So how does the Childress move affect the NBA and the salary cap?

[jemagee]

Josh Childress is a borderline starter one of the best sixth man in the league, and young.

He's worth more than james posey easy...

[ziggy]

On top of the no salary cap, don't forget about the weakness of the dollar.  It's a lot easier for Euro teams to pay Josh Childress $7mil/year than US teams.  What is that $4.43 million euros? 

Oh please, the hawks could have ponied up a 3 year 25 million dollar contract easily

Not saying they couldn't, that wasn't my point.  Point is regardless of the amount of the contract it costs almost half in Euros what it does in dollars.  I don't think Childress is worth 7mil a year and apparently neither do the Hawks.  But he is worth $4.4. 

I agree with the logic of msc here.  It isn't about how much Childress was getting paid so much as how much it cost the Greek team to pay what they were willing to pay, and what how much it would cost Atlanta to do the same thing.

From the Atlanta Journal Constitution

Sorting through the difference between Euros and dollars was crucial for Josh Childress and his representatives as they weighed an offer from a Greek team (Olympiakos) paying with Euros and an NBA team (Hawks) paying with dollars. Either way you slice it Olympiakos was offering more, including an annual salary nearly twice the value of the Hawks' offer annually: club becomes a net of salary of about $6.7 million a year for Childress. The Hawks offered five years and $33 million, which after taxes paid by Childress becomes a net salary of about $3.4 million per year for Childress. In addition to the double-stuffed salary Olympiakos also pays for all of Childress' living expenses, including luxury accommodations, a car and driver and maid service. Childress also has an annual opt-out clause in the contract that will allow him to weigh his NBA options, as a restricted free agent provided the Hawks tender a qualifying offer to him, every summer.

Atlanta Journal Constitution

In other words Olympaikos offered more and it cost them less. 

[WayOutWest]

In other words Olympaikos offered more and it cost them less. 

One thing I'm still not clear on, are there no taxes for Childress in Greece or did his team pick up the tab for taxes because early on I heard that the contract money was "tax free" which made his "take home pay" much better in Greece.

[ziggy]

In other words Olympaikos offered more and it cost them less. 

One thing I'm still not clear on, are there no taxes for Childress in Greece or did his team pick up the tab for taxes because early on I heard that the contract money was "tax free" which made his "take home pay" much better in Greece.

Lurker should step in here as he is a CPA, but this is my understanding.
Childress has taxes due, and Olympaikos is paying them.  He will also have US federal taxes to pay, but he will have a credit for each $ of foreign tax paid. 
He also won't have to pay taxes in all of the various US jurisdictions where he plays.  Childress had to pay taxes on 4/82nds of his earnings to the state of California, because 4 of his games were in Ca.  Same with a lot of other states.  He will not have to pay any of that because he will not earn any money in those US states.

[ziggy]

From the Contra Costa Times

If you look at the Warriors? salary situation, it?s easy to see that Andris Biedrins is the one who?s going to get squeezed. Not so fast. A source close to the Warriors? fifth-year center said European teams are hot and heavy after Biedrins. The Latvia native is drawing strong interest in a couple Russian clubs, according to the source, who added that teams are willing to sign him for three to five years for what amounts to more than $10 million a year.

This would be devastating for the Warriors.

[jemagee]

Maybe not as devastating, but delonte west is rumored to be talking to russia, and the cavs have to make sure that they make moves that lebron 'likes' or in two years he's more likely to bolt...

[Joe Vancil]

Well, now maybe it's just me, but if Europe wants to grab up me-first, one-on-one style players with marginal talent, is that really HELPING European basketball?  If anything, I think it will weaken European basketball, as they end up paying top dollar for our bad basketball habits.  It won't happen overnight, but it will happen.

The problem is simple:  we want our players going through college, learning a few basics, and letting us have a look at what we're buying before we buy it.  If kids want to forgo college and go to Europe, that's fine.  But if the NBA - and this is a big *IF* - *IF* the NBA remains the home of the most elite level players, all Europe is doing is acting like a glorified farm system, paying top dollar, and importing less-than-stellar basketball.

Until Europe is in the market for the Tim Duncans and Kevin Garnetts, the NBA is still the place kids will want to end up.

[WayOutWest]

Until Europe is in the market for the Tim Duncans and Kevin Garnetts, the NBA is still the place kids will want to end up.

Not if it means making half the money.

[jemagee]

"Me first" a wonderful gross generalization that wouldn't apply to Josh Childress I feel...great sixth man who was jerked around by the hawks and took a better offer....i love how in professional sports taking the biggest dollar offer is 'selfish' for some people whereas if someone offered them double the salary, they'd more than likely take it and think nothing of their selfishness

[WayOutWest]

"Me first" a wonderful gross generalization that wouldn't apply to Josh Childress I feel...great sixth man who was jerked around by the hawks and took a better offer....i love how in professional sports taking the biggest dollar offer is 'selfish' for some people whereas if someone offered them double the salary, they'd more than likely take it and think nothing of their selfishness

Exactly, who wouldn't jump all over a 20-30% raise let alone a raise that DOUBLES your paycheck.

[jemagee]

Professional athletes aren't suppose to, they are supposed to not care about their salary as much as the rest of us (and i have 70 bucks in the bank until pay day thursday)

[ziggy]

Well, now maybe it's just me, but if Europe wants to grab up me-first, one-on-one style players with marginal talent, is that really HELPING European basketball?  If anything, I think it will weaken European basketball, as they end up paying top dollar for our bad basketball habits.  It won't happen overnight, but it will happen.

The problem is simple:  we want our players going through college, learning a few basics, and letting us have a look at what we're buying before we buy it.  If kids want to forgo college and go to Europe, that's fine.  But if the NBA - and this is a big *IF* - *IF* the NBA remains the home of the most elite level players, all Europe is doing is acting like a glorified farm system, paying top dollar, and importing less-than-stellar basketball.

Until Europe is in the market for the Tim Duncans and Kevin Garnetts, the NBA is still the place kids will want to end up.

So Joe are you basically saying Europe is becoming the new-ABA to our post-modern NBA?

[Joe Vancil]

ziggy,

If we were to call the ABA's quality "inferior" - which I wouldn't do - then, yes.

And keep this in mind, for those folks who say, "It's all about the money":  It's *NOT* all about the money.  The best of the best want to win on ALL fronts - money, fame, recognition, place in history.  UNTIL Europe is in the market for Duncan, Garnett, James, and Bryant, the NBA will be the preferred destination for the top talent - even if they have to sacrifice a little money.

When Europe *IS* in the market for Duncan, Garnett, James, and Bryant, *THEN* it'll be an NBA/ABA scenario.

[Lurker]

ziggy,

If we were to call the ABA's quality "inferior" - which I wouldn't do - then, yes.

And keep this in mind, for those folks who say, "It's all about the money":  It's *NOT* all about the money.  The best of the best want to win on ALL fronts - money, fame, recognition, place in history.  UNTIL Europe is in the market for Duncan, Garnett, James, and Bryant, the NBA will be the preferred destination for the top talent - even if they have to sacrifice a little money.

When Europe *IS* in the market for Duncan, Garnett, James, and Bryant, *THEN* it'll be an NBA/ABA scenario.

I would modify Joe's position to say that once Dirk, Yao, Manu, Parker, AK and the other Euros start asking for buyouts from their NBA teams to play in Europe then the NBA is in trouble.  But as long as the elite players...from wherever...do everything to join the NBA then it won't matter.  All this (Childress signing) will do is help stablalize the market for player salaries which is a good thing for the NBA.

[Reality]

^^ exactly.  Appears all it did so far is get Sashy V. and Bierdens monster contracts.