bwgood77 wrote:lilfishi22 wrote:Just think, $100m payroll over multiple years. They must be raking in well over $100m in revenue to cover that. Not sure what the profit margin is but I'd imagine it's considerable if they agreed to a significant increase in the salary cap
The salary cap is just a % of the league revenue 57/53 split between players and owners or whatever. Which means if it seems like these players are making bank (especially considering the split of player revenues spreads over a number of players), think of how much extra money the owners started getting with the new tv deal? They are ALL making tons of money. That's why when people say Portland can't afford all these guys or Utah can't re-sign their guys it makes no sense. They are not going to lose money. So unless they seriously value a few extra dollars in their already really rich pockets over winning, they are not going to not keep their own productive players.
So the 57/53 split accounts for individual teams and their player salary right? So if a team is making $10m profit from merch and tickets, then 57% of that would be paid to players? So then TV deals, for LA as an example, could run into the 10's of millions every season and that would be split with the players on top of their salary or that forms part of the salary? I'm not that familiar with the profit sharing arrangements in the NBA.
I think when people say, Team X can't afford said players, they just mean there are some soft salary cap controls in place that would limit them. So Portland, in particular with Paul Allen as their owner, could easily afford a $200m payroll but there are limitations on the deals that can handed out so in a $100m salary cap environment, they would only be able to go over by a few $10's of millions. That's what I mean anyway.
No one in the NBA is losing money, especially these days. With money flowing and talent being a limited resource, every team with some talent will be looking to retain.