I cant find the source. But have seen a CBA offical saying that on TV. I dont believe him 100% though. Truth is, there are so many eyes on CBA officals now, they are under pressure .
If I remember correctly, the deal is pretty complex and it takes into account the success of Yao. I think it's a 5-year deal. But if Yao is no longer in the NBA in 3 years, the CBA gets nothing. I think the max compensation in 5 years was about 3 million. I know their was a article on it this past summer.
Okay, let me try to clarify this 50% rule and offer some background information based on what I know. First off, michelon, the 50% rule is not bogus (I can dig out some offical rules if you really want), and it has been there for a long time. How long? Maybe about 20 years or even longer . But things are always complicated in China due to the changes in the past few years. From what I can remember, this rule was set up initially for the Ping-pang, badminton, or female volleyball players who won a lot of championships back in the early 80s. The prize for a badminton champion (say UNIX cup) was about $10,000 (not exactly the same number, maybe a couple thousand). At the same time, regular people weren't making as much. For example, my dad, a technical staff, was making roughly 600 RMB yuan (about 90 dolloars) ANNUALLY at that time. There weren't so many millionares back then in China. If my memory serves me well, if a person had 10K RMB yuan, he would be called a wan-yuan-hu (a Chinese equilvent to millionare). So it made perfect sense for the sports authority to take a cut as some sort of tax (People didn't pay income tax in China at that time) and people had no beef about it. Of course, the bad thing is China has changed a lot while the regulations remain unchanged. But I am glad that CBA officials have been flexible in applying this rule to Yao Ming. After all, they don't want to see another Wang Zhi Zhi Hope this helps. Shrimpie
Shrimpie: That's what I mean by bogus. Yes, it's there, but for different situation, different background. As everything else in China, the regulations are constantly changing to accomodate the fast pace of growth. So, someone dig it up, as if it's the new regulation just to rip off Yao Ming. As far as I know, Wang never paid 50%, being years earlier in the L. A sidenote for a positive answer of the original question: Yao Ming will not consider any endorsement deal until January. He will focus on the Bball first. Then his people will make evaluation depending on his development. Smart decision if you ask me.
Yao is still paying back to the CBA at 50% or more depending on how you look at it Wang Zhi Zhi does not payback anything to China. And Yao will continue to pay as long as he is in the NBA and all his endorsements are paid back the same way.
It has been reported that Yao Ming owes the CBA 10% of his contract, and owes the Shanghai Sharks $10 million(to be paid over the span of a # of years). You don't believe this? Look it up in the threads from the summer.
Hey toughguy those are the threads during the summer before anything was really finalized. Trust me he will be paying back to China for his entire NBA career.
Why are we arguing about this? As long as he's playing good ball for the Rox I'm happy. Besides, he won't be paying back the CBA all his career. If they tries to do that for him he can just say no more playing for the national team and everybody will understand.
Battle plan for tax and CBA Slash Yao will receive 18 mil for the next 4 years. He will pay 10% to his agent, which leaves him approximately, 16 mil. The max tax he will pay here in US, 40% of 16 mil, and that will cut the pie to 10 mil. Assume that CBA will take 50% (or 10%, which is obviously better) from the remaining 10 mil, that will give him 5 mil. But he can claim the 5 mil as foreign tax and/or deductible cost on his 1040NR form, which he will at least get 2 mil back from the tax return. Since he is a non-resident here, he will be immuned from Social Security and Medicare taxes for the first five years while he is in the states. That will give him a further break. He does not need to claim the tax refund to the CBA. He must, or most probably had a financial planner for him. If he decided to buy a lot of Unite Airline Stocks, he might be task free for a while. Thus, even with 50% slash from CBA, he will still probably make 7-8 mil for the next four years. Should Yao is an US born player with an agent, he will still have to pay 10% to the agent and 40% to George. He still ends up with less than 10 mil in the pocket. There is a difference of 2 mil here which is not much for him (but substantial for most of us which will take us life time to make that much ).
I am so surprised that so many posters are making such definite statements regarding Yao Mings financial dealings when all they know is hearsay!! And that is the Truth!!
Just an analysis of the hearsay. I am natural born analyst, can't help it. Rumors are what kept us going on Monday, aren't they?
But then the CBA says..."No more playing for the Rockets" and everybody in China understands. Unless he defects and judging by the high praise on his character, he probably won't, he and the CBA will forever be connected.
ÀîÒ«Ãñ͸¶˵£¬¶«·½¾ãÀÖ²¿´ÓÒ¦Ã÷ÉíÉϵõ½µÄ³¡Í⹤×ʲ¹³¥Ò²²¢²»ÏñÍâ½çÏëÏóµÄÄÇô¶à¡£¡°¶¼´«ËµÎÒÃÇÄÃÁËÒ¦Ã÷Ò»´ó¿é¹¤×ÊÊÕÈ룬ÆäʵËûÔÚ±ÈÈüÖеÄÊÕÈëÎÒÃÇÊÇÒ»·Ö²»ÒªµÄ£¬ÒªµÄÖ»Êdz¡ÍâÊÕÈëµÄһС²¿·Ö£¬¶øÇÒÕâ¸ö±ÈÀýÊÇËæ×ÅÒ¦Ã÷µÄNBA¹¤×÷ÄêÏÞµ÷ÕûµÄ¡£ÁíÍ⣬ÎÒÃÇ»¹Òª´ÓËùµÃµÄÕⲿ·Ö²¹³¥½ðÖÐÄóöÒ»²¿·Ö£¬×÷ΪҦÃ÷ÊÜÉ˵ı£ÏÕ½ð£¬Õⲿ·ÖÇ®»¹ÊǹéÒ¦Ã÷ËùÓеġ£¡±ÖÁÓÚ»ð¼ý¶Ó¸¶¸ø¶«·½¾ãÀÖ²¿µÄ35ÍòÃÀÔªµÄ²¹³¥½ð£¬¸üÊDZ»°×ÀîЦΪ¡°´ò·¢½Ð»¨×ӵġ±¡£ http://sports.sina.com.cn/k/2002-07-29/1103292629.shtml Ô_ÏÈËùνµÄÒ¦Ã÷50%¹¤×Ê»®¹éÀºÐ_ºÍÏàÓ¦µÄ»ú¹¹ÒѾ_±»Ò¦Ã÷Ò»´ÎÐÔÖ§¸¶300ÍòÃÀÔªËùÌæ´ú http://sports.sina.com.cn/k/2002-08-01/1135294070.shtml Too long to translate everything. Yao only has to pay one time $3 million instead of %50 of his contract to Chinese Government and CBA . IMO it's a pretty reasonable amount of monry. Even Boki had to pay $1 mill to his Euro club and Yao is much bigger than Boki. Yao also has a deal with shanghai shark that shanghai shark will get a small portion of his endorsment.
Whatever percentage of Yao Ming's salary goes to the CBA is interesting. But, the more interesting fact is that for every one US dollar is exchanged to ten Chinese dollars. So, let's say that China does get half of Ming's $18 million. This translates into $9 million US dollars going over to China. The $9 million US dollars means that the Chinese get $90 million Chinese dollars over four years and before taxes. The Chinese got a very nice deal in exchange for Yao Ming.
Considering price level in China, according to personal of friend of mine, he employed 2maids while he was in China, Yao's 7-8million bucks means a lot more than simple dollar terms. His real purchasing power is bigger than that of America. In addition, he recently appointed Chicago University's business team as his consultants, so he should reap his full makerting potential. Besides, he is probably making more money in a year than he could have had if he stayed in CBA and soon become worldwide icon like Michael Jordon as long as he can perform on the court. The guy is absolutely blessed!
the whole CBA taking his money thing is overblown. Do you know who really takes the biggest chunk of his money? Its not the Chinese govt... its the IRS. No joke. Something like 40% of this salary goes to TAXES.
I think windandsea posted the news. $10 million and 10% is what was agreed upon before the Shanghai Sharks and the CBA FINALLY release Yao Ming.
