ISB wrote:-= original quote snipped =-
there are almost 100 college basketball teams that pull in higher attendance figures than the euroleague average right now, so I'd say euroleague has a ways to go to rival the NBA in spending power.
Not true
Real Madrid and FC Barcelona are billion dollar clubs due to the soccer revenue. They
choose to have a certain budget for their basketball club. but if they wanted to they could EASILY have NBA type spending.
Now on the other side of that clubs that CHOOSE to spend a lot.
1. CSKA Moscow - this is the Russian army's team. Considering they have the purse of the Russian government behind them, they have way more ability to spend than most Americans realize.
They offered Kirilenko something like equal to $40 million US TAX FREE plus all expenses paid. Do the math on that one.
2. Olympiacos Piraeus - this team is THE known over spender in Europe. I mean they will pay HUGE amounts for even marginal players at times. They offered Jasekivicius something like 6.5 million a year US TAX FREE plus all expenses paid, plus a fancy boat, a sports car, a Mediterranean villa, ALL of it tax free.
They offered Chris Webber $8-$10 million a year if you took into account the Euro to dollar rate, the tax free, the bonus items, etc.
They offered Charlie Bell a ridiculous amount of money. Hell Lynn Greer got more than the MLE. If you figured in exchange rate, tax free status, all the bonus items, Lynn Greer got considerably more than the MLE from them.
3. Panathinaikos - if there is such a thing as the New York Yankees of European basketball this is the team. It's unreal what they will spend. The President of Euroleague admitted their team budget for this season is over 30 MILLION EUROS.
Think about that for a second.
With the exchange rate, that's about $47 million dollars US and the dollar dropping by the day against the Euro. it just keeps getting a bigger and bigger disparity. NBA clubs get poorer, Euro ones richer day by day as the US economy continues to go into the toilet.
Now ponder that $47 million + budget of Panathinaikos and realize that the player salaries are TAX FREE.
The US tax rate for the MLE (average NBA salary) is about 34%. The tax rate in Greece (Panathinaikos is from Athens) is about 40% for Greek athletes.
So, Panathinaikos pays $47 million US PLUS all the taxes on those salaries, and the tax rate is HIGHER than the US is. In other words, that $47 million is equal to $71.5 million US when you add in the taxes.
The luxury tax is $67, 865,000. How many NBA team even pay the tax?
Panathinaikos can pay WELL OVER the NBA tax. Do the math:
$30 million plus Euros = $47 million plus US
$71.5 million TAX FREE = $71.5 million times .66% (US tax rate is .34 so 1.00 - .34 = .66) = about $47.19 million. And keep in mind that Panathinaikos actually covers 40% taxes now not 34% so they figure can go higher.
You have a club that could EASILY buy ANY NBA player it wanted to, IF the team and the player wanted it.