Can Social Media Cost You $5 Million?
I know you've probably heard this before, but it's worth repeating: be careful what you post on social media.
It may be used against you. For one NFL player, it cost $5 million.
New Orleans Saints football player Jimmy Graham was recently in a contract dispute with the Saints over whether he should be designated as a "Tight End" or a "Wide Receiver." While the distinction may seem trivial, it had huge repercussions in terms of salary.
Graham was set to receive the "franchise tag," which is a one year, non-negotiable contract, the salary of which is determined by averaging the five highest paid players' salaries at Graham's position. If Graham was designated as a Tight End, he would have made $7,053,000 for the year. If he was designated as a Wide Receiver, his salary would increase to $12,132,000.
So where does social media come in? Graham's personal Twitter account stated that he was a Tight End, which was used against him in arbitration. Graham lost in arbitration. He was designated as a Tight End – and paid like one.
The lesson to learn here is that social media matters. It is a great tool for marketing and developing your business and can be a part of an effective marketing and branding strategy. However, social media is public information. It can be used against you. Be careful what you post!
Categories: Social Media
John brings a unique perspective to Foster Swift with his practical experience as an entrepreneur, business owner, and manager. He focuses in the areas of business, tax, intellectual property and entertainment.View All Posts by Author ›
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