The press conference is ended and Ming is still waiting for the final decision of CBA

I am just wondering how his negotiations would be like when his rookie contract is up. Could be another long drawn out process like this one. aka the face with the ??? above the head.

 

Thanks Jeff,

....and Yao's desire to play for the National team is inversely related to the amount of money they require him to pay... how ironic.

So let me get this straight. The entities that Yao must make payments to include:

Chinese income tax (50%)
American income tax (40%)
Chinese Basketball Association (50% after taxes)
Shanghai Sharks (25% after taxes)

(1-.5-.4)*(1-.5-.25)=.025
Does that mean Yao will be left with 2.5% of his total salary?
Out of approximately $4 million = $100k

Do we have any accountants on staff here at Clutchcity.net? I could use some help here. It appears that Yao will be suffering from head injuries next year because he can't afford to buy a house with custom 8' tall doors.

 

Doctor Robert,

It wouldn't work like that. You have to take a percentage of a percentage, so it would be something closer to....

1 x 40% (US taxes first) x 50% (if Chinese taxes even apply) x 75% (for the CBA and Sharks) = 15%. So, he'd make 15 cents for every dollar. I say to do it like this because I think the Chinese would apply their taxes based on what Yao actually brings back into China (which would be after taxes from the US).

Either way, 15% sure isn't coming out too well. He'd still make $200-250k a year on his rookie contract but that certainly isn't great considering he should be getting closer to 1.2 million after taxes.

 

Here is another tidbit as well to add to that jeff
The newly issued regulations require professional players to be ready to return to China at any time to join the national team. They can also be punished for revealing the national team's plays and strategies.


Notice the ANYTIME word......

 

I just can't imagine that this isn't going to royally piss this guy off at some point. He's going to be getting peanuts on the dollar and is going to be playing basically non-stop basketball all year long. This doesn't make for a happy athlete.

 

how many "first steps" is it going to take for it to be known that he will be in the draft? I was hoping for more today than just him getting clearance from the Sharks, I thought he had already gotten that. 4 days till the draft and we still don't have a clear-cut confirmation ...

 

Maybe he'll only get 15% of his salary, but I don't think there is any question his endorsement dollars could amount to seriously big bucks. Jackie Chan, one of the world's most marketable stars, makes tons of money in China through endorsements and that's just in China.

Imagine all the shoe companies, apparel companies, sports drink manufacturers, soft drink companies, fast food restaurants, etc, etc who will line up to put their products in the hands of the single biggest sports star in China!!!

Besides, $200K is nothing to sneeze at. I'll take that every day of the week and twice on Sundays!

 

gentlemen,

How much do you think that Nike, Reebok, Adidas or whoever will pay Ming et al to market socks, shoes, hats, shirts, underwear, etc to a bajillion people?

Granted, Ming will see only a small fraction of this amount, but a fraction of a bajillion dollars is still a lot of jack.

Also, we have to remember not to judge the financial arrangements among Ming, Sharks and China Govt by western standards. Ming may be getting royally screwed under western capitalist standards, but that's a way of life under other regimes. Socialist countries (nevermind communist ones) tax their people over 50 percent, so to pay for socialized medical care and other stuff. It's just a different way of thinking.

Ming sounds like he has a lot of national pride and will not be too upset at making a few million dollars, instead of lots of millions of dollars. In any event, after his basketball career, he will return to China (assuming he hasn't changed his mind) and be a national hero. He'll be fine, as will his family.

Finally, somebody made the point that it's good that the compensation for all the interested parties is based on his performance in the NBA. I completely agree that this looks very favorable for us. Like gordon gekko said, greed is good.

 

Note how everyone from the Rockets to people on this board already knew that. Note how it also says "to be ready to return" - and from the negotations, that's for world play. It's nothing the Rockets didn't already know and haven't already planned for.

 

Mabye, but you have to remember that many Chinese people don't view money and government exactly the way we do. There is a much greater importance placed on honor, respect and loyalty. I remember reading that a marketing survey showed that brand loyalty in China was something like 10 times as great as in America. Once they set out to do something, they keep doing it and stick with it.

No doubt America will have a tremendous influence on him, but his attitude about how much he makes will be alot different from the attitude of the standard American NBA player.

 

Note that this has nothing to do with "negotiations" Contract or not when China wants Ming back for any reason he is to return.

 

Don't worry. It's very possible that CBA and Shanghai Sharks will not get the money that they want if they they go too far. There is not a chinese law to assure CBA has the right to collect the money from Yao Ming. Actually there is a rumor that Wang Zhizhi didn't send back money to CBA and CBA has no good method to handle it. Some chinese news papers alread discuss this situation. Some suggest if Yao Ming does not not bring money to China, the agreement will be just a paperwrok. If Ming does't send back the money to CBA, where will CBA sue Ming? In US or China? If in China, Ming probably will not come back. If in US, it's very possible CBA will lose the case.

 

Thanks, windandsea, for disspelling myth #3728380283 in the Yao Ming drama.

What I'm wondering is how long the skepticism over the drafting of Yao will continue. I'm sure hoping it isn't...

"Man, back to back 20/20 games for Yao? This guy kicks ass. Of course, China will probably yank him back to China next weekend and then we'll realize we shouldn't have drafted him in the first place."

or

"Now that Yao has been enducted into the hall of fame, how long before China takes all his money? Damn commies!"

*smile*

 

And like I said, the Rockets and the NBA full well know that - it was a part of the negotiations. I think you're just trying to blow this up into something more than it is - or, in other words, something it's not.

 

damn communists
don't be taking all my boy's jack....
ming's gonna need some to fling so he can bling bling



actually maybe the Fannie Mae foundation can help Yao with a house... of course Mattress Mac will have to furnish it....

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Yeah, and it's not like it's the NCAA or anything. There's nothing wrong with a few anonymous "gifts" from admirers every now and again to keep him happy.

 

--------------------------------------------------------------------------------
Originally posted by Jeff:

Chinese income tax (50%)
American income tax (40%)
Chinese Basketball Association (50% after taxes)
Shanghai Sharks (25% after taxes)

(1-.5-.4)*(1-.5-.25)=.025
Does that mean Yao will be left with 2.5% of his total salary?
Out of approximately $4 million = $100k

It appears that Yao will be suffering from head injuries next year because he can't afford to buy a house with custom 8' tall doors.

------------------------------------------------------------------------------------

I don't think the Chinese income tax will be applied to Yao. A lot of Chinese currently work in the US and the only tax they pay is to the US governments (all levels), not Chinese government.

If that is the case, Yao can still get 15% of his salary. It is enough for him to make a good living. Does Yao have to say to CBA, "thank you for the mercy!!" ???

 

I would tend to agree that he'll be content with whatever total money he ends up with.

But Timing brings up something else(now that another hurdle is cleared--smiley face)to think about long term with Yao. How can the guy keep playing year round,year after year? Our Dream Teamers are admittedly exhausted by the time they're done with one Olympics. Plus the Rockets' seasons won't be ending until June every year! grin face