Wealth was made to be transferred
.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;}
The transfer of wealth can be a slow, torturous process that requires actually showing up for work. But sometimes we’re treated to proof that it can happen much more quickly, and we’ve had some fine examples this summer.
• In the case of LeBron James switching teams in the National Basketball Association, it’s obvious that James is destined to be the long-term winner. He was wasting his potential in Cleveland, where he was lucky to scrape together $34 million a year in product endorsements. I mean, what’s the point of running all the way down that long court?
But for immediate results, you have to admire the move by league commissioner David Stern. When Cleveland Cavaliers majority owner Dan Gilbert lashed out at James for jilting the team, Stern fined Gilbert $100,000.
Stern is onto something here. If you can pick up 100 grand for your organization by punishing someone for saying what they think, you have beaten the system to a pulp. First we tease “guns for everyone!” out of “a well-regulated militia,” and now we’ve added ” … in most cases” to “freedom of speech.”
Maybe the Bill of Rights wasn’t such a big deal after all. Maybe that extra space in the Constitution could have been better used for advertising.
• Sticking with sports, Iowa State University transferred some wealth to resolve an employment quandary. Nick Nurse signed on as an assistant basketball coach, but then things changed. Head coach Greg McDermott, who was doing a fine job except for the part that shows up on the scoreboard, headed off to Creighton University, and Nurse’s job vaporized.
Not a huge problem for Nurse, who returned to coaching the Iowa Energy in the NBA’s D-League. However, he received a lovely parting gift from the Iowa State athletic department anyway. The kindly folks there wanted to avoid hurting Nurse’s feelings, and as they searched for the right figure to accomplish this, nobody had anything bad to say about $175,000. After all, every time you drive from Des Moines to Ames and back, it puts at least 60 miles on your car, and if you figure 35 cents per mile … well, it adds up.
• Sticking with Iowa State basketball, the program boosted its transfer-of-wealth hopes by signing a star recruit from Minnesota. He has had only a couple of minor run-ins with the law, so he might not be as aggressive as fans would hope, but he’s worth a try.
The kid warms up for an NBA career, the Cyclones sell more tickets, and the crowds are happy. It’s a win-win-win. Because you know dreams always come true for us Iowa State fans.
• The city of Des Moines came up with a nice wealth-transferance plan in the form of cameras that will monitor intersections and the freeway. It should improve safety, which is always a laudable goal.
But safety without profit is sort of un-American, and in this case the camera company and the city hope to divvy up $100,000 per camera per year.
The logical next step: An ordinance pertaining to trans-fats and soda pop, plus cameras mounted in strategically chosen restaurants. Good-bye, budget problem.
• Of course, this is all penny-ante stuff compared with a well-played stock option transaction. In April, the CEO of Rockwell Collins in Cedar Rapids made $3.5 million in one day by buying at his option price and selling at the market price. The chairman emeritus got jealous and hauled in more than $4 million a couple of days later.
If I ever make $4 million in one day, or even $3 million, I am definitely going out for lunch, no matter how nice a sandwich I brought. And on the way home, I’m stopping at the car wash and selecting the “premium” package.
Hey, if you manage to transfer some wealth your way, you might as well enjoy it.