Quote:Reminds me of the housing bubble. You can't keep pushing prices ridiculously high forever
I don't really trust the man for some reason, but your comment made me think of a statement by Dallas Maverick's Owner, Mark Cuban. He used the old quote "pigs get fed, hogs get slaughtered."
The NFL is on a push to expand their market and get their revenue streams as ludicrous as possible. They had better be careful though, because the really big companies have a long way to fall. Not saying that they will fail, but that the possibility exists.
Quote:The money is indeed crazy. But think of it this way: Bradford was guarenteed $50 million before he even played a single down in the NFL. Just think of Kaep, who already has 2 years of NFL games experience, as a 1st overall pick by the 49ers.
Wilson and Cam are doing the Manziel money TD dance right now.
Remember that this is a 6 years deal with $61 mil guarenteed, meaning that it is only 10 mil per year for a up an coming QB. Why do people act like he's getting a full $120+ mill? There are obviously incentives in his contract clause -- passing for over 4k yards and 30+ TDs, winning SBs, etc -- for him to collect the non-guarenteed portion.
This is not an incentive based contract. He gets the full $61 million and then the salary varies on a year by year basis. It escalates every year of the contract.
If they cut him, the money they would be saving is his salary. I believe I saw his hit the first year is 16, 18, and then 20mm.
Quote:I don't really trust the man for some reason, but your comment made me think of a statement by Dallas Maverick's Owner, Mark Cuban. He used the old quote "pigs get fed, hogs get slaughtered."
The NFL is on a push to expand their market and get their revenue streams as ludicrous as possible. They had better be careful though, because the really big companies have a long way to fall. Not saying that they will fail, but that the possibility exists.
That's actually my worry with moving to Europe and other countries. They continue to push and push for new audiences, and a lot of times companies will do that at the expense of their current customers.
I think the NFL also knows at some point using tax payer funds to pay for stadiums may dry up. It's why the Atlanta stadium was done so quietly. Their stadium was built almost at the same time as ours, and they are getting a new one. I couldn't imagine having a new stadium already. I love ours.
I'm sure they has to be some sort of incentives/clauses in his contract somewhere that he has to develop into a top 5 QB in order to get close to the full amount.
I've read an article somewhere a while back that no player in NFL history, not even Manning or Brady, has ever received the full amount of their contract.
Edit:
Diesel is right. It is a year-by-year basis. It is guaranteed $61 mill, but if he doesn't improve and somehow gets cut 3-4 years from now, 49ers save money. If he improves, both parties win. Not at all a crazy contract if you think about it, especially for one of the best up-and-coming young QB.
Quote:Reminds me of the housing bubble. You can't keep pushing prices ridiculously high forever
Customer demand is pushing the prices. As long as young American males have an insatiable demand for NFL football, widget makers will want to advertise during the games to market to that demo. As long as advertisers are writing checks for commercial time, the mega billion media conglomerates who own the major networks will pay the NFL huge mountains of money for the broadcasting rights to the games. The NFL owners would be stupid to not let their product supply meet the customer demand. It's business 101. As long as the owners are drawing revenue ,the players will get a certain percentage of that revenue per the CBA.
Preseason games dominate primetime television ratings. Cuban has a right to be jealous of the NFL. The NFL Draft drew 3 times the audience of the NBA playoffs.
Quote:That's actually my worry with moving to Europe and other countries. They continue to push and push for new audiences, and a lot of times companies will do that at the expense of their current customers.
In this case the customer is largely getting the product for free, and the supplier has a monopoly. Not ideal conditions for a huge market pulback.
Just the TV Ratings for the NFL Draft alone have grown ~40% in the last four years.
Just because its an unfathomable sum to you and I, doesn't mean it isn't the going rate.
If he performs, they manipulate the cap to keep him supplied with support.
If he deteriorates, they are likely back to square one anyway. Whats a few million down the John when you're building from scratch?
Quote:Customer demand is pushing the prices. As long as young American males have an insatiable demand for NFL football, widget makers will want to advertise during the games to market to that demo. As long as advertisers are writing checks for commercial time, the mega billion media conglomerates who own the major networks will pay the NFL huge mountains of money for the broadcasting rights to the games. The NFL owners would be stupid to not let their product supply meet the customer demand. It's business 101. As long as the owners are drawing revenue ,the players will get a certain percentage of that revenue per the CBA.
Preseason games dominate primetime television ratings. Cuban has a right to be jealous of the NFL. The NFL Draft drew 3 times the audience of the NBA playoffs.
Let's not forget the heart of the foundation of economic theory is that there is rational behavior.
One can easily argue that in both cases, this was/is simply not happening.
It would be wise to consider this, in light of all those same tenets you tout being turned on their heads during the bubble. In fact, folks were making those same "all is well" statements when common sense suggested something was not quite right with this picture. Why? There was not rational behavior in the market.
Unfortunately, such irrational behavior can have a negative affect on the entire league if they all join in and follow.
Can't spell Kaepernick without Krap
Quote:Doesn't the cap increase after each year?
I'm still not sure why people are so worked up over Kaep's contract. The guaranteed money of $61 million, granted it is a lot, is spread over 6 years. Now consider Romo's $55 millions guaranteed for 3 years, and Cutler's $54 millions for 3 years (by the way, Rodgers is guaranteed $62 millions for his first three years as well), Kaep's contract, if it is indeed for 6 full years, is pretty fair considering that he's one of the league's rising QB.
Until 2014, there wasn't much growth in the NFL Salary Cap in recent years. This year, there was a sizable increase. With much more on the way the next few seasons, with the NFL TV money increasing in part due to CBS buying the rights to half a season of Thursday Night games and the NFL Sunday Ticket Package up for renewal. Not to mention, the likelihood of the NFL expanding the playoffs in the 2015 season, which I'm a zillion % against.
I HOPE they don't expand the playoff. The NFL's revenue increases after each year, I don't see how it will change until something catastrophic happens.
Quote:I HOPE they don't expand the playoff. The NFL's revenue increases after each year, I don't see how it will change until something catastrophic happens.
We certainly are on the same page regarding strongly opposing playoff expansion.
There have been projections that the NFL Salary Cap is going to go above $ 150 million in the next year or two. Many teams are planning along these lines.
Great deal for the 49ers.
They can basically cut him whenever they want if necessary.
Quote:Great deal for the 49ers.
They can basically cut him whenever they want if necessary.
Yeah, after reading the supposed terms of the deal, it's very team friendly. If he produces, they benefit. If he doesn't, they can move on. By then, Gabbert should be ready to go.
Quote:This is not an incentive based contract. He gets the full $61 million and then the salary varies on a year by year basis. It escalates every year of the contract.
If they cut him, the money they would be saving is his salary. I believe I saw his hit the first year is 16, 18, and then 20mm.
It is incentive based.
http://deadspin.com/colin-kaepernicks-12...1586520353 He has a base salary ever year that increases but if he isn't overly successful then it will decrease. The contract writers are smart. They aren't just giving money away without fine language written in the contract.The top organizations know how to pay all their high profile players and stay out of salary cap hell now.
I suppose that, if Kaep doesn't work out, the team will be set back a few years. The money they would pay Kaep for the years they're set back probably wouldn't help them come back into contention being that the QB position failed.
I don't think they'll have to worry about him not working out. He's already shown he can get this team to the top. He's considered one of the more dynamic young QBs in the league. He's already seen some success. As long as he's playing for Harbaugh, I don't see him winding up failing. He may not be the most dominant QB in the league, or elite statistically, but he makes plays and leads his team. That's half the battle.
Quote:I don't think they'll have to worry about him not working out....
Not with
Gabbs as a backup! B)
Quote:Not with Gabbs as a backup! B)
Gabbert won't see the field there unless there's an injury, or they've got everything locked up late in the season and they want to rest their guy. I'm pretty sure that's the last thing they're worried about right now is his backup.