The Executive

FEW industries have worse labour relations than American professional sports. On September 15th the owners of the National Hockey League locked out their players, after failing to agree on a new contract. Fans howled that the entire 2012-13 ice hockey season might be lost, as it was in 2004-05. This is the fourth NHL lockout or strike since 1992, and follows lockouts by owners of teams in the National Basketball Association (NBA) and National Football League (NFL) in 2011.

The hockey tiff is about money. Players refuse to accept a cap on salaries of 47% of revenues, down from 57%. Owners say the cap is needed to help weaker teams compete. Hockey has the widest income disparity of the “big four” of American football, baseball, basketball and ice hockey; each NHL team depends mostly on cash it generates locally. In the NFL, far more revenues are pooled. This prevents a few super-rich teams from dominating and (in theory) makes the game more exciting.

When muscular millionaires (the players) fight brash billionaires (the owners), neither side will crumple easily. All are alpha males; most can forgo income for a long time. So the lockout could drag on.

SOURCE: Economist

Former NFL Player Lost $26 Million In 6 Years, May Now Be Broke

According to an Associated Press story, NFL quarterback Vince Young is nearly out of money despite signing a rookie contract in 2006 that was worth a guaranteed $26 million.

Young, who most recently played for the Buffalo Bills in the preseason before being cut, is mired in a legal battle over who is responsible for his financial woes (via Chron.com).

Young is suing his former agent and a financial planner, accusing them of misappropriating $5.5 million, through the use of forged signatures and impersonating Young. The two dispute the claim, alleging that Young was reckless with his money, and that Young’s uncle, who served as his business manager, approved all the financial moves.

No matter who is to blame, it is a sad fall in a very short period of time. Six years after winning the National Championship at Texas, and being the third pick of the draft, Young is out of football and seemingly out of money.

Then again, it is hard to feel sorry for a guy that once tried to use a credit card to get 8,000 $1 bills to use in a strip club.

SOURCE: Business Insider