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

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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.

Spurs demolish Thunder to take Game 1 of second-round series

SAN ANTONIO,TX - APRIL 30: LaMarcus Aldridge #12 of the San Antonio Spurs scores over Steven Adams #12 of the Oklahoma City Thunder during game one of the Western Conference Semifinals for the 2016 NBA Playoffs at AT&T Center on April 30, 2016 in San Antonio, Texas. NOTE TO USER: User expressly acknowledges and agrees that , by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ronald Cortes/Getty Images)
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The second round was supposed to be when things got exciting. Instead, the San Antonio Spurs put on an absolute clinic at home, blowing out the Oklahoma City Thunder, 124-92 to take a 1-0 series lead.

Just about everything went in for San Antonio, particularly for LaMarcus Aldridge and Kawhi Leonard, who combined for 63 points. How dominant were they?

Aldridge in particular got anything he wanted against the Thunder. Oklahoma City’s stars were quiet, with Kevin Durant scoring just 16 points and Russell Westbrook 14. San Antonio controlled the game from the start and Oklahoma City never recovered from the opening punch.

It’s hard to imagine Durant and Westbrook are this ineffective again, and hopefully the rest of this series will be a little more competitive. But the Spurs did what the Spurs do, and did nothing to shake the feeling that they’re the favorites to win the west, now that Stephen Curry‘s status is unknown.

Hawks get another playoff shot at King James and Cavaliers

at Philips Arena on April 1, 2016 in Atlanta, Georgia.  NOTE TO USER User expressly acknowledges and agrees that, by downloading and or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement.
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ATLANTA (AP) A year ago, Atlanta’s magical season ended with a resounding sweep by Cleveland in the Eastern Conference final.

Now, the Hawks have another shot at LeBron James and the Cavaliers.

Feeling confident after an opening-round victory over Boston, the Hawks returned to practice Saturday to begin preparations for the best-of-seven series.

Game 1 is Monday night in Cleveland.

The Hawks were the top-seeded team in the East last season after a record 60-win campaign. It didn’t do them much good against the Cavaliers, who steamrolled Atlanta in four straight games.

Even though they slipped to 48 wins and fourth in the conference, the Hawks actually sound a bit more confident heading into this matchup, largely because of their improved defense and rebounding.

Report: Warriors to replace Luke Walton from outside the organization

MILWAUKEE, WI - DECEMBER 12: Interim Coach Luke Walton of the Golden State Warriors talks on the sideline during the second quarter against the Milwaukee Bucks at BMO Harris Bradley Center on December 12, 2015 in Milwaukee, Wisconsin. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Mike McGinnis/Getty Images)
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For the second consecutive year, the Warriors have lost their lead assistant to another team. When the Pelicans hired Alvin Gentry during last year’s playoffs, Steve Kerr promoted Luke Walton to associate head coach and added former journeyman big man Jarron Collins to the bench. Now that Walton is headed to the Lakers as their next head coach, the Warriors will go outside the organization to find a replacement, according to ESPN.com’s Marc Stein. And one name that will likely not be in the mix is David Blatt, who very nearly became an assistant under Kerr in 2014 before being offered the Cavaliers’ head job.

Given Walton’s success this season as interim head coach while Kerr recovered from back surgery, this will undoubtedly be the most attractive assistant job in the league.

Report: Luke Walton’s Lakers contract is for 5 years, $25 million

DENVER, CO - JANUARY 13:  Interim head coach Luke Walton of the Golden State Warriors leads the team against the Denver Nuggets at Pepsi Center on January 13, 2016 in Denver, Colorado. The Nuggets defeated the Warriors 112-110. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Doug Pensinger/Getty Images)
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In the last few years, NBA head coaching salaries have skyrocketed, and new Lakers coach Luke Walton is no exception. According to the Los Angeles Times‘ Mike Bresnahan, Walton is getting $25 million over five years, which is the same as Steve Kerr’s deal with the Warriors, now-former Knicks coach Derek Fisher’s deal in New York, and Fred Hoiberg’s deal with the Bulls.

This kind of money has become standard for head coaches who don’t also have front-office power. Tom Thibodeau and Stan Van Gundy both get between $7 and $8 million annually to do both jobs. Given how good Walton’s current situation with the Warriors is, the Lakers probably had to be on the high end of the coaching spectrum to get him to leave.