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LeBron would make 11-12M more staying home, not 30M as reported.
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BRIGGS
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2/22/2010  11:16 AM
iSergio wrote:I'm pretty sure Donnie Walsh will use David Lee and the other FA's in sign and trades which will net a couple of productive players. This team will not be 2 mega stars and a bunch of bums.

You can't unless they are trading the player to a team that we are getting a FA from in a S+T scenario. Anyone think Clev wants D Lee? Toronto? They wont help the Knicks. IF we can get 2.5mm more under the cap we can sign 2 max FA and the only other move is 8 miimum salary players--thats it.

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VDesai
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2/22/2010  11:30 AM    LAST EDITED: 2/22/2010  11:32 AM
SupremeCommander wrote:I think both Briggs and Cosmic are incorrect.

I agree with Cosmic that you cannot compare five years to six years, and I also agree that the sixth year will most likely be extended.

I agree with Briggs that terms of the contract are the terms of the contract and therefore LeBron is extending himself to more risk by taking five years as opposed to six.

You discount the cash flows as money today is more valuable than tomorrow. So that sixth year keeps value but it isn't full value.

I took the NPV of the two contracts. Discounted at 10 percent the difference in the contracts is $26.24 million and discounted at 3.5 percent the difference is $36.24 million.

That range does not take into account the sixth year. The NPV of the hypothetical sixth year is $15.90 million discounted at 10 percent and $22.94 discounted at 3.5 percent.

Reducing the amount by 100 percent would be a mistake as that fails to consider injury risk. I have no idea how to pick a probability of injury, so I'll put it at 50 percent.

I would argue that LeBron is leaving somewhere between $18.29 million and $24.78 million on the table, which is not as much as is being reported but also not as much as little as is being argued. This analysis is a GROSS amount too, as it is impossible to guess LBJ's tax structure


I think when you're as rich and well respected as LeBron and have so much future earnings potential on top of some 6 year period- (he essentially has significant cash flow potential for ever year he his alive), in the grand scheme the cash is a marginal difference. This will come down to him playing where he wants to play. I have no idea where he wants to be, but if its New York he will come here and he's not gonna worry about the cash he's left on the table, because that difference is just not that significant of an issue in the long run of things for a guy in his position.

SupremeCommander
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2/22/2010  12:25 PM
VDesai wrote:
SupremeCommander wrote:I think both Briggs and Cosmic are incorrect.

I agree with Cosmic that you cannot compare five years to six years, and I also agree that the sixth year will most likely be extended.

I agree with Briggs that terms of the contract are the terms of the contract and therefore LeBron is extending himself to more risk by taking five years as opposed to six.

You discount the cash flows as money today is more valuable than tomorrow. So that sixth year keeps value but it isn't full value.

I took the NPV of the two contracts. Discounted at 10 percent the difference in the contracts is $26.24 million and discounted at 3.5 percent the difference is $36.24 million.

That range does not take into account the sixth year. The NPV of the hypothetical sixth year is $15.90 million discounted at 10 percent and $22.94 discounted at 3.5 percent.

Reducing the amount by 100 percent would be a mistake as that fails to consider injury risk. I have no idea how to pick a probability of injury, so I'll put it at 50 percent.

I would argue that LeBron is leaving somewhere between $18.29 million and $24.78 million on the table, which is not as much as is being reported but also not as much as little as is being argued. This analysis is a GROSS amount too, as it is impossible to guess LBJ's tax structure


I think when you're as rich and well respected as LeBron and have so much future earnings potential on top of some 6 year period- (he essentially has significant cash flow potential for ever year he his alive), in the grand scheme the cash is a marginal difference. This will come down to him playing where he wants to play. I have no idea where he wants to be, but if its New York he will come here and he's not gonna worry about the cash he's left on the table, because that difference is just not that significant of an issue in the long run of things for a guy in his position.

I completely agree, just pointing out the answer to the debate lie somewhere in the middle. And, that brief analysis neglected real options and opportunity costs associated with a New York City presence.

Furthermore, like you said, the income gain is marginal. Each extra dollar will have a more profoundly diminished return (likely). Utility will play a big role in this instance, much like when Shaq went to LA

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VDesai
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2/22/2010  1:40 PM
Ultimately this is where the agent comes in and takes care of his client. If LeBron says he wants to go to NY he will go to NY. The agent earns his keep by brokering a sign and trade so that he can say to his client that he got him more money. Or the agent brokers outside contracts to show him he got him more money. This money really probably means more to the agent than Lebron at this point.
AnubisADL
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2/22/2010  1:51 PM
Where are people getting the notion Lebron will get more marketing dollars by playing in NY? The guy is plastered on TV constantly. This isnt Joe Johnson we are talking about. This is Lebron James the first or second best player int he entire NBA.
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Moonangie
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2/22/2010  2:14 PM    LAST EDITED: 2/22/2010  2:18 PM
bitty41 wrote:Again Sergio where has Joe Johnson, D Wade, Chris Bosh, Amare, etc ever said they planned to follow Lebron? Couldn't it be just as likely that all of these guys stay with their teams remain the "franchise player?

You want me to assume something that hasn't even been shown to be a remote possibility. Also if any of these guys are hellbent on playing with Lebron couldn't they just as likely demand trades to Clev? Isn't kind of out there that TWO elite players in their primes would walk away from their teams. The only guy who has done this in the past 20 years is Shaq one freaking guy but now I'm suppose to believe that TWO ELITE PLAYERS in one summer will walkaway.

Just to be clear you think with absolute certainty that the Knicks will be contenders next season? I'm not at that point if Walsh makes a big signing than I think this is a reasonable debate.

I wonder if Lebron would prefer to tie up $17+mil in one guy than spread it out by resigning Lee and another impact player (e.g., TMac). If Chandler or Gallo become an All-Star, or other draft picks pan out, or a S&T talent blows up in NYC by playing with Lebron, I am not sure that's less than two max guys. He never said he HAD to sign a Bosh to have a shot at landing him. The Cavs don't have a secondary max guy (unless you think that's Jamison or Shaq - ridiculous).

AnubisADL wrote:Where are people getting the notion Lebron will get more marketing dollars by playing in NY? The guy is plastered on TV constantly. This isnt Joe Johnson we are talking about. This is Lebron James the first or second best player int he entire NBA.

Based on NYC having a much more active press cycle, with WAY more readers; and because NYC is the HQ for banking, media, publishing, advertising; and MSG is sort of a basketball "mecca" with fans who go ape shyte over anything hoops. Maybe that doesn't translate into more of a lasting legacy than winning in Clevland, Ohio...

misterearl
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2/22/2010  2:17 PM
Anubis - with its golden boy, Tiger Woods, on the disabled list, Phil Knight is monitoring the Knicks situation carefully. This is NOT, I repeat, not about money with Lebron. It is about his legacy and long term career.

You don't think he will love hosting SNL on a regular basis?

He can rule the world from New York.

Put the throne at the top of The Empire State Building and name a Stage Deli sammich after him.

Letterman?

Late Night With Lebron has a better ring to it.

once a knick always a knick
Moonangie
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2/22/2010  2:25 PM    LAST EDITED: 2/22/2010  2:26 PM
The deal makers are probably working overtime right now to make this thing happen.

Or maybe they are telling Lebron: "Hey King, just stay in Cleveland. You don't need to go to NYC to become a global icon. You're so effing hot it doesn't matter to a billion Chinese dreamers what American city you represent. Just do your thing and the world will be yours."

Hmm, no... I think the deal makers can tell there's a difference between Cleveland and New York. I guarantee you those Chinese fans know where New York is located, and have probably been here and most likely are as awed by it as anyone who doesn't live here full time. Cleveland? Where the *bleep* is that and why would anyone care? No offense to Ohio intended, but I mean come on, visit that bland and bleak place before you say only the internet is relevant anymore.

The King belongs in the Mecca. It's only fitting.

iSergio
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2/22/2010  2:29 PM
And just think of the renewed impact LeBron James would have if he signed here. You think that #23 Cleveland jersey is a hot seller? It would double if it were a #6 NYK jersey. Maybe King James wants to stay in Cleveland (I don't think he does or cares) but you KNOW his people, his business partners and people behind the scenes will be pushing him to come to New York. Common freaking sense!
nyk4ever
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2/22/2010  2:42 PM
i think there is something to say about there being more marketing opportunities for lebron in NY, but I think the real thing is that there are just more OPPORTUNITIES plain and simple in NY for a guy like lebron. lebron loves doing his thing under the spotlight off the court and there just aren't the same opportunities in cleveland that there are in NY for lebron to do that kinda thing.

we'll see how much that stuff really matters to him.

"OMG - did we just go on a two-trade-wining-streak?" -SupremeCommander
misterearl
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2/22/2010  3:44 PM
what nyk4ever said

Lebron is looking to set his brand, and his boys, up for the days he is finished playing basketball

Like Cleveland has a television studio large enough to handle his dreams

BNN (Bron News Network) will put NBC, CBS, Fox and CNN out of business

once a knick always a knick
BRIGGS
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2/22/2010  3:55 PM
If Lebron cares about winning a title--he won't be coming here.

What is the team --lets say best case scenario with Bosh and LBJ


C-Bosh
F Gallinari
F James
G Chandler
8 minimum players

45 wins--maybe if somoen doenst get hurt--it will take 2-3 years to fill out the team and we have no idea what the parameters will be--Is Lebron going to walk into hat unkown?
NO

Just for a second his team right now

C Shaq BIG Z coming back
PF Jamison Verahjio Hickson
SF James Jamison Williams Moon
G Parker Gibson Mo Williams West
rest Powe Green Telfair
they have size skill and very very deep at every position--the team is set to win for many years--and thats what he wanst to do???

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BasketballJones
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2/22/2010  3:56 PM    LAST EDITED: 2/22/2010  3:57 PM
The "Cable" and "Internet" stuff sounds intriguing. I'd like to learn more.
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BasketballJones
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2/22/2010  3:57 PM
In recent times it almost seems like players would rather not play in New York. I'm not so sure it's such a lure. Not everyone is cut out for life in the big city. Your modern NBA players is a suburban creature.
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iSergio
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2/22/2010  4:02 PM
BRIGGS wrote:If Lebron cares about winning a title--he won't be coming here.

What is the team --lets say best case scenario with Bosh and LBJ


C-Bosh
F Gallinari
F James
G Chandler
8 minimum players

45 wins--maybe if somoen doenst get hurt--it will take 2-3 years to fill out the team and we have no idea what the parameters will be--Is Lebron going to walk into hat unkown?
NO

Just for a second his team right now

C Shaq BIG Z coming back
PF Jamison Verahjio Hickson
SF James Jamison Williams Moon
G Parker Gibson Mo Williams West
rest Powe Green Telfair
they have size skill and very very deep at every position--the team is set to win for many years--and thats what he wanst to do???

Shaq is 40, Zydrunas Ilguaskas is 34 and Antawn Jamison is 33. Cleveland is not a young team set to win for many years.

AnubisADL
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2/22/2010  4:05 PM
misterearl wrote:what nyk4ever said

Lebron is looking to set his brand, and his boys, up for the days he is finished playing basketball

Like Cleveland has a television studio large enough to handle his dreams

BNN (Bron News Network) will put NBC, CBS, Fox and CNN out of business

What are you talking about? MSG is a regional channel and no one will be tuning into a Lebron TV show. They even gave Mike D'Antoni a freaking show man. Come on now.

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AnubisADL
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2/22/2010  4:07 PM
iSergio wrote:
BRIGGS wrote:If Lebron cares about winning a title--he won't be coming here.

What is the team --lets say best case scenario with Bosh and LBJ


C-Bosh
F Gallinari
F James
G Chandler
8 minimum players

45 wins--maybe if somoen doenst get hurt--it will take 2-3 years to fill out the team and we have no idea what the parameters will be--Is Lebron going to walk into hat unkown?
NO

Just for a second his team right now

C Shaq BIG Z coming back
PF Jamison Verahjio Hickson
SF James Jamison Williams Moon
G Parker Gibson Mo Williams West
rest Powe Green Telfair
they have size skill and very very deep at every position--the team is set to win for many years--and thats what he wanst to do???

Shaq is 40, Zydrunas Ilguaskas is 34 and Antawn Jamison is 33. Cleveland is not a young team set to win for many years.

Look at their core group of players: Varejao, Williams, and James. Cleveland is just shuffling expirings for long term deals and I expect them to do the same with Jamison and they have that MLE every year.

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iSergio
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2/22/2010  4:18 PM
Mo Williams, Anderson Verajoa and a couple of possible MLE signings is nothing to get excited about. If Cleveland doesn't win a ring this year, expect a huge decline. Replacing Shaq, Zydrunasl Ilguaskas and Antawn Jamison will not easy. The Cavs will pretty much have to rebuild their frontline. Some of you make it seem like LeBron James plays for the 1996 Chicago Bulls. The Cavs are garbage without the King.

We'll have room to sign the King his sidekick, we have 2 (maybe 3 if Toney Douglas ever gets to play) young and productive prospects and Tracy McGrady has already expressed interest in resigning here for peanuts. Stop trying to make it seem like the King losses the world if he leaves his current overrated teammates to join a new cast who has a better future. To say a team with the King and Bosh is a 45 win team in the East is ridiculous.

AnubisADL
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2/22/2010  4:57 PM
iSergio wrote:Mo Williams, Anderson Verajoa and a couple of possible MLE signings is nothing to get excited about. If Cleveland doesn't win a ring this year, expect a huge decline. Replacing Shaq, Zydrunasl Ilguaskas and Antawn Jamison will not easy. The Cavs will pretty much have to rebuild their frontline. Some of you make it seem like LeBron James plays for the 1996 Chicago Bulls. The Cavs are garbage without the King.

We'll have room to sign the King his sidekick, we have 2 (maybe 3 if Toney Douglas ever gets to play) young and productive prospects and Tracy McGrady has already expressed interest in resigning here for peanuts. Stop trying to make it seem like the King losses the world if he leaves his current overrated teammates to join a new cast who has a better future. To say a team with the King and Bosh is a 45 win team in the East is ridiculous.

Is Chandler better than Corey Maggette?

Is Gallo currently better than Troy Murphy, Mike Miller, or Antwan Jamison?

Those are players that were being practically given away to any team willing to accept them. These guys are ready to rock and roll NOW and have proven they are solid NBA players with CONSISTENT play. Lebron could care less about the future because he is trying to win NOW.

Our young guys have done alot of NOTHING this year. Yea they have high ceiling but that means little when Lebron is trying to compete for a championship next year not 2-3 years from now.

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bitty41
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2/22/2010  5:17 PM
For once and for all the NYC (endorsements earning potential argument is total bs)

The Athletes with the biggest endorsement deals are Tiger, Phil Mickelson, Lebron, and Dale Earnhart Jr. Not one guy was from a NY team even A Rod and Derek Jeter who play for the best baseball team in MLB are only earning a 6 and 8 million a piece. Whereas guys like Peyton Manning, Dwight Howard, and Dwayne Wade earning more money in smaller markets.
So again Lebron it does not matter where Lebron is playing if he's putting up crazy numbers and his team is winning he could be playing in Siberia and he would still make millions in endorsements. So stop with this NY is the banking, publishing, media, etc this all true but it still will have very little to to do with Lebron's ultimate earning potential. His performance and his team's performance will be the biggest deciding factor END OF STORY.

Mo Williams, Anderson Verajoa and a couple of possible MLE signings is nothing to get excited about. If Cleveland doesn't win a ring this year, expect a huge decline. Replacing Shaq, Zydrunasl Ilguaskas and Antawn Jamison will not easy. The Cavs will pretty much have to rebuild their frontline. Some of you make it seem like LeBron James plays for the 1996 Chicago Bulls. The Cavs are garbage without the King.
We'll have room to sign the King his sidekick, we have 2 (maybe 3 if Toney Douglas ever gets to play) young and productive prospects and Tracy McGrady has already expressed interest in resigning here for peanuts. Stop trying to make it seem like the King losses the world if he leaves his current overrated teammates to join a new cast who has a better future. To say a team with the King and Bosh is a 45 win team in the East is ridiculous.

You keep harping on how terrible the Cavs supporting cast is but guess what whose winning 60 games every season and getting to the ECF? One thing Lebron can count on is that the guy's he's playing with have a solid chemistry together and it's produced results can the same be said for a group of guys who haven't even played a playoff game and our among one of the worst teams in the Conference? It's one thing to build a team from a 60 win ECF team to a Championship team vs building a non-playoff team all the way into a Championship caliber team.

LeBron would make 11-12M more staying home, not 30M as reported.

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