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.