DanH wrote:
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I apologize for the horizontal scroll bars after the tables for #1 Alternative and # 2 Alternative but I don't know how to get rid of them.
How Bismack Byombo Can Make As Much Money By Resigning With The Toronto Raptors
[Hint: It's All About The Massive Amount Of NBA TV Money Coming In Until The 2024-2025 Season and The Number Of Years That An NBA Player Signs His Contract For]
Below are a few excerpts from an article by Kevin Draper at deadspin.com written on October 6, 2014
"What The NBA's Insane New TV Deal Means For The League And For You" Source: http://deadspin.com/what-the-nbas-in...e-a-1642926274
"The NBA announced on Monday that it had struck a nine-year, $24 billion media-rights deal with ESPN and Turner Sports."
"No matter how you slice it, the NBA will be making a hell of a lot of money through the 2024–25 season."
"CBA ramifications:
Since many things are tied to the salary cap—such as maximum salaries, the luxury tax, and the value of the mid-level exception—this has huge ramifications for the value of player contracts.
To prevent this huge jump in the salary cap, Adam Silver said the NBA will begin negotiations with the National Basketball Players Association this afternoon about phasing in the salary cap increases over a number of years."
Below is an example With two alternatives for an NBA player [such as Bismack Byombo] to choose from:
The circumstances: An NBA player becomes a free agent [July 1, 2016] after having played one year [2015-2016] on a 1 year NBA player`s contract with an NBA team
# 1 Alternative: An NBA player signs a 4 year contract with any of the 29 NBA teams other than his current team [$15,000,000 per year for $60,000,000 in total].
# 2 Alternative: a] An NBA payer signs a 2 year Non-Tax Mid Level Exception contract with his current team [$5,628,000 and $5,881,000].
b] After the 2 year Non-Tax Mid Level Exception NBA player contract with his current team expires, the NBA player becomes a free agent for a second time.
c] The NBA free agent signs a new 2 year NBA player contract any one of the 30 NBA teams. This NBA player contract would pay the NBA free agent $24,245,000 per year for each of the 2 years [2018-2019 and 2019-2020].
d] The formula to arrive at #2 Alternative NBA contract offer [2018-2019 and 2019-2020] of $24,245,000 is: $60,000,000 [#1 Alternative: New Team NBA player contract offer for 4 Years] - $5,628,000 - $5,881,000 = $48,491,000 / 2 years = $24,245,500
#1 Alternative: NBA Player Signs 4 Year Contract With Any Of 29 NBA Teams Other Than His Current Team
[NBA Player Chooses To Get Higher Payments in years 1 and 2 and locks into a longer term 4 Year NBA player contract]
Year | Period | $ Payments | # Of Years | Contract Type | Higher $ Contracts & Lock Out Period |
1st | 2016-17 | $15,000,000 | 4 Years | Cap Space | Player signs 4 yr contract with 1 of 29 teams |
2nd | 2017-18 | $15,000,000 | 4 Years | Cap Space | Higher $ locked out until F.A. 2020-2021 |
3rd | 2018-19 | $15,000,000 | 4 Years | Cap Space | Higher $ locked out until F.A. 2020-2021 |
4th | 2019-20 | $15,000,000 | 4 Years | Cap Space | Higher $ locked out until F.A. 2020-2021 |
4 Yr | Total | $60,000,000 | |||
4 Yr | Average | $15,000,000 |
[NBA Player Chooses To Get Lower Payments In Years 1 and 2 And Then Signs a second NBA player contract paying much more]
Year | Period | $ Payments | # Of Years | Contract Type | Higher $ Contracts & Lock Out Period |
1st | 2016-17 | $5,628,000 | 2 Years | Non-Tax Mid | Player signs 2 year Non-Tax Mid (current team) |
2nd | 2017-18 | $5,881,000 | 2 Years | Non-Tax: +4.5% | Higher $ locked out until F.A. 2018-2019 |
3rd | 2018-19 | $24,245,500 | 2 Years | Full Bird or N.T. Cap | Higher $ now available. 1st year new contract |
4th | 2019-20 | $24,245,500 | 2 Years | Full Bird or N.T. Cap | Higher $ now available. 2nd year new contract |
4 Yr | Total | $60,000,000 | |||
4 Yr | Average | $15,000,000 |
A 4 year contract NBA player is locked out of of higher paying NBA player contracts from New NBA TV money until his existing NBA player contract expires.
Why would the NBA player select a 4 year period? Why wouldn't the NBA player select a series of 1 year contracts and get paid the most he could for each year?
Answer: If the NBA player signed with a new team each year by becoming a free agent each year, all NBA teams would be forced to sign him each year using cap space.
No NBA team would be able to acquire the NBA player's full bird rights [need at least 3 years] making it more difficult for teams to sign him.
As a result, a series of 1 year contracts would diminish the NBA player's market value. It would reduce the number of teams that could offer the player a 1 year contract and the $ amount those teams would be able to give him.
What if the NBA player signs a 2 year Non-Tax Mid Level Exception contract with his current NBA team at the beginning of year 1 [2016-2017]?
Which NBA team would most likely offer the NBA player a 2 year $24,245,500 NBA player contract at the start of year 3 [2018-2019] when he becomes a free agent again?
Answer: The NBA player's current NBA team [the Toronto Raptors in the case of Bismack Byombo]. Why?
29 of the 30 NBA teams would have to sign the NBA player by using cap space. This would be difficult, costly and undesirable for a lot of NBA teams.
Only the NBA player's current Team [the Toronto Raptors] could sign the NBA player [Bismack Byombo] by using full bird rights and would not have to use cap space.
Everyone appears to have accepted that there is no possible way that Bismack Byombo will be back with the Toronto Raptors after this year [2015-2016].
The reason Bismack Byombo would go to another team is that everyone is looking at how much Bismack Byombo would be paid over a 1 year period [2016-2017].
This illustration demonstrates that Bismack Byombo could be paid as much money [$60,000,000] over a 4 year period [2016-2020] from the Toronto Raptors as he could from a new team.
This may not be a perfect solution for Bismack Byombo to remain with the Toronto Raptors. However, it is a viable solution for Bismack Byombo to consider.
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