Are NBA players underpaid?
Well, according to Lebron James, some of them are grossly underpaid.
Steph Curry just signed a $201 million dollar contract. Making it the largest contract to be signed in NBA history.
The deal is a 5 year deal.
However, Lebron James says the $201 million dollar number is a bit small, actually a lot small.
Lebron says that Steph should easily be making twice that amount.
And he kind of has a point.
When you look at how much the value of each franchise has gone up across the league over the last decade, it sticks out that player salaries have not gone up proportionally.
The value of NBA franchises have absolutely exploded as of late. It started with the sale of the Clippers a few years back when it sold for close to double what most were expecting it to sell for.
Here is a chart listing the value of NBA franchises over the last couple decade's:
As you can see they have all become significantly more valuable as of late.
However, take a look at the value of the Golden State Warriors.
It is has gone full moon shot.
One could argue that Steph Curry is a big reason for that.
He his a 2 time NBA MVP and has been the leading team member of multiple NBA Championships as well as the league's record setting best regular season.
So, yes $201 million dollars is a lot of money and it is the most in league history. However, Lebron has a great point that for the amount of value Curry has created, he is still significantly underpaid.
How would you like to be underpaid at $201 million?
Resource and Picture:
I am the: @voiceofreason
Considering how much money they make for their team, yes, they are unpaid. 201 million dollars is the the biggest in NBA history, but remember 200 millions is worth more than years ago than it is today.
Yes absolutely. It is all relative in terms of how much money they generate.
You're right but that aside , just imagine 201 millions = underpaid . WUT ?
The problem is endogenous to NBA, either. As I show in my post https://steemit.com/sports/@tylersr/top-posts-in-reddit-com-r-baseball-for-mon-jul-3-2017, pitcher Chris Sale has already provided the RedSox with an equal return on his 3-year, $39.5 million contract half way through his first year.
I do not think he is over payed. We have to remember that the value for the franchise is a theoretical value based on the price other Nba franchises sold for in the past. It is not realized until the team is sold. Their operating income was 74.5 million in 2016 and by doubling Steph's salary along with contract negotiations with other players it might put a strain on their operating income. However seeing that there revenues have nearly doubled over recent years it might just be the right value.
Plus you have to look at the "projected revenue". The new TV deals are just now starting to kick in, which is why earnings are going way up across the board.
I would love to even get the chance to be "underpaid" at 200 million :D
What are the salary caps for NBA? I dunno if its low... like i think NFL players get shafted by their salary cap
Yes they have salary caps. Lebron mention that as well, questioning why they have caps to begin with?!
These amounts are staggering when compared to income of ordinary people... I am happy for them especially when I hear that they have charities to share their money with. Now if they are overpaid or underpaid that perspective are only subjective.
As cryptos have wonderfully illustrated, values are created by people who support or value it themselves. The intrinsic benefit is important of course but what will drive its price to the roof is with how much support it will receive from the masses.
How can it be underpaid if that was the contract he chose to sign?
STEEM On !!
Dave