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Sports economists say NBA financially healthy, aren’t buying owners claims

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NBA owners are crying poverty — the system needs to change because right now the NBA is bad business. One new owner, Washington’s Ted Leonsis, talked of a hard cap. Then was promptly fined by David Stern for talking out of school.

Two prominent sports economists interviewed by the Boston Globe
said not to believe everything you hear from the owners or players right now. (Found via TrueHoop.) They are negotiating through the media.

They add that the league is basically healthy, so a lockout would do far more damage than good.

“I think the NBA is reasonably healthy,’’ said [Stanford economics professor and author Roger] Noll. “If you extract the fact that it’s the worst recession in the lifetime of anybody who’s thinking about it, the league is healthy. I do not anticipate there will be a strike or lockout. I do not anticipate the next agreement will differ materially from the present agreement.

“Both sides blow smoke in the run-up to collective bargaining. But you shouldn’t pay any attention to what they say. They are jockeying for position and trying to put pressure on the other side through the media. Nothing they say now about the state of the league or the state of the collective bargaining negotiations has any particular truth value.’’

Noll’s solution is somewhat radical — put a cap on team salaries if you want, but let go of (or dramatically relax) what an individual player can make. Put simply, if LeBron James, Dwyane Wade and Chris Bosh could each command $30 million a year there is no way they could team up, allowing a more balanced spread of talent. In this scenario, the top players would make more but many “middle class” players would take a pay cut as the disparity would grow.

He also says revenue sharing needs to increase if the owners want parity.

“The NBA has relatively small revenue sharing in comparison to football and baseball, and so the financial disparity between the top teams and the bottom teams is not as bad as it is in hockey,’’ Noll said. “But it is a lot worse than it is in baseball and football, and one of the interesting features is that it gives the teams in the biggest cities a great deal of leverage over other members of the league.’’

The Globe also spoke with University of Michigan sports economics professor Rodney Fort, and he wasn’t buying what the owners were selling either.

“The argument somehow that owners are on the brink or anything of the kind is a little difficult to swallow, but that doesn’t mean they won’t posture themselves that way,’’ said Fort, who authored a 544-page textbook, “Sports Economics.’’ “But it doesn’t mean they won’t posture themselves that way to reduce the share of basketball-related income that’s going to players.

“They will argue that always, in any situation. Not because owners are going belly-up but because everybody likes more money than less.’’

Fort adds that whatever the owners’ motives, they benefit more from a lockout. Which means there will be one. Which sounds like what we have heard, where people on the owners’ side of the equation have been more adamant about a lockout when talking (off the record) than players, who just accept that it is coming.

“If there’s a lockout, the owners perceive that they are going to be in better shape when it’s over than they are right now,’’ Fort said. “And that’s going to be true, regardless.

“So if the owners feel like they can profit more from a new agreement by locking the players out for a year, you better believe that’s something they are considering.’’

Even if it kills the momentum the NBA as a whole is building right now.

Report: Bulls hire North Carolina State’s Bobby Lutz as D-League head coach

WORCESTER, MA - MARCH 18:  Charlotte 49ers coach Bobby Lutz looks up in the first half a game against the N.C. State Wolfpack during the first round of the NCAA Men's Basketball Championship at the DCU Center March 18, 2005 in Worcester, Massachusetts.  (Photo By Jim McIsaac/Getty Images)
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The Chicago Bulls are one of the teams getting a D-League affiliate franchise this season. The Windy City Bulls will play in the suburb of Hoffman Estates, and now they have a head coach: North Carolina State assistant Bobby Lutz.

Via Upside & Motor‘s Chris Reichert:

Lutz was previously linked to the Bulls’ D-League job in July but there was confusion as to whether he would actually get the job. Now, it appears he has. And he has familiarity with the coaching staff, having served as an assistant coach at Iowa State under Fred Hoiberg in 2010-11, prior to going to NC State.

Evan Fournier pokes fun at his ‘NBA 2K’ likeness

OAKLAND, CA - MARCH 07:  Evan Fournier #10 of the Orlando Magic dribbles the ball against the Golden State Warriors at ORACLE Arena on March 7, 2016 in Oakland, California. 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 Ezra Shaw/Getty Images)
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The release of NBA 2K17, the latest edition of the popular 2K video-game series, is less than a month away. Players are starting to get their likenesses in the game, as well as their player ratings, and tweet them out. Magic forward Evan Fournier wasn’t too happy with the way his came out.

Fournier’s countryman Rudy Gobert got in on the fun, too, changing his Twitter avatar to Fournier’s screenshot and encouraging others to do the same. He even created a hashtag for it.

At least they’re having fun with it.

Report: Sixers expected to waive Tibor Pleiss after trade with Jazz

PHILADELPHIA, PA - OCTOBER 30: Tibor Pleiss #21 of the Utah Jazz controls the ball in the game against the Philadelphia 76ers on October 30, 2015 at the Wells Fargo Center in Philadelphia, Pennsylvania. 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 Mitchell Leff/Getty Images)
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On Friday, the Jazz traded German center Tibor Pleiss to the Sixers along with two second-round picks for Kendall Marshall. The big draw of the trade for Philly was the picks, and Pleiss is not expected to stay with the Sixers, according to Comcast SportsNet Philadelphia’s Jessica Camerato.

Pleiss had a forgettable season with Utah, and the Sixers have a glut of bigs including Nerlens Noel, Jahlil Okafor, Joel Embiid and Dario Saric. It would have been virtually impossible for Pleiss to crack the rotation, and it’s unlikely another team picks up his contract, which has $3 million guaranteed this season.

Jordan releases new Russell Westbrook ad, may include a shot at Kevin Durant

OKLAHOMA CITY, OK - MAY 28:  Kevin Durant #35 of the Oklahoma City Thunder (L) and Russell Westbrook #0 look on during a press conference after the Golden State Warriors defeated the Oklahoma City Thunder 108-101 in game six of the Western Conference Finals during the 2016 NBA Playoffs at Chesapeake Energy Arena on May 28, 2016 in Oklahoma City, Oklahoma. 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 J Pat Carter/Getty Images)
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As a Jordan Brand athlete, Russell Westbrook is under the same Nike umbrella as former teammate Kevin Durant. But his latest Jordan spot, released Friday, has a very pointed tagline: “Some run, some make runways.”

Given the circumstances, it’s hard to interpret that as anything other than a reference to Durant signing with the Warriors and Westbrook signing an extension with the Thunder.