’s not just about making a connection with someone. It’s about maintaining the dialogue and engagement with your network, using your network to your advantage.

Firstly, social media is your best friend. You’ve probably discovered this article through either Twitter or Linkedin. That’s a great start. Ensure with Twitter and Linkedin that your profile is up to date, free of any errors.

Next, start using these tools everyday. Don’t just follow people in the industry, engage in conversation. I am always talking with other people in sports business about stories, ideas etc. It’s a great way to show people (and perspective employers) that you know what you’re talking about. Joining groups that you are interested in on Linkedin can be rewarding too.

There are an abundance of twitter chats that will enable you to converse with other sports business industry folks and make connections.

The following are weekly chats great for networking:

Sports Business Chat: #sbchat

Sports Pr Chat: #sportsprchat

Social Media in Sports: #smsportschat

Sports Jobs Chat: #sjchat

On the subject of Twitter hashtags, my favorite one is #sportsbiz. Do a search of this and you will find many like-minded people who love to discuss sports business.

Attending sports business events is another great way to build your network. There may be industry nights, career fairs or symposiums in your area that you can attend. Any connection you make at an event like these make sure to follow up with dialogue shortly after, even it’s its just a ‘Great to meet you” message.

The bottom line is to follow the rule of ABN: Always Be Networking. Make sure your network isn’t dormant, it should always be working. At the end of the day, it’s not who you know, it’s who knows you.

Follow me on Twitter here, or connect with me on Linkedin here.

When A Twitter Chat Can Go Wrong: #AskHarry

v65oai7fxn47qv9nectxIt was suppose to be a way for fans to connect with the manager of their football club. A simple engagement where people could ask questions to QPR manager Harry Redknapp by using the #AskHarry hashtag.

What transpired what not what the social media team at QPR would have envisioned.

The hashtag became the number one trending topic worldwide, but for all the wrong reasons. People jumped on the hashtag and unloaded with barrage of jokes and abuse, with topics which the chat was clearly not designed to address. Questions regarding his alleged tax evasion, mismanagement of funds at Portsmouth and even the legitimacy of his fatherhood to son Jamie were propelled in his direction.

Some of the follwing were the most retweeted tweets:

As you can see, no topic was off-limits, and these were some of the more tame ones. I’m not too sure what QPR can do to remedy a situation like this, and to be honest the hashtag will probably get a workout for the next 48 hours at least. If anything, QPR could just run the course of their usual business on social media and ignore the tweets they deem inappropriate.

Breaking Down Andrew Bogut’s Contract Situation

andrew-bogut-golden-state-warriors-nba-nba-426334294Andrew Bogut, arguably one of Australia’s best ever basketball exports, is in the final year of his 5 year/$60 million contract. Having signed the deal with Milwaukee Bucks, he was traded to the Golden State Warriors in 2011. He is due to make $14 million this season.

Bogut has been clouded by injury problems since hurting his elbow on a dunk in 2010, when he was averaging a double-double per game. He later had surgery on his ankle, which led him to miss even more game time.

NBA contracts are guaranteed, so regardless of his injuries the team he was playing for had to honor his contract.

Looking to the future, what contract can Andrew expect at the end of next season?

Firstly, the length of the contract is out of two options: He can re-sign with the Warriors for a maximum of three years, or test the free agent market and sign with another team for four years.

Bogut has indicated he would like to stay with Golden State, and understands that his value has probably dipped in recent times due to his injury. A deal with game incentives would be something he would entertain. However, with the Warriors making a play for another centre in the off-season in Dwight Howard, and California’s high tax rates, he wants the team to show that he is wanted by them.

Negotiations have already begun, and while Golden State’s first offer wasn’t what his team were looking for, it wasn’t exactly insulting. So what would get the deal done? I believe a deal in the region of $12 million per year for three years is a fair deal, with escalators taking the deal to approximately $13-14 million, based on the number of games played. Reports from Australian news outlets stating he will receive $19 million a year seems grossly overestimated, with reports coming out of the Bay Area stating a figure of approximately $13 million.

Andrew would prefer things to get done sooner rather than later, and should an offer not come in that is satisfactory, it is likely he will become a free agent. If he were to reach the level of play he demonstrated prior to his 2010 injury, then he may well see his value push past his current contract compensation.

Andrew Bogut is managed by David Bauman of Lagardere and Bruce Kaider of One Mangement, in which he also has an ownership stake.

Want To Buy A Horse Racing On Cox Plate Day? Here Is Your Chance

554974-moonee-valleyEverybody dreams of racing a horse during the Spring Carnival. The lure of brushing shoulders with celebrities is great, not to mention the prize money isn’t too shabby either.

Well now is your chance. Instead of investing time and effort in the prospect that a horse may one day reach these lofty heights, you can purchase one today which will run this Saturday.

The first race on Cox Plate Day is the Inglis Banner, a $250,000 race which is restricted to horses who have been sold through Inglis Bloodstock. The race is for 2 year olds, with the majority of the field having never raced before.

Enter Japanese Slipper, a 2 yo filly which can be yours for just $33,000. To put that in perspective, the prize money for the winner on Saturday is $150,000.  Even if the horse finishes 2nd, it will collect a cheque for $45,000.

The horse has had one trial, in which it finished 6th out of a field of 9. While horses are incredibly unpredictable, especially at such a young age, having a horse running at this level is something may racehorse owners could only dream of. Owners may spend ten times this amount and never experience a day like this.

The horse is listed for sale here.