I think the Rockets could do a bridge loan based upon his inevitable signing, essentially loaning Scola the buyout money before he signs his Rockets contract. At least that is the way it works in the biz world. DD
That's exactly what's going to happen - a front loaded contract. Dont't think so, this is the United States of America, right? The report didn't say he SIGNED a contract, it said AGREED TO. I am no expert though.
Looks to me like the report only says they "agreed" on a contract, not that he signed it. Maybe everyone says "The contract looks good to me" but it hasn't been signed until everything is in place.
Thank You DD, Kindger,and sirbaihu. It doesn't sound like a big issue. Let's hope things work out quickly.
Ehhhhh... I kinda thought that was what the $500,000 foreign contract buyout limit was about, though. Don't know if a team can contribute more than that towards a buyout up front.
The buyout contribution from NBA teams is limited to $500,000 or so. However, in the case the player needs to pay for a buyout out of his own pocket, the NBA allows the teams to structure the transaction in such a way as to to avoid tax. A portion of the player's salary, for tax purpose, is transferred directly from the NBA team to the foreign club-- so that the player doesn't pay income tax on this money. I don't quite know what else they do in structuring these deals, however.
This may be a silly question, but if his buyout is and has been so large, didn't they pay him a lot of money to play there to begin with? Shouldn't he have enough to pay these people off? Maybe his last deal wasn't as good as the one they were offering him a contract for that was conditional until July 15th? But we aren't talking a guy that went from McDonald's to the Rockets. I am just curious.
Owe money -> pay money! What's there to negotiate about? You signed the contract! Don't be a cheap a--hole!
I think it's more of the idea of giving away money in an unfair situation. The sign them as teenagers mostly from poor backgrounds put in 15 million dollar buyouts ,ie amounts they're not making then use that massive buyout as a leash/leverage on contracts down the road.
I don't think the Rockets would have made this move if they didn't feel confident he'd be in uniform next season. I think they are looking at him as the starting 4 with Hayes and Landry as the backups.
Ah okay. So they don't have agents to cover for them that early so they don't get taken advantage of?? I guess my tiny business mind tells me they shouldn't be able to have a buyout bigger than the salary they paid him.
european clubs argue they need to be compensated for the time and money they have spent on developing a player.
I love you idiots who run around talkin bout the sky is falling. Actually i hate you guys but it is somewhat amusing. Tau cannot legally keep him the only thing they can do is make him pay the full buyout amout. They cannot shackle him down and not let him leave he has the right to do that bye excersising his buy out. Man you guys need to get some ladies and shut up.
We need a nickname thread for Scola now, like what we did with Novak last offseason! It will provide some entertainment at least
I don't think there's any reason to worry with this deal getting through. I'm sure if any of us were in Scola's shoes, we'd take this long trying to bring down the buyout price. But in the end, he's going to pay Tau what it takes b/c he wants to come here as much as any foreign-born player. It probably didn't help his bargaining power when he sounded so excited about coming to the NBA. Can't wait for the press conference tomorrow!
China was one thing...but this is Spain...what the hell can they do? I say ignore the buyout and the existing contract all together
Another thing, I think, is that the sports business model is just different in Europe than in the NBA. In the NBA, players are traded for each other with relative minor amounts of money changing hands ($3 million cash per trade, $500K limit for foreign buyout contribution). However, in Europe, particularly in soccer, it appears that player contracts are literally SOLD for large sums of cash to other teams rather than exchanged for players. If one team wants another team's star player, I believe they have to pay a large fee (in the 10s of millions of dollars) to the team, and also reach a deal with the player regarding salary. I wonder if a similar model applies to basketball over there. Do any of our European fans know? I think it's just a different economic model altogether.
Yes, in football (soccer) one team pays the other to buy the rights for the player (the ammount is determined by the club who sells, and the player gets the 15%). Then, the club reaches an agreement with the player to sign the contract. In basketball it is not like that. Although with the buy-out clauses, it would be something similar, but since the NBA teams are not allowed to give more than US$ 500.000, the players are the ones who pay the most.
But what about between European teams? Do Europeean teams pay large buyouts in order to get another team's star player?
