24/7 Sports Talk

Showing posts with label salary cap. Show all posts
Showing posts with label salary cap. Show all posts

NFL: Indianapolis Colts Playing With House Money

Trent Richardson arrives at Colts facility after being traded
by the Cleveland Browns. Photo credit NFL

by Chad Jones

Per the 2011 Collective Bargaining Agreement (CBA), a 'Minimum Team Cash Spending' provision mandates every team spends 89% of Cap Space over two  4 year windows, (2013-2016) & (2017-2020). 
Drew Brees stated on this CBA Provision in an E-Mail per Pro Football Talk:
"It doesn’t matter how high the cap is if they are only going to spend that much.  So with a minimum in place, it requires all teams to be at or above that minimum.  More money in players pockets.”

NFL: How To Earn $100 Million Plus, The Larry Fitzgerald Model

Larry Fitzgerald Set The Model for $100 Million
by Chad Jones

2004 3rd Overall Selection Larry Fitzgerald entered the NFL at 19 Years Old, and created the model for earning millions. 

Fitzgerald signed a 6 Year 40.0 Million Rookie Deal (20.0 Million of Escalators Available & $ 20.0 M Guaranteed) What Fitzgerald said to the Cards was if I don't pan out, the ramifications on the Franchise will not be overwhelming. But if I become an elite player, I'll earn millions. In reality, it was Agent Eugene Parker (Also represents Ndamukong Suh & Jairus Byrd on current deals) that showed unrivaled business acumen. 

NFL: NFC South Salary Cap Issues

by Chad Jones


We take a closer look at the upcoming salary cap issues for the NFC South teams. Is your team in good shape?

NFL: NFC North Salary Cap Issues

by Chad Jones

We take a look at some critical upcoming salary cap issues that plague the NFC North teams in the coming year. How is your team affected? 

NFL: NFC East Salary Cap Issues

by Chad Jones

We take an in-depth look at the NFC East teams and their looming salary cap issues on the horizon. How will it affect your team?

Playing in the Red: The New NBA

As a Dallas Maverick fan, I have to wonder why teams like L.A., Miami, New York, and even Brooklyn can acquire the players that they have under the new collective bargaining agreement, yet a team that has operated well above the salary cap since Mark Cuban took over can not. Those teams have made a decision to operate in the red and a NBA championship is worth it.

The new agreement was supposed to level the playing field by requiring a much higher luxury tax for teams over the salary cap. What has happened is the plane between contender and non-contender has grown exponentially. At the start of the 2012-13 season, the number of teams with a legitimate chance of winning it all is few and far between. Struggling franchises are finding it hard to attract top free agents and additional revenue streams to compensate for increasing their payroll. The original thought that low salary cap teams will be the go-to destination if a superstar wants to make big money was totally wrong. Lebron is not going back to Cleveland, Dwight is not going to Charlotte, and Chris Paul is not requesting a trade to Milwaukee. The NBAPA forgot that teams have low salaries for a reason; the owners don't want to spend the money.

The league on the other hand is different situation. David Stern and company have decided to help the big market teams get bigger. Recently, the league office allowed teams to place advertisements on game jerseys. An ad on a Knicks or Lakers jersey will be quadruple the price of an ad on a Timberwolves jersey. The Knicks and Lakers also have local TV deals that help balance financial spreadsheets. They also have merchandise sales blow smaller market teams out of the water. The bigger the market, the bigger luxury tax you can afford to pay.

To Mark Cuban's credit he knew this was going to happen before the new agreement was signed. There are reports that he wanted to have a hard cap, meaning that a team can't go over the cap and pay a luxury tax. Imagine the parity of the NBA if that was true. Instead of 5 teams with a chance to win, there would be 20. Cuban has made a good decision to let the dust settle. For the first time his franchise will operate under the cap which gives him great flexibility to do anything. His new challenge is to play the cap game and win another title using the flexibility to his advantage. He already has proven the other way works.