Re: Profit Sharing

[Douglas342@aol.com]

In a message dated 12/6/98 10:40:10 AM Pacific Standard Time,
Jlyell@concentric.net writes:

> Can anyone explain the profit sharing %,  players wanting 60% owners 50% 
>  that is one of the bargaining points ?
>  
   Let me give this a shot in the hopes that someone will
correct/amplify/clarify.  I also hope you have read the Mishkin article which
Ray posted.  (I gave it the honor of printing it out to save.)  
    The sides agreed years ago on the definition of "basketball-related
income."  That is the "pie" which is up for division.  The players' side,
divided by the number of teams, yields that year's salary cap.  The cap can be
exceeded in various ways, and revenues other than "basketball related income"
(like the owners' other deep pockets) used in various situations, the most
notorious being the Larry Bird exception, which allows Jordan to make $33 mil
when the cap is 25 or so.  
     Is this a guarantee?  Yes.  Plus a share of the profits?  I don't think
so.  A player signed a seven year (if lucky) contract and the owner is
committed, as is the player, and that contract is guaranteed.  But if the
player signs such a contract under a cap of 24 mil and by year four it has
gone to 50 mil, the contract doesn't change.  This is why Scottie Pippin
doesn't have too much of an argument. He signed what was probably a very nice
contract six or seven years ago.  But now it's a puny one and he wants
megabucks.  He's entitled to go for it, but he can't complain about the past,
other than regretting that he is 34 and not 24, looking for a Garnett type
deal.  Maybe six years ago, his contract was the 1992 equivalent of a Garnett
deal.
       I was real serious about asking for amplification and clarification and
correction on this.  There are those of us on the list who are less than clear
on all the issues and appreciate any enlightenment than can be offered.  (Of
course, if there's a deal and we get some games, please ignore this.)
    Thanks.
  ----  Doug in LA, wondering what Donald Sterling is doing with my Clipper
ticket money.