Wham, TAM, Thank You, Ma'am

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Tom in Fairfield CT said:
League agrees to pay more for players as long as they are not average Americans
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Haha

I was thinking about it earlier today. Most people believe the salary cap is there to protect teams from themselves and maybe that was and maybe still is important but now it's more to protect owners from paying American players more than they're worth.

That's why there's this constant addition of shadowy "TAM" and "GAM" and designated players X, Y, and Z. I bet between profits from sold players, TAM, GAM, and allocation money you get from things like Champions League, some clubs probably have a salary cap equivalent of $10 million now even though officially it's just shy of $4 million.
 
What is the story with requiring a certain number in Americans in the league anyway? Do you think people really care about that?

And as for average salary, I'll never argue that athletes and entertainers should inherently be paid more than average college graduates.
 
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Tom in Fairfield CT said:
What is the story with requiring a certain number in Americans in the league anyway? Do you think people really care about that?
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The long term health of this league is highly correlated with the health of the domestic player pool. We want the league developing American talent. If the best strategy is to buy from abroad, nobody would invest in academies.

And as for average salary, I'll never argue that athletes and entertainers should inherently be paid more than average college graduates.
Click to expand...

Maybe I should rephrase. Everyone in this country earning below $100k needs a raise. Especially those working in billion dollar companies.
 
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sbrylski said:
The long term health of this league is highly correlated with the health of the domestic player pool. We want the league developing American talent. If the best strategy is to buy from abroad, nobody would invest in academies.



Maybe I should rephrase. Everyone in this country earning below $100k needs a raise. Especially those working in billion dollar companies.
Click to expand...
Do you realize how many college graduates make less than that?
 
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BossNYC said:
Haha

I was thinking about it earlier today. Most people believe the salary cap is there to protect teams from themselves and maybe that was and maybe still is important but now it's more to protect owners from paying American players more than they're worth.

That's why there's this constant addition of shadowy "TAM" and "GAM" and designated players X, Y, and Z. I bet between profits from sold players, TAM, GAM, and allocation money you get from things like Champions League, some clubs probably have a salary cap equivalent of $10 million now even though officially it's just shy of $4 million.
Click to expand...
Yea, it's actually incredible when you think about how much of an increase TAM represents (saying nothing of GAM). Salary cap of $3.6 million per team, and then $1.2 million of TAM on top of that. I wasn't a math major but I believe that's a 1/3 increase. Players union would have killed for that in CBA negotiations.

Definitely a way to manipulate it so that the money brings in newer/"better" players (hopefully), rather than resulting in an increased wage to current players. I suppose it also gives some flexibility, so that teams can trade TAM to bigger market clubs, I guess. Either way... it's absolutely a positive.

This can make the difference between having just your first 11 being starter caliber, and having 2 or 3 starter caliber players on your bench. This is the kind of depth that will make a huge difference in MLS being more competitive in CCL, and I think also a big difference in quality of play overall when teams have injuries or guys need rest mid season, or are out on international duty, etc.

Would I rather see it as an out and out increase in salary cap? Absolutely. But this is a step in the right direction. Maybe it's somewhat of a plan... the league temporarily increases salary cap (aka TAM), sees how it goes, and then considers making it permanent.
 
Tom in Fairfield CT said:
League agrees to pay more for players as long as they are not average Americans
Click to expand...

This is exactly right.

Average Americans, who generally cannot play in Europe, are stuck with one bidder, who can't pay them.

On the other hand, this is also a way to maximize how much of increase in salary budget is used to bring in new people and improve the quality of play as opposed to paying the existing players more.
 
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Ulrich said:
Oh the joys of expansion fees!!!
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Very good point. Assume $440 million coming in over the next few years from the four new teams - that works out to $4.2 million per team per year for 5 years. That will buy you a lot of TAM.

Of course, it can buy you a lot of other things too. How about we only do $400K per team in TAM and spend the other $800K to pay for charter flights for every game?
 
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Gotham Gator said:
Very good point. Assume $440 million coming in over the next few years from the four new teams - that works out to $4.2 million per team per year for 5 years. That will buy you a lot of TAM.

Of course, it can buy you a lot of other things too. How about we only do $400K per team in TAM and spend the other $800K to pay for charter flights for every game?
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Has anything been announced about the expansion fee for the next round(s)? We paid $100M but I'd expect it to go up every round especially because the inherent value of clubs are going up every year. I expect the $440M you mention could easily be north of $500M and closer to $600M (4teams). So $400K TAM, charter flights, and maybe a 4th DP?
 
Look at all the teams piling into the chase for MLS.

North Carolina
St. Louis
Sacramento
Arizona
Cincinnati
Detroit
Tampa
San Antonio
San Diego

Only 4 of them are getting in...supposedly. I expect 125 million. Maybe even 150 million.

The average team was valued at $100 million by Forbes, right?
 
BossNYC said:
Look at all the teams piling into the chase for MLS.

North Carolina
St. Louis
Sacramento
Arizona
Cincinnati
Detroit
Tampa
San Antonio
San Diego

Only 4 of them are getting in...supposedly. I expect 125 million. Maybe even 150 million.

The average team was valued at $100 million by Forbes, right?
Click to expand...

north carolina
sacramento,
tampa,
san antonio

im just saying that since they have stadiums already ( or agreements)....cincinnati is the wildcard since they have a good fan base based on year one and also since garber visited them they may have some advantage
 
The union was OK with this because it protects their members. If you simply increase the salary cap, many of the members would ultimately be replaced by better foreign players.

As for expansion fee's, that money is distributed to the team owners as compensation for the devaluing of their share of league revenues and SUM. It doesn't free up money for player salaries. Money only gets free'd up for salaries when it makes business sense to do so.
 
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