Overpaid and Underpaid NBA Players

The listings of all the overpaid and underpaid players in the NBA follow the detailed User Guide which begins now.

To say there is a need for this Report is an understatement when you consider that there are very low performance players who are paid more than superstars. For example, Ben Gordon of the Pistons was a poor player in 2009-10 with a Real Player Rating (RPR) of .491 yet he is to be paid 10.8 million dollars this coming season. Meanwhile, Joakim Noah of the Bulls was a superstar in 2009-10 with a RPR of .955 yet he is to be paid only 3.1 million dollars this coming season. Based on this, it’s no surprise to you that the Bulls are supposed to be really good this year while the Pistons are supposed to be really bad, is it?

THIS REPORT IGNORES SOCIETY AND IS ABOUT BASKETBALL ONLY
Let’s get something out of the way right at the top. For society at large, probably most NBA players are grossly overpaid. But this Report totally ignores society and is concerned only about basketball and even more specifically we are focused on winning playoff games and Championships. When we say a player is underpaid, we definitely don’t mean the player is underpaid relative to society as a whole. What we mean is that the player is underpaid compared to what he should be paid if all NBA pay was distributed closely according to players’ different abilities to help win playoff games. So we mean overpaid in a narrow basketball sense and not in an overall society sense.

BANG FOR THE BUCK
The first thing we need to determine who is overpaid and who is underpaid is a calculation. Remember, Quest for the Ring (QFTR) does everything in the real zone, meaning that we keep opinions to a minimum. This Report is not simply our opinion about who is overpaid and who is underpaid. Instead, like most of our other Reports, this one tells you who really is overpaid and who really is underpaid according to optimal calculations.

What we need to calculate is a concept (and a number) called “Bang for the Buck” or BFTB. This is a simple concept. It’s what you get when you divide a Real Player Rating (RPR) by the salary of a player. This is how BFTB acts:

--At any amount of salary, the higher the RPR, the higher the Bang for the Buck.
--At any amount of salary, the lower the RPR, the lower the Bang for the Buck.
--At any RPR, the higher the salary, the lower the Bang for the Buck.
--At any RPR, the lower the salary, the higher the Bang for the Buck.

In other words BFTB gives you the quality of the player relative to his salary. Due to salary numbers (in dollars) being in the millions while RPRs range from about .400 to about 1.200, in order to express BFTB in numbers greater than one, we want to multiply by 10,000,000. So the formula is:

BFTB = (10,000,000 X Real Player Rating) / Salary

Salary will always mean pay for the season under the contract. I don’t know exactly but I would think that most contracts, instead of using a regular calendar year, probably use a year that begins sometime in the middle of the year, such as on July 1. Or perhaps some or most or all player contracts have years that start sometime in October, just before when the regular season starts.

In the formula, salary will not include benefits, which are roughly going to range from 5% of salary for the highest paid NBA player to 15% of salary for the lowest paid NBA player. (On average think of benefits as roughly 10% of salary.)

So now we have BFTB. What do we need next? Next we're going to need the Real Player Rating evaluation scale. Why we need it is explained later. This is that scale:

Perfect Player for all Practical Purposes / Major Historic Super Star 1.100 and more
Historic Super Star 1.000 1.099
Super Star 0.900 0.999
A Star Player / A well above normal starter 0.820 0.899
Very Good Player / A solid starter 0.760 0.819
Major Role Player / Good enough to start 0.700 0.759
Good Role Player / Often a good 6th man, can possibly start 0.640 0.699
Satisfactory Role Player / Generally should not start 0.580 0.639
Marginal Role Player / Should not start except in an emergency 0.520 0.579
Poor Player / Should never start 0.460 0.519
Very Poor Player 0.400 0.459
Extremely Poor Player and less 0.399

The first thing I do with the scale is to combine a few of the categories above to make sure all categories have roughly the same number of players. This insures good performance of this system and specifically insures I can avoid any serious outlier problems. The first three categories above are combined together to form a category consisting of all three levels of superstars. Similarly, the last three categories above are combined together to form a category consisting of all three levels of poor players. All the other six categories (from star down to marginal role player) are kept unchanged.

In total I have cut down from the usual 12 categories to 8 categories. So this is the category breakdown for looking at which players are overpaid and which are underpaid (with the RPR ranges shown):

(1) Major Historical Superstars / Historical Superstars / Superstars, .900 and more
(2) Stars, .820 to .899
(3) Very Good Players / Solid Starters, .760 to .819
(4) Major Role Players / Good Enough to Start, .700 to .759
(5) Good Role Players / Can Possibly Start, .640 to .699
(6) Satisfactory Role Players / Generally Should Not Start, .580 to .639
(7) Marginal Role Players / Should Not Start Except in Emergencies, .520 to .579
(8) Poor / Very Poor / Extremely Poor Players .519 and less

WHY USE THE PLAYER CATEGORIES AT ALL?
Why do I want to separate players by quality when calculating who is overpaid and who is underpaid? Why can’t I just take all the players and run the calculations on all of them at once and then designate overpaid and underpaid from that total list of players? Because in theory and also in reality to a large degree, there are really different markets for and different normal pay levels and ranges for different quality levels of players.

Here are the actual ranges which are interesting to check out:

Superstars and Historical Superstars 3.1 million to 24.8 million
Stars 0.8 million to 17.7 million
Very Good Players / Solid Starters 0.9 million to 17.7 million
Major Role Players 0.9 million to 19.6 million
Good Role Players 0.8 million to 13.6 million
Satisfactory Role Players 0.8 million to 14.3 million
Marginal Role Players 0.8 to 18.3 million
Poor to Extremely Poor Players 0.8 to 10.8 million

You can already see differences but actually the above understates the real differences in the ranges. If you get rid of the special cases (the outliers, such as Michael Redd who due to major injury problems is in the marginal role player category yet is making 18.3 million dollars this year) you will find that the ranges are even more different than what is indicated above.

Here are the average pay amounts for each category:

Superstars and Historical Superstars 12.3 million dollars
Stars 7.5 million dollars
Very Good Players / Solid Starters 5.4 million dollars
Major Role Players 6.0 million dollars
Good Role Players 3.9 million dollars
Satisfactory Role Players 4.1 million dollars
Marginal Role Players 3.2 million dollars
Poor to Extremely Poor Players 2.6 million dollars

So in summary I ran the calculation on all the players in one single category I would get inferior results compared with separating them out by quality. If I did that there would be too many low quality players designated wrongly as underpaid (whereas there is really no such thing as an underpaid low quality player). And also there would be a few too many high quality players designated wrongly as overpaid.

By keeping players segregated into their quality categories, I make sure the designations are relative to each quality level of player, meaning that I am determining who is overpaid and who is underpaid separately for each separate “player market”. I can then customize the designations by category according to what makes the most sense from the perspective of winning playoff games and Championships.

Always remember that players' pay is not now and will never be directly proportional to how good the players are. There are massive distortions that prevent that from even approximately happening. Also, there is the basketball necessity to award the very best players with very big salaries. The very best players (the superstars) get on average the highest pay by a wide margin over even the next best players (the stars). The very best players are much more important than the next best players, so their pay should be substantially higher. It turns out though that the pay of the very best players is much, much higher than the pay of the next best players. Moreover, it turns out that some players are paid as if they were much better or much worse players than they actually are, which brings us back to the big necessity of this Report.

THE PAY DESIGNATIONS
There are five designations as follows:

--Extremely or Very Overpaid
--Overpaid: Slightly or Moderately
--Paid Correctly
--Slightly to Moderately Underpaid / Bargains
--Extremely or Very Underpaid / Major Bargains

The rules that determine how many players go into each category are called “designation rules”. The designation rules differ by player category because as you go from the highest quality players to the lowest quality players two things happen:

--Fewer and fewer players are underpaid
--More and more players are overpaid

In fact, no players at all in both the marginal role player and in the poor player category are considered to be underpaid. Simply put, it’s out of the question to have an underpaid poor player or an underpaid marginal role player. On the other hand, you are going to have a lot of overpaid poor players.

At the top end, for superstars, I designate 38% of superstars as underpaid and 28% as overpaid. I use what may seem to you to be a surprisingly high percentage for underpaid superstars because for one thing there really are more underpaid NBA superstars than you or I might think. There are, in other words, a surprisingly large batch of superstars who in theory should be paid even more than they are given just how good they are and therefore how crucial they are for winning playoff games.

At the same time, there are a good number of overpaid superstars. Only 34% of superstars are considered to be paid correctly, which may seem surprisingly low but is supported by the fact that there is a very large range between the highest paid superstar and the lowest paid superstar. And keep in mind also we are talking about very large numbers here. Specifically, the highest paid NBA superstar is Kobe Bryant at almost 25 million dollars. The lowest paid NBA superstar is Joakim Noah at a little more than 3 million dollars. But Joakim Noah is 90-95% as valuable as Kobe Bryant is in the Quest for the Ring!

Since total NBA payrolls are between about 60 and 120 million dollars, if you overpay a superstar by about 10 million dollars you have just done yourself some serious damage in your quest to make sure you have enough money to pay all the players you need. To flip it around, if you underpay a superstar by about 10 million dollars you have serious money for getting one or two or even three other players who are going to be able to help win the quest.

PLAYERS ARE ORDERED BY BFTB AND BY CATEGORY
Players are first sorted into their quality category. Then within each category the players are rank ordered according to BFTB. Then the designation rules are applied which determines who is declared to be overpaid and who is declared to be underpaid.

THE DESIGNATION RULES BY CATEGORY
The following are the designation rules by category. For all categories, both the overpays and underpays are divided into two equal groups. The overpays are divided into “Way Overpaid” and “Overpaid: Slightly or Moderately”. And the underpays are divided into "Extremely Underpaid: Major Bargain” and “Underpaid Slightly to Moderately: Bargain”. For example, if there are 12 overpaid players in a category of players, six of them are going to be called way overpaid and the other six are going to be called overpaid (slightly or moderately).

The percentages are applied to the number of players in the category. For example, if there are 50 players in the star player category, and by rule 34% of them are designated as underpaid, this means that 17 stars are going to be designated as underpaid.

(1) Major Historical Superstars / Historical Superstars / Superstars:
28% are designated as overpaid and 38% are designated as underpaid

(2) Stars:
30% are designated as overpaid and 34% are designated as underpaid

(3) Very Good Players / Solid Starters:
32% are designated as overpaid and 28% are designated as underpaid

(4) Major Role Players / Good Enough to Start:
32% are designated as overpaid and 22% are designated as underpaid

(5) Good Role Players / Can Possibly Start:
32% are designated as overpaid and 16% are designated as underpaid

(6) Satisfactory Role Players / Generally Should Not Start:
40% are designated as overpaid and 10% are designated as underpaid

(7) Marginal Role Players / Should Not Start Except in Emergencies:
50% are designated as overpaid and 0% are designated as underpaid

(8) Poor / Very Poor / Extremely Poor Players:
60% are designated as overpaid and 0% are designated as underpaid

WHY ARE MORE THAN HALF THE PLAYERS DESIGNATED AS EITHER OVERPAID OR UNDERPAID?
The reason is very simple: because more than half the players are truly and actually either overpaid or underpaid, in more respects than one too. The most obvious and basic reason why there are a lot of overpaid and underpaid players is that as in society as a whole, there is a very, very wide range between the lowest paid and the highest paid players. In the collective bargaining agreement there are maximum and minimum salaries set for players according to number of years of experience. You can see right from these that there is a huge range from the highest to the lowest pay. For Rookies, maximum pay is almost 26 times minimum pay! At the other extreme, for veterans who have been around 10 years or more, maximum pay is about 13.5 times minimum pay.

In theory and assuming the same total amount of NBA pay, many lower paid players should be paid more and many high paid players should be paid less simply because the actual range of pay is far greater than the actual range of quality. Yes, it is very true that high quality players are extremely scarce and also obviously they are extremely valuable; you most likely can not win the quest without at least one historical superstar for example. But the actual range of pay you see in the NBA exceeds what the range should be even after considering that the highest quality players should be paid much more than the mere high quality players.

I am not trying to be perfect here even though it might seem so. I am still allowing for a big range in possible salaries for the same quality of player. If you take two players who are exactly the same basketball wise I still allow for, say, one of them to make twice and maybe three times as the other one (the multiples I allow vary by category). In my system there is still big differences in pay left among all the players "paid correctly". The main thing I am doing here is identifying players who make far too much and ones who make far too little.

ARE ALL OVERPAID PLAYERS OVERRATED?
And are all underpaid players underrated? The answer is a little complicated actually. Technically speaking it is literally true, in the abstract anyway, that all overpaid players are overrated and all underpaid players are underrated. Away from the abstract it gets a little more complicated and it will vary on a case by case basis.

Many of the possible circumstances for overpaid and underpaid players are discussed immediately below. In some circumstances everyone will agree that the overpaid player is overrated or that the underpaid is underrated player. In some other less common circumstances there will be disagreement, for example, some will think an overpaid player is overrated and some will argue an overpaid player is not overrated (because the reason for the overpay does not entail that the player is overrated). In still other, much more unusual circumstances just about everyone will agree that the overpaid player is NOT overrated or that the underpaid player is NOT underrated. One example involves an injured player who plays despite the injury and then ends up with a lower rating than he is supposed to have. In this case the player is officially overpaid but almost everyone will agree that that player is not overrated.

Having said all that, most overpaid players are overrated and most underpaid players are underrated.

REASONS WHY A PLAYER ENDS UP OVERPAID
1. The player is overrated and is not really as good as many or even most people think he is.

2. The players’ playing style is popular among fans, coaches, managers, and/or owners.

3. The players’ personality is popular (or it is perceived as being a “good personality”) by fans, coaches, managers, and/or owners.

4. The player was injured during the year from which the rating comes from but he played anyway which resulted in a lower rating than his usual or expected rating. In this case the player appears to be overpaid but may not be once the playing while injured is taken into consideration.

5. The player is a rookie or possibly a second year player who was a first round draft pick and was given a big contract. However, the player has not been able to be at a very high quality level in his first or second seasons.

6. A team is intentionally overpaying the player (whether or not the team realizes the player is overpaid). Team management can get complicated and so there are several possible reasons why a team might intentionally overpay a player. The player might increase ticket sales. The player might have been desperately needed to start at a particular position. The player might have been brought on to the team (often along with one, two, or even three other players) in order to make a major Championship run. And there are going to be other scenarios where in effect a player is intentionally overpaid by a team.

7. A team is semi-intentionally overpaying the player simply because the owner has a high, aggressive total payroll and is willing to pay and is paying a big luxury tax to the League. In other words, if a player is paying for a big spending owner, he might end up overpaid for that reason alone.

8. Occasionally a player on a really bad team will have a lower rating then he should have and slip into the overpaid category. Being on a bad team effects different players differently. On bad teams, some players' ratings will be higher than they "should be" but some will be lower.

9. Some of the overpaid players are accounted for simply because it is very normal in American society to overpay some people and underpay others.

REASONS WHY A PLAYER ENDS UP UNDERPAID
1. The player is underrated and is better than many or even most people think he is.

2. The players’ playing style is not popular among fans, coaches, managers, and/or owners.

3. The players’ personality is not popular (or it is perceived as being a “poor personality”) by fans, coaches, managers, and/or owners.

4. The player had one or more major injury problems in the past which resulted in them getting a contract for much less than he would have got had he not been injured. Then in the year from which the rating comes from, the player was fully recovered and played about as well as he was always supposed to if injury free. In other words, the salary in the contract is depressed due to a major injury problem in prior years but the problem is gone away.

5. The player is simply an outstanding rookie or second or possibly third year player who was not a high draft pick and who did not get a big contract but actually deserves one (and will get one soon).

6. A team is intentionally underpaying the player (whether or not the team realizes the player is underpaid). Team management can get complicated and so there are several possible reasons why a team might intentionally underpay a player. The player might be a foreign player who can not get fairly evaluated by all the teams but rather is forced to play for one particular team if he wants to play in the NBA. The player might be an aging veteran who is perceived to be close to the age where his playing quality will go way down (at which point he will retire). A special twist on the aging veteran scenario is when an aging veteran superstar is brought on to a team that is supposed to be a major contender to win a Ring; in that case the salary might be especially low, often the League minimum for that players’ experience level. And there are going to be other scenarios where in effect a player is intentionally underpaid by a team.

7. A team is semi-intentionally or intentionally underpaying the player simply because the owner has a very conservative payroll that is not only below the real cap (aka the luxury tax threshold) but is near or below the base cap (aka as the salary cap). In other words, if a player is playing for a relatively stingy owner, he might end up being underpaid for that reason alone.

8. Occasionally a player on a really good team will have a higher rating then he should have and slip up into the underpaid category. Being on a great team effects different players differently. On great teams, some players' ratings will be higher than they "should be" but some will be lower.

9. Some of the underpaid players are accounted for simply because it is very normal in American society to overpay some people and underpay others.

THE AGE FACTOR
When Quest for the Ring determines who is overpaid and who is underpaid we don’t care at all about the age of the player. This is mostly a good thing since who cares what the age is when the objective is to win playoff games? All we care about is how good the player is. The downside though is that in real life young players are generally paid very little compared to veterans which means that young players are going to take up many of the major bargain / way underpaid slots. As a result some veterans who are underpaid might not be recognized as underpaid.

But this is just a minor downside and we have to live with it. Overall, not adjusting the calculations for age (or experience) is very smart because the fact that young players constitute most of the bargains is exactly the reality. Why would we want to hide reality when we are trying to do the opposite, to exactly show what the reality is?

NO OFFENSE TO ANY OF THE PLAYERS
If a player hears he's been called "extremely overpaid" by Quest for the Ring he might overreact and get ticked off about it. To anyone who doesn't like the designation "extemely overpaid" (or the less nasty one "overpaid") remember first off that players don't decide what their pay is going to be: managers and owners decide what all the players' pay is going to be. If the managers and/or the owner involved had decided on a lower pay, the player might not be listed as overpaid anymore. So no one should get upset about anything which is controlled by someone else.

Also, remember that we're not saying that players we say are overpaid are overpaid in the absolute, society sense. Even our overpaid players may deserve all their pay when you look at society as a whole or maybe even our underpaid players don't deserve the pay they get when you look at society as a whole. People are going to have differing opinions on that. What we are saying is that some players are overpaid and some are underpaid relative to the basketball world and specifically relative to how much those players do toward winning NBA playoff games and Championships.

Remember also that sometimes injuries cause players to be designated overpaid. See above for many other circumstances that cause a player to be designated overpaid.

Finally, if an overpaid player gets a lot better, he will not be overpaid anymore.

Just be glad we don't call the extremely overpaid players "money down the rat hole players" laugh out loud.

BY HOW MUCH ARE THE EXTRMELY UNDERPAID UNDER AND THE EXTRMELY OVERPAID OVER?
Not counting extreme situations caused by injury, the pay of extremely overpaid players ranges from just half a million dollars over for some of the poor quality players to as much as roughly 10 million dollars over what it should be. There are also two or three players affected by major injuries who are technically and accidentally overpaid by even more than 10 million dollars. In percentage terms the pay of extremely overpaid players ranges from about a third more to as much as four times (quadruple) what it should be.

The pay of extremely underpaid players ranges from about 3 million to about 6 million dollars less than what it should be. In percentage terms the pay of extremely underpaid players ranges from roughly half to just a fifth (20%) of what it should be. Things could be worse; there are just two or three players making only one fifth of what they should be making.

========== OVERPAID AND UNDERPAID NBA PLAYERS ==========

OVERPAID AND UNDERPAID MAJOR HISTORICAL SUPERSTARS / HISTORICAL SUPERSTARS / SUPERSTARS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Kobe Bryant Los Angeles Lakers 24,806,250
Vince Carter Orlando Magic 17,522,375
Andrei Kirilenko Utah Jazz 17,823,000
Kevin Garnett Boston Celtics 18,832,044
Yao Ming Houston Rockets 17,686,100

OVERPAID: SLIGHTLY OR MODERATELY
Pau Gasol Los Angeles Lakers 17,823,000
Dirk Nowitzki Dallas Mavericks 17,300,000
Tim Duncan San Antonio Spurs 18,835,381
Chris Bosh Miami Heat 14,500,000
Dwight Howard Orlando Magic 16,647,180

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Anderson Varejao Cleveland Cavaliers 7,281,818
Jason Kidd Dallas Mavericks 8,610,500
Jameer Nelson Orlando Magic 7,800,000
Lamar Odom Los Angeles Lakers 8,200,000
Rajon Rondo Boston Celtics 9,090,909
Steve Nash Phoenix Suns 10,310,938
Andrew Bogut Milwaukee Bucks 11,000,000

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
Joakim Noah Chicago Bulls 3,128,536
Kevin Love Minnesota Timberwolves 3,638,280
Al Horford Atlanta Hawks 5,444,857
Kevin Durant Oklahoma Thunder 6,053,663
Derrick Rose Chicago Bulls 5,546,160
Greg Oden Portland Trailblazers 6,760,524

OVERPAID AND UNDERPAID STAR PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Zach Randolph Memphis Grizzlies 17,666,666
Amar'e Stoudemire New York Knicks 16,500,000
Carmelo Anthony Denver Nuggets 17,149,244
Joe Johnson Atlanta Hawks 16,324,500
Paul Pierce Boston Celtics 13,850,000
Brandon Roy Portland Trailblazers 13,603,750

OVERPAID: SLIGHTLY OR MODERATELY
Tony Parker San Antonio Spurs 13,500,000
Erick Dampier Charlotte Bobcats 13,078,000
Samuel Dalembert Sacramento Kings 13,428,129
Al Jefferson Utah Jazz 13,000,000
Chauncey Billups Denver Nuggets 13,150,000
Baron Davis Los Angeles Clippers 13,000,000
Andre Iguodala Philadelphia 76'ers 12,345,250

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Ben Wallace Detroit Pistons 2,080,000
Anthony Randolph New York Knicks 1,965,720
Craig Smith Los Angeles Clippers 2,300,000
Brandon Jennings Milwaukee Bucks 2,331,120
Ersan Ilyasova Milwaukee Bucks 2,320,500
Brandan Wright Golden State Warriors 3,398,072
Marc Gasol Memphis Grizzlies 3,573,333
Russell Westbrook Oklahoma Thunder 4,017,720

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
A.J. Price Indiana Pacers 762,195
Serge Ibaka Oklahoma Thunder 1,204,200
Kosta Koufos Minnesota Timberwolves 1,298,640
Shaquille O'Neal Boston Celtics 1,352,181
Ryan Anderson Orlando Magic 1,409,040
Eric Maynor Oklahoma Thunder 1,417,800
Roy Hibbert Indiana Pacers 1,685,280

OVERPAID AND UNDERPAID VERY GOOD / SOLID STARTER PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Gilbert Arenas Washington Wizards 17,730,694
Chris Kaman Los Angeles Clippers 11,800,000
Luol Deng Chicago Bulls 11,345,000
LaMarcus Aldridge Portland Trailblazers 11,244,000
Ray Allen Boston Celtics 10,000,000
Jason Terry Dallas Mavericks 9,873,000

OVERPAID: SLIGHTLY OR MODERATELY
Mehmet Okur Utah Jazz 9,945,000
Jose Calderon Toronto Raptors 9,000,000
David West New Orleans Hornets 8,287,500
Luis Scola Houston Rockets 7,800,000
Joel Przybilla Portland Trailblazers 7,405,300
Shawn Marion Dallas Mavericks 7,055,500

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Renaldo Balkman Denver Nuggets 1,675,000
Matt Barnes Los Angeles Lakers 1,765,000
Goran Dragic Phoenix Suns 1,972,000
Chuck Hayes Houston Rockets 1,972,500
Keyon Dooling Milwaukee Bucks 2,080,000
Brook Lopez New Jersey Nets 2,413,320
Stephen Curry Golden State Warriors 2,913,840

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
DeJuan Blair San Antonio Spurs 918,000
Carlos Arroyo Miami Heat 1,223,166
Jason Williams Orlando Magic 1,352,181
Darren Collison Indiana Pacers 1,361,040
Ronnie Price Utah Jazz 1,381,250
Ty Lawson Denver Nuggets 1,546,560

OVERPAID AND UNDERPAID MAJOR ROLE PLAYER / GOOD ENOUGH TO START PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Rashard Lewis Orlando Magic 19,573,711
Kenyon Martin Denver Nuggets 16,545,454
Elton Brand Philadelphia 76'ers 15,959,100
Jason Richardson Phoenix Suns 14,444,443
Antawn Jamison Cleveland Cavaliers 13,358,905
Tyson Chandler Dallas Mavericks 12,600,000
Emeka Okafor New Orleans Hornets 11,495,000
Monta Ellis Golden State Warriors 11,000,000

OVERPAID: SLIGHTLY OR MODERATELY
Tayshaun Prince Detroit Pistons 11,148,760
Jamal Crawford Atlanta Hawks 10,080,000
T.J. Ford Indiana Pacers 8,500,000
Boris Diaw Charlotte Bobcats 9,000,000
Richard Jefferson San Antonio Spurs 8,400,000
Stephen Jackson Charlotte Bobcats 8,453,250
Shane Battier Houston Rockets 7,354,500
Marvin Williams Atlanta Hawks 7,262,500

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Taj Gibson Chicago Bulls 1,117,680
Rodrigue Beaubois Dallas Mavericks 1,156,080
Zydrunas Ilgauskas Miami Heat 1,352,181
Tim Thomas Dallas Mavericks 1,352,181
Aaron Brooks Houston Rockets 2,016,692
Tyler Hansbrough Indiana Pacers 1,998,600

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
Luc Richard Mbah a Moute Milwaukee Bucks 854,389
George Hill San Antonio Spurs 854,389
Shelden Williams Denver Nuggets 915,852
Leon Powe Cleveland Cavaliers 915,852
Sean May New Jersey Nets 992,680

OVERPAID AND UNDERPAID GOOD ROLE PLAYER / OFTEN GOOD 6TH MAN, CAN POSSIBLY START PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Rudy Gay Memphis Grizzlies 13,603,750
Caron Butler Dallas Mavericks 10,561,960
Mike Dunleavy Indiana Pacers 10,561,384
Corey Maggette Milwaukee Bucks 9,600,000
Devin Harris New Jersey Nets 8,981,000
Kirk Hinrich Washington Wizards 9,000,000
J.J. Redick Orlando Magic 7,250,000
Travis Outlaw New Jersey Nets 7,000,000

OVERPAID: SLIGHTLY OR MODERATELY
Marcin Gortat Orlando Magic 6,322,320
Al Harrington Denver Nuggets 5,765,000
Nenad Krstic Oklahoma Thunder 5,543,116
Drew Gooden Milwaukee Bucks 5,765,000
Louis Williams Philadelphia 76'ers 5,000,000
Jeff Green Oklahoma Thunder 4,455,988
Jarrett Jack Toronto Raptors 4,600,000
Darko Milicic Minnesota Timberwolves 4,325,000

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Dominic McGuire Charlotte Bobcats 854,389
Josh McRoberts Indiana Pacers 885,120
Nicolas Batum Portland Trailblazers 1,196,760
Rudy Fernandez Portland Trailblazers 1,246,680
Anthony Carter Denver Nuggets 1,352,181

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
Reggie Williams Golden State Warriors 762,195
Acie Law Memphis Grizzlies 885,120
Mario Chalmers Miami Heat 854,389

OVERPAID AND UNDERPAID SATISFACTORY ROLE PLAYERS / GENERALLY SHOULD NOT START PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Predrag Stojakovic New Orleans Hornets 14,256,000
Richard Hamilton Detroit Pistons 12,500,000
Kevin Martin Houston Rockets 10,600,005
Hidayet Turkoglu Phoenix Suns 10,215,850
Andrea Bargnani Toronto Raptors 8,500,000
Charlie Villaneuva Detroit Pistons 7,020,000
Leandro Barbosa Toronto Raptors 7,100,000

OVERPAID: SLIGHTLY OR MODERATELY
Wesley Matthews Portland Trailblazers 5,765,000
Linas Kleiza Toronto Raptors 5,000,000
Mickael Pietrus Orlando Magic 5,300,000
Martell Webster Minnesota Timberwolves 4,800,000
Hasheem Thabeet Memphis Grizzlies 4,793,280
O.J. Mayo Memphis Grizzlies 4,456,200
Ryan Gomes Los Angeles Clippers 4,000,000

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
Marcus Thornton New Orleans Hornets 762,195
Jonas Jerebko Detroit Pistons 762,195
Chase Budinger Houston Rockets 780,871
Von Wafer Boston Celtics 992,680

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
None


OVERPAID AND UNDERPAID MARGINAL ROLE PLAYER / SHOULD NOT START EXCEPT IN EMERGENCIES PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Michael Redd Milwaukee Bucks 18,300,000
James Posey Indiana Pacers 7,148,800
Jared Jeffries Houston Rockets 6,883,800
Sasha Vujacic Los Angeles Lakers 5,475,113
Jason Maxiell Detroit Pistons 5,000,000
Darius Songaila New Orleans Hornets 4,818,000
Zaza Pachulia Atlanta Hawks 4,251,250
Hakim Warrick Phoenix Suns 4,250,000

OVERPAID: SLIGHTLY OR MODERATELY
Yi Jianlian Washington Wizards 4,050,499
C.J. Miles Utah Jazz 3,700,000
Derek Fisher Los Angeles Lakers 3,700,000
Will Bynum Detroit Pistons 3,250,000
Raja Bell Utah Jazz 3,000,000
Jonny Flynn Minnesota Timberwolves 3,192,000
Eric Gordon Los Angeles Clippers 3,016,680
Julian Wright Toronto Raptors 2,858,057
Al Thornton Washington Wizards 2,814,196

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
None

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
None


OVERPAID AND UNDERPAID POOR, VERY POOR, AND EXTREMELY POOR / SHOULD NEVER START PLAYERS
-The format is always Player / Team / 2010-11 Salary
-For overpaid players the order is from most overpaid to least overpaid
-For underpaid players the order is from most underpaid to least underpaid
-See the user guide above for why players end up overpaid or underpaid
-Based on salaries and other information correct as of Sept. 1, 2010

EXTREMELY OR VERY OVERPAID
Ben Gordon Detroit Pistons 10,800,000
Jason Kapono Philadelphia 76'ers 6,641,440
Morris Peterson Oklahoma Thunder 6,665,000
DeShawn Stevenson Dallas Mavericks 4,151,786
Andres Nocioni Philadelphia 76'ers 6,850,000
Vladimir Radmanovic Golden State Warriors 6,883,800
DeSagana Diop Charlotte Bobcats 6,478,600
Matt Carroll Charlotte Bobcats 4,300,000
Charlie Bell Golden State Warriors 4,447,792
Chris Wilcox Detroit Pistons 3,000,000
Corey Brewer Minnesota Timberwolves 3,703,472
Ryan Hollins Cleveland Cavaliers 2,333,333
Josh Howard Washington Wizards 3,000,000

OVERPAID: SLIGHTLY OR MODERATELY
Eduardo Najera Charlotte Bobcats 3,000,000
DeMar DeRozan Toronto Raptors 2,453,880
Glen Davis Boston Celtics 3,000,004
Nick Young Washington Wizards 2,630,503
Maurice Evans Atlanta Hawks 2,500,000
Rasual Butler Los Angeles Clippers 2,400,000
Jason Smith Philadelphia 76'ers 2,187,913
Jason Collins Atlanta Hawks 1,223,166
Earl Clark Phoenix Suns 1,898,760
Royal Ivey Oklahoma Thunder 1,200,000
Austin Daye Detroit Pistons 1,803,720
James Johnson Chicago Bulls 1,713,600
Keith Bogans Chicago Bulls 1,600,000

UNDERPAID: SLIGHTLY OR MODERATELY: BARGAINS
None

EXTREMELY OR VERY UNDERPAID: MAJOR BARGAINS
None


========== EXTREMELY OVERPAID PLAYERS BY TEAM ==========
-The format is player / 2010-11 salary
-See the user guide above for why players end up overpaid

Atlanta Hawks
Joe Johnson 16,324,500
Zaza Pachulia 4,251,250

Boston Celtics
Kevin Garnett 18,832,044
Paul Pierce 13,850,000
Ray Allen 10,000,000

Charlotte Bobcats
DeSagana Diop 6,478,600
Matt Carroll 4,300,000

Chicago Bulls
Luol Deng 11,345,000

Cleveland Cavaliers
Antawn Jamison 13,358,905
Ryan Hollins 2,333,333

Dallas Mavericks
Caron Butler 10,561,960
DeShawn Stevenson 4,151,786
Jason Terry 9,873,000
Tyson Chandler 12,600,000

Denver Nuggets
Carmelo Anthony 17,149,244
Kenyon Martin 16,545,454

Detroit Pistons
Ben Gordon 10,800,000
Charlie Villaneuva 7,020,000
Chris Wilcox 3,000,000
Jason Maxiell 5,000,000
Richard Hamilton 12,500,000

Golden State Warriors
Charlie Bell 4,447,792
Monta Ellis 11,000,000
Vladimir Radmanovic 6,883,800

Houston Rockets
Jared Jeffries 6,883,800
Kevin Martin 10,600,005
Yao Ming 17,686,100

Indiana Pacers
James Posey 7,148,800
Mike Dunleavy 10,561,384

Los Angeles Clippers
Chris Kaman 11,800,000

Los Angeles Lakers
Kobe Bryant 24,806,250
Sasha Vujacic 5,475,113

Memphis Grizzlies
Rudy Gay 13,603,750
Zach Randolph 17,666,666

Miami Heat
None

Milwaukee Bucks
Corey Maggette 9,600,000
Michael Redd 18,300,000

Minnesota Timberwolves
Corey Brewer 3,703,472

New Jersey Nets
Devin Harris 8,981,000
Travis Outlaw 7,000,000

New Orleans Hornets
Darius Songaila 4,818,000
Emeka Okafor 11,495,000
Predrag Stojakovic 14,256,000

New York Knicks
Amar'e Stoudemire 16,500,000

Oklahoma Thunder
Morris Peterson 6,665,000

Orlando Magic
J.J. Redick 7,250,000
Rashard Lewis 19,573,711
Vince Carter 17,522,375

Philadelphia 76'ers
Andres Nocioni 6,850,000
Elton Brand 15,959,100
Jason Kapono 6,641,440

Phoenix Suns
Hakim Warrick 4,250,000
Hedo Turkoglu 10,215,850
Jason Richardson 14,444,443

Portland Trailblazers
Brandon Roy 13,603,750
LaMarcus Aldridge 11,244,000

Sacramento Kings
None

San Antonio Spurs
None

Toronto Raptors
Andrea Bargnani 8,500,000
Leandro Barbosa 7,100,000

Utah Jazz
Andrei Kirilenko 17,823,000

Washington Wizards
Gilbert Arenas 17,730,694
Josh Howard 3,000,000
Kirk Hinrich 9,000,000


========== EXTREMELY UNDERPAID PLAYERS (MAJOR BARGAINS) BY TEAM ==========
-The format is player / 2010-11 salary
-See the user guide above for why players end up underpaid

Atlanta Hawks
Al Horford 5,444,857

Boston Celtics
Shaquille O'Neal 1,352,181

Charlotte Bobcats
Dominic McGuire 854,389

Chicago Bulls
Derrick Rose 5,546,160
Joakim Noah 3,128,536

Cleveland Cavaliers
Leon Powe 915,852

Dallas Mavericks
None

Denver Nuggets
Shelden Williams 915,852
Ty Lawson 1,546,560

Detroit Pistons
None

Golden State Warriors
Reggie Williams 762,195

Houston Rockets
None

Indiana Pacers
A.J. Price 762,195
Darren Collison 1,361,040
Roy Hibbert 1,685,280

Los Angeles Clippers
None

Los Angeles Lakers
None

Memphis Grizzlies
Acie Law 885,120

Miami Heat
Carlos Arroyo 1,223,166
Mario Chalmers 854,389

Milwaukee Bucks
Luc Richard Mbah a Moute 854,389

Minnesota Timberwolves
Kevin Love 3,638,280
Kosta Koufos 1,298,640

New Jersey Nets
Sean May 992,680

New Orleans Hornets
None

New York Knicks
None

Oklahoma Thunder
Eric Maynor 1,417,800
Kevin Durant 6,053,663
Serge Ibaka 1,204,200

Orlando Magic
Jason Williams 1,352,181
Ryan Anderson 1,409,040

Philadelphia 76'ers
None

Phoenix Suns
None

Portland Trailblazers
Greg Oden 6,760,524

Sacramento Kings
None

San Antonio Spurs
DeJuan Blair 918,000
George Hill 854,389

Toronto Raptors
None

Utah Jazz
Ronnie Price 1,381,250

Washington Wizards
None

BASKETBALL ECONOMICS ANNUAL REPORTS SUMMARY
Beginning in 2010 there are six of these, four scheduled for September and two scheduled for December:

SEPTEMBER REPORTS
-- NBA Salaries, Payrolls, and Cap Space Report
-- Highest Paid NBA Pro Basketball Players
-- Summary of Team Payrolls and Cap Space
-- Overpaid and Underpaid NBA Players

DECEMBER REPORTS
-- Annual Financial Report for NBA Franchises and Owners
-- Annual Owners, Managers, and Franchises Real Ratings Report

Summary of NBA Team Payrolls and Cap Space For 2010-11 and For 2011-12

The Real Salary Cap (often shortened to Real Cap) is what Quest for the Ring (QFTR) calls what is known to the general public as the luxury tax threshold. This amount is the closest thing the NBA really has to a real salary cap. What the general public thinks of as the salary cap and what is spoken of as the salary cap in the media is NOT by any means a real or actual cap. That is basically a figment of the imagination. For much more information about this and related subjects, and for all NBA salaries for the current year and through 2015-16, see the main payrolls report which is titled "NBA Salaries, Team Payrolls, and Team Salary Cap Space For 2010, 2011, 2012, 2013, 2014, and 2015.

NBA TEAM PAYROLLS AND SALARY CAP STATUS FOR 2010-11, ALPHABETICALLY
-As of September 1, 2010
-Teams are shown in alphabetical order
-Positive percentages and numbers mean the team is above the Real Cap
-Negative percentages and numbers mean the team is below the Real Cap
-The amount in dollars above or below the Real Salary Cap, which of the 3 numbers is the one in the middle, is shaded in blue so of the numbers can be read easily. This amount is also the luxury tax owed.
-The format is Team / Percentage above or below the Real Salary Cap / Amount in dollars above or below the Real Salary Cap / Payroll

Atlanta Hawks -0.27% -188,021 70,118,979
Boston Celtics 45.61% 32,067,514 102,374,514
Charlotte Bobcats 23.38% 16,436,212 86,743,212
Chicago Bulls -19.53% -13,730,635 56,576,365
Cleveland Cavaliers 3.49% 2,452,144 72,759,144
Dallas Mavericks 27.55% 19,370,756 89,677,756
Denver Nuggets 22.76% 16,004,737 86,311,737
Detroit Pistons -6.30% -4,432,552 65,874,448
Golden State Warriors -3.93% -2,759,943 67,547,057
Houston Rockets 20.79% 14,619,322 84,926,322
Indiana Pacers 37.30% 26,223,568 96,530,568
Los Angeles Clippers -24.41% -17,160,390 53,146,610
Los Angeles Lakers 72.60% 51,039,953 121,346,953
Memphis Grizzlies 9.13% 6,417,715 76,724,715
Miami Heat -4.72% -3,318,886 66,988,114
Milwaukee Bucks 14.17% 9,963,897 80,270,897
Minnesota Timberwolves -30.28% -21,286,613 49,020,387
New Jersey Nets -21.04% -14,792,413 55,514,587
New Orleans Hornets 1.48% 1,037,876 71,344,876
New York Knicks -17.66% -12,416,778 57,890,222
Oklahoma Thunder -22.75% -15,994,691 54,312,309
Orklando Magic 57.22% 40,230,037 110,537,037
Philadelphia 76'ers 4.16% 2,922,615 73,229,615
Phoenix Suns -0.64% -453,062 69,853,938
Portland Trailblazers 12.32% 8,663,648 78,970,648
Sacramento Kings -37.04% -26,040,719 44,266,281
San Antonio Spurs 15.75% 11,070,284 81,377,284
Toronto Raptors -5.88% -4,131,341 66,175,659
Utah Jazz 10.21% 7,176,717 77,483,717
Washington Wizards -18.19% -12,789,391 57,517,609

NBA TEAM PAYROLLS AND SALARY CAP STATUS FOR 2010-11, RANKED BY PAYROLL
-As of September 1, 2010
-Teams are shown in highest to lowest payroll order
-Positive percentages and numbers mean the team is above the Real Cap
-Negative percentages and numbers mean the team is below the Real Cap
-The amount in dollars above or below the Real Salary Cap, which of the 3 numbers is the one in the middle, is shaded blue so all the numbers can be read easily. This amount is also the luxury tax owed.
-The format is Team / Percentage above or below the Real Salary Cap / Amount in dollars above or below the Real Salary Cap / Payroll

Los Angeles Lakers 72.60% 51,039,953 121,346,953
Orlando Magic 57.22% 40,230,037 110,537,037
Boston Celtics 45.61% 32,067,514 102,374,514
Indiana Pacers 37.30% 26,223,568 96,530,568
Dallas Mavericks 27.55% 19,370,756 89,677,756
Charlotte Bobcats 23.38% 16,436,212 86,743,212
Denver Nuggets 22.76% 16,004,737 86,311,737
Houston Rockets 20.79% 14,619,322 84,926,322
San Antonio Spurs 15.75% 11,070,284 81,377,284
Milwaukee Bucks 14.17% 9,963,897 80,270,897
Portland Trailblazeers 12.32% 8,663,648 78,970,648
Utah Jazz 10.21% 7,176,717 77,483,717
Memphis Grizzlies 9.13% 6,417,715 76,724,715
Philadelphia 76'ers 4.16% 2,922,615 73,229,615
Cleveland Cavaliers 3.49% 2,452,144 72,759,144
New Orleans Hornets 1.48% 1,037,876 71,344,876
Atlanta Hawks -0.27% -188,021 70,118,979
Phoenix Suns -0.64% -453,062 69,853,938
Golden State Warriors -3.93% -2,759,943 67,547,057
Miami Heat -4.72% -3,318,886 66,988,114
Toronto Raptors -5.88% -4,131,341 66,175,659
Detroit Pistons -6.30% -4,432,552 65,874,448
New York Knicks -17.66% -12,416,778 57,890,222
Washington Wizards -18.19% -12,789,391 57,517,609
Chicago Bulls -19.53% -13,730,635 56,576,365
New Jersey Nets -21.04% -14,792,413 55,514,587
Oklahoma Thunder -22.75% -15,994,691 54,312,309
Los Angeles Clippers -24.41% -17,160,390 53,146,610
Minnesota Timberwolves -30.28% -21,286,613 49,020,387
Sacramento Kings -37.04% -26,040,719 44,266,281

The above shows you the situation for the 2010-11 season. The following shows you the situation for the 2011-12 season. The following shows you how much power to change their currently scheduled rosters each team has. And it in turn shows you roughly how strongly each team will be in the market for trades and other acquisitions from now through and including the summer 2011 off season. Although teams with little or no cap space can and do make trades, teams with the most cap space can more easily make them while following the accounting rules and while avoiding excessive luxury tax.

REAL SALARY CAP SPACE AVAILABLE FOR 2011-12 FOR NBA TEAMS
As of September 1, 2010
Teams are shown in highest to lowest cap space available order
A negative number means the team is already over the Real Cap which however is permitted under League rules
The format is Team / 2011-12 Real Cap Space available as of Sept. 1, 2010

Sacramento Kings 42,894,338
Indiana Pacers 35,448,715
New Jersey Nets 32,298,537
Memphis Grizzlies 31,441,204
Houston Rockets 26,918,959
Oklahoma Thunder 25,543,422
New York Knicks 23,706,752
Cleveland Cavaliers 22,980,273
Minnesota Timberwolves 22,378,444
Milwaukee Bucks 21,014,891
New Orleans Hornets 20,920,691
Phoenix Suns 19,950,756
Golden State Warriors 19,484,527
Los Angeles Clippers 19,392,096
Detroit Pistons 19,118,765
Toronto Raptors 16,881,091
Washington Wizards 16,228,501
Chicago Bulls 14,685,825
Charlotte Bobcats 11,868,423
Dallas Mavericks 11,629,252
Atlanta Hawks 11,399,799
Utah Jazz 11,384,928
San Antonio Spurs 10,560,239
Denver Nuggets 9,350,632
Philadelphia 76'ers 7,109,283
Miami Heat 2,945,453
Boston Celtics -356,430
Porland Trailblazers -4,170,863
Los Angeles Lakers -22,788,093
Orlando Magic -27,173,569

QUEST FOR THE RING BASKETBALL ECONOMICS REPORTS
There are six annual economics Reports (and economics is sometimes worked into other Reports).

SEPTEMBER REPORTS
-- NBA Salaries, Payrolls, and Cap Space Report
-- Highest Paid NBA Pro Basketball Players
-- Summary of Team Payrolls and Cap Space
-- Overpaid and Underpaid NBA Players

DECEMBER REPORTS
-- Annual Financial Report for NBA Franchises and Owners
-- Annual Owners, Managers, and Franchises Real Ratings Report

Highest Paid NBA Pro Basketball Players

THE 100 HIGHEST PAID NBA PRO BASKETBALL PLAYERS RANKED BY SALARY
For 2010-11 as of Sept. 1, 2010
Format is Rank/Player/Team/Salary/Position

SALARY IS MORE THAN A MILLION DOLLARS PER MONTH
1 Kobe Bryant Los Angeles Lakers 24,806,250 SG
2 Rashard Lewis Orlando Magic 19,573,711 PF
3 Tim Duncan San Antonio Spurs 18,835,381 PF
4 Kevin Garnett Boston Celtics 18,832,044 PF
5 Michael Redd Milwaukee Bucks 18,300,000 SG
6 Pau Gasol Los Angeles Lakers 17,823,000 PF
7 Andrei Kirilenko Utah Jazz 17,823,000 SF
8 Gilbert Arenas Washington Wizards 17,730,694 PG
9 Yao Ming Houston Rockets 17,686,100 C
10 Zach Randolph Memphis Grizzlies 17,666,666 PF
11 Vince Carter Orlando Magic 17,522,375 SG
12 Dirk Nowitzki Dallas Mavericks 17,300,000 PF
13 Carmelo Anthony Denver Nuggets 17,149,244 SF
14 Dwight Howard Orlando Magic 16,647,180 C
15 Kenyon Martin Denver Nuggets 16,545,454 PF
16 Amar'e Stoudemire New York Knicks 16,500,000 PF
17 Joe Johnson Atlanta Hawks 16,324,500 SG
18 Elton Brand Philadelphia 76'ers 15,959,100 PF
19 Chris Paul New Orleans Hornets 14,940,153 PG
20 Deron Williams Utah Jazz 14,940,153 PG
21 Chris Bosh Miami Heat 14,500,000 PF
22 LeBron James Miami Heat 14,500,000 SF
23 Jason Richardson Phoenix Suns 14,444,443 SG
24 Carlos Boozer Chicago Bulls 14,400,000 PF
25 Peja Stojakovic New Orleans Hornets 14,256,000 SF
26 Dwyane Wade Miami Heat 14,200,000 SG
27 Paul Pierce Boston Celtics 13,850,000 SF
28 Andrew Bynum Los Angeles Lakers 13,700,000 C
29 Rudy Gay Memphis Grizzlies 13,603,750 SF
30 Brandon Roy Portland Trailblazers 13,603,750 SG
31 Tony Parker San Antonio Spurs 13,500,000 PG
32 Samuel Dalembert Sacramento Kings 13,428,129 C
33 Antawn Jamison Cleveland Cavaliers 13,358,905 PF
34 Chauncey Billups Denver Nuggets 13,150,000 PG
35 Erick Dampier Charlotte Bobcats 13,078,000 C
36 Baron Davis Los Angeles Clippers 13,000,000 PG
37 Al Jefferson Utah Jazz 13,000,000 C
38 Tyson Chandler Dallas Mavericks 12,600,000 C
39 Richard Hamilton Detroit Pistons 12,500,000 SG
40 Andre Iguodala Philadelphia 76'ers 12,345,250 SG

SALARY IS LESS THAN A MILLION DOLLARS A MONTH
41 Troy Murphy New Jersey Nets 11,968,253 PF
42 Manu Ginobili San Antonio Spurs 11,854,584 SG
43 Chris Kaman Los Angeles Clippers 11,800,000 C
44 Marcus Camby Portland Trailblazers 11,749,832 C
45 Josh Smith Atlanta Hawks 11,700,000 PF
46 Emeka Okafor New Orleans Hornets 11,495,000 C
47 Nene Denver Nuggets 11,360,000 C
48 Luol Deng Chicago Bulls 11,345,000 SF
49 Eddy Curry New York Knicks 11,276,863 C
50 LaMarcus Aldridge Portland Trailblazers 11,244,000 PF
51 Tayshaun Prince Detroit Pistons 11,148,760 SF
52 Monta Ellis Golden State Warriors 11,000,000 PG
53 Andrew Bogut Milwaukee Bucks 11,000,000 C
54 Danny Granger Indiana Pacers 10,973,202 SF
55 Ben Gordon Detroit Pistons 10,800,000 SG
56 David Lee Golden State Warriors 10,800,000 C
57 Kevin Martin Houston Rockets 10,600,005 SG
58 Caron Butler Dallas Mavericks 10,561,960 SF
59 Mike Dunleavy Indiana Pacers 10,561,384 SF
60 Gerald Wallace Charlotte Bobcats 10,500,000 SF
61 Steve Nash Phoenix Suns 10,310,938 PG
62 Hedo Turkoglu Phoenix Suns 10,215,850 SF
63 Jamal Crawford Atlanta Hawks 10,080,000 SG
64 Ray Allen Boston Celtics 10,000,000 SG
65 Mehmet Okur Utah Jazz 9,945,000 C
66 Jason Terry Dallas Mavericks 9,873,000 SG
67 Corey Maggette Milwaukee Bucks 9,600,000 SF
68 Mo Williams Cleveland Cavaliers 9,300,000 PG
69 Rajon Rondo Boston Celtics 9,090,909 PG
70 Boris Diaw Charlotte Bobcats 9,000,000 PF
71 Andris Biedrins Golden State Warriors 9,000,000 C
72 Jose Calderon Toronto Raptors 9,000,000 PG
73 Kirk Hinrich Washington Wizards 9,000,000 PG
74 Devin Harris New Jersey Nets 8,981,000 PG
75 Jason Kidd Dallas Mavericks 8,610,500 PG
76 T.J. Ford Indiana Pacers 8,500,000 PG
77 Andrea Bargnani Toronto Raptors 8,500,000 C
78 Stephen Jackson Charlotte Bobcats 8,453,250 SF
79 Richard Jefferson San Antonio Spurs 8,400,000 SF
80 David West New Orleans Hornets 8,287,500 PF
81 Lamar Odom Los Angeles Lakers 8,200,000 PF
82 John Salmons Milwaukee Bucks 8,000,000 SF
83 Luis Scola Houston Rockets 7,800,000 PF
84 Jameer Nelson Orlando Magic 7,800,000 PG
85 Paul Millsap Utah Jazz 7,600,000 PF
86 Joel Przybilla Portland Trailblazers 7,405,300 C
87 Shane Battier Houston Rockets 7,354,500 SF
88 Anderson Varejao Cleveland Cavaliers 7,281,818 C
89 Andre Miller Portland Trailblazers 7,269,264 PG
90 Marvin Williams Atlanta Hawks 7,262,500 PF
91 J.J. Redick Orlando Magic 7,250,000 SG
92 Dan Gadzuric Golden State Warriors 7,248,325 C
93 James Posey Indiana Pacers 7,148,800 SF
94 Leandro Barbosa Toronto Raptors 7,100,000 SG
95 Shawn Marion Dallas Mavericks 7,055,500 SF
96 Charlie Villaneuva Detroit Pistons 7,020,000 PF
97 Travis Outlaw New Jersey Nets 7,000,000 SF
98 Raymond Felton New York Knicks 7,000,000 PG
99 Brendan Haywood Dallas Mavericks 6,900,000 C
100 Nazr Mohammed Charlotte Bobcats 6,883,800 C

THE 100 HIGHEST PAID NBA PRO BASKETBALL PLAYERS ALPHABETICALLY
For 2010-11 as of Sept. 1, 2010
Format is Rank/Player/Team/Salary/Position
Players making more than a million dollars a month are highlighted in green

37 Al Jefferson Utah Jazz 13,000,000 C
16 Amar'e Stoudemire New York Knicks 16,500,000 PF
88 Anderson Varejao Cleveland Cavaliers 7,281,818 C
40 Andre Iguodala Philadelphia 76'ers 12,345,250 SG
89 Andre Miller Portland Trailblazers 7,269,264 PG
77 Andrea Bargnani Toronto Raptors 8,500,000 C
7 Andrei Kirilenko Utah Jazz 17,823,000 SF
53 Andrew Bogut Milwaukee Bucks 11,000,000 C
28 Andrew Bynum Los Angeles Lakers 13,700,000 C
71 Andris Biedrins Golden State Warriors 9,000,000 C
33 Antawn Jamison Cleveland Cavaliers 13,358,905 PF
36 Baron Davis Los Angeles Clippers 13,000,000 PG
55 Ben Gordon Detroit Pistons 10,800,000 SG
70 Boris Diaw Charlotte Bobcats 9,000,000 PF
30 Brandon Roy Portland Trailblazers 13,603,750 SG
99 Brendan Haywood Dallas Mavericks 6,900,000 C
24 Carlos Boozer Chicago Bulls 14,400,000 PF
13 Carmelo Anthony Denver Nuggets 17,149,244 SF
58 Caron Butler Dallas Mavericks 10,561,960 SF
96 Charlie Villaneuva Detroit Pistons 7,020,000 PF
34 Chauncey Billups Denver Nuggets 13,150,000 PG
21 Chris Bosh Miami Heat 14,500,000 PF
43 Chris Kaman Los Angeles Clippers 11,800,000 C
19 Chris Paul New Orleans Hornets 14,940,153 PG
67 Corey Maggette Milwaukee Bucks 9,600,000 SF
92 Dan Gadzuric Golden State Warriors 7,248,325 C
54 Danny Granger Indiana Pacers 10,973,202 SF
56 David Lee Golden State Warriors 10,800,000 C
80 David West New Orleans Hornets 8,287,500 PF
20 Deron Williams Utah Jazz 14,940,153 PG
74 Devin Harris New Jersey Nets 8,981,000 PG
12 Dirk Nowitzki Dallas Mavericks 17,300,000 PF
14 Dwight Howard Orlando Magic 16,647,180 C
26 Dwyane Wade Miami Heat 14,200,000 SG
49 Eddy Curry New York Knicks 11,276,863 C
18 Elton Brand Philadelphia 76'ers 15,959,100 PF
46 Emeka Okafor New Orleans Hornets 11,495,000 C
35 Erick Dampier Charlotte Bobcats 13,078,000 C
60 Gerald Wallace Charlotte Bobcats 10,500,000 SF
8 Gilbert Arenas Washington Wizards 17,730,694 PG
62 Hedo Turkoglu Phoenix Suns 10,215,850 SF
91 J.J. Redick Orlando Magic 7,250,000 SG
63 Jamal Crawford Atlanta Hawks 10,080,000 SG
84 Jameer Nelson Orlando Magic 7,800,000 PG
93 James Posey Indiana Pacers 7,148,800 SF
75 Jason Kidd Dallas Mavericks 8,610,500 PG
23 Jason Richardson Phoenix Suns 14,444,443 SG
66 Jason Terry Dallas Mavericks 9,873,000 SG
17 Joe Johnson Atlanta Hawks 16,324,500 SG
86 Joel Przybilla Portland Trailblazers 7,405,300 C
82 John Salmons Milwaukee Bucks 8,000,000 SF
72 Jose Calderon Toronto Raptors 9,000,000 PG
45 Josh Smith Atlanta Hawks 11,700,000 PF
15 Kenyon Martin Denver Nuggets 16,545,454 PF
4 Kevin Garnett Boston Celtics 18,832,044 PF
57 Kevin Martin Houston Rockets 10,600,005 SG
73 Kirk Hinrich Washington Wizards 9,000,000 PG
1 Kobe Bryant Los Angeles Lakers 24,806,250 SG
81 Lamar Odom Los Angeles Lakers 8,200,000 PF
50 LaMarcus Aldridge Portland Trailblazers 11,244,000 PF
94 Leandro Barbosa Toronto Raptors 7,100,000 SG
22 LeBron James Miami Heat 14,500,000 SF
83 Luis Scola Houston Rockets 7,800,000 PF
48 Luol Deng Chicago Bulls 11,345,000 SF
42 Manu Ginobili San Antonio Spurs 11,854,584 SG
44 Marcus Camby Portland Trailblazers 11,749,832 C
90 Marvin Williams Atlanta Hawks 7,262,500 PF
65 Mehmet Okur Utah Jazz 9,945,000 C
5 Michael Redd Milwaukee Bucks 18,300,000 SG
59 Mike Dunleavy Indiana Pacers 10,561,384 SF
68 Mo Williams Cleveland Cavaliers 9,300,000 PG
52 Monta Ellis Golden State Warriors 11,000,000 PG
100 Nazr Mohammed Charlotte Bobcats 6,883,800 C
47 Nene Denver Nuggets 11,360,000 C
6 Pau Gasol Los Angeles Lakers 17,823,000 PF
85 Paul Millsap Utah Jazz 7,600,000 PF
27 Paul Pierce Boston Celtics 13,850,000 SF
25 Peja Stojakovic New Orleans Hornets 14,256,000 SF
69 Rajon Rondo Boston Celtics 9,090,909 PG
2 Rashard Lewis Orlando Magic 19,573,711 PF
64 Ray Allen Boston Celtics 10,000,000 SG
98 Raymond Felton New York Knicks 7,000,000 PG
39 Richard Hamilton Detroit Pistons 12,500,000 SG
79 Richard Jefferson San Antonio Spurs 8,400,000 SF
29 Rudy Gay Memphis Grizzlies 13,603,750 SF
32 Samuel Dalembert Sacramento Kings 13,428,129 C
87 Shane Battier Houston Rockets 7,354,500 SF
95 Shawn Marion Dallas Mavericks 7,055,500 SF
78 Stephen Jackson Charlotte Bobcats 8,453,250 SF
61 Steve Nash Phoenix Suns 10,310,938 PG
76 T.J. Ford Indiana Pacers 8,500,000 PG
51 Tayshaun Prince Detroit Pistons 11,148,760 SF
3 Tim Duncan San Antonio Spurs 18,835,381 PF
31 Tony Parker San Antonio Spurs 13,500,000 PG
97 Travis Outlaw New Jersey Nets 7,000,000 SF
41 Troy Murphy New Jersey Nets 11,968,253 PF
38 Tyson Chandler Dallas Mavericks 12,600,000 C
11 Vince Carter Orlando Magic 17,522,375 SG
9 Yao Ming Houston Rockets 17,686,100 C
10 Zach Randolph Memphis Grizzlies 17,666,666 PF

HIGHEST PAID NBA POINT GUARDS
Gilbert Arenas Washington Wizards 17,730,694
Chris Paul New Orleans Hornets 14,940,153
Deron Williams Utah Jazz 14,940,153
Tony Parker San Antonio Spurs 13,500,000
Chauncey Billups Denver Nuggets 13,150,000
Baron Davis Los Angeles Clippers 13,000,000
Monta Ellis Golden State Warriors 11,000,000
Steve Nash Phoenix Suns 10,310,938
Mo Williams Cleveland Cavaliers 9,300,000
Rajon Rondo Boston Celtics 9,090,909
Jose Calderon Toronto Raptors 9,000,000
Kirk Hinrich Washington Wizards 9,000,000
Devin Harris New Jersey Nets 8,981,000
Jason Kidd Dallas Mavericks 8,610,500
T.J. Ford Indiana Pacers 8,500,000

HIGHEST PAID NBA SHOOTING GUARDS
Kobe Bryant Los Angeles Lakers 24,806,250
Michael Redd Milwaukee Bucks 18,300,000
Vince Carter Orlando Magic 17,522,375
Joe Johnson Atlanta Hawks 16,324,500
Jason Richardson Phoenix Suns 14,444,443
Dwyane Wade Miami Heat 14,200,000
Brandon Roy Portland Trailblazers 13,603,750
Richard Hamilton Detroit Pistons 12,500,000
Andre Iguodala Philadelphia 76'ers 12,345,250
Manu Ginobili San Antonio Spurs 11,854,584
Ben Gordon Detroit Pistons 10,800,000
Kevin Martin Houston Rockets 10,600,005
Jamal Crawford Atlanta Hawks 10,080,000
Ray Allen Boston Celtics 10,000,000
Jason Terry Dallas Mavericks 9,873,000

HIGHEST PAID NBA SMALL FORWARDS
Andrei Kirilenko Utah Jazz 17,823,000
Carmelo Anthony Denver Nuggets 17,149,244
LeBron James Miami Heat 14,500,000
Predrag Stojakovic New Orleans Hornets 14,256,000
Paul Pierce Boston Celtics 13,850,000
Rudy Gay Memphis Grizzlies 13,603,750
Luol Deng Chicago Bulls 11,345,000
Tayshaun Prince Detroit Pistons 11,148,760
Danny Granger Indiana Pacers 10,973,202
Caron Butler Dallas Mavericks 10,561,960
Mike Dunleavy Indiana Pacers 10,561,384
Gerald Wallace Charlotte Bobcats 10,500,000
Hedo Turkoglu Phoenix Suns 10,215,850
Corey Maggette Milwaukee Bucks 9,600,000
Stephen Jackson Charlotte Bobcats 8,453,250

HIGHEST PAID NBA POWER FORWARDS
Rashard Lewis Orlando Magic 19,573,711
Tim Duncan San Antonio Spurs 18,835,381
Kevin Garnett Boston Celtics 18,832,044
Pau Gasol Los Angeles Lakers 17,823,000
Zach Randolph Memphis Grizzlies 17,666,666
Dirk Nowitzki Dallas Mavericks 17,300,000
Kenyon Martin Denver Nuggets 16,545,454
Amar'e Stoudemire New York Knicks 16,500,000
Elton Brand Philadelphia 76'ers 15,959,100
Chris Bosh Miami Heat 14,500,000
Carlos Boozer Chicago Bulls 14,400,000
Antawn Jamison Cleveland Cavaliers 13,358,905
Troy Murphy New Jersey Nets 11,968,253
Josh Smith Atlanta Hawks 11,700,000
LaMarcus Aldridge Portland Trailblazers 11,244,000

HIGHEST PAID NBA CENTERS
Yao Ming Houston Rockets 17,686,100
Dwight Howard Orlando Magic 16,647,180
Andrew Bynum Los Angeles Lakers 13,700,000
Samuel Dalembert Sacramento Kings 13,428,129
Erick Dampier Charlotte Bobcats 13,078,000
Al Jefferson Utah Jazz 13,000,000
Tyson Chandler Dallas Mavericks 12,600,000
Chris Kaman Los Angeles Clippers 11,800,000
Marcus Camby Portland Trailblazers 11,749,832
Emeka Okafor New Orleans Hornets 11,495,000
Nene Denver Nuggets 11,360,000
Eddy Curry New York Knicks 11,276,863
Andrew Bogut Milwaukee Bucks 11,000,000
David Lee Golden State Warriors 10,800,000
Mehmet Okur Utah Jazz 9,945,000

NBA MINIMUM AND MAXIMUM SALARIES
The Collective Bargaining Agreement sets out minimum and maximum salaries. Minimum salaries are as follows. The first number is number of years in the NBA not counting the current year:

0 $474,000
1 $762,000
2 $854,000
3 $885,000
4 $916,000
5 $993,000
6 $1,070,000
7 $1,146,000
8 $1,223,000
9 $1,229,000
10+ $1,352,000

Maximum salaries are as follows. The first number is number of years in the NBA not counting the current year:

0 $13,604,000
1 $13,604,000
2 $13,604,000
3 $13,604,000
4 $13,604,000
5 $13,604,000
6 $13,604,000
7 $16,324,000
8 $16,324,000
9 $16,324,000
10+ $19,045,000

Somehow Kobe Bryant and the Los Angeles Lakers are allowed to violate the maximum salary rule (or much less likely but possibly we have wrong information for Kobe) because we have it that Bryant's salary for 2010-11 is almost 25 million dollars.

QUEST FOR THE RING BASKETBALL ECONOMICS REPORTS
There are six annual economics Reports (and economics is sometimes worked into other Reports).

SEPTEMBER REPORTS
-- NBA Salaries, Payrolls, and Cap Space Report
-- Highest Paid NBA Pro Basketball Players
-- Summary of Team Payrolls and Cap Space
-- Most Overrated and Overpaid NBA Players and the Most Underpaid and Underrated NBA Players

DECEMBER REPORTS
-- Annual Financial Report for NBA Franchises and Owners
-- Annual Owners, Managers, and Franchises Real Ratings Report

NBA Player Salaries, Team Payrolls, and Team Salary Cap Space For 2010, 2011, 2012, 2013, 2014, and 2015

For 2010 a full scale User Guide has been produced for the annual NBA Salaries and Payrolls Report. It follows immediately and then the spreadsheet showing the salaries and payroll numbers themselves follows the Guide. Also, the following User Guide is being added to the Quest for the Ring Reference page.

The User Guide is useful for everyone up to including NBA players, coaches, managers and owners. Section headers are used and although we recommend reading the whole guide, those who don’t have the time to read the whole thing can use the headers to choose sections to read.

NBA SALARIES AND PAYROLLS REPORT USER GUIDE
“NBA Salaries and Payrolls” is an annual Quest for the Ring (QFTR) report scheduled for September. All of the information in this year’s version is correct as of September 1, 2010. Unfortunately, we don’t have the resources to update and revise this report during the season. If traffic to QFTR were higher, we would increase the time available for producing QFTR in which case the Salaries and Payrolls Report could and would be updated at least once every two or three months.

If this database were updated continuously, it would show among many other things which free agents were available (unsigned) at any point in time. There are a very small number of places in the Internet which track unsigned free agents, but if you could do that at this database you could see the salaries that are going to the signed players in the same place.

SOURCE OF THE MULTI-YEAR PLAYER SALARIES
Current year ONLY salaries are available on some of the big corporate sites including ESPN. They are shown at team rosters and/or on player pages and not all in one place, however. And I and other high level basketball people need more than just current year salaries. What is needed for a high level look at this subject is salaries for the next several years as well. After all, most contracts are multi-year, and what matters when you are considering how a team will be changing in the future is how much total payroll has already been contracted for in those future years, which in turn determines how much cap space (room) there is available for new players to be brought on to the team.

Future year player salaries and especially certain contract details are apparently “supposed to” remain secret. For this reason and/or because of perceived low interest, very high traffic Sites such as ESPN and most moderate traffic sites do not have multi-year player salary information or contract details anywhere on their Sites. But even though this information is relatively hard to come by, you can get it from at least a tiny number of sources if you look for it hard enough.

The everyday public doesn’t seem to be greatly interested in specific player salary information and in team payroll totals per se. There is more interest in next year’s scheduled cap space (for signing new players) than there is in the current team payrolls and in player salaries. The problem is, you have to know what the future year salaries are to be able to project out the cap space in those years.

Smart people and basketball insiders (and they are often not the same thing, laugh out loud) are going to need and be interested in both cap space projections and also in specific year by year salaries for NBA players (and some will be interested in other contract details).

One of the most important and interesting things you can do with the salary data is to find out who is relatively overpaid and overrated and who is relatively underpaid and underrated. (How did you guess, QFTR is doing this now; more details on this below.)

The root source of the multi-year pro basketball player salaries in this QFTR Report is an obscure Internet site. I slightly sarcastically call any very valuable Site that seldom if ever appears on page one of Google search results “obscure”. Such sites are obscure primarily due to Google’s failure to develop a more all inclusive search engine. QFTR is also “obscure although not as much as in the past because it does lately appear on page one for unusual searches where we have about the only Report out on the subject.

Our source is, very surprisingly, the only known place where the salary data is both multi-year and is currently being updated on at least a monthly basis. But even our source for the specific player salaries does not update on a daily or a weekly basis. It seems he updates once or twice a month. Although quite honestly I don’t know where the producer of our source gets the multi-year salaries (because he doesn’t say) I strongly believe that the information is mostly accurate and current.

By rights anyone should be able to get the multi-year salary information off ESPN or off NBA.com but both of those are examples of Sites which refuse to provide it. I would think they could provide it if they wanted to. But ESPN is better than USA Today, which roughly two years ago completely discontinued its reporting of even current NBA player salaries.

I can right off the bat give you two reasons why salary and other contract information for at least the next five years should be by rights public information. (There must be more reasons than these but two will suffice here.) First, fans help pay players salaries when they go to games and buy merchandise and pay satellite TV bills and so on. So they have a right to see just what dollar amounts they are paying for. Second, you absolutely have to look at salary information to determine how well or how badly a team is being managed. Fans have a right to investigate whether a team is being well managed or not.

QFTR takes only the individual player salary numbers (which we do think should be completely public information) from our source. We don’t reproduce anything else from the source. To the contrary, we creatively mash up, reformat, and heavily customize the payroll numbers and include our own original narratives to go with them. Even many of the team payroll totals from the source were changed for our Report which unlike our source ignores many of the minute contract distinctions between players.

Where our source gets his information (the “ultimate source”) is completely a mystery. His source(s) is likely not another web Site because were there an ultimate source on the Internet I would have found it myself. As far as the Internet is concerned, and although there are a handful of other sources, his information is the best and the most often updated and so he is the “ultimate source”.

COMPANION REPORTS TO “NBA SALARIES, PAYROLLS, AND CAP SPACE”
The first companion Report is “Highest Paid NBA Pro Basketball Players”. This is a simple Report which is largely self explanatory. Shown alphabetically and also shown ranked by salary are the highest paid 100 players in the NBA. Along with the salaries, teams and positions are shown. Players making more than a million dollars a month (more than twelve million dollars a year) are highlighted. Separately, the highest paid players by position are shown. For example, you can see who the highest paid 15 point guards are.

The second new companion Report to the main Salaries and Payrolls Report is called “Summary of Team Payrolls and Cap Space”. Most of the information in this is embedded in the main Report, but you can not compare the overall team situations easily and quickly in that one, so a separate team summary is very useful. In the Summary, current team payrolls are shown by team both alphabetically and ranked by payroll. Both absolute payroll numbers, absolute differences from the real salary cap and the percentages by which team payrolls differ from the real salary cap are all shown. Also in the Summary of Team Payrolls and Cap Space Report I have the current projection of how much cap space there is for each team for next year, for in this case 2011-12.

You could just eyeball the salaries and make rough estimates of who is overpaid and who is underpaid. But you can’t determine who is overpaid and who is underpaid completely, accurately, and fairly unless you have some kind of a complete, accurate, and fair player rating system. QFTR has such a system: Real Player Ratings (RPRs). Since this is a great new way to make use of RPR, starting in September 2010, QFTR has scheduled the following annual Report: “Most Overrated and Overpaid Players and Most Underpaid and Underrated Players”. This is the third of three companion Reports to “NBA Player Salaries, Team Payrolls and Team Cap Space”.

The four September payroll Reports are all under the category Basketball Economics. There are two more important annual Reports under this category scheduled for December.

-- Annual Financial Report for NBA Franchises and Owners
-- Annual Owners, Managers, and Franchises Real Ratings Report

The first one covers the basic financial facts about the teams and the owners. In the second one we creatively mash, extend, and alter the presentation of basic underlying facts in order to reveal which teams, managers and owners are winning financially and to reveal which of them are doing what is needed to win the Quest for the Ring and which are not.

BASKETBALL ECONOMICS ANNUAL REPORTS SUMMARY
Beginning in 2010 there are six of these, four scheduled for September and two scheduled for December:

SEPTEMBER REPORTS
-- NBA Salaries, Payrolls, and Cap Space Report
-- Highest Paid NBA Pro Basketball Players
-- Summary of Team Payrolls and Cap Space
-- Most Overrated and Overpaid NBA Players and the Most Underpaid and Underrated NBA Players

DECEMBER REPORTS
-- Annual Financial Report for NBA Franchises and Owners
-- Annual Owners, Managers, and Franchises Real Ratings Report

THE SALARY CAP MYTH
It is common knowledge that the NBA has a salary cap. But a true salary cap means that any team violating it is kicked out the League. The NBA has what is known as a “soft cap” which is one of those goofy terms indicating a goofy reality. In fact, nothing at all bad happens to a team when its payroll exceeds the salary cap. In fact, a good thing usually happens when a teams’ payroll exceeds the salary cap: it becomes a better team! Currently about twelve million dollars higher than the salary cap is the “luxury tax threshold”. This is much more of a cap than the salary cap is because there is a penalty for going over it: the team must pay a penalty tax to the League equal to the amount by which its payroll exceeds the luxury tax threshold.

Quest for the Ring calls the official NBA salary cap the “Base Cap” and it calls the luxury tax threshold the “Real Cap”. These terms, although major improvements over how the general public describes these amounts, are still a little misleading. Again, what the general public thinks of as the salary cap and what QFTR calls the base cap is not really a cap at all since there is no penalty for exceeding it. As of Sept. 1, 2010, 22 out of the 30 NBA teams are over the base cap (or salary cap to the general public).

Instead of being a real, legal cap, the base cap is actually one of the most important accounting numbers used for maintaining compliance with the Collective Bargaining Agreement (the CBA, which governs relations between owners and players). There must be hundreds of rules and regulations embedded in the CBA and a good number of them involve the base cap.

In dollars the 2010-11 Base Cap is $58,044,000 and the 2011-11 Real Cap is $70,307,000.

TEAMS BELOW THE BASE CAP
Teams whose payrolls do not exceed the base cap are mostly rebuilding teams who are working on a multi-year plan to become competitive in The Quest for the Ring. Although it is theoretically possible to be competitive while being below the base cap, it is very very difficult. In order to be competitive with a team payroll less than the base cap, a team would have to have both several very low paid outstanding rookies and second year players AND it would have to have at least three superstar or higher veteran players who were making less money than you would expect them to be making. Plus it would have to have outstanding coaching.

Most likely, the best possible result a team whose payroll is under the base cap can achieve is be to win two playoff series. Winning a conference final would be next to impossible and winning a Championship would be just about literally impossible.

TEAMS BELOW THE BASE CAP AS OF SEPTEMBER 1, 2010
Shown from higher to lower and rounded to the nearest million
--New York Knicks, about 12 million dollars below the real cap
--Washington Wizards, about 13 million dollars below the real cap
--Chicago Bulls, about 14 million dollars below the real cap
--New Jersey Nets, about 15 million dollars below the real cap
--Oklahoma Thunder, about 16 million dollars below the real cap
--Los Angeles Clippers, about 17 million dollars below the real cap
--Minnesota Timberwolves, about 21 million dollars below the real cap
--Sacramento Kings, about 26 million dollars below the real cap

Of these there are two teams who realistically have a chance at achieving the miracle of outstanding performance and achievement despite having a low, below the base cap payroll: The Chicago Bulls and the Oklahoma Thunder. These two teams have to some extent very young, surprisingly good superstars and they also have a few underpaid and underrated veterans (or at least veterans who are recognized as being better than expected). The other six teams are in rebuilding mode and are not seriously contending for the Championship in 2010-11. Note that there are other rebuilding teams than these six; teams in rebuilding do not automatically have to have payrolls below the base cap although they often do.

THE LUXURY TAX TRESHOLD IS THE REAL CAP
QFTR calls the luxury tax threshold the “Real Cap”. If and when the team payroll goes above this level, the owner must pay the amount of the overage as a tax to the League. The tax money collected can be and apparently often is substantially distributed back to teams but mostly to or exclusively to teams who did not go over the Real Cap and who did not pay the tax. Therefore, approximately speaking, when a team goes over the Real Cap, the owner of that team must financially assist, to a limited extent anyway, the owners who were more financially conservative and did not go over the Real Cap.

TEAMS ABOVE THE BASE CAP BUT BELOW THE REAL CAP
In general, the odds that a team whose payroll is above the base cap but below the real cap can win the Quest for the Ring are low. Although teams in this payroll category do not need as great a miracle to win the Quest as teams operating below the base cap, they do generally need, just as with those teams operating below the base cap, a combination of at least two solid starter-rated or better low paid rookies and at least two superstar veterans who are paid less than they could be paid if they demanded every dollar they could get on the open market.

Generally speaking, at this payroll level the very best a team can possibly hope for is to win a Conference Final (but then lose the Championship). It would be an “exception to the rule” if a team above the base cap but below the real cap won The Quest for the Ring.

TEAMS ABOVE THE BASE CAP BUT BELOW THE REAL CAP AS OF SEPTEMBER 1, 2010
Shown from higher to lower and rounded to the nearest million
--Atlanta Hawks, less than a million dollars below the real cap
--Phoenix Suns, less than a million dollars below the real cap
--Golden State Warriors, about 3 million dollars below the real cap
--Miami Heat, about 3 million dollars below the real cap
--Toronto Raptors, about 4 million dollars below the real cap
--Detroit Pistons, about 4 million dollars below the real cap

Well, there on that list is a plausible exception to the rule that you have to go over the Real Cap in order to actually win the Quest. The 2010-11 Miami Heat, who are clearly prime contenders due to superstars Dwyane Wade, LeBron James, and Chris Bosh literally conspiring to combine together and accept less money than they might get separately elsewhere, are a textbook example of an exception to the rule.

However, anyone reading this has just come upon what will be one of the biggest reasons why the Miami Heat do not win the 2011 Quest assuming they don’t: that teams generally can not and do not win the Quest unless they violate both the base cap and the real cap. In other words and generally speaking, a team has to exceed the real cap and pay the luxury tax by at least a few million dollars in order to have a real shot at winning the Quest. Specifically, although the Miami Heat obviously has the superstar veterans working on the cheap, do they have the other necessity? Does the Miami Heat have at least a couple of star or at least very good solid starter type rookies or early year players who automatically are working on the cheap (because in general most players in their early years get paid relatively little regardless of whether they are stars or not)? If they don’t have at least a couple of stars or rock bottom minimum very good solid starters to go along with their three conspiratorial superstars, it will be very difficult for the Miami Heat to beat the Los Angeles Lakers which has the sky high mother of all payrolls, in 2011.

TEAMS ABOVE THE REAL CAP
According to economics theory but generally speaking and subject to exceptions, teams need to violate both the base cap and the real cap in order to maximize their chances to win The Quest for the Ring. If a team lives behind the fiction that there is a real, legal salary cap in the NBA, it may very well never ever win the Quest.

Economically speaking, the more you invest in something the greater the returns are supposed to be and often are. In basketball the return for investing in payroll is supposed to be not so much more regular season wins (you can get a lot of those even with a payroll slightly below the real cap) but more playoff wins and a greater probability of winning one or more Championships.

Summary, rough rules of thumb for team classification based on payrolls are as follows. Teams with payrolls less than the base cap are rebuilding. Teams with payrolls greater than the base cap but less than the real cap are out to win as many regular season games as possible but probably won’t be winning many playoff games to speak of. And teams with payrolls greater than the real cap are the ones in the hunt for a good number of playoff wins and possibly for one or more Championships. In case you need a reminder, what this means is that in reality there is no real, true, full scale salary cap in the NBA. What there is in instead is a penalty to be paid by the most aggressive owners regarding payroll. So the luxury tax is ultimately sort of a tax on “sparing no expense and going all out to win the Quest”. But its a tax, its not getting kicked out of the League as it would be if there was a hard cap.

The owners of the following teams, as of September 1, 2010, are willing to pay a tax up to about nine million dollars to try to get a competitive edge over owners not willing to go over the real cap (and not willing to pay any luxury tax).

HIGH, PAYROLL TEAMS AS OF SEPTEMBER 1, 2010
Shown from higher to lower and rounded to the nearest million
These teams are up to about nine million dollars above the Real Cap (luxury tax threshold)
--Portland Trailblazers, about 9 million dollars over the real cap
--Utah Jazz, about 7 million dollars over the real cap
--Memphis Grizzlies, about 6 million dollars over the real cap
--Philadelphia 76’ers, about 3 million dollars over the real cap
--Cleveland Cavaliers, about 2 million dollars over the real cap
--New Orleans Hornets, about 1 million dollars over the real cap

The owners of the following teams, as of September 1, 2010, are willing to pay a tax of ten million dollars or more in order to maximize the odds they can win the Quest with the extremely important asset of a large payroll:

HIGHEST PAYROLL TEAMS AS OF SEPTEMBER 1, 2010
Shown from higher to lower and rounded to the nearest million
These teams are about 10 million dollars and more higher than the Real Cap (or luxury tax threshold)
--Los Angeles Lakers, about 51 million dollars over the real cap
--Orlando Magic, about 40 million dollars over the real cap
--Boston Celtics, about 32 million dollars over the real cap
--Indiana Pacers, about 26 million dollars over the real cap
--Dallas Mavericks, about 19 million dollars over the real cap
--Charlotte Bobcats, about 16 million dollars over the real cap (see note below)
--Denver Nuggets, about 16 million dollars over the real cap
--Houston Rockets, about 11 million dollars over the real cap
--San Antonio Rockets, about 10 million dollars over the real cap
--Milwaukee Bucks, about 10 million dollars over the real cap

Note, the Charlotte Bobcats in the spreadsheets (which are as of September 1 2010 with absolutely no update from that date to avoid inconsistency) are shown as being about 16 million dollars over the real cap. But later in September the Bobcats got rid of Erick Dampier and his 13.1 million salary to avoid most of the luxury tax.

See the Report called “Summary of Team Payrolls and Cap Space” for more including the percentages by which the teams are over or less than the real cap.

NBA SALARIES, PAYROLL AND CAP SPACE SPREADSHEET DETAILS
The extensive formatting we have done in the worksheet means that many, probably most aspects of the spreadsheet are self explanatory. We will naturally cover only the tricky stuff here.

INJURED PLAYERS
Players who are injured and may not play some or all of the season are included in the real actual pay column for 2010-11 (and any future contract years) if and only if they have not been waived or put on the inactive reserve status. It is not possible to accurately predict how much a player currently injured will play, so their pay is included in full. If you know that a certain player is not playing due to injury, you can subtract that player's pay to determine the actual, effective real team payroll.

PLAYERS “SHADED IN GREY”
Players shaded in white are for the most part players who are definitely going to be on the roster when the season starts and most of them are definitely going to be playing.

Players shaded in grey are for some reason not going to be playing for the team they are listed under. They may have been waived, they may have retired, or in some cases they are likely to be soon on another team because another team has signed an offer sheet for them. The reason they are shown at all is that in most cases the team they are departing from still (at the moment at least) has to count their salary under the salary cap rules. In other words, under the rules a team must sometimes count pay from a year of a players’ contract in its salary cap accounting.

SPECIFIC CHARACTERISTICS OF PLAYERS SHADED IN GREY
Some players shaded in grey have numbers in one or more salaries by year columns and others do not have a number in any of them (but only in the salary cap accounting column). I am thinking that both types are going to be a mix of very different players. Some of them will be young players who are trying to earn a spot on the team. Some of them are going to be waived players that our source has not yet removed. Given the time of the year, there are going to be a good number of players who are going to be waived between September 1 and when the season starts. Some others of them are going to be retired players. A small number of them are going to be players who do in fact have signed contracts but are refusing to play until some uncertain future date. I think Point Guard Ricky Rubio of the Timberwolves is in this category.

Only a few teams are showing any players shaded in grey who have no salaries showing in any of the salaries by year columns: the Bulls, the Clippers, the Heat, the Timberwolves, the Nets, the Knicks, the Thunder and the Wizards. Among those, the Clippers and the Knicks have ONLY players shaded in grey with no salary numbers at all. Whereas with all the other teams, ALL players shaded in grey ALL have salary numbers showing in at least one year.

Quite honestly, I can not explain these inconsistencies. If I had to guess, I’d say the main reason is that different teams are reporting players who are trying out for the team differently and/or the source of our source is inconsistently reporting this information. It would seem logical too that as of September 1 some teams will already be close to set on what their opening day rosters will be whereas other teams are trying out numerous players. How many players are welcome to try out for a team and how many are still actively trying out as of September 1 is going to vary a lot from one team to another.

Why will that vary? First, notice that support for this theory is provided by the fact that most of the teams showing very few players trying out for the team have older coaches who are well known for being stingy toward and doubtful about the potential contributions of young and of inexperienced players, for example, Jerry Sloan of the Jazz and George Karl for the Nuggets. Whereas the teams that are showing a far larger number of players trying out are coached by and/or managed by folks who are not as negatively disposed toward young and inexperienced players. The bottom line is that some teams are much more interested than others in trying out free agents of various ages who are trying to get a contract, including young, undrafted players who are trying to get their first NBA contracts. There are some good NBA players who were never drafted but worked their way into a teams’ roster nevertheless and went on from there.

Is it better for coaches and managers to try out as many players as they can fairly or is it better for coaches and managers to settle on their rosters many weeks before the season starts? That is a simple question. The former is much better than the latter for everyone involved.

WHAT’S UP WITH PLAYERS SHOWING FUTURE YEAR SALARIES BUT NONE THIS YEAR
If you are a detailed oriented person you might notice that some of the players shaded in grey don’t have a salary showing for 2010-11 but they do have a salary showing for one or more future years. I am thinking that these numbers are in many cases going to “fall away” before those years actually get here under the complicated salary cap accounting rules. Don’t quote me on that because that is really just an educated guess and that subject is one of those arcane salary cap accounting rules. In any event, those numbers do NOT mean that those players are going to be paid those amounts of money in those years whereas players not shaded in grey ARE going to be paid the amounts shown unless somehow the contract is terminated early.

IF THEY AIN'T PLAYING THEY AIN'T GETTING PAID
Very few if any players who are not going to be playing but whose pay is being counted toward the team payroll total under the rules are actually going to be paid anything in the coming year. This is true regardless of whether there are salary numbers showing for them in the actual salary by year columns or not. On the other hand, a few such players are going to be paid for this or that special, detailed reason.

THE CURRENT SITUATION IS SHOWN BY THE FIRST TWO COLUMNS
The first salary number column is labeled “Actual Pay--Contract for
2010-11” and it shows you all the actual salaries of all the players who are currently on the roster and very likely to actually play in the coming year. In other words all the salary cap and other legal rules and regulations are stripped away to yield a “plain English” reporting of who is playing and what they are getting paid.

Since as previously explained the players shaded in grey are not going to be playing their salary amount never shows up in this first column. We modified what our original source shows for this. The original source includes the pay of some players who are not going to be playing. Perhaps the original source is showing in its 2010-11 column the players who are actually going to be paid. QFTR chooses to ignore the distinction regarding who is actually going to be getting paid here and is showing salaries only for players who are going to play.

The second column shows the actual, official “cap hit” of each player under the relatively complicated salary cap rules. Both the salaries of the active players and the salaries of the players who have just left the team but whose salaries have to still at the moment count against the salary cap under the rules show up in this second column.

THE DARK GREY VERTICAL BAR AND COLUMNS TO THE RIGHT OF IT
To the right of the first two columns with numbers is a dark grey vertical bar. To the left of this bar is the current situation and to the right of the bar are future years. By looking to the right of the bar you can see how long any players’ contract runs and you can therefore find out approximately when that player will become eligible to go to another team without being traded. There are early termination clauses in some contracts, however, most of which I believe make the final year of the contract optional for the player, the team, or both.

For the current year (2010-11) the salary cap number is shown in the second column and in the first column the numbers for actual pay of actual players are shown. For all future years, in effect actual pay as determined by the contracts is considered to be equivalent to salary cap numbers. Whether this is exactly true or not is not known; only an expert on all the rules and regulations could say so for sure. But certainly those two amounts should be very, very close even if not exactly the same.

THE TEAM PAYROLL SUMMARY ROWS
For each team the total of all salaries (according to all the signed contracts) in future years is at the bottom of each column in the row labeled “TOTALS” which is below all the names of the players. As in the case of the current year, the lower the number in the totals row, the higher the salary cap space available. For example, if the real salary cap for a year is 60 million and the amount for that year shown in a column is 24 million dollars, the “cap space” is 36 million dollars. “Cap space” is the difference between the cap and the team’s “salary cap number”.

The row just under the TOTALS row is labeled REAL CAP (Projected after 2010). This is the projected luxury tax threshold projected out to all years shown. Remember that QFTR calls that threshold the Real Cap for reasons discussed previously. I can assure you that the projections shown are going to be very close to what the actual real caps turn out to be.

The last of the payroll summary rows (and also the last row in each team section) is labeled “REAL CAP SPACE”. As the name implies, this is how much cap space there is in each of the future years based on all contracts in effect as of September 1, 2010. This is what even everyday fans always seem to be interested in. This shows you how much money each team has in future years for acquiring new players by trade and in less dramatic ways. If the number is negative it means that the team has already contracted out more than all available cap space, in other words, the team is already over the cap.

There is always next year, right? What if you want to know how much firepower there is to change the team for next year? You can do that easily with this Report. You go to the column labeled Actual Pay--Contract for 2011-12 and you go down that column to the bottom, to the row labeled “REAL CAP SPACE,” where you see how much money is available for changing the team for next year (not counting any early contract terminations).

The eventual real cap space can be greater than what is showing in this Report due to early contract terminations, early retirements, contract buyouts, and any other early contract terminations. Because of this, and because there is no absolute hard payroll cap in the NBA, even the teams showing no cap space at all do theoretically have some room to make trades and straight up acquisitions. But the teams with actual cap space have more potential to make big changes in their rosters.

REMEMBER THOUGH THERE REALLY IS NO CAP
Since the NBA salary cap is not a hard legal cap, the cap space showing in the future years is much less than the most aggressive and serious teams will think of as their salary budget. Remember, if a team goes higher than real cap for payroll, it does not get kicked out of the League. All it has to do is pay the League the amount of the difference. For example, a team with a 90 million dollars payroll must pay the League about 20 million dollars as a penalty for going over the real cap (luxury tax threshold).

Since NBA owners have net worths between 100 million and 20,000 million (20 billion) dollars, for some of them paying a 20 or 30 million dollar luxury tax is not really much of a burden. For some of them it is a burden though obviously, so clearly the NBA has not achieved parity with its “soft cap”. Its better than no salary cap at all, but if you think that the NBA salary cap is a true cap or that it really evens things out between owners of very different net worths, I have a bridge to sell you in Mongolia.

In other words and to emphasize, since going over the salary cap AND for that matter going over the luxury tax threshold is both permitted and very, very common, the cap space showing on the QFTR spreadsheet is not the only amount available for new contracts (unless the team voluntarily keeps its payroll below the real cap aka the luxury tax threshold). In fact, the richest NBA owners and the ones that are most serious about winning the Quest for the Ring will not only have a payroll above the real cap, they will have a payroll more than 25% above the real cap (and they will voluntarily pay a luxury tax of more than 20 million dollars). The Los Angeles Lakers, this years Quest winners, have the biggest payroll and pay a luxury tax of about 50 million dollars!

SCROLLING
In order to view everything on the worksheet on the Site, you most likely have to use BOTH the vertical scroll and the horizontal scroll both of which are of course embedded in the worksheet.

OTHER CONTRACT DETAILS
To me the only important contract details are salaries (but for all the years, not just the current year which is all you can get at ESPN). I don’t yet know all of the details about contracts and nor am I much interested in them. When you get to that level you are too far away from basketball for QFTR to be all that worried about it. Maybe if you are writing for a specific team you will want to know about why such and such a players’ salary has to count toward the payroll calculated under the salary cap rules. But I personally as a League writer have no need to know and tell you about all of those arcane and complicated rules, regulations, and details.