While the new Collective Bargaining Agreement in the NBA was restructured to discourage general managers from handing out lucrative contracts at will, Major League Baseball believes in no such thing.
This morning, the Detroit Tigers and pitcher Justin Verlander agreed on a five-year contract extension through 2019 with an option for 2020.
Jon Heyman of CBSSports.com has reported that Verlander will now make $180 million over the next seven years with a chance (because of the option for 2020 and incentives) to make over $202 million over the next eight seasons. Contract details were first reported by Buster Olney of ESPN.com.
This deal makes Verlander the highest paid pitcher of all-time, and it’s hard to argue that it is not well deserved. The five-time All-Star has won the AL Rookie of the Year (2006), Cy Young (2011) and MVP (2011) and has been the most dominant and consistent pitcher over the last few seasons. He’s on track to keep the Tigers at the top of the American League for years to come.
Now what does Justin Verlander and his lucrative contract have to do with basketball?
It has to do with the opportunity to maximize your value as a player. In MLB, you have the opportunity to play yourself into a $200 million contract like Verlander and so many others have. Ask Albert Pujols, Johan Santana and Alex Rodriguez, who will all make more than the Houston Astros’ payroll this year.
If they were playing in the NBA, ala LeBron James, their potential earnings would be limited by the CBA and the max-contract rule.
Forbes stated that the Heat franchise worth rose $261 million dollars since 2010.
Hmmm… I wonder why? Maybe it’s because that’s the year LeBron “took his talent” to South Beach.
After the 2012-’13 trade deadline, Grantland’s Bill Simmons explained why he believes that LeBron James is the best contract in basketball, even though he is making (by choice) just below a max-level contract.
If the NBA operated with an open market like baseball does, and teams could spend whatever they wanted without any real fear of the luxury tax, then LeBron would earn more than four times what he’s making right now. You heard me … $75 million per season. That’s not a misprint. The Lakers, Knicks and Nets would pay him that without blinking. Think of what you’re getting: He drives up your courtside prices, your suite prices, your cable ratings (Miami’s jumped 34 percent last season) and your sponsorship packages; he makes you the league’s most relevant franchise; he guarantees you 10-12 playoff home games every year; and oh yeah, you might win a few championships, too.
How about this from Yahoo! Sports Adrian Wojnarowski in 2010 after LeBron advocated for league contraction: “Here’s the case James could make, and he’d be right: The biggest stars in the sport – LeBron, Kobe, Dwyane Wade – are far underpaid with maximum contracts. And the rest of the league’s players? They’re mostly overpaid. Privately, Lakers owner Jerry Buss tells people that Bryant has been worth as much as $80 million a year to his franchise. Most of the players in the sport are interchangeable and never affect television ratings, ticket sales or merchandising. Yet, Kobe and LeBron – and before them Michael, Magic and Larry – are responsible for the sport’s immense popularity and profitability.
From Simmons: In 2009, Forbes valued the Cavaliers at $476 million and the Heat at $364 million. Four years later, they valued the Cavaliers at $434 million … and the Heat at $625 million.
Holy Justin Verlander contract.
Tweet of the Night: Bill Simmons
Tweet of the Day: Phil Jackson
Ben Baroff is a basketball journalist who blogs for SheridanHoops.com. Follow him on Twitter here.