Might saban still be worth a salary of 4 million per year


When Nick Saban agreed to leave his job as head coach of the Miami Dolphins National Football League team to take a job as head football coach at the University of Alabama, he received a salary of $4 million per year for eight years. Ivan Maisel, a columnist for ESPN.com, wondered whether Saban was worth such a large salary: "Is Saban eight times better than the coach who outmaneuvered Bob Stoops of Oklahoma on Monday night? Boise State paid Chris Petersen $500,000 this season-and he still hasn't lost a game." Might Saban still be worth a salary of $4 million per year to Alabama even if he is not "eight times better" than a coach being paid $500,000 at another school? In your answer, be sure to refer to the difference between the marginal product of labor and the marginal revenue product of labor.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Might saban still be worth a salary of 4 million per year
Reference No:- TGS01370618

Expected delivery within 24 Hours