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The Mass Media

The Mass Media

The Mass Media

NBA’s New TV Deal

What’s the deal with overpaid NBA athletes? This summer, NBA teams were throwing around money left and right in hopes of signing mid-level acquisitions to their rosters.
Mid-level to fringe All-Stars are cashing in on the new flow of money that is circulating the league. Players like Harrison Barnes, Eric Gordon, Thaddeus Young, and Goran Dragic are expected to make out like bandits during their free agencies in the 2016 offseason. 
Even this offseason has lead to outrageous deals that appear to “break the bank.” For example, Tristan Thompson is currently seeking a maximum contract over the course of five years. If the Cavaliers decide to match his desired contract they will be paying him a total of $94 million.  The Cavaliers are obviously holding out, reportedly offering $80 million, or $16 million per season, but even this price tag is ridiculous.
Why do I say this? Because Tristan Thompson is a 23-year-old that has only proven he is capable of rebounding. The man hasn’t even figured out whether he’s better off shooting as a righty or a lefty. Luckily for Thompson, he’s inefficient using both. As a professional, this is ridiculous. Let’s just hope the power forward has decided which hand to sign his new contract with.
Another player who signed an incredibly lucrative contract is small forward Demare Carroll. Carroll has been in the league for six years, but only had one efficient season last year as a member of the Hawks. While ignoring the past, the Raptors decided to offer him $60 million over a four-year period.  Carroll is now the highest paid member of the Raptors, making almost $14 million a year. Sounds like a lot of money for a defensive specialist.
So why are players making this much?
The answer is the NBA’s new TV deal. Last season, teams salary caps were at $63.1 million, with a luxury tax line of $76.8 million. Moving into this season the numbers were increased to $67.1 million and $81.6 million respectively. Even ESPN’s Marc Stein stated that the salary cap is reportedly going to be “$89 million in 2016-17 and $108 million in 2017-18. The jumps represent massive increases triggered largely by the influx of television money that will begin pouring in after the 2015-16 season, when the NBA’s new nine-year, $24 billion TV deal kicks in.”
NBA teams overvaluing players in the market today, are essentially their optimistic hopes that in tomorrow’s market, these contracts will be a deal.  Only time will tell if the NBA’s franchises’ initial investments will pay off.
There is only one problem that arises in the new distribution of TV money. The dilemma is that “a significant number of (NBA) teams” are losing money, as stated by Commissioner Adam Silver. “I don’t know the precise number … but a significant number of teams are continuing to lose money, and they continue to lose money because their expenses exceed revenue.”
The next Collective Bargaining Agreement isn’t until 2019. However, both players and owners can opt out following the 2016-17 season. Based on a variety of factors, it is likely that either side could back out of this current CBA. Having said that, for now, NBA players can continue to look forward to their free agency periods.