Sometimes I wonder how contracts got so ridiculous

[Malinhion]

The players as a group are contractually entitled to at least 57% of league revenue.

Revenue has increased, so salaries have too.

/thread

And if the players don't make their 57% in salary, the league disburses it to them after the season ends.

[Malinhion]

Its more a result of the NBA brand blowing up on the world wide scene. Revenues have gone throught the roof, and so have salaries....HOWEVER, what I don't understand is why the hell the owners aren't able to get a better deal off of the players as far as gross revenue goes. Most teams in the NBA are not profitable. That is insane. This is a huge cash cow, there are millions upon millions of paying customers clamoring for the product.....and most franchises struggle to turn a profit. Only the really big market teams who also do well with self advertising and peripheral revenue streams really make that much. Its a huge problem, and one that doesn't have a simple solution. I think the best thing to do is find a way to kill all those guaranteed contracts. That would completely change the face of the NBA as we know it.

Turning a profit is actually not a big deal, even though owners make it out to be. An NBA franchise is an equity investment. The owner makes the most money as the value of the franchise increases.

[Frosty]

Turning a profit is actually not a big deal, even though owners make it out to be. An NBA franchise is an equity investment. The owner makes the most money as the value of the franchise increases.

Turning a profit is ALWAYS a big deal. You think these owners got to where they are by losing money? There are a lot better places to put your money if you are looking for an equity investment if your choice is a team losing money.

You think all of these stadium deals are just frills for owners?

You think that the teams value doesn't rise with profitability? Hence the return for an investor.

[SherronShabazz]

bulls fan here..

Deng and Gordon clearly have bad/greedy agents but from their point of view, they are looking at it like "Larry Hughes makes 13 million a year. We are better than him, so we should make more than what he makes!"

It just doesn't work that way. You can't knock a guy for trying to get paid. Anything can happen, ask Jay Williams or Shaun Livingston.

Also, one of those 2 guys (Deng,Gordon) should have been an all star in the 06-07 season.

You have to look at these owners and gm's. No one is mad that Kobe makes 20 mill a year. He's superior. The problem comes when guys like Marbury are making 20 mill a year. If the team thinks player X is worth it, then he should get that money. period. If they don't, they don't have to pay them.

It's not as bad as it was before the lockout in 99. Things are way better now.

[halfHAVOC]

1996-97 Chicago Bulls NBA $30,140,000
1997-98 Chicago Bulls NBA $33,140,000

its his fault

Actually Ewing made this amount below in 1996 when MJ had never made more than $4 million

1995-96 New York Knickerbockers NBA $18,724,000

http://www.basketball-reference.com/pla ... ami01.html

scroll down to salaries he did make the 33+mil those 2 years.

[jazzfan1971]

Salaries have been reigned in considerably from the old days. I think that's the more surprising part.

[The Main Event]

Its more a result of the NBA brand blowing up on the world wide scene. Revenues have gone throught the roof, and so have salaries....HOWEVER, what I don't understand is why the hell the owners aren't able to get a better deal off of the players as far as gross revenue goes. Most teams in the NBA are not profitable. That is insane. This is a huge cash cow, there are millions upon millions of paying customers clamoring for the product.....and most franchises struggle to turn a profit. Only the really big market teams who also do well with self advertising and peripheral revenue streams really make that much. Its a huge problem, and one that doesn't have a simple solution. I think the best thing to do is find a way to kill all those guaranteed contracts. That would completely change the face of the NBA as we know it.

Turning a profit is actually not a big deal, even though owners make it out to be. An NBA franchise is an equity investment. The owner makes the most money as the value of the franchise increases.

Interesting. How is it that they make more money as the value increases? Endorsements?

[Phobo_Phile]

I think he means when they eventually sell the teams. The idea is that they sell for more then they bought it. Like buying a classic car for 5 grand, fixing it up for an additional 2,000 and then putting it back out on the market for fifteen.