#equalpayforequalwork

Forbes addresses the equal pay argument in soccer

Forbes has thrown light on the gender pay gap in women’s soccer. The numbers are rather telling. As CM has always stated, if the earn more than then men they should Ben paid more, not equally. Journalist Michael Ozanian notes,

France earned $38 million from FIFA for winning soccer’s World Cup in Russia, while the women’s champion in France this summer will earn just $4 million, has prompted outrage…

…The total prize money for the Women’s World Cup in France this July will be $30 million compared with total prize money of $440 million for the men’s teams at the 2022 World Cup in Qatar…

…The men still pull the World Cup money wagon. The men’s World Cup in Russia generated over $6 billion in revenue, with the participating teams sharing $400 million, less than 7% of revenue. Meanwhile, the Women’s World Cup is expected to earn $131 million for the full four-year cycle 2019-22 and dole out $30 million to the participating teams.”

Thanks to JL for the flag.

Tennis code violations – who is worse?

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Some argue that the 2018 US Open was biased against female players. In the singles men played 3,176 games in the recent tournament. Or 1.538x more than the 2,065 games played by the women. Yet the stats show men suffered 86 code violations vs 22 for the women or 3.91x. So on balance men 2.54x more likely to suffer a code violation than women on a per game basis. Is it the blokes are just more ill-tempered? If we use the 1.538x ratio of more games played, the boys get penalized (over the last 20 years of grand slam violations);

4.2x more for racket abuse

1.6x more for audible obscenity

2.8x more for unsportsmanlike conduct

2.5x more for verbal abuse

1.2x more for visible obscenity

1.5x more for time wasting

The girls get penalized more than boys in the follwing ways.

60% more for coaching

10% more for ball abuse

Although trying to compare ‘bias’ in tennis with respect to code violations is kind of irrelevant. Certain players ‘blow up’ more than others. McEnroe got many more warnings than Bjorn Borg.

Just for the record, at the US Open Djokovic had to play 136 games for his $3.8mn vs Osaka’s 86. So for each game Osaka earned $44,186 vs Djokovic’s $27,941. Maybe this is why he made his comments about men deserving to be paid more? If we look at the runner ups, del Potro won $17,961 per game vs Serena Williams’ $26,428. So Serena’s. 2nd place earned her almost as much as Djokovic win.

Naturally a better judge is not games played but viewership. The Serena Williams/Naomi Osaka final drew 3.1mn viewers on ESPN, more than the 2.07mn that watch Djokovic/del Potro the next day. If women get 1.5x the audience of the men in the final could one argue the men need to play 1.5x longer to earn the same? Arguably Serena was fighting to match Margaret Court’s record which was part of the boost.

To be honest women’s tennis can be more entertaining to watch in so far as frequent sustained rallies. Men’s tennis can often be a blast fest of aces and blistering returns of serve.

It is likely that Osaka will attract higher than average audiences going forward. Perhaps she is entitled to claim higher prize money than the men based on the extra attention she brings to the sport?

If we look at golf, Tiger Woods used to be paid $300,000 just for attending a tournament regardless of how poorly he finished. If Naomi Osaka helps click the turnstiles surely she deserves a cut of the gate?

Lorenzo to take a 68% pay cut

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After a failed €25mn experiment at Ducati, Spanish MotoGP rider and 5x world champ Jorge Lorenzo (right) is off to take Dani Pedrosa’s (left) ride at Repsol Honda for a reported €4 million per year for two years. Pedrosa had been a loyal salaryman for over 15 years with Honda, bringing 3 world championships in the smaller classes. Dani’s 51kg weight has been his biggest problem in that he is not heavy enough in the larger classes to generate heat in the tyres. Poor old Dani has broken so many bones he’s lost count. Sad to see him go as he is the utter gentlemen/statesman of the field but like any business results matter and in the end and Honda Racing realized it needed a change. Lucky for them Lorenzo’s poor form (despite a win last weekend in Mugello) at Ducati meant he was being heavily discounted. Sports stars are the ultimate sign of same work, different pay.

 

 

Equal pay for equal work

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Australian Channel 9 TV Today Show host Lisa Wilkinson has quit the station after pay negotiations broke down. Her request to have her salary matched to that of her male side kick Karl Stefanovic was knocked back. Stefanovic is reportedly on a $6mn three year deal, contracted when he was about to quit and join another station. Call it unfair or whatever you will but Wilkinson was still paid ($1.1mn) but appeared on fewer shows than Stefanovic .The network upped it to $1.8mn (with the potential it would cause retrenchments) but it was not accepted by her. She walked to defend the gender pay gap to join a new show where she is paid 3x the salary of the male host. So the gender pay crusader is ok with earning more for equal work. How soon we forget that the station being pilloried for not paying fairly made Jana Wendt the top paid announcer 30 years ago. Commercial decision.

MotoGP is a great example of why equal pay for equal work isn’t always so simple. The Ducati Factory Team has two riders – a newly signed €25m 2-yr contract former 5x world champ Jorge Lorenzo and a €1.5mn pa 1x world champ Andrea Dovisioso. Now Dovi is in shooting distance of his first ever MotoGP crown while his overpaid team mate is ranked 8th with patchy performance. While no doubt the pay gap for the same work (riding a motorcycle as fast as possible and not crashing) will be addressed somewhat, satellite team rider Scott Redding has to “pay” for his seat. Not get paid, but pay. So much for equal pay! Yet Redding has made a conscious choice on the basis he performs and his fortunes change. He hasn’t demanded a €25mn deal because he’d be laughed at even if technically fair. Yes, the reality is that “performance” matters. If you’re a better rider, TV cameras are zoomed in on your sponsors for more of the race. That’s why the pay gap exists. Sponsors get their lick. Same job, unequal pay.

We heard similar arguments around the pay differences between the male and female national US soccer teams. The point was made that the women were more successful than the men (true) so it was absurd they were paid less.  The realities were simple. The women were paid healthy salaries whether they played or sat on the sidelines – win, lose or draw. The men were geared to pay on performance and those who were dropped on playing badly didn’t get a dime. Once again, as professional sports goes, male sports tend to be much better paid because of the revenues they attract (which is a reflection of commerciality). Lionel Messi earns 40mn euro a year. Is he worth 100x that of the highest paid female player, Alex Morgan. Well if you paid Messi $400k he probably wouldn’t play. It’s just the world of professional sports. Perhaps all players should be on $40m per year after all equal work, equal pay right? How would losing teams be able to attract superstars to help them win championships (they’re not in it to lose) if they paid them the same wage? They’d remain at the bottom of second division and go out of business because they couldn’t afford equal pay.

To turn the argument on its head, perhaps male models should have the right to protest that female supermodels absolutely trounce them for pay. Only three male models earn over $1mn while 5 times as many supermodels earn it. In the lower echelons female models get paid much more than the men. Probably because the companies that wish to advertise think their brands get more impact by using women! No problem – a commercial choice.

While there is no doubt that pay equality for the same work is fair in theory, the idea that women are deliberately discriminated against from a pure economic standpoint is irrational. If companies could hire women to do the same work as men for 25% less, why would any business hire men? If you work at Starbucks or as a bank clerk, on the same seniority, hours, effectiveness and efficiency then absolutely the pay should be equal .

For jobs that have equal output from equal time then absolutely equal pay is warranted. However workplace discrimination is an evil in almost every firm. Do we have half yearly evaluations where everyone gets the same grade and same bonus? Or do firms try to keep the best performers by incentivizing them to keep bringing in more dollars. For the record my top salesperson (female) in my former career was the best paid of all – gender irrelevant – output relevant. No complaints.

So we can howl at the gender pay gap but let’s get real with what is unfair and what isn’t. There is an idea that all have a right to equal pay but I will defend every woman who earns more than me if she legitimately beats my results – wait a minute I already did.