BP: Billions to Pay

“You have been invited to the Facebook event, ‘NO BP GAS UNTIL THE LEAK IS STOPPED.’” This strident call for action reached me in early June, when the British Petroleum oil spill had become daily fodder for political commentary and fervent activism. Outraged social networkers have flocked to the event, reaching a total of 110,275 confirmed attendees. Another 23, 519 have indicated possible attendance, and the event awaits a response from yet another 211,221 Facebook users.

If we extrapolate from these numbers, BP stands to lose millions of dollars from loss of confidence alone. And this loss is only a fraction of the total economic cost of the spill, once clean-up costs, legal fees, income compensation and long-term industry and environmental impact are taken into account.

The Value of Stephen Strasburg

The average salary of a Major League Baseball player is about $3 million, but in 2009 the first pick in the draft broke through that ceiling. Earning $3.7 million per year, Stephen Strasburg’s $15.1 million over the next four years also shattered USC phenom Mark Prior’s $10.6 record contract in 2001.

In the past, star draft picks have not also has successful careers, and pitchers the most risky prospects of all. In a newsletter for the SABR, Victor Wang found that 62% of pitchers who ranked as top 10 prospects turn out to be contributors (on a scale of bust, contributor, everyday, and star) with only 4% qualify as a star during their MLB career. Strasburg’s credentials certainly make him an impressive pitcher heading into his first MLB season, but are they enough to earn such an exceptional rookie contract?
Last August, Washington thought so.

MCG Offers Employment Litigation Risk Management Services Featuring Open Pricing

MCG is pleased to announce that their Equal Employment Advisory and Litigation Support Division (EEA/LS) now offers employment litigation risk management services with open pricing.

One of the top challenges for businesses in 2010 is avidiong employment lawsuits, which are on the rise. By most estimates, the median settlement payout in an employment practice liability lawsuit is nearly $90,000, excluding attorneys’ fees. Recent reports estimate that the average cost of defending an employment discrimination case from beginning to end is approximately $250,000. One way to meet this challenge head-on is to engage in proactive analyses that assess and minimize your risk of employment-related litigation.

Costs and Benefits of Hosting the Olympic Games

There is much debate going on whether it is actually beneficial for a city to host the games. On one side there are all the promises made by politicians regarding the revenue generated for local companies, the flows of tourists who spend large sums of money and the improved image of the city, on the other side one might think that the legacy of the games is underutilized stadium and heavily indebted local authorities. This article looks at some of the costs and benefits, and call attention on some of the common mistakes made when evaluating the effects of the games.

Loss Analysis: How Much is Haiti Losing?

The Haiti earthquake reminds most of us of images of entire quarters of a city destroyed, only heaps of concrete and dust left behind, and most importantly: enough humans dead to populate a Providence-sized city. Not only is this one of the greatest tragedies of recent years, but it hit a country that has suffered numerous other natural disasters as well as political instability and military coups. In a nation where 50% would be a modest estimation of unemployment and which struggles to finance its debt obligations, events like the earthquake are more painful than anywhere else. This article focuses on a more objective aspect of the natural disaster, the economic losses suffered by Haiti, attempting to give a rough estimation of the economic effects. In this article, I will suggest some possible ways to do so based on the data we have about the loss of infrastructure and lives.