Ron Baker was a Knick, and now is a Wizard!

[im4wsu]

Every NBA player is overpaid except Fred

[Good News]

If anybody knows the Baker family, tell them to have Ron track Chip Engelland down and hand him a blank check for as much time as he'll offer. Hands down bar none the best shooting coach in the NBA, and the best investment Bake could make with that guaranteed money.

I can't even count the number of mediocre shooters he's made good or great, or the number of good shooters he's upgraded to automatic. Kawhi Leonard is the ultimate example - at San Diego State he didn't even have range out to 17 feet. If you would have told me he would turn into a couldn't-be-left-open 3 point threat in the NBA I would have lost a lot of money betting you otherwise.

Great article from a couple years ago if you're interested in a long read:

http://grantland.com/features/the-shot-doctor/

[Aargh]

KAKE interview with Baker. Will probably be on their website soon. Here's the interesting part. I am paraphrasing.

"I still drive my Sonata. I'm a finance major. I think people know where my money is going."

[IndianaShocker]

Every NBA player is overpaid except Fred

Not really, unless you want the owners to have a bigger cut? That money is going somewhere. In truth, the biggest stars are well underpaid. Below is a cut/paste from a study done on LeBron and his effect on the economy in the city of Cleveland since his return from Miami.

"...Lebron increased team revenue by $88M from the highest grossing year without him to today. Outside of the stadium Lebron is responsible for $18,265,500 in spending during the season in downtown Cleveland, and $114,400,000 during playoffs. Lebron has brought in about $219,665,500 a year just by coming back home..."

Now if you were in sales and directly responsible for bringing in $219.6 million each year, but only made 30 million would you feel like your compensation was adequate?

[Steeleshocker]

Not really, unless you want the owners to have a bigger cut? That money is going somewhere. In truth, the biggest stars are well underpaid. Below is a cut/paste from a study done on LeBron and his effect on the economy in the city of Cleveland since his return from Miami.

"...Lebron increased team revenue by $88M from the highest grossing year without him to today. Outside of the stadium Lebron is responsible for $18,265,500 in spending during the season in downtown Cleveland, and $114,400,000 during playoffs. Lebron has brought in about $219,665,500 a year just by coming back home..."

Now if you were in sales and directly responsible for bringing in $219.6 million each year, but only made 30 million would you feel like your compensation was adequate?

So because he is directly responsible for the increase of $219M in revenue he should be paid that much? By that logic Bill Gates and Steve Jobs were massively underpaid for the billions their companies made.

[Good News]

Not really, unless you want the owners to have a bigger cut? That money is going somewhere. In truth, the biggest stars are well underpaid. Below is a cut/paste from a study done on LeBron and his effect on the economy in the city of Cleveland since his return from Miami.

"...Lebron increased team revenue by $88M from the highest grossing year without him to today. Outside of the stadium Lebron is responsible for $18,265,500 in spending during the season in downtown Cleveland, and $114,400,000 during playoffs. Lebron has brought in about $219,665,500 a year just by coming back home..."

Now if you were in sales and directly responsible for bringing in $219.6 million each year, but only made 30 million would you feel like your compensation was adequate?

I don't disagree in general with the larger point, but you forgot the concept/dynamic of margin/overhead. Those restaurants and casinos and whatever have employees, utility bills, property taxes, whatever. Is LeBron paying them?

[Aargh]

Not really, unless you want the owners to have a bigger cut? That money is going somewhere. In truth, the biggest stars are well underpaid. Below is a cut/paste from a study done on LeBron and his effect on the economy in the city of Cleveland since his return from Miami.

"...Lebron increased team revenue by $88M from the highest grossing year without him to today. Outside of the stadium Lebron is responsible for $18,265,500 in spending during the season in downtown Cleveland, and $114,400,000 during playoffs. Lebron has brought in about $219,665,500 a year just by coming back home..."

Now if you were in sales and directly responsible for bringing in $219.6 million each year, but only made 30 million would you feel like your compensation was adequate?

That's 15% of gross! That's an OUTRAGEOUS percentage for a commission. 20% of net is a more common number. In real estate, it's 7% of gross that's generally split 4 ways (listing agent, listing agent broker, selling agent, selling agent broker).

When you put it in terms of a percentage of what he brings in, James is incredibly overpaid.

[moshock]

Not really, unless you want the owners to have a bigger cut? That money is going somewhere. In truth, the biggest stars are well underpaid. Below is a cut/paste from a study done on LeBron and his effect on the economy in the city of Cleveland since his return from Miami.

"...Lebron increased team revenue by $88M from the highest grossing year without him to today. Outside of the stadium Lebron is responsible for $18,265,500 in spending during the season in downtown Cleveland, and $114,400,000 during playoffs. Lebron has brought in about $219,665,500 a year just by coming back home..."

Now if you were in sales and directly responsible for bringing in $219.6 million each year, but only made 30 million would you feel like your compensation was adequate?

I almost feel sorry for him....only $30mil ?

[IndianaShocker]

I don't disagree in general with the larger point, but you forgot the concept/dynamic of margin/overhead. Those restaurants and casinos and whatever have employees, utility bills, property taxes, whatever. Is LeBron paying them?

Indirectly, I guess he is. He's bring in money which is being spent, which is paying those bills. The biggest investor in downtown Cleveland...Dan Gilbert Cavs owner. Owner of 12 downtown businesses. So yea, I'd say he's enjoying parlaying his investments on the LeBron effect. Oh, the team value since LeBron's return....increase of nearly half a billion. Yes. He's underpaid. Grossly.

[IndianaShocker]

That's 15% of gross! That's an OUTRAGEOUS percentage for a commission. 20% of net is a more common number. In real estate, it's 7% of gross that's generally split 4 ways (listing agent, listing agent broker, selling agent, selling agent broker).

When you put it in terms of a percentage of what he brings in, James is incredibly overpaid.

You're missing the point. Lebron isn't an agent or broker. Lebron is the asset. 30 million invested in that assest brings you a return of 219 million each year. I'll take that investment all day any day.

[Downtown Shocker Brown]

You're missing the point. Lebron isn't an agent or broker. Lebron is the asset. 30 million invested in that assest brings you a return of 219 million each year. I'll take that investment all day any day.

Please fill in the following:

1. Who is investing $30 million?
2. Who is making a $219 million dollar profit?

[IndianaShocker]

Please fill in the following:

1. Who is investing $30 million?
2. Who is making a $219 million dollar profit?

1. Dan Gilbert
2. Dan Gilbert & other business owners in Cleveland. Actually more; since we aren't including the estimated 1/2 billion in appreciation the franchise is valued at since LeBron's return or do you not think the franchise value will nose dive the second LeBron left if he happened to do so?

[Aargh]

You're missing the point. Lebron isn't an agent or broker. Lebron is the asset. 30 million invested in that assest brings you a return of 219 million each year. I'll take that investment all day any day.

The original post was worded as a comparison to a sales commission. My response was in reply to that.

LeBron easily generates many multiples of his salary for the Cavs organization. If it wasn't for the salary cap, he could be paid several multiples of $30 mill and still be a great investment.

[Good News]

To all of the people on this thread who are equating revenue/spending with equity/intrinsic value... please contact me privately to price up and make offers on my equity portfolio.

Back to Bake - if you would have told me four years ago that a Shocker would potentially be making more than Derrick Rose this season, I would have assumed that Tekele went rogue and started taking Mexican drug lords as hostages and holding them for ransom.

[Dave Stalwart]

Am I reading correctly that rose is gone to the cavs?