Great article about the devaluation of the max contract in the NBA

[konex]

http://www.cbssports.com/nba/writer/...-a-cory-joseph

The problem is, outside the rarified air where Davis and other top-shelf superstars live, the NBA's max contract has become so common and overused as to completely lose its value and meaning. And critics say it's actually had the opposite effect than what owners intended when they pushed for it during the ugly 1998-99 lockout that cost owners and players hundreds of millions and canceled the All-Star Game.

"When you place an artificial bottleneck, you're going to create disequilibrium," agent David Falk, who represented the NBA's first $30 million-a-year player, Michael Jordan, told CBSSports.com.

"By saving $20 million on the best five players, you're probably paying 30 guys an extra $10 million each. If the owners realized that by saving $100 million it would cost them $300 million, do you think they would've done it?"

"When you set a max, it's a clear invitation to not only the Michael Jordans but also the Vin Bakers of the world to say, 'I'm somewhere on the high end of the spectrum, but I'm going to feel disrespected if I don't get the max,' " a person who was involved in negotiating the 1999 collective bargaining agreement told CBSSports.com. "It's going to be a high-water mark, and everyone's going to be seeking that level. You knew that players who weren't necessarily deserving were going to get it."

"If players were allowed to and able to get whatever the market would bear, does anybody think the numbers wouldn't be different than what they are right now?" Fleisher said. "My gut feeling is they'd be less. There would be a few guys with astronomical deals, but they're worth it."

How many current NBA players are "worth it"? That's a judgment call, and one the market is not capable of sorting out and agents can no longer fully negotiate. In Falk's estimation, you start with James and Kevin Durant and get to "maybe Russell Westbrook," he said. Bryant, who in 2013-14 became the first $30 million-a-year player since Jordan, would've spent a decade earning more than that in a free-market system. (Bryant's seven-year, $136 million deal from 2004-11 had been the high-water mark before Davis came along.)

"If you only had Kobe and LeBron making the max all these years, no player in the league would ever think they were worth what Kobe and LeBron are worth," Falk said. "So you're grossly overpaying the people that aren't as valuable because you've created this artificial limitation."

This is completely correct. By placing an artificial restriction on salaries, max contracts have become meaningless. The top player should set the ceiling and the market will adjust around that. Instead we have Enes Kanter and Wes Matthews et al about to get max deals

[SCdac]

it's been a long time in the making, the devaluation, but the recent contracts given to Gilbert Arenas and Joe Johnson come to mind most. In the current era it started with those types of players, those on the fringe between all star and superstar (more so Arenas, but you know what I mean), because it made some semblance of sense, but now it's not relegated to that, as you see guys like Matthews getting the max. Kawhi Leonard's recent contract I think is actually a decent example of a more fair max-contract, he could have gotten 15-20 million more probably. Anthony Davis just got 145 million extension, which seems to make perfect sense given his age and two-way impact. If anybody deserves it it's him, but damn it's that hefty sized contract that makes an 80-100 million dollar contract for some lesser big man suddenly look "ok".

[Akrazotile]

http://www.cbssports.com/nba/writer/...-a-cory-joseph







This is completely correct. By placing an artificial restriction on salaries, max contracts have become meaningless. The top player should set the ceiling and the market will adjust around that. Instead we have Enes Kanter and Wes Matthews et al about to get max deals

I'm pretty sure the NBA insisted on a max as a concession in exchange for other things they have conceded to the players union.

I think the league would rather have fewer restrictions on salaries in general. But the union leverages the power of guys like Lebron, Kobe, Durant, etc to get more money for the bottom feeders.

That's what a union does. It ties everyone together. Reign in those at the top in order to pull up those at the bottom.

It's not the league that's screwing over real max players. It's the union. It needs them - but they dont need it.

[konex]

It's not the league that's screwing over real max players. It's the union. It needs them - but they dont need it.

Did you read the article? The league is paying out more money BECAUSE of the max contract which the union obviously didn't want. Even if it was a concession, it is not working as intended...

I think the league would rather have fewer restrictions on salaries in general

I think you are dead wrong lol. Stop the reflexive anti-union rhetoric and realize a pro sports union isn't anything like a regular one :p

[Akrazotile]

Did you read the article? The league is paying out more money BECAUSE of the max contract which the union obviously didn't want. Even if it was a concession, it is not working as intended...

I did, but just because an agent with an agenda said something doesnt mean it's true.

Capping the money Lebron gets doesnt somehow cause Wes Mathews and Enes Kanter to make more. Lebron gets 21 million a year and theyre getting 18-19 million a year. What happens if Lebron gets 40 million a year? Somehow Kanter and Matthews will then only look for deals in the 10-12 range?

It makes no sense. The agent obviously WANTS them to remove the max, for a reason. If this was really better for the players, hed be keeping his mouth shut. Instead hes trying to spin in to convince the owners theyre better off without it. But Im sure the owners are smarter than that.

[Spurs m8]

How ****ing stupid.

Theres still a cap, if owners want to waste money on dud players or pay them too much then thats on them, this article acts like the average player gets a max now hahah