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Do IT this week: Layering
By Patrick McManamon
Beacon Journal sportswriter
POSTED: 06:12 p.m. EDT, Jul 09, 2009
At first blush, Anderson Varejao's new contract with the Cavaliers sounds like a lot of money.
Think about it — $50 million for a guy whose combined scoring and rebounding averages last season did not break 16.
Fifty million dollars is a lot of money for anything, really ... tomatoes, pretzels, basketball players, you name it.
But as often happens with professional sports contracts, $50 million is not really all that.
It's funny money.
It's $50 million only if Varejao plays six years with the Cavs and hits every incentive in the deal, including becoming America's Next Top Chef.
So scratch most of the incentives.
The deal actually averages $7 million per year, and only a portion of the final year of the contract is guaranteed. Which puts the contract at five years for somewhere around $37 million or $38 million, with a team option for a sixth.
That's still a lot of tomatoes, but it's not $50 million. That number is one an agent can throw out to impress his peers and other clients.
Does five years for $37 million sound better for Varejao?
Yes.
Is Varejao worth $7 million per year?
The more important question is whether he's worth a five- or six-year deal.
I'd have preferred four. But sometimes in negotiations sides have to give.
The upside of this is that maybe this indicates the Cavs feel confident that LeBron James will stay in Cleveland. One of the benefits of Varejao is that he plays so well off James.
The fact that the Cavs committed so many years to him indicates they either believe strongly or know that James will be here as well.
Because without James, Varejao is an energetic big guy who lacks offense.
This might be the key reason for the length of the deal, because writing this contract in a recession when the cap is expected to drop makes it a tad more risky.
Then again, the Cavs might simply believe Varejao is a good player, a guy who fits their style and approach.
As for the $7 million ... early in the playoffs, my thinking was that Varejao had proven himself as a starting player and a valuable Cavs player. I surmised he would get somewhere around $8 million per year, for four years.
But as really good players accepted the mid-level exception of $5.8 million in free agency, it seemed like Varejao might be had for $6 million per year.
It wound up in between — at $7 million.
Four years for $32 million really isn't that greatly different than five for $37, is it?
Which sounds like more negotiating give and take. (Show me the team, by the way, that was willing to pay Varejao $10 million and I'll show you a team that is heading to Chapter 11.)
In some ways, criticizing the Cavs for the money Varejao was paid seems ill-placed. How would the frontcourt look if he were with the Oklahoma City Thunder?
Consider the options if they didn't re-sign Varejao.
Right. There were none.
The Cavs wanted him back, and they needed him back. They know it. He knows it. His agent knows it.
Andrea Bargnani of the Toronto Raptors received an extension for $10 million per year.
Bargnani averaged 15.3 points and is a much better shooter. But he's not as good a rebounder, and not as good defensively — keys for the Cavs.
Then ponder this list of guys: Vladimir Radmonivic, Matt Harpring, Leandro Barbosa, Jason Kapono, Tony Battie and Joel Przybilla.
All will make $6 million to $7.5 million this season.
Is Varejao overpaid? Of course he's overpaid — until he starts finding a cure for childhood leukemia.
In the NBA, he's a bit overpaid, or paid for too long. But for the Cavs, it was a needed move lest they leave themselves short on the frontcourt.
Bringing him back was also part of the Cavs' offseason plan — and has been from the get go.
The other part seems to have settled on Anthony Parker, a guard from the Raptors who is considered an intelligent player with a decent shot who can play defense.
He's not Trevor Ariza, whom the Cavs pursued right off the bat. But he's better than Wally Szczerbiak and Sasha Pavlovic, last season's shooting options off the bench.
And he'll come for less money, which means the Cavs still can add a player or two — one of whom very well could be Channing Frye.
Debating money in pro sports is purely subjective. One team's needs trump another's, so one team will pay more for a certain player because he's a better fit and he fills a need.
Big guys can reach the trees, but they don't fall from them.
If a team has one it likes, it has to keep him.
Patrick McManamon can be reached at pmcmanamon@thebeaconjournal.com. Read his blog at http://www.ohio.com/mcmanamon/. Follow Pat on Twitter at http://www.twitter.com/patmcmanamon.
At first blush, Anderson Varejao's new contract with the Cavaliers sounds like a lot of money.
Think about it — $50 million for a guy whose combined scoring and rebounding averages last season did not break 16.
Fifty million dollars is a lot of money for anything, really ... tomatoes, pretzels, basketball players, you name it.
But as often happens with professional sports contracts, $50 million is not really all that.
It's funny money.
It's $50 million only if Varejao plays six years with the Cavs and hits every incentive in the deal, including becoming America's Next Top Chef.
So scratch most of the incentives.
The deal actually averages $7 million per year, and only a portion of the final year of the contract is guaranteed. Which puts the contract at five years for somewhere around $37 million or $38 million, with a team option for a sixth.
That's still a lot of tomatoes, but it's not $50 million. That number is one an agent can throw out to impress his peers and other clients.
Does five years for $37 million sound better for Varejao?
Yes.
Is Varejao worth $7 million per year?
The more important question is whether he's worth a five- or six-year deal.
I'd have preferred four. But sometimes in negotiations sides have to give.
The upside of this is that maybe this indicates the Cavs feel confident that LeBron James will stay in Cleveland. One of the benefits of Varejao is that he plays so well off James.
The fact that the Cavs committed so many years to him indicates they either believe strongly or know that James will be here as well.
Because without James, Varejao is an energetic big guy who lacks offense.
This might be the key reason for the length of the deal, because writing this contract in a recession when the cap is expected to drop makes it a tad more risky.
Then again, the Cavs might simply believe Varejao is a good player, a guy who fits their style and approach.
As for the $7 million ... early in the playoffs, my thinking was that Varejao had proven himself as a starting player and a valuable Cavs player. I surmised he would get somewhere around $8 million per year, for four years.
But as really good players accepted the mid-level exception of $5.8 million in free agency, it seemed like Varejao might be had for $6 million per year.
It wound up in between — at $7 million.
Four years for $32 million really isn't that greatly different than five for $37, is it?
Which sounds like more negotiating give and take. (Show me the team, by the way, that was willing to pay Varejao $10 million and I'll show you a team that is heading to Chapter 11.)
In some ways, criticizing the Cavs for the money Varejao was paid seems ill-placed. How would the frontcourt look if he were with the Oklahoma City Thunder?
Consider the options if they didn't re-sign Varejao.
Right. There were none.
The Cavs wanted him back, and they needed him back. They know it. He knows it. His agent knows it.
Andrea Bargnani of the Toronto Raptors received an extension for $10 million per year.
Bargnani averaged 15.3 points and is a much better shooter. But he's not as good a rebounder, and not as good defensively — keys for the Cavs.
Then ponder this list of guys: Vladimir Radmonivic, Matt Harpring, Leandro Barbosa, Jason Kapono, Tony Battie and Joel Przybilla.
All will make $6 million to $7.5 million this season.
Is Varejao overpaid? Of course he's overpaid — until he starts finding a cure for childhood leukemia.
In the NBA, he's a bit overpaid, or paid for too long. But for the Cavs, it was a needed move lest they leave themselves short on the frontcourt.
Bringing him back was also part of the Cavs' offseason plan — and has been from the get go.
The other part seems to have settled on Anthony Parker, a guard from the Raptors who is considered an intelligent player with a decent shot who can play defense.
He's not Trevor Ariza, whom the Cavs pursued right off the bat. But he's better than Wally Szczerbiak and Sasha Pavlovic, last season's shooting options off the bench.
And he'll come for less money, which means the Cavs still can add a player or two — one of whom very well could be Channing Frye.
Debating money in pro sports is purely subjective. One team's needs trump another's, so one team will pay more for a certain player because he's a better fit and he fills a need.
Big guys can reach the trees, but they don't fall from them.
If a team has one it likes, it has to keep him.
Patrick McManamon can be reached at pmcmanamon@thebeaconjournal.com. Read his blog at http://www.ohio.com/mcmanamon/. Follow Pat on Twitter at http://www.twitter.com/patmcmanamon.
Comments
Click here to post your comments
Naples, FL
Posted 07:50 AM, 07/10/2009
Thanks Pat, good information.
Las Vegas , NV
Posted 11:01 AM, 07/10/2009
well said...I think people are freaking out at the 50 million dollar number. I see that you included the final year's buyout in your math. I am not sure I would even do that as any player with a partial buyout is going to make for HUGE trade bait (if he was not living up to his contract). Think of why Sasha (team option I believe) and Ben (whom said he would either retire or accept a buyout most likely) were able to land us Shaq.
So to take it one step farther and assuming a back loaded contract I would speculate that we have 5 years at around 33 million dollars for a guy that might be our starting center (neglected to mention this fine point!) in two years! Doesn't seem that ridiculous for a young player who is expected to improve and brings so much more to the team then the stats alone!
portsmouth, VA
Posted 12:07 PM, 07/10/2009
Nice explanation. Matt - you brought up a very good point about him improving. He seems to be improving each year and who knows, he could be a 15 reb/12 pt a night player.
akron, oh
Posted 12:49 PM, 07/10/2009
"Varejao's 50 million deal isn't really $50 million" is a good title because Andy isn't really a good ballplayer.
Akron, Oh
Posted 04:35 PM, 07/10/2009
Even if he is not gettin' 50 mill, I still going to the home games just to see him, Lebron, Shaq and my Boobie! Ha.......y
Canton, OH
Posted 11:41 PM, 07/10/2009
Man, I miss Terry Pluto & Brian ( Windy ) Windhorst. . .
Posted 01:27 PM, 07/11/2009
Don't get to fired up over Shaq just yet. He got big bucks but he needs to be in the gym twice a day, every day, till the season starts. How will he keep up with all the young guns in the NBA in the shape he is in. We should have given a contract to every player at the University of North Carolina, they can go 100% for the full game. However, good luck Cav's, I'm counting on you again this year.
