These examples illustrate the ways a franchise can afford to keep its stars happy, without taking large chunks out of its pocketbook or salary cap each year.
More and more franchises are using creative financing to fulfill contractual obligations.
One of the more outrageous contracts was Steve young's $40 million deal with the Los Angeles Express of the USFL. The contract would have run for 40 years--just enough time for $1 million to grow to $43 million at the interest rates of the time. Therefore, if the USFL (or the Express) had survived, the Los Angeles franchise would actually have made money on Young's contract.
The latest of the "extra-long contracts" negotiated were the lifetime contracts of three Kansas City Royals in 1984. Besides a generous base salary, the players--Quisenberry, Wilson and George Brett--will also receive interest payments from real-estate investments.
Then, after they retire, a supplemental income kicks in, and the players can receive money in lump sums of $16 to $23 million each or take it in annual payments.
Despite the best efforts of the owners, however, matters are coming to a head in the highest-paid sports: baseball and basketball.
The NBA has already solved its problem with the salary cap, which helps teams keep costs down but makes for a difficult chore in choosing who is to be kept on a team.
But major league baseball has no salary cap, and owners have turned to different tactics in order to keep salaries down. Last year, management cut the playing roster from 25 to 24 men--saving only about $100,000 per team.
During the past off-season, teams offered less to their first-year players. B.J. Surhoff, a rookie catcher who had a lot to do with the Brewers' 13-0 start, makes only about $65,000 a year--the minimum wage.
Free agents galore went unsigned last winter. It may be left to history to determine whether the non-signing resulted from owner collusion or fear.
This year's few free-agent deals grew out of necessity. The Cubs needed offense, so they picked up Andre Dawson. The Phillies needed a catcher, so they picked up Lance Parrish.
But what of the future? Some say that salaries can only go up, due to inflation, prosperity, or just plain greed.
But there is one other factor that hasn't been talked about as much as in the past, and that is status. The thought that the highest-paid player is the best player has been around for a while.
The most overt example of statusgrubbing did not occur in baseball but in basketball. Consider the year that both Wilt Chamberlain and Bill Russell were getting their contracts renewed. A few days after Red Auerbach signed Russell to the tune of $100,000, Chamberlain demanded $100,001. The rivalry that the two big men had on the court spilled off the court.
In the future, salary inconsistencies may continue to crop up, as owners take cost-cutting measures (reminiscent of grandfather clauses) on players who are unable to fight back.
But no matter how hard the owners try to keep salaries down, the genuine demands of superstars will have to be heeded. There will never come a time when top talent exceeds top salaries.