LeBron James Contract with Cleveland Cavaliers Is All About the Money: When LeBron James went home, he did it for the right reasons—reasons that, according to him, went above basketball, per the heartfelt missive he released through Sports Illustrateds Lee Jenkins. I have a responsibility to lead, in more ways than one, James said. And I take that very seriously. Weve all clapped our hands raw in response to James decision and, more to the point, the motivation behind it. But James pledge to lead wasnt just about giving Cleveland something it needed. It wasnt limited to building a team, a city and a region of the country that could use a little rehabilitative construction. It wasnt even only about providing hope, though that was a big part of it. It was also about setting a financial example that will benefit generations of NBA players to come. The Contract James didnt sign a full max deal with the Cleveland Cavaliers, instead opting for a one-year pact with an option that will pay him, at most, $42 million over two seasons. Sure, hes collecting the most annual cash he can. But hes not locked in for the long haul. Generally, players prefer as many years as possible on their contracts. The possibility of injury, decline and any number of other risks makes assuring long-term financial security the smart move in most cases. But James took a short deal because it enables him to make the most money possible under the collective bargaining agreements current structure, while also setting himself up to cash in on an even higher level when that structure changes. James wields immense power, and hes most potent as a negotiator, trend-setter and culture-changer when hes not locked in to an agreement that limits his leverage. Players throughout the league should be thanking him, and heres why: TV Money When the NBA renegotiates its television contract after the 2015-16 season, the sports entire financial landscape could change. Remember, if basketball-related income goes up (which it absolutely will when the next TV deal gets done), so does the salary cap. Per ESPNs Tom Haberstroh (subscription required): A rising tide floats all boats. Under the current CBA, James can only receive a max contract pegged to a percentage of the NBAs salary cap. Thus, if the salary cap goes up, so does James earning potential. The league determines the salary cap by looking at the leagues BRI (basketball-related income), which derives a big chunk of its cash from television rights contracts. Bigger TV deal, bigger salary cap, bigger payday for James and the rest of the leagues elite looking for max contracts. For guys like James, and others designated as max players, a rising salary cap means their deals, no matter how long or short, would also spike. So its not like he signed a short-term contract because he wanted to avoid being locked in to a hard number when BRI rises. Hes getting his hefty percentage of the cap either way. For James, taking the max now, albeit on a short-term deal, is about getting the biggest return the current system allows—even if that return comes nowhere close to fairly compensating him. Last year, James reluctantly opened up to Brian Windhorst of ESPN about his financial frustrations: That right there is a story untold. At the end of the day, I dont think my value of what I do on the floor can be compensated anyway because of the CBA, if you want this truth. If this was baseball, Id be up there. James may not be underpaid for long. Lockout on the Horizon With another work stoppage looming after the 2016-17 season, the flexibility that comes with James short-term deal is even more valuable. Thats because one of the biggest discussion topics is expected to be the abolition of maximum salaries, per Windhorst: You can be assured that James will be heavily involved in those talks. He envisions getting a Michael Jordan-esque payday at the end of his career. Like when Jordan made $63 million over his final two years with the Chicago Bulls, James could put himself in position to get some huge back-end paydays to make up for how he feels he has been underpaid along the way. If the players are successful in removing the cap on individual compensation, the floodgates would surely open for guys like James. Suddenly, he could request (and probably get) astronomical annual salaries—ones that accurately reflect what hes worth on the court and to the community. And with his impact on the city of Cleveland hitting estimates as high as $500 million, its hard to know what hed actually be worth. Bet on this, though: Itll be substantially more than the $20.6 million hell collect this season. After being under-compensated for his entire career (James has never been the highest-paid player in the league), hes setting himself up to maximize his earning power for as long as he continues to play. So dont worry, Cleveland; James short deal doesnt mean hes trying to keep his options open or that hes contemplating another quick exit. All hes doing is making sure he gets what hes owed. Being More James elevated himself in his return to Cleveland. As seems to have been his goal, hes something more than a basketball player now. And really, thats probably what the NBAs most transcendent talent has to be. He has to be a symbol of sorts. He has to be the guy who invigorates the Rust Belt. He has to be the guy to bring a dying organization to life. And he has to carry the torch for players who lack his stature. Change is coming to the NBA, and its coming soon. The players took a huge hit in the last lockout, bumbling their way to a result that saw their stake of BRI dip from 57 percent to 50 percent. Now, theyre serious about rectifying that mistake at the earliest opportunity. The memo players received from the union, obtained by USA Today, which encouraged them to spread their paychecks out over 18 months instead of 12 in anticipation of a work stoppage, is a good indication of that. The current NBA climate forces stars to sacrifice in order to win, while owners reap the benefits of skyrocketing franchise valuations that are now hitting the billions. Because of that inequity, players seeking maximum money are viewed as greedy, especially because doing so prevents their team from spending enough to field a contending roster. These days, we catch ourselves calling max-salary players selfish. And we look at guys like Dirk Nowitzki and Tim Duncan, stars whove taken pay-cuts to give their front office more flexibility, as saints. In what other world do we begrudge employees for trying to maximize their earning power to this degree? James is through sacrificing—at least in a financial sense. And hes taking this stand on behalf of the rest of the players in his league. Here again, hes acting in a way that benefits everyone around him. Hes being something more than a basketball player. And if that strikes you as at all selfish, its only because youre not seeing the whole picture. Read more NBA news on BleacherReport #Basketball #NBA #NBACentral #ClevelandCavaliers #fantasybasketball
Posted on: Thu, 17 Jul 2014 00:35:48 +0000
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