UCONN's Calhoun Explains Basic Economics to Pesky Reporter

It's not that often that I get to see two of my favorite topics (UCONN basketball and executive compensation) collide (and on Youtube, yet).

After a recent game, during the press conference, UCONN coach Jim Calhoun was asked a question by freelance journalist and political activist) Ken Kreyeske, who apparently working for some outfit called 'The Hartford News'. He asked Calhoun:

"Considering that you're the highest paid state employee and that there's a two billion dollar budget deficit, do you think that"

Calhoun doesn't even let him finish, and responds, "Not a dime back." He then goes on to explain that he actually makes quite a bit more than that, and that the UCONN program actually results in a significant surplus ($12 million a year) that flows back to the university.

But I love the smackdown he puts on the reporter. At one point, he asks him, "You're really not that stupid, are you?" followed by "My best advice to you? Shut up. Get some facts and then you can talk."

For that alone, if I ever see the man (and I almost rode in his Cancer Bike-a-thon last summer), I'd like to shake his hand.

Here's the video. Caution: do not watch while drinking any liquids, or be prepared to clean off your monitor and keyboard):

In addition to pure entertainment value, it also raises some interesting questions or points:

• Who is in a better condition to determine whether a $1.6 million-plus annual salary for Calhoun adds value to UCONN?
• Since it's a university, and not a company, a winning basketball team also has externalities over and above the financial impact of the team
• Most executive salaries are benchmarked to the salaries of industry peers' compensation. How does Calhoun's stack up to his peers (perennial top-25 schools who regularly go to the Final Four)
• What are the likely effects of capping executive compensation (either for basketball coaches or for executives at troubled banks)?

Can anyone come up with a better response to a stupid reporter's question?

HT: The Ace of Spades

Comments

[User 344520:]

OK, I heard Calhoun's rant and thought he came off as a obnoxious ass. When he stated that they brought in $12 million in excess, did he mean incremental revenue or profit. Non-financial people have tendency to confuse those numbers and I can't imagine a program at a small school, albeit elite b-ball program, could do that - 35 games (inc run a MM), program costs of at least 1 million per player and coach (includes all overhead, but not facilities cost), would mean that they would have to generate more than $35 million in revenue to have $12 million profit, or around a million dollars a game - considering many seat go to students?????? - best you stay unknown

Feb 23 09:00 AM

[nobull:]

how come these reporters never asked Katie Couric or Tom Hanks if they deserved the millions they were getting paid?

Feb 23 09:06 AM

[Leftfield:]

Our Wall St. and Washington leaders have a smoother pitch. With the sellout mainstream media in lockstep, they grabbed a couple $trillion for criminal banks before the election and got reelected.

What mainstream reporter or politician has a clue about incremental profits either? They do such a bad job, unless rewarding massive failure is good, their ignorance probably keeps them from prosecution.

The markets are supposed to reward the kind of success Jim Calhoun is a model for. Why should he be the one to give back?

Feb 23 01:00 PM

[User 362665:]

Because the networks don't have their players working for nothing as done by the college basketball players are forced to do. Everybody inovled in the scam amkes a killing except the players.


On Feb 23 09:06 AM nobull wrote:

> how come these reporters never asked Katie Couric or Tom Hanks if
> they deserved the millions they were getting paid?

Feb 23 01:18 PM

[silverfox:]

Basic economics: cut costs or increase earnings.
get ready the big tax jolt is coming from President Obama.

Feb 25 10:07 AM

[satellite r...:]

Go to the UConn financial statements and try to check Mr. Calhoun's $12 million reference. I'll save you the trouble: you can't. That's because the school doesn't even break out what the athletic programs make/spend. The people who run public universities belong in jail. In the case of UConn, they spend twice what they make and force state taxpayers to make up the diffference.

Feb 25 12:47 PM