By Alex Groberman
According to Rich Steinlauf, a New York-based analyst who has developed a reputation among NBA franchises for being able to accurately depict players’ worth, the Miami Heat’s LeBron James, Dwyane Wade and Chris Bosh are being undervalued by the team.
While speaking with Ian Thompson of Sports Illustrated Steinlauf pointed out that James, who is going to make $14.5 million this season, is actually worth much more:
"I'm projecting for next year he'll be worth $31 million," said Steinlauf
Steinlauf’s system is based on the type of impact a player will have on his team. From there, he deduces the player’s worth based on his share of the standard team’s payroll. Here is an excerpt detailing what the New York analyst thinks about the cost-effectiveness of the Heat:
Miami's off-season coup of signing James, Wade and Chris Bosh has given the Heat the league's most cost-efficient payroll, according to Steinlauf. While some will question the $18.3 million average salary Bosh will earn over the next six years, Steinlauf insists that the Heat are paying him what he's worth.
A lot of things can be taken away from Steinlauf’s system. While it isn’t necessarily fool-proof, the idea that James’ impact on the Heat franchise is only worth $14.5 million is crazy. Obviously the deal was structured that way so that Miami could pursue Bosh and other seat-fillers this summer, however, the fact that he is being underpaid is a given. Particularly when you figure in the revenue he’ll generate in ticket sales, jerseys and other products sold related to the team.
By his calculations, Steinlauf believes that the Heat are really underpaying all three members of their “Big Three.” Wade is expected to provide a $22.5 million contribution this season while only earning $14.3 million, and Bosh’s $18 million contribution surpasses his $14.5 million cost.
Steinlauf’s system ranked James the No. 1 player in the league for the 2010-11 NBA season in terms of overall impact. Wade and Bosh came in 6th and 10th, respectively.
According to the notes in his report, Steinlauf’s projections do not take the NBA salary-cap ceilings into account on individual salaries. His valuations are totaled up based on the $58 million salary cap set per team.
For those curious about the entire list, Sports Illustrated provided it and you can check it out below:
The best:
1. LeBron James.
2. Dwyane Wade.
3. Shaquille O'Neal.
4. Matt Barnes.
5. John Salmons.
The worst:
1. Richard Jefferson.
2. Kyle Lowry.
3. Darko Milicic.
4. Chris Duhon.
5. Amir Johnson.
Thanks to our friends at Broncos Odds
