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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

OT: NBA Free Agency

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Old
07-01-2017, 05:05 PM
  #1
ScottyBowman
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OT: NBA Free Agency

All I can say is wow. Curry getting $201 mil for 5 years, JJ Reddick getting 1 year 23 mil, John Wall looks to be getting 4 years $170 mil, Jrue Holiday 5 years $126 Mil.

Compare this to the NHL where we are seeing a lot of guys sign from $3-$6 mil today and there is speculation that McDavid wants $14 mil and people are ready to start a riot. The NBA contracts are to the point where the "scrubs" are going to be making $10 mil.

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07-01-2017, 05:24 PM
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lmnop
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The new CBA signed last summer opened up a lot of dollars to middling players. As is the case in the NHL the NBA operates with a salary cap floor as well. This caused a lot of teams last season to sign flash in the pan players to bloated contracts; see Bismack Byombo etc.

The cap structure in the NBA is flawed and we even saw LeBron chime in on twitter about that earlier today. (http://bleacherreport.com/articles/2...ons-salary-cap)

LeBron, Curry and many other stars in the NBA are underpaid, IMO. Many star players in the NHL are as well. Somewhere the salaries stagnated for the best players and started increasing drastically for role players - in both leagues.

In some instances (Durant and others) they earn more money from their shoe deals than they do from the team they play for.

Both systems are far from perfect but they've been contractually bargained. I would like to see the NBA explore the possibility of an Exceptional Player Exemption or something along those lines. The money would still count against the cap but a player could command more than a current max deal. Only one per team - sorry GSW.

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07-01-2017, 05:31 PM
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MNNumbers
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Huge salaries because there are only 12-15 man rosters, and the TV money available makes it to where there is a lot more money going to the players

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07-01-2017, 05:41 PM
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lmnop
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Originally Posted by MNNumbers View Post
Huge salaries because there are only 12-15 man rosters, and the TV money available makes it to where there is a lot more money going to the players

The discrepancy between the amount of money LeBron can make on a max contract correlated to what stars in the NBA made a decade ago isn't rising fast enough. Especially compared to what lesser players make now versus a decade ago.

The best players earning potential is capped. Even when they are responsible for generating more revenue. This leads to players like Mozgov and Byombo getting trucks of money backed onto their lawns. GM's have to spend the money somewhere.

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07-01-2017, 06:53 PM
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Acesolid
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Actually, if you look at how ridiculously important starting players are in basketball, they are extremely underpaid.

In fact, the ''max contract'' is why there's so little parity in the NBA. In a free market NBA, Curry would be getting paid a lot more. And so therefore the ''Warriors'' could not form such a super team because they wouldn't have enough cap space or money for their other stars.

By having ''max salaries'' the NBA is causing the creation of ''Super-teams'' that make the league noncompetitive.

In the NHL individual players are way less important, this is why salaries are varying way less.

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07-01-2017, 07:03 PM
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The Warriors were bought in 2010 for $450 million and are now worth over $2.5 billion.

That is what star players do to franchise, advertisers and network revenue. Star players getting paid isn't the issue. But some of the contracts getting thrown out to essentially scrub players is ridiculous.

What Myers Leonard got last season is about the equivalent of paying Dmitrij Jaskin $5mil(x)4yr just because he's a serviceable bottom 6 on a winning team, with maybe a bit of upside.

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07-02-2017, 08:55 AM
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This is why the NFL still have the best system and teams have better chances.

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07-02-2017, 03:59 PM
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tony d
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Yeah, those salaries are way to much. No athlete, no matter how talented, is worth over 40 million a year.

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07-03-2017, 12:03 AM
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Vamos Rafa
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I'm just amazed that what an NBA star gets with a 3-year contract is what an NHL star gets with a, say, a 15-year contract.

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07-03-2017, 07:04 AM
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rojac
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Quote:
Originally Posted by Vamos Rafa View Post
I'm just amazed that what an NBA star gets with a 3-year contract is what an NHL star gets with a, say, a 15-year contract.
NBA teams have about half the players as NHL teams and the NBA is about double in revenue, so it shouldn't be surprising to see an NBA player make about four times what an NHLer makes.

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07-03-2017, 08:31 AM
  #11
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NBA teams have about half the players as NHL teams and the NBA is about double in revenue, so it shouldn't be surprising to see an NBA player make about four times what an NHLer makes.
Also, star NBA players play a much higher percentage of the game than star NHL players, are involved in a much higher percentage of the plays, and contribute far more value (measured in terms of WAR-type stats).

The biggest reason that the NBA is seeing a "super-team" era is that star players are vastly underpaid relative to what they contribute to their teams' successes. The simplest "solution" (assuming they actually want one) is to remove the cap on individual player salaries.

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07-03-2017, 08:58 AM
  #12
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If you look at the luxury tax golden State have to pay in the next four years, no way the team is making money plus they trying to build a new arena.

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07-03-2017, 09:26 AM
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Quote:
Originally Posted by USAUSA1 View Post
If you look at the luxury tax golden State have to pay in the next four years, no way the team is making money plus they trying to build a new arena.
uh, that arena is all but done, USA, throw in the expense of owning and operating your G-League franchise, as 26 teams will do this season, and the Wizards are doing that and becoming the 27th franchise to own/operate both the parent club and the affiliate...

it's like the same MO as the NHL Clubs owning/operating their AHL Affiliates, and the trend toward that over the last 15 years+

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07-03-2017, 01:09 PM
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ScottyBowman
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If you look at the luxury tax golden State have to pay in the next four years, no way the team is making money plus they trying to build a new arena.
It starts to get dicey in a couple years. Not sure how any team will be able to pay $400 mil in just salaries.


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07-05-2017, 09:28 PM
  #15
Vamos Rafa
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Quote:
Originally Posted by rojac View Post
NBA teams have about half the players as NHL teams and the NBA is about double in revenue, so it shouldn't be surprising to see an NBA player make about four times what an NHLer makes.
I don't think roster size is enough of an excuse why NHL players make peanuts compared to NBA players. I doubt we'll ever see a $20 million a year NHL player in our lifetime.

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07-06-2017, 12:11 AM
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Originally Posted by CHRDANHUTCH View Post
uh, that arena is all but done, USA, throw in the expense of owning and operating your G-League franchise, as 26 teams will do this season, and the Wizards are doing that and becoming the 27th franchise to own/operate both the parent club and the affiliate...

it's like the same MO as the NHL Clubs owning/operating their AHL Affiliates, and the trend toward that over the last 15 years+
Ground broke in Mid January. Financing is all in place obviously. They are moving from Oakland to SF, near the SF Giants ballpark in Mission Bay as I understand it.

What separates the NBA vs NHL? Ticket revenue will be close. Floor seats are expensive but for the most part, gate revenues are close. TV revenue is the big kicker. NHL gets $200 million annually from NBC. NBA now gets $2 billion per season. 10 times the amount. $5.2 billion CAD over 12 years. Works out to around $300 million USD per year. So, NHL gets 1/4 of what NBA gets in TV money. $500/30 teams is about $17 million per club. Means the NBA is closer to $70 million per club.

As for salaries, it's also an attitude thing between the NHL and NBA. NBA needed a max salary cap because every time a player, even those in the same draft class went to sign a new deal, each successive one would top the other one. NBA basically wanted, all of the players in the same draft who were top level players to get the same amount, rather than have a continual escalation of salaries. There's a lot of ego in the NBA.

NHL players don't seem to one up each other. I mean, if that were the case, one of the RFA Dmen in 2016 would have surpassed the $5.75 million that Hamilton got and challenge for the $7.5 million that Ekblad got, but instead they all took less. $5.4 million for Jones, $5 million for Reilly, Lindholm under $5 million. Trouba took a bridge at $3.5 million.

Different sports. I don't care what players make. Each industry is different. If you are fortunate enough to be in an industry that pays well, good for you. If you can write code, you are in high demand. That's life.

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07-06-2017, 02:36 AM
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This is interesting:

ESPN.com's Kevin Pelton did a breakdown of Curry's true worth to the Warriors if there were no salary cap, arriving at a figure between $53-63 million per season based on numerous factors, including player production and the cost/value of a win.

Now im curious, what will make such study with Sidney Crosby, McDavid, Matthews...

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07-08-2017, 08:26 PM
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Forbes might have to revised their list next year because more than half of the list will be nba players.

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07-09-2017, 01:42 PM
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James Harden gets $228M extension.

http://www.espn.com/nba/story/_/id/1...year-extension

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07-09-2017, 09:49 PM
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ScottyBowman
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Quote:
Originally Posted by Vamos Rafa View Post
I don't think roster size is enough of an excuse why NHL players make peanuts compared to NBA players. I doubt we'll ever see a $20 million a year NHL player in our lifetime.
Oh I think we will and won't be surprised if it's within the next 10 years. We are already at 12.5 mil.

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07-10-2017, 12:49 AM
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USAUSA1
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Bryce Harper is rumor to demand $400 million on his next contract. One GM think he will get up to $600 million for a 15 year contract.

NFL and Nhl will never pay that much due to the physical nature of the sport. NHL players can probably get a lot more if the contracts wasn't guaranteed.

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07-10-2017, 09:45 AM
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KingsFan7824
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Quote:
Originally Posted by Vamos Rafa View Post
I don't think roster size is enough of an excuse why NHL players make peanuts compared to NBA players. I doubt we'll ever see a $20 million a year NHL player in our lifetime.
It's not. As was said, it's roster size + league revenue. Not to mention the NBA has a soft cap with a luxury tax. If the NHL had that, you can bet Crosby would've had a larger deal, as would McDavid.

The NHL is the most overall restrictive of the 4 leagues in NA, for both players and teams, and it's got the least amount of money coming in, which helps contribute to the relative restrictiveness. Hard cap, guaranteed contracts, cap limits for buyouts, relatively little TV money.

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07-10-2017, 10:07 AM
  #23
NewtJorden
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I already think that NHL players arent worth what they are getting so my opinion on NBA players should be pretty obvious.

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07-10-2017, 10:48 AM
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I already think that NHL players arent worth what they are getting so my opinion on NBA players should be pretty obvious.
So how do you decide how much players are worth, and what happens to the revenue you're taking away from the players?

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07-10-2017, 11:36 AM
  #25
IME
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I already think that NHL players arent worth what they are getting so my opinion on NBA players should be pretty obvious.
You're right. The owners are more deserving of the revenue then the actual people who draw and entertain the fans.

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