Author Topic: How the new TV contract impacts the C's...  (Read 1399 times)

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How the new TV contract impacts the C's...
« on: October 07, 2014, 07:45:36 AM »

Offline Eddie20

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Some things to consider on the C's future and how it impacts the team going forward. Also interesting was that Bradley's contract, which has been debated ad nauseam, will now be considered a plus contract with the new salary cap structure.

http://forums.celticsblog.com/index.php?topic=73525.75
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Bradley signed a 4 year 32 million dollar deal that will see him in green between the ages of 24-27.

The supposed breakdown is:

2014-15 - 7.19M
2015-16 - 7.73M
2016-17 - 8.26M
2017-18 - 8.80M

Bradley is a young player who continues to improve and is locked up for what will end up being a steal of a contract. Many critics are thinking of the 8M per year as it relates to his game at age 23 and under the previous salary cap. A cap which saw the MLE start at 5.8M. However, a better assessment would be to prognosticate how his game will improve and how the salary will compare with other players under the new CBA.

Ainge envisioned this and hit it out of the park...too bad few noticed.


Larry Coon has an article too, but I don't have access. If someone does please post the main points.
http://insider.espn.go.com/nba/story/_/id/11654981/nba-assessing-impact-tv-deals-salary-cap-player-salaries



Forsberg

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The 28-year-old point guard is set to become an unrestricted free agent this summer. Despite the uncertainty that comes with reaching the open market, the timing seemed beneficial to Boston. The salary cap was expected to spike when the new TV deal starts in 2016, so it seemed Rondo would have been negotiating before that new money kicked in.

Now you’ll hear a lot about “smoothing” and the prospect of the NBA limiting the rise of the salary cap in the coming seasons. Until that issue is settled, it’s a little more difficult for Boston to forecast exactly how it can proceed. But make no mistake, the cap is going up, slow or fast, and it could be beneficial for Boston to lock up Rondo long-term next summer.

Before the new TV deal, the league expected the salary cap to climb modestly to $66.5 million next season. Rondo, who will have nine years of experience as he reaches the open market, can fetch a five-year, maximum contract that would pay him somewhere north of $105 million (and even more if the cap rises further).

Here’s one interesting wrinkle to consider: If Rondo really wanted to chase big money, he could sign a one-year deal this offseason -- still at a sizable raise over the team-high $12.9 million he’ll earn this year -- and hit the open market again when the TV money is more likely to kick in, particularly if it comes in one lump in 2016 when the likes of LeBron James and Kevin Durant will reach free agency. What’s more, Rondo would be in his 10th season at that point and able to command 35 percent of the cap as his starting salary (instead of the 30 percent he’s limited to at the moment).

If the Celtics believe Rondo is a long-term piece of their future -- and all indications have been that they do -- it would greatly benefit the team to lock him up after this season. Even if the numbers look gaudy now, they are likely to look like a steal down the road. Deals signed before the influx of new money should appear thrifty, regardless of the smoothing process.

Some still will balk about paying Rondo maximum money, ignoring the fact that the market will ensure he fetches that rate. Others also will ignore that, in a market set to be saturated with money, the Celtics will need a superstar such as Rondo to help attract other talent. Just imagine what teams with multiple superstars will be able to lure with additional funds.


A few more ways the new TV deal could impact the Celtics:

• Rookie contracts: The league’s rookie scale currently is set through the 2020-21 season and those salaries are not scheduled to be impacted by the new TV money. Draft picks seemingly have become even more valuable recently, but they could be true gems as an avenue to lock in fresh talent at bargain-basement rates in the future. So Boston’s treasure trove of draft picks could become even more valuable.

• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

• Not easy being Green? Jeff Green owns a $9.2 million player option for the 2015-16 season. Even the recent mild increases in the cap were enough to make one wonder if Green might consider opting out in order to seek a more lucrative contract. But that assumes: (1) Green plays well enough this season to attract bidders and (2) he’s willing to sign before that TV money is likely to really kick in. Green could always opt out and do a short-term deal, but there’s also the potential that he could simply take that $9.2 million and examine his long-term future in the potentially lucrative summer of 2016.

• Bradley’s deal in new light: Some scoffed when Avery Bradley signed a contract extension for four years and $32 million this past summer. While the numbers might look slightly inflated now, it could be on the cheaper side by 2016. Asked if he should have waited on his deal, Bradley laughed Monday and offered, “No, not at all. I’m happy to be here. I was just telling someone, anything can happen so I’m happy that I have another four years here and I get a chance to play with the Boston Celtics.”

The Celtics have positioned themselves well no matter what happens moving forward. The team will have avenues regardless of how much money is available or how the league smooths the cap.

But Rondo still remains the key to their future, even if the end game is a trade. The more likely scenario has the two sides heading to the bargaining table this summer, and Boston likely will be pushing hard for a long-term extension even if it means paying max money.

Lowe

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The league right now projects a jump to $66.5 million for 2015-16, a modest rise pegged to the final year of that modest $930 million TV deal. If the new TV deal kicks in for the 2016-17 season just shy of $2 billion, the cap could exceed that same $14 million leap, all the way to around $80-plus million, in a single year. If for some reason the new TV deal starts north of $2 billion in the first year — meaning it would include smaller year-over-year jumps — the cap for 2016-17 could leap even higher. If it started at that exact $2.68 billion figure, it would break $90 million, according to my own math and some bleary-eyed late-Sunday projections from cap gurus around the league.

The plans as of now are to start at $2.1 billion in 2016-17, the first year of the deal, and escalate in even year-over-year increments to a peak of $3.1 billion in the final year, per sources who have reviewed a memo the league sent to teams today.

You thought LeBron’s free agency in 2010 was an extravaganza? Durant hitting free agency under an $80 million–plus cap would be the craziest summer show in league history, unless he proactively snuffs the madness by taking meetings with only one or two suitors outside of Oklahoma City.

The Nets, even with Deron Williams’s atrocious contract still on the books, could suddenly find themselves with two maximum cap slots — enough for Durant and a costar. The Knicks, with Carmelo Anthony locked into what today looks like a better deal, might be able to add two more max or near-max players over the next three summers.

The Lakers, with Kobe Bryant’s disastrous extension wiped away that summer, could sniff three max cap slots. The Lakers’ cap flexibility yielded nothing of note last summer, but a Lakers team with the ability to offer a package deal to multiple stars is the ultimate NBA bogeyman.

The Suns absolutely had the TV deal in mind when they beat the field in inking the Morris twins and Eric Bledsoe to long-term deals over the last two weeks. Those contracts look big, especially Bledsoe’s five-year, $70 million deal, but they’ll look very different in two or three years. Longer is better in this case, provided good health. This may also apply to Kenneth Faried’s extension with Denver, though details on that are still rolling in.

Re: How the new TV contract impacts the C's...
« Reply #1 on: October 07, 2014, 07:51:37 AM »

Offline Eddie20

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I found it very interesting that rookie deals will not be impacted by the cap rise until 2021 at the very earliest. These picks gain value since the % of cap space they use goes down as a result.

Re: How the new TV contract impacts the C's...
« Reply #2 on: October 07, 2014, 09:29:38 AM »

Offline Donoghus

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

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• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.


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Re: How the new TV contract impacts the C's...
« Reply #3 on: October 07, 2014, 11:18:50 AM »

Offline Eddie20

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

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• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

I agree with you there. However, it doesn't account for Brook Lopez too. Lopez and Williams, along with their other contracts (Jack especially) won't leave much room for FA's, so I don't think they'll be able to make too big of a splash, if any.

Re: How the new TV contract impacts the C's...
« Reply #4 on: October 07, 2014, 11:28:31 AM »

Offline Donoghus

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

Quote
• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

I agree with you there. However, it doesn't account for Brook Lopez too. Lopez and Williams, along with their other contracts (Jack especially) won't leave much room for FA's, so I don't think they'll be able to make too big of a splash, if any.

For that 2016 first rounder, I'd agree.   2017 & 2018 look a little more iffy.


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Re: How the new TV contract impacts the C's...
« Reply #5 on: October 07, 2014, 12:40:22 PM »

Offline wdleehi

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

Quote
• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

I agree with you there. However, it doesn't account for Brook Lopez too. Lopez and Williams, along with their other contracts (Jack especially) won't leave much room for FA's, so I don't think they'll be able to make too big of a splash, if any.

For that 2016 first rounder, I'd agree.   2017 & 2018 look a little more iffy.


Just remember, the same group is in charge.  There is a good chance they do something else to mess it up.

Re: How the new TV contract impacts the C's...
« Reply #6 on: October 07, 2014, 12:57:25 PM »

Offline D.o.s.

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Salient points from the insider article:

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A huge salary-cap jump in 2016 also provides an unfair advantage to the 2016 free-agent class. Since teams must spend at least 90 percent of the cap and players usually try to sign long-term deals, the windfall might be depleted before the 2017 offseason arrives. This means the 2016 free agents would reap the benefits, but players already locked into long-term deals and players becoming free agents in later years would be left out in the cold. Worse, the cap could actually decrease in later years as the situation normalizes, further disadvantaging the players whose free agency didn't coincide with the 2016 offseason.

The league has already thought of this contingency, and is hoping to smooth out the effects of the new TV deal by gradually phasing in the salary-cap increases over several years. For example, instead of letting the salary cap increase an extra $16 million in one year, the league might limit the increase from the new TV deal to $4 million per year, spread out over four years. Most if not all players -- not just the 2016 free agents -- would then be able to become free agents in an offseason in which the cap jumps significantly.

Such an arrangement requires the consent of the players' association, for which the league already is beginning discussions. It should be an easy proposition to sell -- collectively the players will be entitled to the full 51 percent of revenues (no more and no less) no matter what, and limiting the cap increase would ensure a shortfall. Any such shortfall is paid pro rata to every player in the league. Therefore, limiting the cap increases would ensure that every player in the league benefits -- not just the ones who happen to become free agents in 2016.
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Re: How the new TV contract impacts the C's...
« Reply #7 on: October 07, 2014, 01:17:09 PM »

Offline obnoxiousmime

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

Quote
• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

I agree with you there. However, it doesn't account for Brook Lopez too. Lopez and Williams, along with their other contracts (Jack especially) won't leave much room for FA's, so I don't think they'll be able to make too big of a splash, if any.

For that 2016 first rounder, I'd agree.   2017 & 2018 look a little more iffy.


Just remember, the same group is in charge.  There is a good chance they do something else to mess it up.

But there's also not a bad chance Prokhorov sells. The new owner may want his own guys in place.

Re: How the new TV contract impacts the C's...
« Reply #8 on: October 07, 2014, 01:47:03 PM »

Offline wdleehi

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This part is a little concerning. Although, "remain a contender"?  I don't think anyone sees them as a contender now nevermind remaining one.

Quote
• Those Nets picks: Among Boston's key assets moving forward are the future first-round picks of the Nets. The Celtics own Brooklyn’s 2016 and 2018 first-round picks with an ability to swap in 2017. These picks had increased potential to be lottery picks if the overspending Nets crashed in coming years. But a rise in the cap could rescue Brooklyn and help the Nets remain a contender, which could diminish the value of those picks slightly.

I agree with you there. However, it doesn't account for Brook Lopez too. Lopez and Williams, along with their other contracts (Jack especially) won't leave much room for FA's, so I don't think they'll be able to make too big of a splash, if any.

For that 2016 first rounder, I'd agree.   2017 & 2018 look a little more iffy.


Just remember, the same group is in charge.  There is a good chance they do something else to mess it up.

But there's also not a bad chance Prokhorov sells. The new owner may want his own guys in place.


In which case they may go to the burn it down model of trading away players and useful cap space for draft picks.