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Lowe: NBA Offseason Moves: Who Won?
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Nilanka wrote: View PostThey're both overpaid. What's your point?
Neither player is overpaid. Here's why:
If Paul George were to hit FA, any team with the cap space would offer him a max deal because that is his market value!
If DeMar DeRozan were to hit FA, teams would offer him anywhere from 8M per year (OJ Mayo's deal) to 11M per year (Tyreke Evans' deal) because his market value lies somewhere in that range.
If Rudy Gay were to hit FA, teams would offer him anywhere from 12M per year (Iguodala's deal) to a max deal, because his market value lies somewhere in that range.
You're not going to secure players for less than market value unless there are other strong factors besides money that would make them want to play for you (see Miami's big 3 taking paycuts to form a super-team). This is how the NBA works.
Players are only "overpaid" when you pay them more than any other team would realistically offer. If Landry Fields had hit FA in 2012, he would've been offered anywhere from probably 3M per year (similar to what a guy like Alonzo Gee got). So since we gave him double that, he is quite obviously overpaid.
Usually the only way to get an "underpaid" player is to either draft them (rookie-scale deal) or extend the player before they realize their full potential (Lowry, Amir, Rondo, Steph Curry are all examples of this).
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Xixak wrote: View PostDude, you don't understand the concept of supply vs. demand and market value.
Neither player is overpaid. Here's why:
If Paul George were to hit FA, any team with the cap space would offer him a max deal because that is his market value!
If DeMar DeRozan were to hit FA, teams would offer him anywhere from 8M per year (OJ Mayo's deal) to 11M per year (Tyreke Evans' deal) because his market value lies somewhere in that range.
If Rudy Gay were to hit FA, teams would offer him anywhere from 12M per year (Iguodala's deal) to a max deal, because his market value lies somewhere in that range.
You're not going to secure players for less than market value unless there are other strong factors besides money that would make them want to play for you (see Miami's big 3 taking paycuts to form a super-team). This is how the NBA works.
Players are only "overpaid" when you pay them more than any other team would realistically offer. If Landry Fields had hit FA in 2012, he would've been offered anywhere from probably 3M per year (similar to what a guy like Alonzo Gee got). So since we gave him double that, he is quite obviously overpaid.
Usually the only way to get an "underpaid" player is to either draft them (rookie-scale deal) or extend the player before they realize their full potential (Lowry, Amir, Rondo, Steph Curry are all examples of this).
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CalgaryRapsFan wrote: View PostA player can be paid a salary that the market determines, while still being overpaid relative to their production, especially in a salary cap world with limited money to assemble a 15-man roster. I think that's the point you're missing.
That's a document that uses Win Shares to evaluate a player's worth. According to that DeMar was worth 9.5M last season, which is what he will be making on his new contract (so he was underpaid last year). So even with no improvement he would be worth his deal. No improvement from a 23 year old is unlikely though, so I'd say he ends up being slightly underpaid.
Gay was only worth 8M last year by the same metric, although last year was a severely off year for him based on his career stats. He'd likely be worth closer to the 12M amount that guys like Paul George and Paul Pierce are at in this spreadsheet.
*Note: if you want to compare players from different teams you need to use the adj cap salary, unless the teams are at the same or similar salary total.Last edited by Xixak; Fri Jul 26, 2013, 10:44 AM.
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That google doc does a funny thing - it applies the team's current salary, so the amount one's teammates are making directly impacts the value of a player. That's no good.
Simply put, you can look at worth in WS or in WS/48. In WS, there are 41 wins for each team to go around, that's 1230 wins. Meanwhile, total salary last year was 2.109 B - that works out to 1.715 M per win. Based on that, DeRozan's 4.7 wins were worth about 8.1 M.
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DanH wrote: View PostThat google doc does a funny thing - it applies the team's current salary, so the amount one's teammates are making directly impacts the value of a player. That's no good.
Simply put, you can look at worth in WS or in WS/48. In WS, there are 41 wins for each team to go around, that's 1230 wins. Meanwhile, total salary last year was 2.109 B - that works out to 1.715 M per win. Based on that, DeRozan's 4.7 wins were worth about 8.1 M.
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Xixak wrote: View PostDude, you don't understand the concept of supply vs. demand and market value.
Neither player is overpaid. Here's why:
If Paul George were to hit FA, any team with the cap space would offer him a max deal because that is his market value!
If DeMar DeRozan were to hit FA, teams would offer him anywhere from 8M per year (OJ Mayo's deal) to 11M per year (Tyreke Evans' deal) because his market value lies somewhere in that range.
If Rudy Gay were to hit FA, teams would offer him anywhere from 12M per year (Iguodala's deal) to a max deal, because his market value lies somewhere in that range.
You're not going to secure players for less than market value unless there are other strong factors besides money that would make them want to play for you (see Miami's big 3 taking paycuts to form a super-team). This is how the NBA works.
Players are only "overpaid" when you pay them more than any other team would realistically offer. If Landry Fields had hit FA in 2012, he would've been offered anywhere from probably 3M per year (similar to what a guy like Alonzo Gee got). So since we gave him double that, he is quite obviously overpaid.
Usually the only way to get an "underpaid" player is to either draft them (rookie-scale deal) or extend the player before they realize their full potential (Lowry, Amir, Rondo, Steph Curry are all examples of this).
The third bold is where you begin to hit on it yourself. As you say, if one team pays more than every other team in the league would realistically offer, then a player is overpaid. But what if two teams would pay more than the other twenty-eight would offer? Or three teams more than the other twenty-seven (etc. etc.)? On the one hand, you could say that they've created the market for whatever that player should be payed. But you could also argue that they've created a false demand figure based on their own stupidity, or desperation, or whatever it is that made them bid higher than many other teams would have.
So, sure, Demar could have been payed 8 to 11 mil on the open market this summer. But I seriously doubt that every team with cap space would have made an offer that high because you can easily make an argument that a player of his skill set doesn't deserve that money. For example, the Spurs would never, ever pay him that much money. If you look at his contract from the perspective of that one franchise, then he's overpaid."Stop eating your sushi."
"I do actually have a pair of Uggs."
"I've had three cups of green tea tonight. I'm wired. I'm absolutely wired."
- Jack Armstrong
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JimiCliff wrote: View PostIt's more complicated than what you're suggesting, because I'd bet there are many teams that wouldn't pay Derozan 8 mil a year, regardless of their own cap & asset situation.
The third bold is where you begin to hit on it yourself. As you say, if one team pays more than every other team in the league would realistically offer, then a player is overpaid. But what if two teams would pay more than the other twenty-eight would offer? Or three teams more than the other twenty-seven (etc. etc.)? On the one hand, you could say that they've created the market for whatever that player should be payed. But you could also argue that they've created a false demand figure based on their own stupidity, or desperation, or whatever it is that made them bid higher than many other teams would have.
So, sure, Demar could have been payed 8 to 11 mil on the open market this summer. But I seriously doubt that every team with cap space would have made an offer that high because you can easily make an argument that a player of his skill set doesn't deserve that money. For example, the Spurs would never, ever pay him that much money. If you look at his contract from the perspective of that one franchise, then he's overpaid.
We're talking about supply, demand and market here.
Any team that wants/needs DeMar is going to have to pay 8-11M for him in free agency, because that is his market value. So at 9M he is not overpaid, he is paid the amount that is required to acquire his services.
In the third bold I probably should've removed the word "any" and said "most" other teams would realistically offer. That would be to account for teams with boneheaded GMs that overpay everyone. The point is still the same.
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Xixak wrote: View PostEverything you said is basically irrelevant.
We're talking about supply, demand and market here.
Any team that wants/needs DeMar is going to have to pay 8-11M for him in free agency, because that is his market value. So at 9M he is not overpaid, he is paid the amount that is required to acquire his services.
In the third bold I probably should've removed the word "any" and said "most" other teams would realistically offer. That would be to account for teams with boneheaded GMs that overpay everyone. The point is still the same.
So, for Colangelo, he believes that DeRozan is worth $9.5M per season. Just because that's his "market value" doesn't mean he's not overpaid, it all depends on who you are when you look at the contract.
Personally, I think his contract is fine.
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JimiCliff wrote: View PostIt's more complicated than what you're suggesting, because I'd bet there are many teams that wouldn't pay Derozan 8 mil a year, regardless of their own cap & asset situation.
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So, sure, Demar could have been payed 8 to 11 mil on the open market this summer. But I seriously doubt that every team with cap space would have made an offer that high because you can easily make an argument that a player of his skill set doesn't deserve that money. For example, the Spurs would never, ever pay him that much money. If you look at his contract from the perspective of that one franchise, then he's overpaid.
The question should be, did BC pay a million more than he should have for the comfort of signing him? At the time who was he bidding against? I felt during his tenure BC constantly overpaid by either small amounts (Amir-- no one knew what he would become, I felt his contract was about a mill too much a year) to Andrea (The size, and length of that contract never made sense to me.) Signing a player to an extension should be a cap saving move in my opinion, otherwise, might as well let the market dictate things. If that meant paying Demar more now so be it, but it looks like Demar got the same amount of money he would have gotten either way. So, why the rush?
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CalgaryRapsFan wrote: View PostA player can be paid a salary that the market determines, while still being overpaid relative to their production, especially in a salary cap world with limited money to assemble a 15-man roster. I think that's the point you're missing."This just in........ THE RAPTORS ARE AMAZING!"
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blackjitsu wrote: View Post...but Demar wouldn't need every team to make that high an offer only 2 or 3. Then those teams would bid against each other and raise his market value. Look at OJ Mayo's stats last year. It's basically DD with lower usage and slightly higher fg%. 8-11 mill is a fair assessment for a player like Demar. That's what the market dictates.
The question should be, did BC pay a million more than he should have for the comfort of signing him? At the time who was he bidding against? I felt during his tenure BC constantly overpaid by either small amounts (Amir-- no one knew what he would become, I felt his contract was about a mill too much a year) to Andrea (The size, and length of that contract never made sense to me.) Signing a player to an extension should be a cap saving move in my opinion, otherwise, might as well let the market dictate things. If that meant paying Demar more now so be it, but it looks like Demar got the same amount of money he would have gotten either way. So, why the rush?
A lot of teams saved on their 2009 draft picks by extending early. GSW and Philly would've had to max Curry/Holiday respectively.
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