CSKA Moscow Offers Milos Teodosic Equal of NBA 5 Year $62.5 Million Contract

[Mirotic12]

CSKA Moscow has offered Milos Teodosic a 5 year €30 million euros ($33.59 million US dollars) net income contract. This is equivalent to a 5 year $62.5 million NBA contract. This is because the contracts in Europe are listed as the net income amount (after taxes, dues if any, and agent fees are deducted). Also in Europe, the clubs pay the personal taxes for the players and pay the agents.

While NBA contracts in contrast, are listed in gross income amount, and have deductions come out of them, like taxes (federal, state, and local, and all players pay state taxes regardless of what state their team is in); and the NBA contracts also have the NBA player union and retirement fund fees deducted from them. NBA players also have to pay their agent fees, whereas in Europe, the clubs pay the agents.

So, CSKA is now said to be offering Teodosic a 5 year €30 million euros net income contract.

http://www.pianetabasket.com/mercato/mercato-il-cska-mosca-va-in-all-in-per-teodosic-offerta-shock-138629

Mercato, il CSKA Mosca va in all-in per Teodosic: offerta shock

Il club russo però non è pronto a separarsi dal suo gioiello, per questo l'intenzione sarebbe quella di offrire a Teodosic un contratto quinquennale da 30 milioni di euro, circa 6 milioni netti a stagione. Al termine del contratto, la società moscovita vorrebbe affidare al serbo un ruolo importante in veste di dirigente.

Earlier, eurohoops.net (the official media site of the EuroLeague), already reported how a salary of €12 million euros net income in Europe, equals a salary of $25 million dollars gross in the NBA.

http://www.eurohoops.net/en/euroleague/464161/cska-moscow-offers-12-millions-three-years-teodosic/

CSKA Moscow offers 12 million for three years to Teodosic

A total of 12 million euros for the next three seasons are on the table for the Serbian guard. With an annual salary of four million euros.

Those are net amounts, since it’s common practice in many parts of Europe that the taxes are being paid by the clubs.

Teodosic is also considering to give NBA a try, however in order for this move to make sense, financially, after the offer he got from CSKA, he should get a three-year deal which will pay him at least 25 million US dollars.

So then, take the €12 million euros net = $25 million dollars gross, and apply it to the €30 million euros net, and you get

$62.5 million dollars gross. (NBA salaries are always listed in gross income).

So basically, CSKA Moscow is offering Milos Teodosic what is like a 5 year $62.5 million NBA contract.

[Purch]

This is good, not for anything having to do with competing with the NBA. It's good for additional incentive for players to come out of high school, become a pro overseas and then get drafted.

I always felt like more players should take that route.

[Prez]

Good for Teodosic. Happy for Spanoulis too, goes to show you can be a bonafide scrub going against the big boys in the NBA and still get serious $$$ somewhere else.

[VUK1]

Presumably he gets paid in Roubles? If so you have the FX risk to factor. Throw in the jurisdictional risk and Id still take less in an NBA contract


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[Mirotic12]

Presumably he gets paid in Roubles? If so you have the FX risk to factor. Throw in the jurisdictional risk and Id still take less in an NBA contract


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Professional sports clubs in the euro zone pay salaries in euros. Professional sports clubs that are not in the euro zone, but that are a part of European sports systems, pay salaries in US dollars.

So CSKA Moscow pays their salaries in US dollars, not in rubles.

For non Euro zone European leagues, the clubs pay in US dollars....

Israel
Russia
Turkey
Serbia
Croatia
Poland
Czech Republic
Romania
Bulgaria
etc.

Euro zone European leagues, the clubs pay in euros...

Spain
Greece
France
Germany
Lithuania
Italy
Slovenia
Belgium
Finland
Estonia
Latvia
Montenegro
etc.

The professional clubs are not paying money in a local currency like the ruble. Also, the clubs will pay for the euros to be converted into US dollars for American players. So even in countries in the euro zone, the Americans get paid in US dollars.

[Tinseltown]

That's Mozgov money

[yannisk]

Maybe there is some exaggeration from the newspaper. The 3 year 12 million contract offer is already very big, the 5 year 30 million will dwarf (by far) any other contract in Europe.

[Mirotic12]

Maybe there is some exaggeration from the newspaper. The 3 year 12 million contract offer is already very big, the 5 year 30 million will dwarf (by far) any other contract in Europe.

Andrei Kirilenko was making $5 million a year net income both years he played in CSKA, and they were offering him $8 million a year net income to come back for a 3rd year, but he retired. CSKA also offered Kevin Durant, I believe it was something like $1 million a month net income (the season in Europe is 10 months long - so that would be $10 million a year net income).

They are offering Teodosic $5.3 million a year net, so it's not like it's anything they have not offered before. It's actually much less than they offered Kirilenko and Durant in the past.

[yannisk]

Read on Twitter

[Mirotic12]

pianetabasket is a more reliable source than David Pick, who is only right about 1/3 of the time. So we need an actual reliable source (not Pick) to confirm that. Pick is the European version of Marc Stein.

If anything, Pick has a bad rep outside of USA. If a site like eurohoops confirms that, then it's more like 80 percent likely to be true (it's a totally reliable site, and the 20% doubt comes from CSKA can say whatever they want, whether true or not). But it's not reliable at all coming from someone like Pick, that is even considered a bad source in Israel.

[miamiheat319]

From what I've heard (I don't really follow European basketball), this guy is one of the best players in Europe right now, getting paid $12 million a year, and you have average players like Mike Conley here getting $30 million a year. That's crazy to me.

[MemphisX]

Conley is average?

[WhateverBro]

From what I've heard (I don't really follow European basketball), this guy is one of the best players in Europe right now, getting paid $12 million a year, and you have average players like Mike Conley here getting $30 million a year. That's crazy to me.

1. Conley is not average.
2. Conley would smoke Teodosic.

[Prez]

From what I've heard (I don't really follow European basketball), this guy is one of the best players in Europe right now, getting paid $12 million a year, and you have average players like Mike Conley here getting $30 million a year. That's crazy to me.

This seems like a fitting time to point out that one of the best players in Europe, Spanoulis, was utter trash in the NBA.

[Prokorov]

how many bitcoins is that?

[LakerLegend]

Has the Euroleague gotten a lot better competitively speaking compared to say, 10 years ago?

[ISB]

Has the Euroleague gotten a lot better competitively speaking compared to say, 10 years ago?

I'm not an expert on this, but I don't think so. The euroleague was quite good 10 years ago. In my opinion European basketball has plateued in general. Don't get me wrong, it is still a solid level of play, but I don't think that it is gaining ground on the NBA.

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[Triples333]

For everybody else looking in (and I am an NBA crazed degen so don't act like you know wtf this is lol). Who?

[LakerLegend]

Has the Euroleague gotten a lot better competitively speaking compared to say, 10 years ago?

I'm not an expert on this, but I don't think so. The euroleague was quite good 10 years ago. In my opinion European basketball has plateued in general. Don't get me wrong, it is still a solid level of play, but I don't think that it is gaining ground on the NBA.

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Kind of surprising considering how there's almost limitless room for international talent growth.

[SportsGuy8]

The main reason why European (club) basketball isn't what it used to be is that several of the most basketball-crazed countries have serious economic problems, like Greece and Italy. Italian league, for example, used to be the best national league in Europe, but Italy still hasn't recovered from 2008 recession/economic crisis, with sports teams being hit hard (same in soccer).

Then you have several other teams like Olimpija and Cibona, that used to be quite competitive, but they had unrealistically bloated budgets, basically being state-sponsored (sponsored by companies that were majorly state-owned, including banks who gave them loans they couldn't repay). That's a model that simply wasn't able to hold up, especially when companies started getting privatized ...

The level of top European club basketball is probably going to get even worse now, with NBA having so much money to spend now after the recent TV deal. If Teo didn't have such major question marks (mostly defense; also age), even this big CSKA offer couldn't compete with what NBA teams would be offering him.