At a time in life when most people would be thrilled with a summer job paying $10 an hour, 16-year-old swimming star Missy Franklin has already turned down more than $100,000 in prize money. She's turned down the Olympic-sized pool of cash — won in competition — so that she can maintain amateur status when she goes to college in a couple of years.
As reported in The Wall Street Journal this week, Ms. Franklin's parents, a physician and a business executive, have had to come to grips with the star athlete's turning down so much loot. So far, they've left the decision up to her.
But sports agent Evan Morgenstein, president and chief executive officer of PMG Sports, who has met Ms. Franklin and her parents, says the choice to pass on the cash is actually very smart.
First off, by maintaining her amateur standing, the young swimmer will be eligible for an athletic scholarship in college. That payoff is substantial on its own — before calculating any endorsement income — Mr. Morgenstein said. Indeed, he estimates that entering college as an amateur is probably worth at least $250,000 to $400,000 in scholarship money to Miss Franklin. And she will have her pick of schools.
Ms. Franklin is favored to win Olympic gold in the 2012 games in London in two events, the 200-meter freestyle and the 200-meter backstroke. Preparing for the competition is an all-consuming endeavor that could be threatened by the demands of going pro, Mr. Morgenstein said. “It would put more pressure on her because she would have to talk about it all the time,” he said. “For a 16-year-old athlete, it could be crushing.”
And unlike gymnastics, where most athletes compete in only one Olympics, swimmers generally have long careers and frequently expand into more events. The Olympic Games after London is Brazil in 2016. That competition will offer Miss Franklin an even bigger opportunity to cash in, Mr. Morgenstein said.
Granted, the swimmer could sign a deal now as a potential medal winner, with a clause that would up the payout if she wins. But by waiting for 2016 to sign an endorsement deal, she will probably sign at a much higher base, the adviser said. In Mr. Morgenstein's experience — PMG Sports' clients hold 102 Olympics medals — Ms. Franklin's base contract fee could be five times higher once she has some medals to her name.
For several years, Leech allegedly favored some clients in trade allocations, at the cost of others, amounting to $600 million, according to the Department of Justice.
