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Old 08-13-2008, 06:26 AM   #17
Saw a basketball once
Join Date: Aug 2008
Posts: 4
Default Re: Lebron to go overseas?

It will never happen.

Teams in Europe cannot afford to spend 50 million dollars inspite of the weak dollar.

No team in Europe will be even close to breaking even plus it is very simplistic to think that the dollar/euro rate will be the same forever. Imagine a team signing Lebron for $50m per year. That means that the team is exposed to huge FX risk resulting from moves of the price of euro especially given the current markets which affect FX rates on a day to day basis (interest rate changes are being used as a monetary policy to defend against the subprime crisis which affects exchange rates).

Finally even if they pay all cash in advance then the player is bearing that risk. Anyway, excluding these Lebron would never move to Europe now or even in the next few years. His income aside of the contract with the club will definitely decrease and let's face it, basketball in europe is not that popular. even in russia,spain or greece it is the second most popular sport (in the case of russia third) and in italy forget about it nobody gives a damn about basketball. What that means is that Lebron will be the king of a much smaller country if he comes in europe.
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