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endorsements to circumvent the salary cap
Posted: Tue Jul 14, 2009 2:16 pm
by Devilzsidewalk
I'd assume there's some rules against this, but what are they specifically? ie some owner offers the mid level deal to Lebron James, then has his buddy at Johnson and Johnson give LBJ 15 million a year to sponsor baby powder... an extreme example, but you get the point - what does the NBA have in place to prevent teams from using endorsements in such a way?
or for another example, a guy brought up regarding Ricky Rubio - what stops Glen Taylor from using a business connection to get Rubio an endorsement that could help pay his buyout?
Re: endorsements to circumvent the salary cap
Posted: Tue Jul 14, 2009 10:47 pm
by Three34
what does the NBA have in place to prevent teams from using endorsements in such a way?
Common sense. The Commissioner reserves the right to forfeit the blatantly obvious.
Re: endorsements to circumvent the salary cap
Posted: Wed Jul 15, 2009 1:19 pm
by Devilzsidewalk
that seems rather vague, I would have thought they'd have something specifically written up regarding that
Re: endorsements to circumvent the salary cap
Posted: Wed Jul 15, 2009 1:37 pm
by Smoke[MaxX]
Then how does anybody prevent signing in a major market like LA or NYC? Everybody knows a superstar will get major endorsements there, who knows if they're under the table?
Re: endorsements to circumvent the salary cap
Posted: Wed Jul 15, 2009 3:52 pm
by Dunkenstein
Smoke[MaxX] wrote:Then how does anybody prevent signing in a major market like LA or NYC? Everybody knows a superstar will get major endorsements there, who knows if they're under the table?
Can you give me a specific example of a major star who got an endorsement because they played in LA or NYC, rather than say Chicago, Miami or Cleveland?
Re: endorsements to circumvent the salary cap
Posted: Wed Jul 15, 2009 10:05 pm
by LarryCoon
Devilzsidewalk wrote:that seems rather vague, I would have thought they'd have something specifically written up regarding that
They do:
It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to enter into an agreement or understanding with any sponsor or business partner or third-party under which such sponsor, business partner or third-party pays or agrees to pay compensation for basketball services (even if such compensation is ostensibly designated as being for non-basketball services) to a player under Contract to the Team. Such an agreement with a sponsor or business partner or third-party may be inferred where: (i) such compensation from the sponsor or business partner or third-party is substantially in excess of the fair market value of any services to be rendered by the player for such sponsor or business partner or third party; and (ii) the Compensation in the Player Contract between the player and the Team is substantially below the fair market value of such Contract. (c) It shall constitute a violation of Section 1(a) above for a Team (or Team Affiliate) to have a financial arrangement with or offer a financial inducement to any player (not including retired players) not signed to a current Player Contract, except as permitted by this Agreement.
Re: endorsements to circumvent the salary cap
Posted: Thu Jul 16, 2009 3:35 am
by Ribalding
So I guess the Rockets have plausible deniability?
Daryl Morey: "Wow, Chuck Hayes! You got $10mill from a Chinese shoe company! Who knew THAT would happen when we signed you for the league minimum? Especially since you're barely ambulatory. How very fortunate for you!"
Re: endorsements to circumvent the salary cap
Posted: Thu Jul 16, 2009 10:05 pm
by Devilzsidewalk
LarryCoon wrote:Devilzsidewalk wrote:that seems rather vague, I would have thought they'd have something specifically written up regarding that
They do:
high 5
Re: endorsements to circumvent the salary cap
Posted: Tue Jul 21, 2009 6:25 pm
by daddyfivestar
Would something like AEG (who owns the Nokia Theatre/LA Live complex next to Staples) hiring Kobe as an endorser to drive traffic to the complex also be somehow considered part of his player comp and cap applicable since AEG has ownership share in the Lakers?