I was intrigued with the discussion in the below link about whether professional football is a business or not. I will leave that for others to debate. What I was looking for was how incentive contracts effect the decision making process of how the game is played.
One thought I had was that the effectiveness of an incentive contract would be determined by the amount of control the member of the organization had. If a receiver was getting $10,000 for every catch he made, then it would stand to reason that he would want the ball thrown to him frequently. However, the receiver is not the one that calls the game plan, to my knowledge. But if the coach was paid $10,000 every time a particular receiver made a catch, the coach would have an incentive to increase the number of pass plays to that receiver. Imagine how the quarterback, who is the commander on the field, would feel if his tacit knowledge from experience told him that this game plan was not good for the team. What a conflict this would create.
Buried in the below article are two interesting statements:
The Ghosts of Wayne Fontes: Incentive Contracts In Sports Are Here to Stay:
"You can’t offer a coach or manager incentive compensation without giving it to the players."
"... there is a good alternative in incentive based compensation that can easily yield the same payouts, but make for more clearly aligned interests between teams and their players...."
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