Knixkik
Posts: 35326
Alba Posts: 0
Joined: 7/24/2001
Member: #11 USA
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Update
05/17-KNICKS STILL TALKING YAO- Its been a good 3 weeks since the Knicks met with Yao Ming and company in Chicago, but still the word around the Knicks camp is still Yao. But will China's new rules prohibit him from being a top overall pick? In preparation for Yao's departure, China has instituted a series of rules 'taxing' Chinese players who play away from China, basically taking 50%, but then requiring an additional 30% be paid to the teams they are leaving, which includes portions to their former teammates, and coaching staff. Leaving roughly 20% for the player. Its unclear if this new rule accounts for taxes paid to the city, state, and federal governments, if it does not, then players like Yao could be faced with sizeable tax burdens. 3 years ago, a deal was reached that would have allowed Yao to leave China for the NBA under the terms that 33% of his earnings were paid to China, a significantly better deal than the one before Yao today. Yao at the time was advised by Nike and his US based agent that a better deal could be reached later... so much for skilled advise... Yao's Chinese team, the Shanghai Sharks offered this assessment of the situation to media "For Yao Ming personally, it was better for him to have left three years ago because he would have been playing in the NBA. There is no question of this... Yao Ming now feels that the contract three years ago was reasonable and regrets that he didn't take it. As far as we know, the government will take much more under the new stipulation. He is our best player and obviously a strong reason why we won the championship. So the Shanghai Sharks need compensation to let him go, and some compensation from the U.S. club that takes him as well." Its unclear if the rules instilled by China will simply be too much for players to endure, one thing is certain, the NBA Player Association, will not allow a contract that pays portions of Yao's money directly to China, meaning Yao would have to receive the payments, then voluntarily hand over the portions China is demanding. Some have offered that once he's in the US he could do as he pleased, but its very clear that China is taking this very seriously, and any attempt by a team or the US government to stop their process could have broad sweeping diplomatic effects. Ming is projected in the top 10 of every major draft ranking service. Although he is not expected to go #1 overall, unless a trade is made.
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