Jazz owner's debate on adding Al Jefferson highlights revenue sharing issue


Jazz_logo.gifWe at PBT, along with most of the basketball world, have applauded what the Jazz did this offseason. They lost Carlos Boozer, but in Al Jefferson found a good replacement. They added Raja Bell. Next season, the Jazz may be a slightly better team than they were last year.

But it was not an easy decision, as owner Greg Miller told the Salt Lake Tribune.

Once they had discussed the favorable basketball implications of adding a low-post force in Jefferson, who averaged 20.1 points and 10.4 rebounds the past three seasons with the Timberwolves, (CFO Bob) Hyde went over the financial particulars with Miller.

Specifically, Hyde presented a worst-case scenario, according to Miller, of what would happen if the Jazz missed the playoffs given the payroll commitments they would have after acquiring Jefferson and positioning themselves as a luxury-tax paying team.

“Based on the economics, I felt like the risk was acceptable and decided to pull the trigger,” Miller said in an interview last week, adding, “It was a big decision, but I felt like … I had enough good information to make a good decision, and only time will tell.”

Applaud Miller for taking that risk, for keeping a good team in Utah.

But he will be at least $5 million over the tax threshold when the season starts (the tax threshold will be $70 million, the Jazz are at $73 million with some minor contracts to add to fill out the roster). Which means that he will pay about $5 million in the dollar-for-dollar tax. He also will not get the $3.5 to $4 million in payment that goes to teams under the tax.

That is a $9 million swing, which for a team in a small market like Salt Lake can be the difference between profit and loss. Utah needs those playoff games, when the teams don’t pay salary but they get more nights of revenue.

What it underscores is the disparity in revenue and how revenue sharing will be key. The Lakers payroll will likely be in the $93 million range. Spending money alone does not win titles (or the last decade would have been the Knicks and Mavericks decade) but Los Angeles can afford more good role-playing talent to go around its stars. It can afford more stars. It can afford more mistakes. The Lakers have back-to-back titles because they have not made a lot of mistakes, but the margin for error is there, as it is with the Yankees in baseball.

And how to bring competitive balance, so that a small step over the luxury tax is not so onerous on small markets, has to be part of the next CBA talks. David Stern wants revenue sharing and the union agreement to be dealt with separately, but they are tied together in the health of the sport.

Tony Parker wants to play six more seasons with Spurs

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Tony Parker revealed a plan nearly two years ago to play until he’s 38.

Coming off his worst season since his rookie year, the Spurs point guard is sticking to that goal.

Parker, via Marc J. Spears of Yahoo Sports:

“The Spurs know I want to play until I’m 38,” Parker told Yahoo Sports in a recent phone interview. “That will be 20 seasons for me. That’s my goal. This year is No. 15. And if I’m lucky enough and I’m healthy, hopefully I can play 20 seasons and then I’ll be ready to retire.”

That seems pretty ambitious, no matter how you handle the conflicting math. (Parker is 33. If he plays 20 seasons, he’ll spend most of his final season at age 39 and turn 40 during the playoffs.)

Parker is already showing signs of slippage. Many of his key numbers were down last season, including ESPN’s real-plus minus, where he quietly slipped from 12th to 67th among point guards.

But Gregg Popovich is very liberal with resting his players, and Parker won’t have to carry too much of the load. Tim Duncan and Manu Ginobili will probably retire before Parker, but the Spurs will still have Kawhi Leonard and LaMarcus Aldridge.

I wouldn’t count on it, but it’s possible Parker lasts that long.

Report: Pelicans signing Greg Smith

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The Pelicans starting center, Omer Asik, is injured.

Their backup center, Alexis Ajinca, is injured.

Enter Greg Smith.

Scott Kushner of The Advocate:

Smith was part of the Rockets’ 2012-13 rotation, but otherwise, he has seen limited minutes in his four-year career with Houston and Dallas. In that small sample, he has looked alright. The 6-foot-10 24-year-old uses his big frame and massive hands to catch passes and finish efficiently near the rim. He has also become more disciplined defensively.

I wouldn’t be surprised if he makes the regular-season roster behind the 13 Pelicans with guaranteed salaries.

But it’s also possible New Orleans signed him just an extra preseason body. That’d beat relying too heavily on the aging Kendrick Perkins and undersized Jeff Adrien at center. Anthony Davis is the Pelicans’ best option at center with Asik and Ajinca sidelined (and maybe even with them healthy), but the biggest drawback to playing him there is the injury risk. If Davis is going to deal with the banging at center, might as well save it for games that count.

Still, even New Orleans plans to keep Smith only through the preseason, this at least gives him a chance to impress.