Recently the Washington Wizards offered point guard Gilbert Arenas a new contract for over $125 million. He is expected to sign it next week. Many basketball fans are disturbed about the size of the offer. They reason that Arenas is not an "elite player" and this contract bodes badly for the future of the game. They worry about the amount that other players like Cleveland's LeBron James will have to be paid when they renew their contracts. They worry about labor strikes, work stoppages and lock-outs. They don't need to worry. Thanks to advertisers and corporate sponsors, NBA owners have lots and lots of money.
In 2007, Tiger Woods made $127 million ($22 million in winnings and $105 million in endorsements). That's in just one year! Is that offensive to you?
Just imagine for a moment what the sponsors must be making just to offer that amount of purse money and endorsement money to Woods.
His $22 milllion in salary alone would have put him in company with basketball's elite players such as Kevin Garnett, Shaquille O'Neal and Kobe Bryant. Only Michael Jordan made more, he was paid over $30 million in the last year of his contract with the Bulls.
For us average Americans, the problem is putting numbers like these into perspective. We have to remember these are marketing and business decisions being made by multi-billion dollar companies and multimillionaire owners.
In this particular case, we shouldn't forget that before the Wizard's made their offer Arenas had already received another offer from an opposing team for $100 million. Those are the market forces of capitalism at work.
The owners of basketball teams look at these players as money making corporate assets, not just as individuals. So, let's let "Gilbert Arenas, Inc." make its money. That's how our capitalist society, our democracy, is designed.
The main reason American style-democracy is flourishing all over the world today is not freedom of speech, or freedom of religion, but rather, the freedom to make big money fast and keep it. The freedom to sell your talents to the highest bidder or start a money making venture that changes your life forever.
Change the rules of the game and America will become another "former USSR."
Kayla Oberg
Maria Kirilenko
Back in Time: July 3
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Comments (7) Add A Comment
I agree with the concept. I just don't think it's a good investment for the Wizards , for a guy just returning from 2 knee surgeries.
Hllywd: Old…
Columbus , OH
Total Comments (6894)
Yeah - its quite a risk for the Wiz. Arenas is a question mark until he proves otherwise on the court.
Glad he didn't take the Warriors offer - too risky, and would have taken the ball away from Monta
THUG is on Vacation
Total Comments (3402)
I agree with you both. I said I wouldn't offer him $100 mil plus unless I knew for sure his knees were perfect, but I told everyone that he was going to get a offer above $100 mil because of the market and the system.
His offer reflects the way the system works. That's all I'm saying.
Petey024
New York , NY
Total Comments (2155)
very true petey stop hatin on gilbert
ahung: The Last…
Santa Clara , CA
Total Comments (2634)
Tiger Woods, ..really? Woods is a winner, even hurt. Shaq, won NBA titles, same with the other 2 guys. kobe and garnett both carried thier teams into the finals on their backs. Until Gilbert shows he can lead this team and I mean lead by play and example there is no way he shold make that kind of $
gannonva
Washington , DC
Total Comments (1)
Tiger Woods, ..really? Woods is a winner, even hurt. Shaq, won NBA titles, same with the other 2 guys. kobe and garnett both carried thier teams into the finals on their backs. Until Gilbert shows he can lead this team and I mean lead by play and example there is no way he shold make that kind of $
gannonva
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Again, the point is the economics of the market. In the end he got a contract over $100 mil (actually $111 mil), just like I said he would.
He left $16 mil on the table for the signing of other players. Coupled with the mid-level exception its close to $22 mil. That's enough money for D.C. to get another quality player in for a three or four year deal. They could make even more noise if they release a player or two.
Point is, this is the size of the franchise contract of the future (even if the player hasn't won yet!). Stop suffering "sticker shock".
Petey024
New York , NY
Total Comments (2155)
hey petey where have you gone?
ahung: The Last…
Santa Clara , CA
Total Comments (2634)
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