So...I thought the NBA was in decline and losing money?

[LivingLegend]

Because teams are stupid

I believe the Pacers, Cavs, Mavericks and Grizzlies are the 4 teams that have done absolutely nothing in terms of roster moves so far.

I'm bored.

[Brofessor24]

If so, why are teams giving out $80 million to Davis Bertans, or $60 million to Grant? These guys are okay role players, some are bench players. If the NBA is in such precarious position financially, how come teams are still guaranteeing millions of dollars? We just saw the Warriors pay $80 million in lux tax to acquire Kelly Oubre Jr.

This is WITHOUT any ticket revenue. How?

Davis got slightly overpaid IMO. However, Grant is worth $60 million.

[pipfan]

I am glad my Bulls are sitting out (1 yr/$5 million for GTemple is fine, for a vet leader and back up to Lavine)

Cap space could be very valuable in the next few years

[Jedzz]

Because teams are stupid

I believe the Pacers, Cavs, Mavericks and Grizzlies are the 4 teams that have done absolutely nothing in terms of roster moves so far.

I'm bored.

Mavs are working it now.

Grizzlies wait until everyone has finished their dinners. Then they come at night flipping the trash cans.

[BostonCouchGM]

most teams aren't going over the cap. These signings are just teams getting to the cap. So they're not spending any more money than they do any other season. As for why certain players are getting huge salaries, I think it's because even if they're overpays, they all could easily be used to trade for a superstar and are players every team would want. Like, who doesn't want a shooter at Bertan's size? Who wouldn't want a 3 and D about to hit his prime like Grant. So if a team wants to move a star or expiring these are the type of players and salaries they'd move them and 1st round picks for.

[Optimus_Steel]

Didn't the league say they lost $1B to $1.5B last season? And still some of these deals...

[ArtMorte]

Wasn't the plan to spread the pandemic losses over several years instead of squeezing the purse tight for one year? I think we'll see the cap stay the same for a few years now.

[Dontmakeme]

If so, why are teams giving out $80 million to Davis Bertans, or $60 million to Grant? These guys are okay role players, some are bench players. If the NBA is in such precarious position financially, how come teams are still guaranteeing millions of dollars? We just saw the Warriors pay $80 million in lux tax to acquire Kelly Oubre Jr.

This is WITHOUT any ticket revenue. How?

Gallinari, Harris, Bertans, Hayward all got paid see a theme

[Black Mage]

I am so glad we are standing pat, this is scary

Also we are definitely taking some of these contracts for first round picks next offseason

This comment did NOT age well.

[dhsilv2]

If so, why are teams giving out $80 million to Davis Bertans, or $60 million to Grant? These guys are okay role players, some are bench players. If the NBA is in such precarious position financially, how come teams are still guaranteeing millions of dollars? We just saw the Warriors pay $80 million in lux tax to acquire Kelly Oubre Jr.

This is WITHOUT any ticket revenue. How?

They have a salary cap. They have a salary floor. And get this, the players don't get the money. There is an escrow if revenue numbers aren't met.

[dhsilv2]

This is crazy. John Stockton in 1998 made $5 million a year.

and Jordan made 33

[dhsilv2]

Didn't the league say they lost $1B to $1.5B last season? And still some of these deals...

Teams pay players as a whole the same amount no matter what. They players aren't assured to actually get this money if league revenue drops.

[dhsilv2]

Wasn't the plan to spread the pandemic losses over several years instead of squeezing the purse tight for one year? I think we'll see the cap stay the same for a few years now.

The escrow will over this, so the cap can go up, they'll just keep more of the player salaries for longer. Good to be a retiring vet I guess.

[chitownsalesmen]

This is crazy. John Stockton in 1998 made $5 million a year.

So what? the salary cap in 1998 was 26.9M, in fact in 1998 MJ alone was getting over 33M for one season over 120% of the salary cap on one player, thats the equivalent of a player today making over 138M for one season, today highest paid player is Steph Curry at 43M only 11M more then Jordan earned on a salary cap that's over 4.2 times higher.

5M in 1998 dollars is very nearly 8M in 2020 dollars on conservative inflation estimates alone

1K dollars of Apple stock in 1998 would be worth over 600k today.

10K investment in Amazon in 1997 would be worth over 12M today.

Cost of a college education more then doubled from 1998 too 2018 alone, in some instances more like tripled.

even with the financial hardship the league experienced and will continue to experience as a result of covid, the league is generating far more revenue relative to 1998 and maximum salaries have leveled off greatly since 98' relative to both league revenue, % of salary cap, and in relation to other financial measuring sticks.

I really hate when people pull up one particular guys salary from over 20 years ago and don't consider any of the factors at play when comparing to modern day salaries.

[reflex35]

They are probably optimistic due to news of vaccination possibilities.

Let’s hope that works and we all are back to normal.

If it does not the reality will hit sooner rather than later and it will include declining salary for players.

[celticfan42487]

If so, why are teams giving out $80 million to Davis Bertans, or $60 million to Grant? These guys are okay role players, some are bench players. If the NBA is in such precarious position financially, how come teams are still guaranteeing millions of dollars? We just saw the Warriors pay $80 million in lux tax to acquire Kelly Oubre Jr.

This is WITHOUT any ticket revenue. How?

Gallinari, Harris, Bertans, Hayward all got paid see a theme

Yeah, it seems like if you want to get paid you would do well to have the letter G or H in your last name.

[scrabbarista]

Didn't the league say they lost $1B to $1.5B last season? And still some of these deals...

They "lost" that much relative to what they'd expected to make. The league didn't actually lose money. It made money.

[Questionquest]

Because teams are stupid

I believe the Pacers, Cavs, Mavericks and Grizzlies are the 4 teams that have done absolutely nothing in terms of roster moves so far.

I'm bored.

Mavs are working it now.

Grizzlies wait until everyone has finished their dinners. Then they come at night flipping the trash cans.

People wonder why teams release vets for free, this is why. I think some players are passing on Grizzlies because of how they treated andre. Players league

[Doneste33]

I am so glad we are standing pat, this is scary

Also we are definitely taking some of these contracts for first round picks next offseason

Ouch . Feel you bro

[Doctor MJ]

If so, why are teams giving out $80 million to Davis Bertans, or $60 million to Grant? These guys are okay role players, some are bench players. If the NBA is in such precarious position financially, how come teams are still guaranteeing millions of dollars? We just saw the Warriors pay $80 million in lux tax to acquire Kelly Oubre Jr.

This is WITHOUT any ticket revenue. How?

I could be wrong here, but I think the answer is this:

There's an extra factor in the CBA that balances revenue 50/50 between owners and players, which means that the salaries we see are not actually what the players get.

In the past, the differences between the reported salaries and what players have actually gotten have been pretty small because revenue has been predictable.

But now the contracts being handed out don't represent real money any more. They represent what the player is worth based on the existing numbers from the past, and if NBA revenue is half of what it normally is, these contracts are going to be worth half of what is being reported.

It's quite fascinating actually. It's like the NBA is now actually playing fantasy basketball.