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Oct 18, 2024
10:28:52am
The Y's Insider All-American
Steve Young - "The $40 Million Man"
Last weekend, the nation's #1 basketball recruit visited BYU and was reportedly introduced to a celebrity he didn't know - a guy by the name of Steve Young.

I know most people on CB know who Steve Young is, but it became apparent to me that even many of our younger fans don't quite realize his place in the world of college and pro football.

So I thought I would share a part of his story that I think will be fascinating to many readers.

(Forgive some details that might be inaccurate - I'm reporting the details and timeline as best as I can recall, as told to me.)




Christmas Break, 1983.

Steve Young had just completed a spectacular senior season at BYU, capped by an epic comeback victory over Missouri in the Holiday Bowl, where Steve Young caught (yes, CAUGHT) the game-winning touchdown.

Days later, Steve was back home in Greenwich, CT to spend the holidays with his family. He arrived home in time to read an article in the hometown newspaper - The Greenwich Times - touting the hometown hero as the guaranteed #1 draft pick in the NFL. This was a dream-come-true for a left-handed QB that once begged the BYU coaching staff to move him out of the DB room and give him a shot at quarterback.

One evening, after dark, a knock came to the door. Steve's dad, Grit, answered the door, where a man introduced himself as Steve Ehrhart - an executive with an upcoming professional spring football league called the USFL (United States Football League). The man asked Grit if he could have a few minutes with his son, and Grit graciously invited him into the family home.

As Mr. Ehrhart sat down with Grit and Steve, he quickly cut to the business. "Steve, have you ever considered playing in the USFL instead of the NFL?" Steve politely said no - it really wasn't a consideration. Mr. Ehrhart pressed further: "I get it. That's the same response I initially received from Herschel Walker and Craig James, but they eventually caught the vision after hearing out my proposal. Can you give me the same opportunity?" Steve looked at Grit, who nodded in approval. Ehrhart continued: "We both know Cincinatti has the top draft pick. We both know they intend to draft you. How do you like the idea of sitting behind pro-bowl QB Ken Anderson? Is that appealing to you? And how do you like the idea of playing in the cold? I know you've been living in Provo, but have you ever been to Cincinatti in January?"

Steve was quiet, but Ehrhart knew he had struck a nerve, so he continued, "What if you could pick any team and city in the USFL? And what if I could guarantee you more money than any NFL team? Then would you listen?"

Again, Steve was speechless. He merely shrugged.

Mr. Ehrhart kept going. "Steve, if you could pick any place in the country to play ball, where would it be?" Steve's mind immediately drifted to Southern California, perhaps recalling his thrilling victory over UCLA just 2 months prior at the Rose Bowl in Pasadena. "California would be nice", Steve muttered.

"Ah, it's hard to beat the swaying palm trees of Southern California, isn't it? The beach and the girls and the sunny, mild winters - it's a star quarterback's dream! Yeah - we have the L.A. Express right there. I'd have to pull some strings, but I'm sure I could guarantee you a spot there. That's partly what makes the USFL so much better than the NFL. It's a player's league."

As the conversation progressed and Ehrhart kept pumping promises to both Steve and Grit, he failed to elicit any strong commitments from the young QB. Grit expressed over and over that the NFL was a proven financial model for thousands of athletes, while the USFL seemed risky. Ehrhart ultimately left the home without the commitment he was hoping for, but he knew he had succeeding in planting some interest.

_____

Days later, the phone rang at the Young Home. A familiar voice asked, "Is Steve there?"

"Hi Steve, this is Howard Cosell with ABC Sports. Do you have a minute?"

Howard went on to talk about ABC's deal with the USFL - how the USFL was THE up-and-coming league; a better financial model for elite athletes, with higher salary potential and a new concept of "free agency". Cosell continued: "Steve, this opportunity is too good to pass up. You can't ignore it. We're talking serious endorsements and wealth. You'll not only be the face of a franchise, you'd be the face of the entire league. You'd be bigger than Joe ***** Namath!"

Steve hung up the phone in disbelief, then composed himself and called Leigh Steinberg, his agent. "Hi, Leigh. Maybe we should listen to these guys. What do you think?"

_____

Weeks later, Steve landed in Cincinnati for a workout with the Bengals. Stepping outside the airport, Steve felt the immediate sting of a Midwest winter, and he thought about the conversation he'd had weeks earlier with Steve Ehrhart - "It's hard to beat the swaying palm trees of Southern California, isn't it? The beach and the girls and the sunny, mild winters - it's a star quarterback's dream!"

His workout went well. Head coach Sam Weiss made no secret that the Bengals intended to use their #1 pick to draft the BYU star, but something about Weiss really irritated Steve. He didn't care for the organizational vibe, he didn't trust the coaching staff, he didn't like the offensive system, and he didn't like the idea of holding the clipboard for a pro-bowl quarterback.
And he really didn't like the idea of scraping ice off the field before late-season kickoffs.

Returning home from Cincinatti, Steve again called his agent. "Leigh, I'd like to look deeper at the USFL."

...

Being the savvy negotiator he is, Leigh Steinberg placed a call to Don Klosterman - General Manager of the L.A. Express. "Don, this is Leigh Steinberg, representing Steve Young. I know you've been in talks with USLF leadership, and I know you'd love to nab Young and send a message to the world. I want you to know that Steve has all but signed the ink with the Bengals. He's thrilled to be a Bengal, and his dream has always been to play in the NFL, but I owe it to him to call you first. I know you want him... can you make him an offer he can't refuse? ...Now before you make us a preliminary offer, I'll just say that Steve isn't leaving his NFL dream unless you can offer an unprecedented package. I mean it - unprecedented."

Klosterman asked, "What will it take?"

Steinberg responded, "Frankly, the USFL is a risk. You'll need to make him the highest paid rookie in football history... more than Marino or Elway or Kenny Simms."

Klosterman responded, "I'm confident we can do that."

Steinberg kept pushing. "Steve certainly needs lifelong financial assurances, but it isn't just about the money. He wants security and for his family and friends taken care of."

Klosterman simply listened, then responded, "If he'll give us a shot, we'll make him an offer ha can't refuse. Hold tight."

_____

The verbal offer extended to Steve by the L.A. Express was certainly unprecedented in pro football.

By phone, the Express agreed to offer Young $4 million upfront (a huge investment in those days) on a 4-year contract. In addition to his guaranteed money, Young was also offered $1.2 million in salary money over the term of his contract.

Then the crazy part: After his 4th season, the Express also guaranteed Young deferred payments totaling $30 million that would be paid monthly until the age of 65. This money was guaranteed even if Young left the USFL after 4 years. As an asterisk, Young would also receive $100,000 annually as part of an endowment deal.

Then to show further good faith, the Express pledged a $180,000 contribution to BYU to be named the "The Steve Young Scholarship", and they also promised to draft Steve's best friend and teammate - BYU All-American tight end Gordon Hudson.

Oh - and one other small carrot: Klosterman told Steve he knew the right people at Loyola and could get him accepted at the prestigious Law School, thereby fulfilling another of Steve's dreams to become a lawyer.

For Steve Young (a kid still enrolled in college classes), the entire package was confusing and overwhelming. He knew nothing about annuities, deferred payments, stock options, and other financial lingo. And the numbers and terms thrown around were complicated; Steve really didn't understand the enormity of it all.

But he trusted his agent, Leigh, who assured him this truly was an offer he couldn't refuse. So, they made arrangements to fly to the West Coast to finalize the deal, meet the owner, and celebrate an unprecedented deal.

_____

Bill Oldenburg, the owner of the L.A. Express, was a stereotypical pro sports team owner - an arrogant, brash billionaire with a love for money and all the accompanying vices. He had earned the nickname "Yosemite Sam" because of his short stature, his hot temper, and his red, bulbous nose.

On the day Steve Young and Leigh Steinberg showed up at Bill's posh San Francisco office to finalize the deal, it so happened to be Bill's birthday, and he was already in pre-party mode, reeking of alcohol. With slurred speech, Bill boomed, "Steve, welcome to the Express. You're our guy!" Let's have the attorneys quickly finalize the papers, then we'll celebrate! Our entire program rests on your shoulders!"

Suddenly, Steve felt nauseated; unqualified. For the first time, he realized the enormous pressure of being a pro quarterback and "the face of the franchise". He suppressed tears of anxiety and fear as Leigh Steinberg and a handful of attorneys adjourned themselves into a conference room to finalize the legal papers. Ironically, Steve also excused himself to another room to study for an upcoming college exam.

(It's important to note that there was much more work to be done than "finalizing the papers". Laughably, the Express attorneys hadn't even started drafting the contracts. Up to this point, nothing was in place except verbal agreements.)

Thirty minutes passed. No big deal - as expected.

Then an hour passed, and as Steve wrapped up his studies, he thought to himself, "this is sure taking a while."

Two hours later, Steve was starting to get nervous, as was the team owner, Bill Oldenburg, who walked into the negotiation room. "What's taking so long?", he asked with a strong hint of agitation. One of the attorneys assured him not to worry - they were just finalizing a few items.

Another two hours passed when the agitated (and further inebriated) owner once again came down the elevator and barged into the office again. "What the **** is taking so long?! I was supposed to leave 30 minutes ago! Hurry the **** up!!" Again, he was assured the contract was close to finalized.

After more time passed, finally at 2AM the owner called down to the board room. "Get that **** Mormon, Steve **** Young, and his **** Mormon agent upstairs to my office right **** now!!"

Steve and Lee were quickly escorted into Bill's 40th floor office overlooking downtown San Francisco. They discovered Bill leaning against a large bar in his office, with puddles of booze on the floor. Their appearance sent the owner into a tirade. "What the **** do you guys want?! $42 million isn't enough for you greedy ****?! What do you want - more guaranteed money?!" Then he started throwing $100 bills at them. "Here's your **** guaranteed money. Bend over and pick it all up!"

The tirade continued, and Bill began a personal attack on Steve, repeatedly poking him in the chest and telling him how greedy he was. Finally, Steve had enough and told the short man that if he poked him again, he'd get decked.

Wisely, Bill stopped poking Steve and backed away, but the verbal barrage continued. "You ***** Mormons think you're too good to play for my **** team?! Why the ***** did you waste my **** time and my **** money?! Go back to your **** temple and get the **** out of my building!!" Others tried to speak reason to the owner and calm him down, but when he started throwing booze bottles against the wall, Steve and Leigh were ushered out. As they were leaving the room, Bill attempted to pick up his office chair and throw it through the ceiling-high window overlooking San Francisco.

Safely outside the building, organizational representatives apologized profusely to Steve and Leigh. "We are so, so sorry about all this. Bill is drunk and he doesn't know what he's saying. Let's catch you a cab back to your hotel and we'll reconvene in the morning. Please don't panic - we will work things out tomorrow morning."

Of course, Steve was wide-eyed and shocked about the entire situation. Was this real or a dream? He told Leigh on the way back to the hotel, "Let's fly home. I'm not going back there tomorrow. There's no way I'm playing for this organization." Leigh, a more experienced businessman, tried to calm Steve down: "Let's give it some time. We are the ones in control here. Let's sleep on it and see what happens tomorrow." Steve reiterated, "I'm not signing here. There's absolutely no way."

The next morning, an embarrassed Bill Oldenburg called Steve. "I don't remember what happened yesterday, but my people tell me I was completely out of control. I'm so incredibly sorry. I don't know what I said, but I assure you that the Express need you. You're the face of our franchise. I'm not excusing my behavior, but I am asking for another chance to finalize what we started."

Steve hung up the phone and told Lee, "Yeah, I just can't do it. This is nuts. That guy is a psycho."

Soon, others from the Express started calling Steve, trying to pacify his feelings. They said things like, "We know Bill can be crazy when he's drinking, but he's harmless. And don't worry about it - you'll only see him a few times a year."

Next, Howard Cosell called again to try to temper emotions. This was followed by a call from Steve's boyhood hero, Roger Staubach.

Lastly, Steve's phone rang and on the other end was Joe Namath. "Steve, this is Joe Namath. Can I offer you some advice? Look, I'm good friends with Don Klosterman, the GM of the Express. He's a great guy and you can trust him. Forget about last night, and forget about "Yosemite Sam"... you've gotta take this deal. You'd be absolutely crazy to give this up because of a drunk man's tirade. This will not only make you a QB legend, it will create wealth for your grandkids and great-grandkids."

Steve sat down again with his agent, Leigh. Leigh reminded him of his other option: Playing for the Bengals in Cincinatti - a $3.5 million non-guaranteed contract in an organization he didn't like... for a coach he didn't like... in a city he didn't like. And Leigh reminded Steve that in the NFL there was no such thing as free agency.

_____

Ultimately, Steve and Leigh went back to Bill Steinburg, and the team of lawyers finalized the contract.

Shortly thereafter, a massive press conference was organized at a fancy Beverly Hills hotel, with plans to introduce Steve Young to the public as "The 40 Million Dollar Man". As the TV cameras rolled, journalists and hundreds of fans started chanting Steve's name - the cue for him to appear onstage. But Steve Young sat paralyzed in a chair backstage, absolutely frozen in fear and on the verge of vomiting. He told his agent, "I can't do it. I can't go out there. Is it too late? Can we tell them there's been an unforeseen delay? I just can't do it."

Leigh finally convinced Steve to walk out and do the press conference, and he looked the part of a $40 million man: poised, confident, young and athletically chiseled. Afterwards, he went backstage and bawled.

_____

With his first paychecks, Steve bailed his grandparents out of financial distress. Then he extended the same help to aunts, uncles, and other extended family. Meanwhile, he lived in a modest L.A. apartment and drove the same clunker of a car that he used at BYU. On more than one occasion, Express executives had to call Steve and remind him to deposit his checks.

Steve Young was adequate in his first season with the Express. The team finished the season with a modest 10-8 record but managed to make it past the quarterfinal of the playoffs. Steve's good friend, Gordon Hudson, ruptured his knee and never played another snap of football (but thanks to Steve, he at least cashed out over half a million dollars). By season's end, however, the organization was bleeding. Not only were expenditures significantly higher than revenue, but the Express owner, Bill Oldenburg, was under FBI investigation for fraud.

In Steve's second year, the failure of the USFL had become apparent. Attendance was low, TV viewership was low, and expenditures (like Steve Young's salary) were out of control. The huge L.A. Coliseum, where the Express played their home games, looked virtually empty. By mid-season, many players either feigned injury or played with half-hearted effort in order to preserve their health and hopefully secure an NFL contract.

In a desperate move to avoid bankruptcy, the USFL decided to sue the NFL for the rights to play games in the fall instead of the spring. The owner of the New Jersey Generals spearheaded the lawsuit - a man by the name of Donald Trump. Ultimately, the USFL won the lawsuit but received only a small fraction of the damages they needed to survive ($3 million).

In 1985 the USFL folded.

After 2 years in the league, Steve Young ultimately settled for approximately $4.8 million of his $42 million contract.

_____

While "The 40 Million Dollar Man" never came to fruition in relation with the LA Express, Steve somehow navigated through that disastrous contract and found success via another unlikely path. He was drafted #1 in the supplemental draft by the Tamp Bay Buccaneers. His agreement with the Bucs was a 6-year, $4.9 million contract that included a $1 million+ signing bonus. And although Tamp Bay was a terrible team, at the very least it was a thousand miles away from Cincinatti. He retained his palm trees and his balmy winters.

After a couple years in Tampa, Young quickly drew the label of a "bust", posting a 3-19 record as a starter. In '87, the Buccaneers chose to draft Vinny Testaverde with their #1 pick of the draft, and thus traded Young to San Francisco for a 2nd and 4th round pick.

Of course, Young's time in San Francisco is legendary and doesn't need retelling. Suffice it to say, the 49ers revived Young's fading career and ultimately led him to glory - MVP trophies, superbowl rings, and a spot in the NFL Hall of Fame. San Francisco also paved the way to lucrative media opportunities after Young's retirement from the NFL.

Incidentally, Steve Young (AKA: "The 40 Million Dollar Man") now has a net worth of approximately $200 million.
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