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Comparison of Anti-dumping laws to superstars taking salary cuts.

Discussion in 'NBA Dish' started by iLookOK, Mar 22, 2013.

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Should players be banned from accepting salaries below their market value?

  1. Yes, it prevents other teams from having a fair shot at a title.

    15.4%
  2. No, let them do what they want.

    84.6%
  1. iLookOK

    iLookOK Member

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    For those of you who studied business and/or law, you can move on to the second paragraph, as you likely already know what anti-dumping (predatory pricing) laws are. Basically, it is illegal to sell your products at below-cost in order to put other businesses, that can't compete with you out of business. A famous example of this was when Fujifilm built a plant in the US and sold their products for 300% less than they were worth in order to put the smaller Kodak company out of business.

    What guys like Lebron are doing, is selling their services at less than their market value in order to put the other teams out of business, similar to what Fuji did to Kodak before the court stepped in. I believe that the rule should be that if a player is offered a max salary, he cannot refuse it for a salary less than the max.

    What do you guys think? Is this a proper analogy?
     
  2. el gnomo

    el gnomo Member

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    No. Intrinsic value of living where you want + playing on the team you want + with teammates you want to play with.

    And they're not putting anyone out of business. Terrible and ridiculous argument.
     
  3. iconoclastic

    iconoclastic Member

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    No. How are they putting other teams out of business? There's revenue sharing.
     
  4. iLookOK

    iLookOK Member

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    Would it help if I said that they are hurting their business? For anti-dumping you don't necessarily need to completely put another team out of business, if you significantly affect their profits, that is enough.

    And revenue sharing does not make up for the large lost profits that teams face as a result of this manipulation.
     
  5. Aleron

    Aleron Contributing Member

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    As someone who thinks that anti dumping laws are the b*stard step child of tariffs, the last bastion of financial nationalism, I find it pretty hard to agree with it being an issue anywhere, but in a professional sport, it's basically a non-event

    PS Anti dumping laws are not about predatory pricing, they're about selling volumes or prices lower in overseas markets, **** the labor unions
     
  6. iLookOK

    iLookOK Member

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    1. It is easy for you to say that now, but without predatory pricing laws, there would be only 2 airlines in the USA. They would be able to charge you ANY price they want, give you ANY kind of service they want, and fly WHEREVER they want. What keeps them on their toes right now is the competition provided by smaller airlines. Go fly on a russian airline and see what I mean.

    2. You are correct that there is no express provision under anti-dumping laws that capture predatory pricing, but antidumping laws address situations where the "normal value" is below the total cost of production and is "not in the ordinary course of trade" and thus it does capture most instances of 'predatory pricing'.

    Done. These pancakes are done.
     
  7. OremLK

    OremLK Member

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    This isn't slavery, it's a job. It's already a little uncomfortable how guys are forced to play for only one team (who drafted them) when they first come into the sport. Understandable, but uncomfortable at the same time.

    There is no need to make it way worse by forcing FREE AGENTS (the one time players get a choice in the matter) to choose certain teams.
     
  8. BraveFox

    BraveFox Member

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    so what?
    does the benefits you recieve justify unjustifiable use of force, killing and imprisioning people?(i.e. behind each law there is a gun pointed to those not willing to obey)

    btw here's an enlighteneeing piece of literature for you, from one of the gretest economics minds of all times- Frederic Bastiat:

    That Which is Seen, and That Which is Not Seen

    http://bastiat.org/en/twisatwins.html
     
  9. rockbox

    rockbox Around before clutchcity.com

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    Get rid of max salaries. Lebron may be willing to except 1-2 million less a year, but would he be will to give 20 million a year?
     
  10. RiceRockets

    RiceRockets Member

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    Analogy does not fit in the slightest... Miami is not putting the rest of the league out of business... Lebron didnt take that much less either..
     
  11. Shroopy2

    Shroopy2 Contributing Member

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    Need to even know the situations of where a player gets offered the locked-in max salary rate.

    UNRESTRICTED free agents can go anywhere they want at any price. No one owns his rights, only "Bird rights". If the 1st thing an All Star player wants to do without even testing the market is sign up for $1 million to be a 4th wheel on the Milwaukee Bucks, he can do that. He doesnt have to sign a contract anywhere, can take a year off, or go to Europe.

    What you're wanting is basically restricted free agency, or free agency with more restrictons.

    If you mean the player's current team shoves the max at him before he goes on the market, the player refuses, but it still means it sets the price for the NEXT team, it means everyone involved is locked into that price. There'd seem some improprieties involved in that method too.

    Might as well have franchise tags like in the NFL. A rule that prohibits a player from bailing, you keep him at a steep price. It might not stop all super teams, but it can hold them off a little longer, where the players will be more past their primes when the tags expire. A franchise tag like the NFL mighta made THIS past summer "The Decision".

    If you mean players union, yeah maybe. They might not go for that rule. Would need another extensive owner lockout. Maybe players wouldnt object to getting the max, but they'd object to the limitation of options.
     
  12. JuanValdez

    JuanValdez Contributing Member

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    It doesn't happen very often at all. Players don't leave money on the table. Superfriends taking slightly less than the max doesn't really count. Barkley did it once, take only $1m so the Rockets could improve the roster. Sometimes, the old fogies go to the Lakers to ride their coat-tails. But, it never works out. Barkley didn't get a title. Payton and Karl Malone didn't get a title. Why fix a problem that doesn't exist?
     
  13. StevieCrossover

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    If lebron wants to go to go play for the heats for a dollar than go do it. Other veterans take the minimum. And thats below market value
     
  14. blunto

    blunto Member

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    GP just picked the wrong coattails to ride the first time around.

    http://www.basketball-reference.com/teams/MIA/2006.html
     
  15. Commodore

    Commodore Contributing Member

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    If you can't compete you deserve to go out of business.
     
  16. boiler

    boiler Member

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    I guess OP meant out of business of winning championships?
     
  17. laserguy183

    laserguy183 Member

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    Sports leagues are much different guys, you need your opponents in order to stay in business
     
  18. krnxsnoopy

    krnxsnoopy Contributing Member

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    Agreed.
     
  19. autoprt

    autoprt Member

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    Payton did get a title with the Heat so in the right situation it does work.
     
  20. professorjay

    professorjay Contributing Member

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    Doesn't make sense at all.

    Lebron's business competitors are other players, not teams. Players are selling their service: basketball ability. If he takes a cut, he is still selling one, single, unique service and it's gone. There are still 29 other customers in the market for player X. If Lebron could clone himself 500x and dictate they all take $1 million than he could run other players out of the business.

    Basically it has little bearing on how much another player makes on the market once Lebron already decides where he wants to go. In fact he probably helps drive the price up for them.

    More apt would be if Fuji's suppliers sold their materials much lower to them than to Kodak to help Fuji put Kodak out of business.
     

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