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re: Why the NBA loses money?
Posted on 12/16/11 at 3:08 pm to TeddyPadillac
Posted on 12/16/11 at 3:08 pm to TeddyPadillac
he was likely getting, at the least, $5M midlevel offers for multiple years. a 2-year deal would be $10M or so. the only way to sign him to a 1-year deal was to overpay THIS year. it's the same with the hornets and carl landry
1
Posted on 12/16/11 at 3:14 pm to SlowFlowPro
i understand what your saying.
still doesnt' make sense financially for a company to act that way. especially when you can get very similar services for much much less.
still doesnt' make sense financially for a company to act that way. especially when you can get very similar services for much much less.
Posted on 12/16/11 at 3:16 pm to TeddyPadillac
The Warriors are trying to establish more of a defensive identify than before with Marc Jackson as coach now. Jason Smith doesn't do that. You can't just disregard him and say Smith is just as good against every other center. He's not.
This post was edited on 12/16/11 at 3:18 pm
Posted on 12/16/11 at 3:20 pm to TeddyPadillac
quote:
still doesnt' make sense financially for a company to act that way.
if you're bidding on an exclusive contract with a company that produces a very rare asset, but is volatile, it makes sense
quote:
especially when you can get very similar services for much much less.
what 6-11 bangers are there for "much less" on the market right now?
Posted on 12/16/11 at 3:20 pm to Stonepony
The nba is equity laden, even if a team doesn't cash flow that doesn't mean it lost money.
The NBA's product cost is 50% of revenues. That is pretty average for most businesses.
That means for the league to lose money that means it is bloated in other expenses.
The issue is that the NBA has not done a good job of promoting itself, and managing money.
As someone smart I know once said anyone can cut costs, but only quality people can increase sales.
The NBA's product cost is 50% of revenues. That is pretty average for most businesses.
That means for the league to lose money that means it is bloated in other expenses.
The issue is that the NBA has not done a good job of promoting itself, and managing money.
As someone smart I know once said anyone can cut costs, but only quality people can increase sales.
Posted on 12/16/11 at 4:06 pm to TeddyPadillac
quote:
so they feel obligated to overpay someone just to get closer to the cap?
They don't 'feel' obligated. They are obligated, though, to never fall below 85% of the salary cap, by the CBA.
Look, it's not paying Kwame Brown 7 million on a 1 year deal to be a borderline rotation player who gives you a body that's caused the NBA's issues. It's the guaranteed 5, 6, and 7 year deals where they piss away $111 million on Gilbert Arenas and $113 million on Rashard Lewis.
The good news for the league is that free agent spending is actually down, proportionally to revenues required to go to salary. That is to say that the market value of talent is being more efficiently used.
Before the CBA, there were, as an important example, people talking about Nene being a near max guy-- but when he signed his deal, it was for more in the neighborhood of $15 million instead of $20 million.
That's real progress, for the bottom line of the league.
Posted on 12/16/11 at 5:34 pm to LSUtigersarefun
quote:
The nba is equity laden, even if a team doesn't cash flow that doesn't mean it lost money.
Would love to hear some elaboration on that.
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