Is Gil Meche Magnanimous?

I consider myself a sport buff to a minor degree but admittedly not as knowledgeable about all sportsmen in all sports disciplines. It is still noteworthy for me to read here that Gil Meche, a pitcher with the Kansas City Royals has retired from the game and left US$ 12 million on the table. This payment was almost guaranteed because in spite of his age and discomfort on the shoulder, he could have plodded along and ensured that the contractual sum was paid. According to the story, Gil has opted for retirement and foregone the substantial sum with full knowledge that he could have shown up to work and earned that income regardless of his performance.

In my view, this is a curious state of affairs because few athletes in a similar situation would have reasoned like that but also because it shows the risks that teams and professional players build into long term contracts. Players at the start of their careers tend to earn far below what they are worth and many players well past their peak earn much more than their performance would warrant. Many pundits accept this as one way of ensuring that future income compensates for the poor rewards but I am less convinced of this. I consider that it is still possible to structure contracts that can be varied with performance and with a fixed sum to ensure that players are properly motivated. As it is, Gil has given his club a real financial boost and perhaps subsidized the pay of other players.