FanPost

Business Decision

Mark J. Rebilas-USA TODAY Sports

Every time I say it's a game, you tell me it's a business. Every time I say it's a business, you tell me it's a game.

Peter Gent, North Dallas Forty

As the negotiations (or at least the speculation about the negotiations) over Russell Wilson's contract grind on, much of it centers on variations on the hometown discount theme. Will he accept lower dollars in return for a higher guarantee? Will he accept lower dollars in return for the chance of winning that staying in Seattle offers? The bad feeling over Golden Tate's rejection of Seattle's offer lingers, too: Will Wilson talk a good game but end up going for the bucks? On the other hand, will he be Michael Bennett, and accept less money to stay put?

The hometown discount is often invoked but rarely realized. Fans wind up thinking that the player was always all about the money (as if the NFL is not), and any talk about a hometown discount was so much posturing. The talk rarely originates with the player, but that seems to be neither here nor there. So, is there actually a such thing as a hometown discount?

When it comes to contracts and free agency, I've come to look at each player as a business in which the product is himself. The product is subject to great risk and -- with the exception of a few positions and players -- has a short shelf life. The competition is intense, and there's usually a younger and cheaper competitor waiting for his chance. The lifetime cost in terms of physical disability can frighteningly high. Moreover, the business reports to a corporation that extracts every dollar possible from players, fans, sponsors, and suppliers.

In this context, the hometown discount is a premium that a veteran player is willing to pay to stay put despite the inherent risks and brevity of an NFL career. Because it amounts to leaving money on the table -- the player accepts less than his market value -- it has sharp limits.

Suppose, for example, that Golden Tate was willing to pay $1M across the life of a new 5-year contract to stay in Seattle. Once he stablished through negotiations with Detroit that his value was $6.3M/yr, the Seahawks would have had to offer $6.1/yr for Tate to stay. Anything less, he can't accept because the cost to him exceeds the discount he that is willing to pay. That Tate signed with the Lions doesn't mean that the discount didn't exist or play a factor in his decision. It doesn't mean that he misled anyone. It does mean that Seattle didn't meet the discounted price, which was still below Tate's market value. It also means that the offer accepted by Michael Bennett fell with the limits of his discount -- had it not, he'd be in Chicago.

In the end, Russell Wilson will make a business decision regarding his contract, as will the Seattle Seahawks. The decision may (or may not) account for the benefits of staying with the Seahawks organization, but it will be a business decision. We should expect no different, and no less.