Claudius wrote:
But MD, forgive me if I’m mistaken, aren’t a lot of these shorter deals that elite NBA players take typically so that they can be part of an elite squad in the short term under restrictive salary cap situations. The idea being that once they get to the end of the 1 or 2 years, they will seek to find a situation where they can get themselves a maximum contract for the full length the CBA allows.
Again, the rational player will work himself towards guaranteeing himself the biggest possible pay packet. If that means taking a hit for one or two years to win a title with the promise of a max deal down the line, then they can do that. But it seems irrational to normally want to go into annual contract negotiations.
they make short term deals because the max salary in the NBA is tied to a percentage of the salary cap. for example, the max contract this year for someone with 7-9 years of service time was 30% of the overall salary cap, which is $109M. that works out to $32.7M per year. next year, if the cap rises again (like most expect), a 1 year deal at 30% of a $115M cap would be $36.8M. if a player signed a 2 year max contract this summer, he'd make $32.7M and $34.8M for 2 years, because raises can only go up by a certain percentage each year. so by signing a 1 year deal and then signing a new 1 year deal next year after the cap has gone up, you make more money. the superstars have signed shorter deals to maximize their earnings. they risk the long term stability. but as we just saw with durant, even though he suffered basically the worst injury you can suffer, he declined his 1 year option, then signed a near max contract with brooklyn. they were willing to pay him for 1 season to do nothing because of how good he is and the surplus value they'll get when hes actually back and healthy.
in a way, this is all just an academic exercise, because the NBA is a salary cap world and football isnt.
jones wrote:
Theres a difference between a 20 yo player leaving Toronto for Cleveland Miami or LA and another one for someone leaving France for Madrid Milano or London too. No way we'll have a NBA situation any time soon in football
i know. but thinking about stuff like this distracts me from the realities of arsenal
