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Old 09-28-2017, 04:18 PM
 
Location: Old Bellevue, WA
18,794 posts, read 14,269,370 times
Reputation: 7950

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If you're in a rent-seeking industry, which pro sports has become, you probably come out ahead from being in a high tax environment. Pro sports not only now gets tax-funded stadiums, there are numerous other benefits available to them from gov't.


Here in the Seattle area, one of the justifications for our light rail project ($54 billion) was that it would help get fans to the Seahawks and Mariners games. So the taxpayer is subsidizing big time the transportation costs of the pro sports customer. This leaves more cash in their pockets for $100 made-in-China jerseys, $12 hot dogs, etc.


The high player salaries are predicated in part on gov't funding of their work space. If you're a part of a rent-seeking enterprise, you probably benefit on balance from being in a high tax/high spend, liberal area.
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Old 09-28-2017, 05:08 PM
 
Location: spring tx
7,912 posts, read 8,195,031 times
Reputation: 1982
Quote:
Originally Posted by wutitiz View Post
If you're in a rent-seeking industry, which pro sports has become, you probably come out ahead from being in a high tax environment. Pro sports not only now gets tax-funded stadiums, there are numerous other benefits available to them from gov't.


Here in the Seattle area, one of the justifications for our light rail project ($54 billion) was that it would help get fans to the Seahawks and Mariners games. So the taxpayer is subsidizing big time the transportation costs of the pro sports customer. This leaves more cash in their pockets for $100 made-in-China jerseys, $12 hot dogs, etc.


The high player salaries are predicated in part on gov't funding of their work space. If you're a part of a rent-seeking enterprise, you probably benefit on balance from being in a high tax/high spend, liberal area.
not true
the league sets salary minimum/maximum based on the revenue sharing of the entire league set forth in the collective bargaining agreement.
doesnt have anything to do with how teams pay for stadiums.

the food and merchandise is usually sold by an outside vender, not even owned by the team or the venue.
like the rockets venue has a licensing agreement with toyota for the name.
a bit of the history, heres who paid for the toyota center.
Quote:
Construction began in July 2001, and the new arena was officially opened in October 2003. The total costs were $235 million, with the city of Houston paying the majority, and the Rockets paying for enhancements. Toyota paid US$100 million for the naming rights.
Quote:
Construction[edit]
According to the agreement signed, the city of Houston bought the land for the arena and an adjoining parking garage,[46] which was near the George R. Brown Convention Center,[47] and paid for it by selling bonds and borrowing $30 million.[48][49] Morris Architects, designed the 750,000-square-foot (70,000 m2) building, and Hunt Construction was contracted to build the arena.[50] A building formerly owned by Houston Lighting and Power Company was demolished to make way for the arena, and two streets were closed for the duration of the construction.[51] A groundbreaking ceremony was held on July 31, 2001,[52] and construction continued for 26 months.[51]

At the request of Alexander, the arena was built 32 feet (9.8 m) below street level, so fans would not have to walk up stairs to reach their seats.[50] To sink the arena, $12 million was spent to excavate 31,500 cubic yards of dirt over four months,[51] which was the largest excavation in Houston history.[53] Concrete was poured for the foundation throughout the summer of 2002, and structural work began in October. The roof was set on in December, as work continued inside, with a peak workforce of 650. In September 2003, a ribbon-cutting ceremony was held to mark the official opening of the arena.[51] The total cost of construction was $235 million, with the city paying $182 million, and the Rockets adding $43 million for additions and enhancements.[54]
doesnt have anything to do with player salaries, or what not.
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Old 09-29-2017, 02:01 PM
 
51,901 posts, read 41,783,059 times
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Quote:
Originally Posted by TheCityTheBridge View Post
That $15M is beans compared to the difference being a star on a winner in a large market with major endorsement deals will mean to a player. If Curry was the man on a terrible team in Minnesota, do you think he would be one of Under Armour's largest shareholders? We don't know exactly how big his UA deal is, but it definitely is much larger than $15M over 5 years. It's probably much closer to his full NBA contract over the next 5 years than it is to $15M. He's a winner in a big market, and that matters to his bottom line.
Durant was getting big commercials etc. despite playing in OKC after winning MVP.

Market size doesn't matter (welcome to the internet era), but winning sure does.
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Old 09-29-2017, 04:43 PM
 
Location: Old Bellevue, WA
18,794 posts, read 14,269,370 times
Reputation: 7950
Quote:
Originally Posted by rigas View Post
not true
the league sets salary minimum/maximum based on the revenue sharing of the entire league set forth in the collective bargaining agreement.
doesnt have anything to do with how teams pay for stadiums.

the food and merchandise is usually sold by an outside vender, not even owned by the team or the venue.
like the rockets venue has a licensing agreement with toyota for the name.
a bit of the history, heres who paid for the toyota center.




doesnt have anything to do with player salaries, or what not.

yes true,


Where do you think the league comes up with the salary numbers? Out of thin air? No, the numbers are set according to market conditions, costs, revenue, etc. In particular, by getting gov't funding, costs are dramatically reduced.


Secondly even if the concessions are held by outside parties, don't doubt that the team is getting a piece of the pie. They would be stupid not to, and they are not stupid.


Finally, although the league sets minimums, maximums, etc., there is still variation from one team to the next:
2017-18 Team-By-Team Salary Summary | Basketball Insiders | NBA Rumors And Basketball News
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Old 09-29-2017, 06:26 PM
 
Location: spring tx
7,912 posts, read 8,195,031 times
Reputation: 1982
Quote:
Originally Posted by wutitiz View Post
yes true,


Where do you think the league comes up with the salary numbers? Out of thin air? No, the numbers are set according to market conditions, costs, revenue, etc. In particular, by getting gov't funding, costs are dramatically reduced.


Secondly even if the concessions are held by outside parties, don't doubt that the team is getting a piece of the pie. They would be stupid not to, and they are not stupid.


Finally, although the league sets minimums, maximums, etc., there is still variation from one team to the next:
2017-18 Team-By-Team Salary Summary | Basketball Insiders | NBA Rumors And Basketball News
im sorry but no the players salaries have zero to do with the market they live in or team they play for. the max salary you make is set by the CBA, which is why harden and westbrook have the same salary this season, or anthony davis and andre drummond, beal and whiteside.

salaries are set by the league based on profit sharing.
the cba takes the TOTAL from the revenue of the ENTIRE LEAGUE as a whole, and divides it up between owners and players based on the agreed % set forth in the collective bargaining agreement. its where the salary cap comes from, its where minimum salaries come from. its why 14 teams last season actually lost money despite some of them having successful seasons. after revenue sharing, 9 teams lost money, including the spurs and cavs who ended up losing money because of their contribution to revenue sharing.

how teams build stadiums has zero to do with the players outside of the franchise star putting his face out there to try to drum up public support.


as for concessions sales, yes the teams get a part of that as the concessions vendors pay a license agreement. the teams dont actually own any part of the concessions, they just receive "rent" so to speak.
rent may be high, but it all goes into the total revenue which the teams and players

players and owners currently i believe are a 50/50 split on revenue. which is why the nba players get such big salaries comparable to nfl players.


Inside NBA's revenue sharing - SportsBusiness Daily | SportsBusiness Journal | SportsBusiness Daily Global
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Old 09-30-2017, 05:03 PM
 
Location: Old Bellevue, WA
18,794 posts, read 14,269,370 times
Reputation: 7950
Quote:
Originally Posted by rigas View Post
im sorry but no the players salaries have zero to do with the market they live in or team they play for. the max salary you make is set by the CBA, which is why harden and westbrook have the same salary this season, or anthony davis and andre drummond, beal and whiteside.

salaries are set by the league based on profit sharing.
the cba takes the TOTAL from the revenue of the ENTIRE LEAGUE as a whole, and divides it up between owners and players based on the agreed % set forth in the collective bargaining agreement. its where the salary cap comes from, its where minimum salaries come from. its why 14 teams last season actually lost money despite some of them having successful seasons. after revenue sharing, 9 teams lost money, including the spurs and cavs who ended up losing money because of their contribution to revenue sharing.

how teams build stadiums has zero to do with the players outside of the franchise star putting his face out there to try to drum up public support.


as for concessions sales, yes the teams get a part of that as the concessions vendors pay a license agreement. the teams dont actually own any part of the concessions, they just receive "rent" so to speak.
rent may be high, but it all goes into the total revenue which the teams and players

players and owners currently i believe are a 50/50 split on revenue. which is why the nba players get such big salaries comparable to nfl players.


Inside NBA's revenue sharing - SportsBusiness Daily | SportsBusiness Journal | SportsBusiness Daily Global
Again, the overall salary structure is a function of revenues and costs. If costs have been reduced because teams are getting taxpayer-funded subsidies, overall salary structure is going to be better for the players.


Secondly you're confusing overall salary structure with individual player salaries. The former is set by the CBA, which is negotiated between the players union and the league. The latter is negotiated between the individual player and team ownership.
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Old 09-30-2017, 07:31 PM
 
Location: spring tx
7,912 posts, read 8,195,031 times
Reputation: 1982
Quote:
Originally Posted by wutitiz View Post
Again, the overall salary structure is a function of revenues and costs. If costs have been reduced because teams are getting taxpayer-funded subsidies, overall salary structure is going to be better for the players.


Secondly you're confusing overall salary structure with individual player salaries. The former is set by the CBA, which is negotiated between the players union and the league. The latter is negotiated between the individual player and team ownership.
Youíre really confused on how the cba and team/player salaries work.
Total cost/revenues are a league wide whole, and has absolutely zero to do with individual salaries. In other words because one team has a cheaper stadium, a paid off stadium, or locally taxing paid stadium doesnít mean they can offer a dime more to any player. The cba dictates what salary can be paid, both as a team (ie cap limits) and as a player (ie max/minimum salaries)
Players can only make a certain salary based on available cap room, length of contract, time in the league and league maximum.

Read the CBA link I posted, it explains that. This is set so big market teams in higher taxed/revenue markets canít buy players with higher salaries and incentives.
The league canít do anything about income taxes thus making places with no state income tax and lower local taxes a potentially more lucrative location to play.
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