The Art of Expiring Contracts

Kyle Tooley

On December 9th, 2011 Tayshaun Prince was rewarded with a contract extension from the Detroit Pistons worth $28 million over four years. And at the time, the contract made total sense: Prince was averaging 12 points per game over 33 minutes while grabbing 5 rebounds and dishing out 3 assists per game.  All the while, he was making a name for himself as one of the most efficient defensive players in the game.  He was an intricate piece on the team that brought the city of Detroit their first world championship in almost 15 years, and he was rewarded as such.  Fast-forward to the current 2014-15 season, and that contract makes little to no sense.  With age, Prince became a much less efficient player; averaging career lows in almost every statistic.  However, due to the 2011 extension, he is still making seven million a year.  Believe it or not, this is when Prince became the most valuable.  This is what we call the art of the expiring contract, and it’s a doozy.  The trade process is such a flawed one in the NBA that the mere fact that Prince’s contract is almost up makes him such a coveted player.  This is why he was traded twice in one season and three times in two years.  Everybody wants him because he’s almost gone. Continue reading The Art of Expiring Contracts

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The Cost Of A Franchise

Pat Obrochta

Steve Ballmer bought the Los Angeles Clippers last year for $2,000,000,000
Steve Ballmer bought the Los Angeles Clippers last year for $2,000,000,000

In May of 2014, the Los Angeles Clippers made headlines across the nation due to a change of ownership. In the shadows of the off-court issues of former owner Donald Sterling was the fact that Microsoft CEO Steve Ballmer was paying $2 billion dollars for the franchise. Compared to the Milwaukee Bucks, who sold for $550 Million only a few months before the Clippers sale was finalized, it was a heavy investment that made many stare in disbelief, especially the other groups bidding, whose bids were $600 million and $800 million short respectfully. Continue reading The Cost Of A Franchise

How Small Market Teams Find Success

Kyle Tooley

The past sport’s year alone has seen two classifiable “small-market” teams make it to their respective championship games.  With the Kansas City Royals of the MLB and the San Antonio Spurs of the NBA, we see two different structures and formulas for building a championship team.  And actually, the methods should be different.  Small-market teams are affected differently in the MLB than they are in the NBA, and that has to do with how each league’s salary cap rules, or lack thereof, are set up.  But when it’s game seven and we have a team from New York or Los Angeles matching up against a team from Sacramento or San Antonio we have to ask the questions of how did this happen? How was a relatively poor team able to compete with teams that don’t have a money problem?

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Free Agent Moneymakers

To intense sports fans, the offseason is so much more than just a break from one’s favorite sport.  The offseason is a flurry of action as free agents look to sign with a new team which is poised to make a run at the championship.  These free agents can sign for record numbers in the hundreds of millions of dollars, but more importantly they affect the economy of whatever city they decide to go to.  Whether these big money free agents decide to go to or leave a city, the economy of that city will feel the effects of their decision, for better or for worse. Continue reading Free Agent Moneymakers

Most Profitable Non-Profit Ever

The NFL has had a lot of issues and problems this season.  Whether it was the domestic abuse problems or the recent deflated footballs, Roger Goodell certainly has a lot on his plate.  What the biggest problem is though is how much money the NFL brings in every year ($9.5 billion to exact) and the fact that they are still listed as a non-profit organization. Continue reading Most Profitable Non-Profit Ever