Can someone explain the $30 mil salary ramification with regards to max free agents

It is true, sort of.....

They can sign a longer deal by one year with their current club or in a sign and trade, thus giving them 1 more year of guaranteed money and with larger raises over the course of the contract it amounts to about $30 million more in guaranteed money.

But....if they move to a new team, and sign a new contract after the current one is expired, maybe do a 5 year deal (max etc) with an opt out after year 3, where they can then get an entirely new deal for the max, they can make up almost all of that money.....

DD

 

For a megastar, the extra year at $25-30MM is far overstated as a factor because the player isn't losing that amount of money. What they are losing is the guarantee.

 

The extra guaranteed money is $22m+ on the last year.

I doubt that anyone will be able to get a contract that large under the new CBA.

 

The additional raises I heard were still at least 3 million over the first 5 years in favor of the sign and trade deal.

considering Bron is 25 I think it is likely he will sign another max deal at 30.

Who knows for the other guys.

 

What hasn't brought up is that a team resigning a player can give 12.5% raise each year, while other teams can only give him 10% raises. So even on a per-year basis, resigned FA gets more money per year. And as said, the total comes out to around $30 mil.

I'm surprised you say this as a Houston fan.

Have you already forgotten T-Mac, Yao, Andre b!tching about not enough guaranteed money, etc. in your fascination with CBud?

 

You have me mixed up with someone else. I definitely don't have a fascination about Budinger and rarely post about him. I think he's overrated by people here.

 

It's 10.5% raises if re-signed by your prior team; only 8% raises if you sign with another team.

 

You sure?

http://members.cox.net/lmcoon/salarycap99.htm#77

 

Yeah, I'm sure. You're looking at the FAQs for the 1999 CBA. In 2005, the CBA changed. I think you need to update your link.

http://members.cox.net/lmcoon/salarycap.htm

 

ooops

 

So what are the exact numbers for LeBron/Wade/Bosh/etc for a 6-year max vs. a 5-year max contract?

 

When you update link, you will have to change it again in a year. CBA expires.

 

so true

 

Depending on what the new CBA looks like, the players may not want to opt out after 3 years.

 

All of this free agents losing by not signing with their original team or at least doing a SnT is overated.

First off lebron is 25 years old. He will get another contract and sign for megamillions then. That 30 mil is now down to 6 or 7. Second Cleveland has a state tax if Lebron signs right out with Miami he doesn't have a state tax who should get most of that 6-7 mil back with no state tax. Third if Lebron signs with New York he is sure to get 30-50 Mil more in endorsements just for living in New York.

After all of that is said and done Houston is the one place a free agent not looking for all the USA fame might be interested over places like Miami, Chicago, LA, New York. ANd that's because we offer it all on some scale.

We have assets that most of the other teams would want. Making a SnT max contract and max dollars very likely for a top free agent.

Also we have no State tax making there MAX CONTRACT worth more here.

Also we have lower cost of living making it possible for them to buy a home that will be on cribs very soon.

And one ace in the hole that no other team can offer is with our CHINESE CONNECTION if they play anywhere near there expectations they will be perennial All Stars and they will also be famous in CHina forever (if they are not real asses).

And finally we are a one star away from a championship contender. If they really are about winning then not to many better options than Houston. Certainly not those teams that gutted themselves and are now trying to build around a couple of stars and rookies and minimum contract players. I don't think these gutted understand how difficult it is to build a team.

Everyone looks at Boston and thinks Allen and Garnett made them a champion quick. But they had pierce Rondo and Perkins on the squad. And they got lucky in the second round with big baby. Basketball is a team no matter what anyone else may tell you. The chances of putting a team like the Celtics assembled right out of the gate. I am sure these teams have a plan but even the best of plans can easily fall short when you as gutted as these teams are.

Boston managed to keep some assets and still acquire Allen and Garnett. Will Miami New York be able to do the same. Chicago has a better chance with Noah Rose and Deng but that's assuming they get Lebron and one other big name player. But do you really think Lebron wants to play under Jordans wing. Lebron will always be compared with MJ and I think that will stop him from going to Chicago. The same applies for the Lakers and Kobe. And probaly Miami and Wade.

So while in general not doing a SnT is not as negative as many would like to make it out to be. The Rockets are one exceptioon to that. The only other reason to overlook Houston is you just have your heart set on playing in new York or LA. And many players do. So we are not out of the picture for many free agents but we are not LA or new York either.

 

You're overrating both the value of the endorsements and the income tax. State income taxes tend to be in the 5% range, and that's tax deductible at the federal level, so it nets to about 3-4%. So over the life of the contract, that's $1-$2MM, only a fraction of the amount lost by not signing with your own team.

Endorsements - Lebron would pick up a few extra in NY, but he's a national star. He's not having any trouble picking up any of the major endorsements now (Nike, Gatorade, etc) - there's not a lot of new endorsements to be gained out there. In the current age of global media, it's just not as vital to play in the big market to get endorsement value.

The real value to Lebron of a Miami or a NY would most likely be lifestyle related (or just liking the organization more).

 

Bad math - that should say $2-$3MM (depending on the specific rate, if they opt out after a few years, etc).

 

But in 3 years, the CBA might not allow as big a contract as they do now. These players are no dummies. They're gonna want to get the biggest contract they can get RIGHT NOW while the CBA still allows it.