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Bron salary question?

Posted: Wed Nov 26, 2008 5:56 pm
by GIVE_WADE_THE_MAX
People have been talking about the advantage Cle has in resigning James as they can offer 1 more year and 30 million more then any Nba team.

My question is if Lebron decided to go with another 3 year offer. How big of a cash difference would it be if James opted for a 3 year deal? Can the Knicks, Lakers, or whoever offer similar max deals to Lebron for the duration of a 3 year deal.

Lebron has chosen the 3 year deal before and passed on the long term/higher paying deal. If Lebron opts for another 3 year deal with any team on the likelihood there will be another 6 year max deal out there when he's 29/30.

I'm assuming Lebron and a 3 year deal will be somewhere close to 60 mil. If Lebron opts that route he could theoretically not lose any money by switching teams as he would likely regain that year and be eligible for the maximum bird rights salary with the team he chooses.

Re: Another Bron thread

Posted: Wed Nov 26, 2008 5:59 pm
by mpsniper101
Yet another LePoop James thread.

Re: Another Bron thread

Posted: Wed Nov 26, 2008 6:05 pm
by GIVE_WADE_THE_MAX
Anyone intelligent have an answer to my question?

Lol at lebron Leborn referencing the Nets as the team in Brooklyn

Re: Bron salary question?

Posted: Wed Nov 26, 2008 6:30 pm
by TheOUTLAW
While the numbers would be closer the Cavs can still offer more because of their ability to have higher annual raises than other teams.

Re: Bron salary question?

Posted: Wed Nov 26, 2008 6:52 pm
by GIVE_WADE_THE_MAX
right but how much of a difference would that be is my question. Is the difference significant?

Re: Bron salary question?

Posted: Wed Nov 26, 2008 9:02 pm
by DowJones
My guess would be about $6-8 million difference.

LeBron isn't the one you have to worry about in terms of money. Players like Bosh and STAT will be far less likely to give up that extra $33 million.

Re: Bron salary question?

Posted: Wed Nov 26, 2008 9:06 pm
by Cevap
After how many years does a team get a players bird rights?

Re: Bron salary question?

Posted: Wed Nov 26, 2008 9:06 pm
by MaxRider
After certain percent goes to his agent (he doesn't have to hire an agent, he's going to get the max anyway --> see Arenas case) and tax; there isn't a big difference.

Re: Bron salary question?

Posted: Wed Nov 26, 2008 9:07 pm
by MaxRider
Cevap wrote:After how many years does a team get a players bird rights?

3 years

Re: Bron salary question?

Posted: Wed Nov 26, 2008 10:04 pm
by INKtastic
first year would be identical either way, 2nd and 3rd year would have higher raises in cleveland (8% yearly raise with a new team, 10.5% in cleveland. To make the math easy, assume a 20 million contract in year 1 and you get

cleveland 20,000,000 22,100,000 24,200,000 (the raises are based on the first year salary)
team X: 20,000,000 21,600,000 23,200,000

So with a 3 year deal, Cleveland could pay roughly 1.5 million more over 3 years. It'd actually be a little less since the starting salary would probably be a little less than 20 million.

Here's where it gets complicated, though. Start at 20 million. A hypothetical year 4 would be then be 26,300,000, which very likely would be more than 35% of a new max deal as the cap would have to go up more than 12.8% in 3 years to bring a new max deal in line with where a max raise would put him. i.e. a 20 million year 1 in 2010 requires a $66.67 million cap. To then exceed the 26.3 million max raises in cleveland would put him in year 4, the cap would have to jump above $75.2 million. in 3 years.

If he wants to maximize his money, he will sign a 4 year deal with cleveland and then extend his contract every 3 years. extensions allow larger raises than signing as a free agent (10.5% vs 5%) With the numbers he's earning, the differences become enormous over his career. The only way out is to be certain in advance that the salary cap exceeds 75.2 million in 2013.