I asked this in another thread but it will probably just be buried. Has Yao's presence increased revenues for the Rockets? If so, has this increased revenue resulted in a bigger payroll (ie. players!) ? While I think Yao is going to be signed no matter what, I just thought it might be interesting to see if he brings more to the table than what he brings to the court. Any revenue experts/capologists please respond.
There's a salary cap and a luxury threshold. We don't want to be over the threshold, so Yao being a cash cow doesn't really help us.
Actually it does help us. A lot. Because of Yao Ming, Les Alexander can afford to spend actual money and not be like Sarver or George Shinn. I don't know if you are aware but we have been buying picks the last few years now, most notably from the Magic. Les is a great owner, and we have to thank Yao Ming for not paiinting him in a corner wherein we'd have to trade away guys like Battier for cash and expirings
True. And recently Morey complemented Les on his willingness to spend money apart from the salary cap figures. IMO, spending over the salary cap (depending on the situation) requires an extremely compelling deal, otherwise its just stupid economics, which we can leave for teams like the Knicks.
Heard that Suns, and Hornets were making the trades because they are losing money right now, and Morey was talking to buy a pick next year because Les is doing well. Do you think Les will buy a pick or over the cap if he is not making money?
The rockets spend over the salary cap every year, but under the luxury cap which will result in you to pay 100% tax if you are doing so.
I for one am spending much less on all things NBA. If Stern doesn't fix NBA officiating, I'm going to put my money elsewhere.
The Cash Cow thing is overrated because unless you have deep pockets like Allen in portland, the team revenue is pending on local tv and radio. The Rox despite being the 4th largest city, they're like 12th in media market. The wizard, boston,la, both ny and jersey, chicago, and even dfw can reach more people, which means they are higher revenue. Theycan charge more for local tv and radio bceause they reach more people. La has like 20m people in the 75 or 150m radius, so they get way more from local tv and radio. Yao is beneficial to les personal side and to the global nba game, but less doesn't use it. Allen buys 1st rd draft picks like underwear were as les will buy 2nd rd picks. There is a difference between what les do and what allen do.
in addition to the points mentioned by everyone above, I'd like to point out the Yao connection brings potential endorsement deals from oversea for rockets players. I can't imagine this would not help rockets attract FA signings that otherwise won't come or otherwise would requires higher contract. It would be hard to quantify the effect of houston signing players in a more economical contract, but I do believe there IS an effect there.
True. Its also saying its good because its not bad. Or itd be worse if it wasnt. Increased revenues helps them do business as usual. They dont have to be in a panic mode shedding payroll. Rockets arent ever gonna toss around money like the Knicks though. Even Portland who might have as much cash to burn as the Knicks dont overspend.
