Michigan Football: Brady Hoke Just Makes Cents (Sense): Brandonomics 101

Michigan athletic director David Brandon's background is that of a business man.  As a business man, formerly of Domino's pizza, Brandon knows that paying $5 for a pizza is better than paying $10 for the same pizza. 

He knows that paying $1 per pound of tomato paste is better than paying $3 for tomato paste.  He understands that at the end of the day, one does not necessarily get more value when one pays more money. 

We all are like Brandon.  Why would we pay a higher price for anything:  car, clothes, computer games, iPads, etc., if we can get the same or similar utility at a cheaper price.  Hence, the issue of Michigan hiring Brady Hoke versus Les Miles.  

Was this ultimately what drove Jim Harbaugh to sign with the 49ers for $25 million and spurn his alma mater? 

Brandon said in his press conference, "There's a market out there and you pay for value and the marketplace dictates what those price tags are...I want you to know, my philosophy, and I believe my boss and my boss' bosses, understand that concept, and we'll do what we need to do to get the right coach to come to Michigan."

It is hard to believe though that Brandon had a blank check and could hire anyone if the price is right. 

Miles already makes a salary of around $3.9 million.  If hired at Michigan, he would definitely exceed $4 million, maybe in the $4.5-5 million range.  On top of that, Miles has two assistants under him who make somewhere in the ballpark of $700,000. 

Miles would definitely want to bring one of them along, and a pay raise of close to a million dollars would be expected.  He would also want a top-flight coordinator that would probably be in the same neighborhood in terms of cost.

Is this what Miles and Brandon discussed?  Did the economics of hiring him prevent the Wolverines from doing so? Did Brandon think he could get a similar value for less money?

With Miles and two top assistants, we are already talking about a salary range of $6-7 million.  What about the other seven? In a story in USA Today, Steve Wieberg found that, "more than 100 of the 893 assistants for whom USA TODAY was able to obtain contract or other compensation information are making $250,000 or more." 

That could be an additional $1.75 million in salary, which would push the salary range to $7.5-9 million range, which would surpass Oklahoma’s $7 million payroll. 

Hoke would not command such a high salary.  It is likely that he will get something in the range of $2.5 million per year at the start, and his total staff likely will not exceed $1.8 million in salary for a total of $4.3 million dollars—less than Miles himself would have made. 

Knowing the value per dollar, Brandon likely did not feel paying more than $7 million for a staff was a better value than paying $4 million.  He already hinted that a coach like Hoke would be hired: "Is Tressel a bad coach? I think he seems to be doing pretty well down there, at least against us." 

Brandon knew he did not have to hire a high-profile BCS coach like Miles or Harbaugh, but he did need to hire the right man.

Being a smart business man, Brandon thinks Hoke will be a good coach at Michigan.  There is no reason to believe the Wolverines needed to open up its coffers to get a high-profile coach. 

Brandon knows Ohio State did not fall into the "name game" and hired a top coach in Jim Tressel, so Michigan fans need to hope the same is true for Hoke.  He was certainly the best buy for the price.