waldoputty
Well-Known Member
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Why are we losing our own players and not replacing them with better or at least similar level free agents?
The team claims poverty and good financial planning.
The free agent market is overpriced...
The team is stressing value, but what they mean is profits.
They say long term, but what they mean is hiding profits long term.
Of course, fans would be angry if they see $100 million of cap unused.
How are they going to hide that from the fans?
It is quite simple - in the name of long term stability.
The team has been restructuring about 20-30 million dollars per year.
By systematically turning off the restructuring, you can hide about 50 million profits from the fans.
In fact, they can make their cap space look tight with this mirage in 2018,
in 2019, the savings are so huge (67million) that 32 million still shows.
in 2020, the savings are even large (92 million) that 47 million still shows.
how to hide that, they can change the standard contracting structure - essentially front loading contracts.
the drop in profits in 2021 is from the massive contracts given to resigning the class of 2016 - takes an extra year or 2 for massive cap hit to show up. actually after 2020, the model is not even relevant as there will be a new TV contract.
With the traditional 20 million of restructuring:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 28.66---$ 67.91--$ 92.72---$ 72.23
To hide the profits from the fans, with 20 million of restructuring turned off:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 8.66-----$ 32.91---$ 47.72--$ 22.23
These calculations have assumed:
1. continue to sign 3 free agents per year - 1 at 2m aav, 1 at 3m aav, 1 at 4m aav
2. resigning own free agents - martin, collins, jones and most of the class of 2016 as good starters or stars, resigning class of 2017 as decent starters (assuming draft results are not as good)
For those who want to question the financial model, I would be happy to email the model to you.
A more detailed report of the model will be posted on BTB.
The team claims poverty and good financial planning.
The free agent market is overpriced...
The team is stressing value, but what they mean is profits.
They say long term, but what they mean is hiding profits long term.
Of course, fans would be angry if they see $100 million of cap unused.
How are they going to hide that from the fans?
It is quite simple - in the name of long term stability.
The team has been restructuring about 20-30 million dollars per year.
By systematically turning off the restructuring, you can hide about 50 million profits from the fans.
In fact, they can make their cap space look tight with this mirage in 2018,
in 2019, the savings are so huge (67million) that 32 million still shows.
in 2020, the savings are even large (92 million) that 47 million still shows.
how to hide that, they can change the standard contracting structure - essentially front loading contracts.
the drop in profits in 2021 is from the massive contracts given to resigning the class of 2016 - takes an extra year or 2 for massive cap hit to show up. actually after 2020, the model is not even relevant as there will be a new TV contract.
With the traditional 20 million of restructuring:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 28.66---$ 67.91--$ 92.72---$ 72.23
To hide the profits from the fans, with 20 million of restructuring turned off:
2017----- 2018----- 2019----- 2020----- 2021
$ 3.20---$ 8.66-----$ 32.91---$ 47.72--$ 22.23
These calculations have assumed:
1. continue to sign 3 free agents per year - 1 at 2m aav, 1 at 3m aav, 1 at 4m aav
2. resigning own free agents - martin, collins, jones and most of the class of 2016 as good starters or stars, resigning class of 2017 as decent starters (assuming draft results are not as good)
For those who want to question the financial model, I would be happy to email the model to you.
A more detailed report of the model will be posted on BTB.
