The business relationship between the Nationwide Basketball Affiliation (NBA) and its gamers relating to formally licensed merchandise is structured such that particular person gamers don’t immediately obtain a share of jersey gross sales. As a substitute, income generated from the gross sales of jerseys and different licensed merchandise is distributed based on collective bargaining agreements. These agreements define how income are allotted between the league and the gamers’ union, the Nationwide Basketball Gamers Affiliation (NBPA). An instance of licensed product could be a jersey bearing a participant’s identify and quantity offered by official NBA channels.
This revenue-sharing mannequin is essential as a result of it ensures a constant and predictable stream of revenue for each the league and its gamers. It advantages gamers not directly by larger wage caps and elevated total income obtainable for participant compensation. Traditionally, the construction of those agreements has advanced by negotiations and renegotiations between the NBA and the NBPA, reflecting modifications within the monetary panorama {of professional} basketball and the relative bargaining energy of every social gathering.
Due to this fact, whereas particular person athletes could indirectly revenue from every particular jersey bought with their likeness, they profit from the broader revenue-sharing system. The next sections will discover the particular monetary mechanisms at play, the function of the NBPA, and the implications for particular person endorsement offers.
1. Collective Bargaining Settlement
The Collective Bargaining Settlement (CBA) between the NBA and the Nationwide Basketball Gamers Affiliation (NBPA) dictates the monetary framework inside which participant compensation and income distribution happen. Relating to the particular query of whether or not particular person NBA gamers obtain a share of jersey gross sales, the CBA establishes that gamers don’t immediately obtain such funds. As a substitute, the income generated from jersey gross sales, together with different league-related revenue sources, contributes to the general income pool that’s then divided between the house owners and the gamers based on a pre-negotiated cut up outlined within the CBA. This cut up not directly impacts the wage cap, affecting the potential earnings of all gamers. With out the CBA, the monetary relationship between the league and the gamers could be undefined, resulting in potential instability and disputes over income distribution.
The NBPA’s function in negotiating the CBA is essential. It advocates for the gamers’ pursuits to safe probably the most favorable income cut up doable. As an example, previous CBAs have seen changes to the income cut up, reflecting the altering dynamics of the league’s monetary efficiency and the gamers’ contribution to that efficiency. The present CBA particulars the particular percentages allotted to participant compensation, not directly linked to the general income generated from sources corresponding to jersey gross sales. This method ensures that each one gamers, no matter particular person jersey gross sales figures, profit from the collective reputation and business success of the league. If the income cut up have been considerably much less favorable to the gamers, the monetary incentives for prime expertise to affix or stay within the NBA could possibly be diminished, impacting the league’s competitiveness and marketability.
In abstract, the CBA serves because the foundational doc governing the monetary relationship between the NBA and its gamers. Whereas gamers don’t obtain a direct minimize of jersey gross sales, the CBA ensures they profit from the collective income generated by the league, together with merchandise gross sales, by a negotiated revenue-sharing system. This method immediately impacts the wage cap and total participant compensation, highlighting the importance of the CBA in addressing the query of whether or not NBA gamers profit financially from jersey gross sales.
2. Income Sharing
Income sharing within the NBA establishes an oblique hyperlink between jersey gross sales and participant compensation. The league aggregates income from numerous sources, together with merchandise gross sales, tv contracts, and ticket gross sales. A predetermined share of this complete income is allotted to participant compensation, as stipulated within the Collective Bargaining Settlement (CBA). Though particular person gamers don’t obtain a particular share from their jersey gross sales, the general income pool, which incorporates these gross sales, immediately influences the wage cap and the obtainable funds for participant salaries. For instance, elevated jersey gross sales for a preferred participant contribute to larger total league income, which in flip inflates the quantity obtainable for participant salaries league-wide.
The significance of income sharing lies in its capability to create a extra equitable distribution of wealth inside the league. With out it, groups in bigger markets with larger income streams would have a major monetary benefit over smaller market groups, probably resulting in an imbalance of expertise. Income sharing mitigates this disparity by making certain that each one groups have entry to the same degree of sources for participant acquisition and improvement. This method helps to keep up aggressive stability, enhancing the general enchantment and sustainability of the NBA. A sensible utility of this understanding is clear within the CBA negotiations, the place the NBPA advocates for a good income cut up to maximise participant earnings.
In conclusion, income sharing within the NBA is instrumental in linking league-wide business success, together with jersey gross sales, to participant compensation. Whereas gamers don’t obtain a direct minimize from their jersey gross sales, the system ensures that they profit not directly by a better wage cap and higher total income allotted to participant salaries. This mechanism fosters a extra balanced and aggressive league, highlighting the importance of income sharing within the NBA’s monetary ecosystem.
3. NBPA’s Function
The Nationwide Basketball Gamers Affiliation (NBPA) acts because the bargaining consultant for all NBA gamers, taking part in a vital function in figuring out how revenues, together with these from jersey gross sales, are distributed. Whereas particular person gamers don’t immediately obtain a share of their jersey gross sales, the NBPA negotiates the Collective Bargaining Settlement (CBA), which outlines the proportion of complete league income allotted to participant compensation. This negotiation immediately influences the wage cap and, consequently, the potential earnings of all gamers. The next negotiated share for gamers interprets into a bigger wage cap, enabling groups to supply extra profitable contracts. For instance, the NBPA constantly advocates for elevated participant compensation in every CBA negotiation, impacting the general monetary panorama of the NBA.
The sensible significance of the NBPA’s function extends past wage negotiations. It additionally entails defending the gamers’ group licensing rights. The NBPA licenses the collective use of participant likenesses for merchandise, together with jerseys, and ensures that gamers obtain compensation for this utilization by group licensing agreements. The income generated from these agreements contributes to the pool that not directly advantages all gamers by the mechanisms outlined within the CBA. Moreover, the NBPA gives gamers with sources and recommendation on particular person endorsement offers, serving to them to maximise their private branding alternatives, which are sometimes intently linked to the recognition and gross sales of their jerseys. Think about the case of a star participant whose jersey gross sales considerably enhance because of his on-court efficiency; the NBPA gives steerage to that participant to leverage this reputation for private endorsements, augmenting their total revenue.
In conclusion, the NBPA’s function is crucial in shaping the monetary relationship between NBA gamers and jersey gross sales. Although gamers don’t obtain direct funds based mostly on particular person jersey gross sales, the NBPA’s negotiation of the CBA ensures they profit not directly by the revenue-sharing system and group licensing agreements. The NBPA’s advocacy and safety of participant rights are central to maximizing their total compensation and making certain a good distribution of income inside the league. The challenges stay in balancing the pursuits of all gamers, from superstars to function gamers, and in adapting to the evolving monetary dynamics of the NBA.
4. Group Licensing
Group licensing represents a pivotal mechanism connecting NBA gamers to the income generated from merchandise, together with jerseys. Though particular person gamers don’t obtain direct royalties from the sale of jerseys bearing their identify and quantity, they collectively profit by group licensing agreements negotiated by the Nationwide Basketball Gamers Affiliation (NBPA). These agreements grant corporations the proper to make use of the collective likenesses of NBA gamers in advertising and merchandising efforts. Income generated from these agreements is then distributed among the many gamers. Due to this fact, whereas a participant doesn’t obtain a particular share of their jersey gross sales, they not directly revenue by the general income generated by way of group licensing that encompasses all participant merchandise. A transparent instance is the licensing of NBA participant photographs to be used in video video games or buying and selling playing cards; the income from these licenses contributes to the general pool distributed to gamers.
The significance of group licensing lies in its capability to leverage the collective worth of NBA gamers. With out it, particular person gamers would want to barter separate licensing agreements, creating important administrative burdens and probably resulting in unequal compensation based mostly on particular person marketability. Group licensing ensures a extra equitable distribution of income, offering monetary advantages even to gamers with decrease particular person profiles. As an example, a lesser-known participant advantages from the general reputation of the NBA and the collective marketability of its gamers by this technique. This method ensures that each one gamers share within the monetary success of the league, no matter particular person endorsement offers or jersey gross sales figures.
In abstract, group licensing is a crucial element linking NBA gamers to the monetary advantages derived from merchandise gross sales, even when particular person gamers don’t obtain a share of their jersey gross sales. This collective method ensures a extra equitable distribution of income, permitting all gamers to share within the monetary success of the league. The NBPA’s function in negotiating and managing these agreements is important in defending participant rights and maximizing their collective incomes potential. The continued challenges contain navigating the complexities of mental property rights and adapting to evolving market calls for to make sure the continuing monetary advantages of group licensing for NBA gamers.
5. Wage Cap Impression
The NBA’s wage cap is intrinsically linked to league income, together with that generated from jersey gross sales, though particular person gamers don’t obtain a direct share of these gross sales. The collective bargaining settlement (CBA) dictates the proportion of league income allotted to gamers, immediately impacting the wage cap. Understanding this relationship is essential to greedy how participant compensation is affected by the business success of the NBA.
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Income Sharing and the Wage Cap
The NBA operates underneath a revenue-sharing mannequin, the place a predetermined share of all league income, together with merchandise gross sales, is allotted to gamers. This share immediately influences the full wage cap quantity obtainable to all groups. Greater jersey gross sales contribute to larger total income, subsequently rising the wage cap. Due to this fact, whereas a participant would not immediately revenue from their very own jersey gross sales, the combination gross sales of all jerseys contribute to the monetary pool from which their salaries are paid.
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Impression on Participant Contracts
The wage cap immediately restricts the quantity every workforce can spend on participant salaries. The upper the wage cap, the extra flexibility groups have to supply bigger contracts to gamers. Whereas particular person jersey gross sales don’t assure a participant a better wage, a participant’s reputation and marketability (typically mirrored in jersey gross sales) can enhance their total worth to a workforce, probably resulting in extra profitable contract presents inside the confines of the present wage cap guidelines.
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Luxurious Tax Implications
Groups exceeding the wage cap face a luxurious tax, a monetary penalty paid to the league. The income generated from the luxurious tax is then distributed amongst groups that stay underneath the wage cap. Due to this fact, larger league income, pushed partly by merchandise gross sales, helps fund this redistribution system. This oblique mechanism can additional contribute to the monetary well being of the league and its capability to help participant compensation, even for these on smaller-market groups.
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NBPA’s Function in Maximizing Participant Earnings
The Nationwide Basketball Gamers Affiliation (NBPA) actively negotiates the proportion of league income allotted to gamers within the CBA. Their goal is to maximise the wage cap and total participant earnings. By advocating for a bigger share of income, together with that generated from merchandise gross sales, the NBPA not directly ensures that gamers profit from the league’s business success, despite the fact that they don’t obtain a direct share of jersey gross sales.
In conclusion, the NBA’s wage cap operates as a conduit, channeling income generated from sources like jersey gross sales in direction of participant compensation. Though particular person gamers don’t immediately revenue from their very own jersey gross sales, the collective business success of the league, mirrored in merchandise gross sales, influences the wage cap and the general monetary panorama for all gamers. The interaction between income sharing, participant contracts, luxurious tax implications, and the NBPA’s advocacy underscores the advanced relationship between jersey gross sales and participant compensation within the NBA.
6. Endorsement Offers
Endorsement offers characterize a major avenue by which NBA gamers can capitalize on their reputation and marketability, attributes which can be typically immediately correlated with jersey gross sales. Whereas gamers don’t obtain a direct share of the income generated from their jersey gross sales by the NBA or its licensed retailers, excessive jersey gross sales can considerably enhance a participant’s attractiveness to potential endorsement companions. Firms typically search to align themselves with athletes who possess robust model recognition and broad enchantment, elements incessantly mirrored in excessive merchandise gross sales figures. As an example, a participant constantly rating among the many prime in jersey gross sales is extra prone to safe profitable endorsement contracts with athletic attire corporations, beverage manufacturers, or different main companies.
The sensible significance of this connection lies within the potential for gamers to leverage their on-court efficiency and fan engagement into substantial off-court earnings. A participant whose jersey is constantly offered in giant portions demonstrates a excessive degree of marketability and fan enchantment, making them a worthwhile asset for corporations in search of to succeed in a large viewers. This understanding can affect a participant’s method to constructing their private model, emphasizing actions that improve their reputation and fan engagement, corresponding to social media presence, group involvement, and on-court efficiency. Moreover, brokers and advertising groups typically use jersey gross sales information as a key metric when negotiating endorsement offers, highlighting the participant’s business worth to potential companions.
In conclusion, whereas NBA gamers don’t immediately revenue from a share of their jersey gross sales, excessive gross sales figures function a strong indicator of their marketability, considerably enhancing their alternatives for securing profitable endorsement offers. This oblique monetary profit underscores the significance of constructing a robust private model and interesting with followers, as these efforts can translate into substantial off-court earnings. The problem for gamers lies in constantly sustaining their reputation and on-court efficiency to maintain excessive jersey gross sales and, consequently, their enchantment to endorsement companions. Due to this fact, an understanding of the connection between jersey gross sales and endorsement potential is important for gamers in search of to maximise their total monetary success.
7. Royalty Construction
The royalty construction within the NBA is advanced and not directly associated to the query of whether or not particular person gamers obtain a share of jersey gross sales. NBA gamers don’t obtain direct royalties from the sale of merchandise bearing their identify or likeness. As a substitute, income generated from such gross sales is pooled and topic to the phrases of the Collective Bargaining Settlement (CBA). This settlement determines how income is split between the league house owners and the gamers as a collective. The royalty construction primarily applies to the NBA and its licensing companions who manufacture and distribute merchandise. The league receives royalties from these companions based mostly on a share of the wholesale value of the merchandise offered. The NBA’s share of this royalty income then turns into a part of the general income topic to the CBA’s distribution system. For instance, if a licensing associate sells $1 million value of jerseys and the NBA’s royalty price is 15%, the league receives $150,000, which is then factored into the bigger revenue-sharing calculation.
The significance of understanding the royalty construction lies in recognizing the oblique impression on participant compensation. Whereas particular person gamers don’t obtain a royalty examine for every jersey offered with their identify on it, the collective income generated from these royalties contributes to the full income pool that determines the wage cap and the quantity obtainable for participant salaries. The NBPA, performing on behalf of the gamers, negotiates the proportion of total income allotted to the gamers. Consequently, larger merchandise gross sales, which contribute to larger royalty income for the league, can not directly result in a better wage cap, benefiting all gamers. With out this royalty construction and the following income sharing, the monetary advantages from merchandise gross sales would accrue primarily to the league and its companions, probably exacerbating disparities in workforce spending and participant compensation. This understanding is virtually important for contract negotiations and monetary planning inside the league, guiding choices relating to income distribution and participant compensation ranges.
In conclusion, the royalty construction within the NBA doesn’t present particular person gamers with a direct share of jersey gross sales. Relatively, it contributes to a bigger income pool that’s topic to a negotiated distribution between the league and the gamers. The oblique advantages to gamers come up from the elevated wage cap and potential for larger total compensation, emphasizing the importance of collective bargaining and income sharing. Challenges stay in making certain equitable distribution of those advantages and adapting to evolving market dynamics within the sports activities merchandise business. The system continues to evolve to strike a stability between the league’s monetary objectives and the gamers’ incomes potential.
8. Merchandise Income
Merchandise income, significantly these derived from jersey gross sales, characterize a major income stream for the Nationwide Basketball Affiliation (NBA). The distribution of those income, nonetheless, doesn’t immediately contain particular person gamers receiving a share of jersey gross sales. As a substitute, these income are topic to a fancy system of income sharing and collective bargaining.
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League Income and Distribution
Merchandise income are aggregated with different league revenues, corresponding to broadcasting rights and ticket gross sales, to type a complete income pool. A predetermined share of this pool is then allotted to participant compensation, as stipulated within the Collective Bargaining Settlement (CBA) between the NBA and the Nationwide Basketball Gamers Affiliation (NBPA). This allocation immediately influences the wage cap, impacting the general incomes potential of NBA gamers. For instance, larger merchandise gross sales contribute to a bigger income pool, probably resulting in an elevated wage cap in subsequent seasons.
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Oblique Participant Advantages
Whereas gamers don’t obtain direct funds from jersey gross sales, they profit not directly by the revenue-sharing system. The NBPA negotiates the proportion of league income allotted to gamers, advocating for a bigger share of the income derived from merchandise gross sales and different sources. This negotiated share influences the wage cap, minimal participant salaries, and different advantages outlined within the CBA. A participant’s marketability, typically mirrored in jersey gross sales, can improve their particular person contract negotiations, despite the fact that they obtain no direct fee from these gross sales.
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Licensing Agreements and Royalties
The NBA enters into licensing agreements with producers and retailers to supply and promote merchandise, together with jerseys. These agreements sometimes contain royalty funds to the NBA based mostly on a share of gross sales. The royalty income turns into a part of the general league income, additional contributing to the pool used to find out participant compensation. As an example, if an organization pays the NBA a 15% royalty on jersey gross sales, that 15% turns into a part of the income shared with the gamers.
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Impression on Workforce Funds
Merchandise income contribute to the general monetary well being of NBA groups, significantly these with fashionable gamers whose jerseys promote in excessive volumes. Groups profit from the elevated income, permitting them to spend money on participant improvement, services, and different sources. A workforce’s monetary stability can affect its capability to draw and retain expertise, additional highlighting the oblique advantages of merchandise income for gamers. Excessive merchandise income additionally helps groups to remain aggressive within the league.
In abstract, merchandise income, together with these from jersey gross sales, play a major function within the NBA’s monetary ecosystem, influencing participant compensation by income sharing and collective bargaining. Though gamers don’t obtain a direct share of jersey gross sales, the general monetary well being of the league and the ensuing wage cap are immediately impacted by these income, underscoring the interconnectedness of business success and participant earnings.
9. Oblique Advantages
The query of whether or not NBA gamers obtain a share of jersey gross sales will be clarified by inspecting the idea of oblique advantages. Whereas gamers don’t obtain direct funds tied to particular jersey gross sales, their compensation and total monetary well-being are considerably influenced by mechanisms linked to the business success of the league, together with merchandise gross sales. A major instance is the collective bargaining settlement (CBA), which stipulates the proportion of league income allotted to participant compensation. Greater total income, pushed partly by jersey gross sales, interprets to a better wage cap, permitting groups to supply bigger contracts. Thus, a participant’s incomes potential is not directly enhanced by the recognition of the league and its merchandise. The success of outstanding gamers, mirrored in excessive jersey gross sales, additionally elevates the profile and monetary well being of the league as a complete, not directly benefiting all gamers by the elevated income pool.
One other important oblique profit arises from endorsement alternatives. A participant whose jersey is constantly offered in giant portions demonstrates excessive marketability and fan enchantment, making them a extra enticing associate for corporations in search of endorsement offers. These offers can present substantial revenue past a participant’s NBA wage. Moreover, the Nationwide Basketball Gamers Affiliation (NBPA) performs a vital function in negotiating group licensing agreements, which permit corporations to make use of the collective likenesses of gamers in advertising campaigns. The income generated from these agreements is then distributed among the many gamers, representing one other oblique profit stemming from the business exploitation of participant photographs and likenesses on merchandise. A sensible utility of this understanding entails gamers and their brokers strategically managing their public picture and on-court efficiency to maximise marketability and entice profitable endorsement alternatives.
In conclusion, whereas NBA gamers don’t obtain direct funds tied to jersey gross sales, the oblique advantages derived from income sharing, a better wage cap, endorsement alternatives, and group licensing agreements are important. These mechanisms create a system the place the business success of the league and its gamers collectively contributes to particular person monetary well-being. Challenges stay in making certain equitable distribution of those advantages and adapting to the evolving market dynamics of the sports activities business. Nonetheless, the oblique advantages system demonstrates a transparent connection between jersey gross sales and participant compensation, even within the absence of direct funds.
Often Requested Questions
The next questions tackle widespread inquiries relating to the monetary relationship between NBA gamers and the sale of formally licensed merchandise, particularly jerseys.
Query 1: Do NBA gamers obtain a direct share of income from the sale of jerseys bearing their identify and likeness?
No. Particular person NBA gamers don’t obtain a direct share of the income generated from the sale of their jerseys. Compensation associated to merchandise gross sales is structured in a different way.
Query 2: How are NBA gamers compensated for the usage of their identify and likeness on formally licensed merchandise?
Compensation is ruled by the Collective Bargaining Settlement (CBA) between the NBA and the Nationwide Basketball Gamers Affiliation (NBPA). This settlement establishes a revenue-sharing system the place a share of complete league income, together with merchandise gross sales, is allotted to participant compensation.
Query 3: What function does the NBPA play on this compensation construction?
The NBPA negotiates the CBA on behalf of all NBA gamers. The NBPA advocates for a good share of complete league income to be allotted to participant compensation, influencing the general wage cap and participant advantages.
Query 4: Does the wage cap affect participant compensation associated to jersey gross sales?
Sure. The wage cap, which is immediately impacted by the league’s total income (together with merchandise gross sales), limits the quantity groups can spend on participant salaries. Greater league income typically results in a better wage cap, probably rising participant incomes potential.
Query 5: How do endorsement offers issue right into a participant’s earnings associated to their marketability?
Whereas gamers don’t obtain direct funds from jersey gross sales, excessive jersey gross sales can enhance a participant’s marketability, resulting in extra profitable endorsement offers with numerous corporations. These endorsement offers present a major supply of revenue separate from their NBA wage.
Query 6: Are there every other oblique advantages NBA gamers obtain associated to jersey gross sales?
Sure. Income generated from group licensing agreements, negotiated by the NBPA, contributes to the general monetary pool that advantages all gamers. These agreements cowl the collective use of participant likenesses for numerous business functions.
In abstract, whereas NBA gamers don’t obtain a direct share of jersey gross sales, they profit not directly by income sharing, a better wage cap, endorsement alternatives, and group licensing agreements.
The subsequent part will tackle associated monetary facets of the NBA and its gamers.
Navigating the Complexities of NBA Participant Compensation
Understanding the monetary relationship between NBA gamers and jersey gross sales requires navigating a fancy system. Whereas direct income sharing from jersey gross sales is absent, a number of elements affect a participant’s total compensation.
Tip 1: Perceive the Collective Bargaining Settlement (CBA): The CBA is the cornerstone of NBA participant compensation. Its phrases dictate the income cut up between house owners and gamers, influencing the wage cap and participant advantages. Familiarity with its clauses is important to understanding participant compensation.
Tip 2: Acknowledge the Impression of Income Sharing: The NBA’s revenue-sharing system swimming pools income from numerous sources, together with merchandise gross sales. A predetermined share is allotted to participant compensation, not directly linking participant earnings to total league income.
Tip 3: Acknowledge the Function of the NBPA: The Nationwide Basketball Gamers Affiliation (NBPA) actively negotiates the CBA, advocating for a good income cut up for gamers. Its actions immediately impression the wage cap and the monetary panorama for gamers.
Tip 4: Recognize the Energy of Endorsement Offers: Whereas jersey gross sales don’t immediately translate into funds, excessive gross sales figures improve a participant’s marketability, resulting in extra profitable endorsement offers. These offers can considerably complement a participant’s NBA wage.
Tip 5: Think about Group Licensing Agreements: Group licensing agreements, negotiated by the NBPA, enable corporations to make use of the collective likenesses of gamers in advertising campaigns. Income from these agreements is distributed among the many gamers, offering one other avenue for oblique monetary advantages.
Tip 6: Analyze Wage Cap Dynamics: The wage cap is a vital issue. Its degree dictates the general spending limits for participant salaries. The next cap, influenced by total league revenues (together with jersey gross sales), permits extra freedom when providing bigger contracts.
Tip 7: Assess the long-term ramifications : Long run profession is way more essential than short-term. There for make investments properly the cash earned by your arduous work and the NBPA’s negotiation ability.
By understanding the CBA, appreciating the impression of income sharing, and recognizing the importance of endorsement offers, it turns into clear that NBA gamers, whereas not receiving direct jersey sale percentages, profit considerably from the league’s business success.
This complete understanding units the stage for a extra knowledgeable conclusion in regards to the monetary realities {of professional} basketball.
Do NBA Gamers Get a Share of Jersey Gross sales?
This exploration has clarified that NBA gamers don’t obtain a direct share of jersey gross sales. As a substitute, a fancy system involving collective bargaining agreements, income sharing, group licensing, and endorsement alternatives shapes the monetary relationship between gamers and the business success of their likeness. Whereas no direct royalties are paid to particular person gamers based mostly on the variety of jerseys offered bearing their identify, the general monetary ecosystem of the NBA ensures that gamers profit not directly from the league’s business prosperity.
Understanding this oblique hyperlink is essential for a complete view {of professional} sports activities economics. Because the NBA continues to evolve, and as participant marketability more and more drives income, future negotiations will possible tackle the evolving relationship between participant picture and business success. Continued scrutiny of those monetary constructions is important for sustaining equity and making certain that gamers obtain acceptable compensation for his or her contributions to the league’s monetary success. Additional analysis in how NBA gamers make investments their cash could be value doing.