Why Is The $65 Million Contract Extension A Major Factor?

At the end of the day think about it this way. He signs an extension where he’ll be paid $20M + for 3 more years on top of next season. So 4 years at $85M or so + and he still would be able to sign a major deal after that deal is done if his skills hold up. In that scenario he’s 30 years old and a free agent again, and would probably cash in, again. He waits till free agency this year and signs a 5 year deal at $70M (using your idea of what the cap would be), he basically loses a year AND is making close to $20M LESS than he would have had he signed the extension. I mean if $20M is nothing to you, then cheers to you my friend.

It boils down to what Melo values. New York gives him the best chance to win and establish a legacy while he’s in his prime if he signs as a FA. New Jersey or anywhere really, in a trade gets him PAID. He’s made plenty of money and honestly money isn’t everything, but it’s definitely something.

a) A post-CBA deal + NY endorsements <<< a pre-CBA deal + NY endorsements
b) Mannix is trying to stir up shit. A lot of people are saying Melo is willing to wait until free agency if that’s what it takes to be a Knick.

It’s who’s at a higher risk? Is Melo losing 20 mill worse than the Nuggets losing him for nothing?
Or more accurately, is Melo refusing to sign the extension a credible threat (just got out of a game theory exam)? If the Nuggets believe he is fully prepared to go ahead with that (and remember, Lebron gave up a lot of money to sign with Miami), they will trade him to the Knicks and get whatever they can.

So who’s gonna blink first?

First off… just because guys like Melo have monster million dollar contracts does not mean they aren’t spending money. Everything is proportional in this world. It’s simply at a higher level. These athletes still have bills they pay, but as they drop millions on houses, they also make payments since they don;t receive all of their contract money at once. So these guys do have money but they also take on much more than us. They have multiple houses, cars, boats, insurance, accountants, lawyers, and any other bills we have multiplied since they have likely paid for family members and such. I’m not saying these guys are broke (even though plenty of millionaire athletes ARE… Antoine Walker, Eddy Curry, anyone?) but money still has absolute value to them and plenty still have debt troubles unfortunately.

That said… I think this is partly about guaranteed money an partly about seeing his friends get the same treatment. Yeah there are endorsements and there will be long term contracts in the future, but like we admitted, we don’t know those actual figures. This 3yr $65Mil extension is on the table NOW. Shit, if there is a lockout, how long does it even last? Melo could go through not only a new CBA that allows him less money overall, but a work stoppage where he has no contract and therefore no income (at least from the NBA stream). Good business says you don’t leave that significant amount on the take especially in the face of a looming crisis.

I’m sure he also is well aware that his former free agent buddies, LeBron, Bosh and Wade all got their trade demands AND their extensions. So why not Carmelo? Why shouldn’t he get the same treatment? After all, he is an elite NBA superstar himself! Those guys got to choose where they wanted to play AND get super paid in the process. So there is the natural ego stroking for Carmelo.

Basically, I get it from Melo’s POV. But you are absolutely right, Major, that either way Melo will get seriously PAID and he will also get plenty of endorsement $$ to make up the difference. However… that endorsement money would still come his way if he signs his extension and is traded so its not so much of a difference maker anyways. It comes down to how badly he wants to play in NY. If he wants the $ guarantee then Denver will trade him where THEY want. But if he wants to play in NY, he is probably going to have the do it for a significantly less amount of money.