2Cleva
11-01-2004, 11:32 AM
I didn't see this posted. I'm sure a few here will go through the roof.
Spurs owner Peter Holt takes a salary cap stand
Spurs chairman Peter Holt said Saturday he had no plans to increase his six-year, $64 million offer to Tony Parker while acknowledging the team may have to pay more next summer to re-sign its starting point guard. That and this report from The San Antonio Express News' Johnny Ludden
The Spurs have one day to extend Parker's contract to prevent him from becoming a restricted free agent at the end of the season. NBA officials said they would approve contracts on Monday, pushing the deadline back a day.
Holt said he empathized with Spurs coach Gregg Popovich, who had urged the team's owners to reconsider their position.
"I understand Pop's frustration," Holt said. "He's spent years putting together this great young team. We'd both love to get Tony signed and keep him as part of our core, but there are so many uncertainties right now.
"I just don't feel comfortable going any further."
Spurs officials, based on their conversations with Parker, think their chances of reaching an agreement would improve significantly if the team increased its offer to $66 million. Parker's agent, Marc Fleisher, maintained Saturday he is seeking $70 million for the six-year extension.
Fleisher offered to meet with Holt, but team officials are not optimistic that negotiations will resume.
"I understand that on paper, yes, it looks like we're close with only one or two days left before the deadline," Holt said. "But we had a place where we started (in negotiations) and they had a place where they started. And now we're kind of done and, from what I hear, they're kind of done."
Though the Spurs' ownership group is made up of 19 investors, Holt said the decision not to increase the offer was "primarily my own."
"Without a doubt, it's been the single-hardest decision I've made as owner," Holt said.
Holt said he does not want to increase the offer because the NBA's salary structure may change this summer when the collective bargaining agreement between the league and players union expires. The league is seeking to reduce the maximum length of guaranteed contracts as well as the annual raise a player may receive.
The team can't assess its financial future and accurately project any losses until it knows the terms of the new CBA, Holt said. The Spurs will have the right to match any offer sheet Parker signs this summer, but Popovich said Friday he doubts the cost will be any more favorable than what Parker is currently seeking.
"As a businessman, I know I still have the right of first refusal," Holt said. "If we didn't have that, we might be doing things a little bit differently right now.
"Now, I understand it may cost me more next summer. And I might be kicking myself for the next five or six years because I had to pay a lot more to keep him. But right now, with everything so uncertain, I think it's the right thing to do."
Parker also will be taking a gamble — most notably, the risk of injury — if he doesn't sign an extension. Fleisher acknowledged that concern, but said he thinks Parker could command a maximum contract next summer provided he performs well.
Memphis forward Pau Gasol and Utah forward Andrei Kirilenko, another of Fleisher's clients, each received six-year extensions worth about $86 million, currently the maximum allowed. Indiana signed point guard Jamaal Tinsley to a six-year, $39 million deal. Fleisher said he expects Portland forward Zach Randolph to receive more than $80 million.
"With some of the other deals that are out there," Fleisher said, "we think the $70 million we're asking for is eminently fair."
Though the Spurs have kept their payroll from escalating much above the league's salary cap in recent seasons, it will increase substantially over the next couple of years. Tim Duncan (seven years, $122 million), Manu Ginobili (six years, $52 million), Rasho Nesterovic (six years, $42 million), Brent Barry (four years, $21 million) and Bruce Bowen (three years, $12 million) have signed long-term, guaranteed contracts within the past 15 months. Malik Rose also has a little more than $30 million remaining on the deal he signed in July 2002.
The Spurs have earned about $25 million in luxury-tax rebates the past two years in addition to receiving their share of the hefty expansion fee Charlotte had to pay to join the league this season. But Holt said that money is being used to reduce debt the team accumulated while playing in the Alamodome and constructing the SBC Center.
Holt said he is prepared to pay some type of luxury tax in the future, but he doesn't want the team's annual penalty to be much more than the modest $300,000 it paid following the 2002-03 season.
"I can live with that," Holt said. "But I can't pay $50 million in luxury tax. I can't pay the kind of tax (Dallas owner) Mark Cuban and (Portland owner) Paul Allen have paid.
"I can't do that for a couple of reasons: I don't have that kind of money and I don't think it's the right way to run a business."
Holt said Parker and Fleisher have been "very professional" during negotiations. He also said he doesn't mind Popovich disagreeing with him.
"We've disagreed before on which players we should keep and what we should pay," Holt said. "I don't blame him for being upset. He and Tony have come a long way together, and he's worried about losing him. I'm worried about losing him.
"We're taking a risk here. I'm not pretending we're not. It's a scary time." That and this report from The San Antonio Express News' Johnny Ludden
http://www.sportsbusinessnews.com/index.asp?story_id=40647
Spurs owner Peter Holt takes a salary cap stand
Spurs chairman Peter Holt said Saturday he had no plans to increase his six-year, $64 million offer to Tony Parker while acknowledging the team may have to pay more next summer to re-sign its starting point guard. That and this report from The San Antonio Express News' Johnny Ludden
The Spurs have one day to extend Parker's contract to prevent him from becoming a restricted free agent at the end of the season. NBA officials said they would approve contracts on Monday, pushing the deadline back a day.
Holt said he empathized with Spurs coach Gregg Popovich, who had urged the team's owners to reconsider their position.
"I understand Pop's frustration," Holt said. "He's spent years putting together this great young team. We'd both love to get Tony signed and keep him as part of our core, but there are so many uncertainties right now.
"I just don't feel comfortable going any further."
Spurs officials, based on their conversations with Parker, think their chances of reaching an agreement would improve significantly if the team increased its offer to $66 million. Parker's agent, Marc Fleisher, maintained Saturday he is seeking $70 million for the six-year extension.
Fleisher offered to meet with Holt, but team officials are not optimistic that negotiations will resume.
"I understand that on paper, yes, it looks like we're close with only one or two days left before the deadline," Holt said. "But we had a place where we started (in negotiations) and they had a place where they started. And now we're kind of done and, from what I hear, they're kind of done."
Though the Spurs' ownership group is made up of 19 investors, Holt said the decision not to increase the offer was "primarily my own."
"Without a doubt, it's been the single-hardest decision I've made as owner," Holt said.
Holt said he does not want to increase the offer because the NBA's salary structure may change this summer when the collective bargaining agreement between the league and players union expires. The league is seeking to reduce the maximum length of guaranteed contracts as well as the annual raise a player may receive.
The team can't assess its financial future and accurately project any losses until it knows the terms of the new CBA, Holt said. The Spurs will have the right to match any offer sheet Parker signs this summer, but Popovich said Friday he doubts the cost will be any more favorable than what Parker is currently seeking.
"As a businessman, I know I still have the right of first refusal," Holt said. "If we didn't have that, we might be doing things a little bit differently right now.
"Now, I understand it may cost me more next summer. And I might be kicking myself for the next five or six years because I had to pay a lot more to keep him. But right now, with everything so uncertain, I think it's the right thing to do."
Parker also will be taking a gamble — most notably, the risk of injury — if he doesn't sign an extension. Fleisher acknowledged that concern, but said he thinks Parker could command a maximum contract next summer provided he performs well.
Memphis forward Pau Gasol and Utah forward Andrei Kirilenko, another of Fleisher's clients, each received six-year extensions worth about $86 million, currently the maximum allowed. Indiana signed point guard Jamaal Tinsley to a six-year, $39 million deal. Fleisher said he expects Portland forward Zach Randolph to receive more than $80 million.
"With some of the other deals that are out there," Fleisher said, "we think the $70 million we're asking for is eminently fair."
Though the Spurs have kept their payroll from escalating much above the league's salary cap in recent seasons, it will increase substantially over the next couple of years. Tim Duncan (seven years, $122 million), Manu Ginobili (six years, $52 million), Rasho Nesterovic (six years, $42 million), Brent Barry (four years, $21 million) and Bruce Bowen (three years, $12 million) have signed long-term, guaranteed contracts within the past 15 months. Malik Rose also has a little more than $30 million remaining on the deal he signed in July 2002.
The Spurs have earned about $25 million in luxury-tax rebates the past two years in addition to receiving their share of the hefty expansion fee Charlotte had to pay to join the league this season. But Holt said that money is being used to reduce debt the team accumulated while playing in the Alamodome and constructing the SBC Center.
Holt said he is prepared to pay some type of luxury tax in the future, but he doesn't want the team's annual penalty to be much more than the modest $300,000 it paid following the 2002-03 season.
"I can live with that," Holt said. "But I can't pay $50 million in luxury tax. I can't pay the kind of tax (Dallas owner) Mark Cuban and (Portland owner) Paul Allen have paid.
"I can't do that for a couple of reasons: I don't have that kind of money and I don't think it's the right way to run a business."
Holt said Parker and Fleisher have been "very professional" during negotiations. He also said he doesn't mind Popovich disagreeing with him.
"We've disagreed before on which players we should keep and what we should pay," Holt said. "I don't blame him for being upset. He and Tony have come a long way together, and he's worried about losing him. I'm worried about losing him.
"We're taking a risk here. I'm not pretending we're not. It's a scary time." That and this report from The San Antonio Express News' Johnny Ludden
http://www.sportsbusinessnews.com/index.asp?story_id=40647