Sunday, June 28, 2009
Stephon Marbury
Apparently, Stephon Marbury will enter the free agent market this summer without an agent. Marbury used the services of the NBPA to negotiate his buyout from the New York Knicks last season. Satisfied with the previous services, he plans to use the NBPA services again this summer. It should be noted the NBPA is not charging a fee; I wonder how long such a practice would continue if more players try such an approach.
Friday, June 12, 2009
Defining International players (Not Jennings or Calathes)
International players are defined as a player who has maintained a permanent residence outside of the US for at least three years prior to the Draft, who has never previously enrolled in a college in the US, and who did not complete high school in the US. Article X, Section 1(c).
Should the NBA consider expanding its definition of an international player? The current definition excludes players like Josh Childress (does not meet any of the three requirements), Brandon Jennings (he only meets the collegiate requirement), and Nick Calathes (does not met any of the three requirements). While, it has at least been rumored Childress was able to sign a contract without a buyout, it is widely rumored Jennings and Calathes had no such luck. Even worse, it appears that both were incorrectly advised an NBA team would pay the buyout or at least the first $500,000. Though Sonny Vaccaro was not the only person that thought an NBA team would pay the buyouts or at least part of the buyouts, it does not make the incorrect advice the players received less troubling.
As players struggle to gain leverage through lucrative offers from opposing NBA teams, they may look abroad for competing offers. Once scoffed at, Josh Childress, Earl Boykins, Nick Calathes, and others are bringing validity to this threat. It may become a particularly interesting option for players with limited options due to restricted free agency, like Josh Childress. Further, as team salary budgets are expected to decrease in the next two years, players are increasingly likely to be offered higher compensation abroad. The current narrow definition of an international player will offer these players no relief when faced with the buyout from their European team.
Who should bear this burden? Currently, the players (non-international players), even if they are incorrectly advised, must pay their entire buyout. While the players are highly compensated, and in some cases compensated so that they buyout may not be an issue, it will likely remain a factor in their decision to return to the NBA. The NBA's question is how much it desires to have these players in the NBA. Is David Stern as unconcerned as he claims or does the NBA seek to have the world's top players in its league?
Should the NBA consider expanding its definition of an international player? The current definition excludes players like Josh Childress (does not meet any of the three requirements), Brandon Jennings (he only meets the collegiate requirement), and Nick Calathes (does not met any of the three requirements). While, it has at least been rumored Childress was able to sign a contract without a buyout, it is widely rumored Jennings and Calathes had no such luck. Even worse, it appears that both were incorrectly advised an NBA team would pay the buyout or at least the first $500,000. Though Sonny Vaccaro was not the only person that thought an NBA team would pay the buyouts or at least part of the buyouts, it does not make the incorrect advice the players received less troubling.
As players struggle to gain leverage through lucrative offers from opposing NBA teams, they may look abroad for competing offers. Once scoffed at, Josh Childress, Earl Boykins, Nick Calathes, and others are bringing validity to this threat. It may become a particularly interesting option for players with limited options due to restricted free agency, like Josh Childress. Further, as team salary budgets are expected to decrease in the next two years, players are increasingly likely to be offered higher compensation abroad. The current narrow definition of an international player will offer these players no relief when faced with the buyout from their European team.
Who should bear this burden? Currently, the players (non-international players), even if they are incorrectly advised, must pay their entire buyout. While the players are highly compensated, and in some cases compensated so that they buyout may not be an issue, it will likely remain a factor in their decision to return to the NBA. The NBA's question is how much it desires to have these players in the NBA. Is David Stern as unconcerned as he claims or does the NBA seek to have the world's top players in its league?
Monday, June 8, 2009
Buyouts of European contracts (Ricky Rubio's burden)
The buyouts of European player services contracts are becoming increasingly important in the NBA. The NBA currently allows NBA teams to pay an amount not exceeding $500,000 to a basketball team other than an NBA team or to another entity to induce an international player to enter a contract with the NBA team. NBA CBA Article VII, Section 3(e)(1). Should the NBA consider increasing this amount in its next collective bargaining negotiation?
This low amount may raise issues relating to NBA prospect Ricky Rubio ofSpain
Rubio has unsuccessfully attempted to negotiate a lower buyout with Juventut. The buyout is particularly burdensome for the young Rubio because he earned approximately $97,000 for his play this past season. Rubio's next step may be litigation, though it appears he will attempt to arbitrate the matter first. Because NBA teams may not contribute an amount exceeding $500,000, Rubio will be forced to almost solely to pay the buyout to Juventut. Should the NBA ease the path for talented players such as Rubio by raising the amount an NBA team may contribute to an international player's buyout, or would it weaken the league by making it easier to transfer team money abroad?
It is also rumored Rubio may attempt to use the liability as leverage. Rubio is not required to play in the NBA after being drafted and can continue to play for Juvenut inSpain
Rubio's situation illustrates the need to increase the amount of a buyout which an NBA team may pay. Increasing the amount of a buyout may not give the NBA much leverage in future collective bargaining negotiations, however the league would be wise to ease the immigration of foreign basketball players to the league. The league should seek minimal barriers for the world's best players to participate in the NBA.
This low amount may raise issues relating to NBA prospect Ricky Rubio of
Rubio has unsuccessfully attempted to negotiate a lower buyout with Juventut. The buyout is particularly burdensome for the young Rubio because he earned approximately $97,000 for his play this past season. Rubio's next step may be litigation, though it appears he will attempt to arbitrate the matter first. Because NBA teams may not contribute an amount exceeding $500,000, Rubio will be forced to almost solely to pay the buyout to Juventut. Should the NBA ease the path for talented players such as Rubio by raising the amount an NBA team may contribute to an international player's buyout, or would it weaken the league by making it easier to transfer team money abroad?
It is also rumored Rubio may attempt to use the liability as leverage. Rubio is not required to play in the NBA after being drafted and can continue to play for Juvenut in
Rubio's situation illustrates the need to increase the amount of a buyout which an NBA team may pay. Increasing the amount of a buyout may not give the NBA much leverage in future collective bargaining negotiations, however the league would be wise to ease the immigration of foreign basketball players to the league. The league should seek minimal barriers for the world's best players to participate in the NBA.
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