Monday, August 18

325 Million Buys You More Than You Think


Kevin Durant made headlines earlier this month by pulling out of the United States FIBA World Cup team. Durant was excused by many league executives and the media throughout the NBA. 

His reputation of always showing up when asked for his country precedes only his play whenever he pulls on the red, white and blue uniform. Paul George's gruesome injury also gave credence for some understanding his decision.

These factors, and the idea of Durant being a nice guy have stopped the media making his pull out from the World Cup team a larger story. The real story starts with 325 million dollars, the amount of the new endorsement contract he will sign with Under Armour. 

UA will play him all those dollars over ten years to wear their shoes and gear at all times and to show up for any of their sponsored events.

Why is the money not the real big deal of this story? USA basketball, currently, is a Nike sponsored organization. The swoosh is seen on all the uniforms, warm up tops and any and all formal communications. Durant himself has been in the Nike program for as long as he has been in the association. His contract expires on September 30th, the eve of this season's training camp.

As soon as Durant pulled out of the team, news of the deal started to hit the airwaves. Roc Nation and Jay-Z's name started popping up. Jay-Z is Durant's new agent and the UA deal is his first big basketball deal. Did UA or Jay-Z ask him to leave the camp and team? Did they not want him to shown and pictured in Spain with Nike paraphernalia on? Durant now becomes the face of UA. With Nike he would always play second fiddle to LeBron James. If he moved over to Adidas he might be second fiddle to Derrick Rose. UA is based in Baltimore, Maryland which happens to be the hometown of Durant.

He is making close to 19 million this year and over 20 million next season. He will be an unrestricted free agent in 2016 which will be his tenth season in the league. He will be eligible for the maximum salary with any team who has room in the association. That maximum salary could be between 25 to 33 million if revenues continue to grow as expected.

Durant will sign for the maximum where ever he goes but that amount is way below what he could get in a free market. Imagine what he could earn in a non salary cap league such as Major League Baseball but that is an aside. Now add in his 35 million a year from UA. Then his yearly intake sounds about right. Therefore Durant's decision in 2016 will surprisingly not be about money.

Durant's UA deal affords him the ability to sign with any team he wishes and that is the real story with him leaving the US team headed for Spain. He will make his decision on his own terms. As long as the team has cap space then he can sign with them. Actually, going Durant's reputation he might even take a pay cut to be with a winner or to be with his hometown club the Washington  Wizards. He might sign with his boyhood favourite team the Toronto Raptors. Yes I said the Raptors as his love for Vince Carter might sway him that way.

Durant is now in the driver's seat. He is the owner's worst nightmare: a player with his future in his own hands. Many thought when the current incarnation of the salary cap was brought in before the 1984-85 season it would hamper player's rights and abilities. It might have but as the association has grown it's revenues have as well and in turn so have players' salaries. It is those salaries, the rise of endorsements and growing importance of stars in the American sports landscape that have now swayed the balance of power to the players' side. This change was perfectly seen in the Donald Silver situation at the end of last season.

Maybe Durant should teach a class at the NBA's rookie symposium. I wonder if the association would let that occur. I am very surprised that most of the basketball media have stayed away from this end of the story. My guess is that LeBron signing for only two years with the Cleveland Cavaliers, the Kevin Love Andrew Wiggins trade and George's injury have taken most of eyes and ears away. So here's a toast to a player taking his own future in his hands. An athlete with a brain is a good thing.

As I write my thoughts down, I keep telling myself how nice it must be to make decisions about your future without someone telling me why and what I should do just to pay my bills. I think about how nice it would be to be in Durant's shoes in two years. Then I realize that his agent is Jay-Z and he is signed to UA. Didn't they just ask him to leave the World Cup camp? Didn't Nike and Converse ask Earvin Johnson and Michael Jordan, among others, to cover up the Reebok symbol on their uniforms at the Olympics in Barcelona? Would Jay-Z and UA let him sign for the Raptors in Canada? Would they let him be in a non-American market? Would they let him sign for a small market American team?

Ah there's the rub! But that's for another discussion for another time.

Shahab Khan
@SchoolboyShebe