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

1 Comment

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.

Chris Paul re-elected president of the NBPA

Leave a comment

NEW YORK (AP) — Chris Paul has been re-elected president of the National Basketball Players Association.

Paul’s new four-year term begins immediately. He will be assisted by the union’s newly elected vice president, Garrett Temple of the Sacramento Kings.

In his first term as president, Paul most notably helped the players and the NBA come together on a new Collective Bargaining Agreement that goes into effect on July 1.

Paul says he’s “humbled that my fellow players have voted to have me continue.”

Temple has a three-year term as vice president, which also begins immediately. He replaces Kyle Korver in that role.

The other members of the NBA’s Executive Committee are First Vice President LeBron James, Secretary-Treasurer James Jones, and Vice Presidents Carmelo Anthony, Stephen Curry, Andre Iguodala, Pau Gasol and Anthony Tolliver.

One reason Markelle Fultz happy to be Sixers over Celtic? Philadelphia has Chick-fil-As

Getty Images
12 Comments

For about a month, from the day of the NBA Draft Lottery until less than a week before the draft, it was assumed Markelle Fultz would be a Celtic. And he said he was good with that — he’s the No. 1 pick going to a 53-win team that is thinking title contention. That doesn’t happen often.

Then that top pick was traded to the Philadelphia 76ers, and suddenly Fultz was going to be paired with Joel Embiid and Ben Simmons. Fultz liked that a lot, and he liked the city a lot.

Why? Because they have Chick-fil-A restaurants. Check out what Fultz wrote in the The Players’ Tribune, an article titled “What’s Up, Philly.” (Hat tip Inceptions at NBA Reddit)

Then (Fultz’s agent) Keith hit me up and said, “New plan. Philly.”

I was just waking up. So I was like, “O.K., cool. Do they have Chick-fil-A there?”

A crispy chicken sandwich for breakfast. It’s kind of like my good luck charm. Keith never got back to me about that important question. So I found out for myself. I googled it immediately.

Philly does have Chick-fil-A. It has six, actually. Seven if you count the one at the airport. Boston has zero Chick-fil-As, for what it’s worth.

Are restaurants becoming a new recruiting tool? “I know you’re thinking of signing in San Antonio, but we have far more Chipotle’s per capita.” “There’s a Cheesecake Factory just down the street from our practice facility.”

I give it four years, max, before Fultz switches to a slightly healthier breakfast choice, at the requestion of Philly’s training staff.

Warriors newbie Jordan Bell gets call from Draymond Green

Associated Press
7 Comments

OAKLAND, Calif. (AP) — Jordan Bell knows he will most certainly get an earful from Draymond Green come training camp as a Golden State Warriors rookie.

Green came looking for him on draft night with a FaceTime attempt after acquiring his new teammate’s digits from general manager Bob Myers. But Bell – out with friends celebrating – didn’t answer because the number was unfamiliar.

Bell decided he would text back instead.

“I was like, `Who is this?”‘ Bell recalled Friday, when he was formally introduced and given his new No. 2 Golden State jersey at team headquarters.

“He didn’t reply so I called the number and said, `Who is this?’ Then he was like, `Yo, I FaceTimed you, hang up right now and FaceTime me right back, don’t call me,”‘ Bell said. “I FaceTimed him and he didn’t answer. I was like, all right. I waited like five seconds and I called him back FaceTime and he answered … and we started talking about it. He was like, `Enjoy this night, celebrate, it only happens once, but after this time we have to get back to work, we’re trying to get rings over here.”‘

The NBA champions began the night Thursday without a draft pick but acquired Bell in a trade with the Bulls. The 6-foot-9 forward and Pac-12 Defensive Player of the Year out of Oregon was the 38th overall selection by Chicago.

Bell had been upset he dropped so far in the draft, then everything changed once the Warriors made a move for him. Green was drafted 35th overall out of Michigan State in 2012 and still has a chip on his shoulder about it. In fact, he can name every team in order and its selection above him that draft year.

“Draymond will be a fun challenge for you,” Myers said. “Draymond texted me as I was driving home and he said, `What the’ and then expletive `is your problem’ to me? So you can fill in the blank. Then he said, `I have to hear about this’ expletive `on the internet, you didn’t’ expletive `tell me about it.’ So I couldn’t text and drive so I called him and I said, `OK, all right, calm down.”‘

Green demanded he be able to talk to Bell, so Myers obliged with the new rookie’s contact info.

Green’s teammates are accustomed to his intensity. He even yells at them from time to time.

“He’s like our team mom in a way,” joked Myers. “He’s the one that you have to kind of get through him.”

 

Rumor: Cavaliers could wait to chase Dwyane Wade, Carmelo Anthony after buyouts

10 Comments

The first reaction to hearing Jimmy Butler was traded to Minnesota on draft night was “the Bulls only got what back?”

The second reaction was “does Dwyane Wade still opt in?”

Yes, he does, and as he said there are 24 million reasons to do so. Hard to argue with that logic. Which leads to the next question: Will the Bulls buy him out? Or, more likely, when will the Bulls buy him out?

Carmelo Anthony could be in the same boat. Phil Jackson wants to trade him but Anthony has a no-trade clause. The number of teams willing to give up anything for ‘Melo where he would waive that clause is very, very limited. You might be able to count them on one finger. And that might be generous. So a buyout could be in order.

Which leads to this interesting note from Brian Windhorst, via Marc Stein, of ESPN.

This makes sense for the Cavaliers. They need roster upgrades and they are capped out. They tried to find a deal to move Kevin Love to get space to chase Jimmy Butler or Paul George, but those three team deals never came together in part because of a lack of trade value for Kevin Love. Adding either or both of these two players to the roster for minimum salaries while giving up nothing is a perfect scenario.

Wade, obviously, has played with LeBron. Even though he is not the player he once was, if his knees are rested he is capable of stretches of fantastic play that can help carry a team. He would be another offensive weapon in a deep arsenal of weapons the Cavaliers have stockpiled.

Anthony would be the same in some ways — he remains a strong scorer in isolation (sets the Cavaliers run more than any other team in the league) and he makes difficult shots. The problem would be elite teams — Golden State, Boston, etc. — could expose his defense against the pick-and-roll. Still, he would be an upgrade if nothing is surrendered for him.

There’s a lot of “what if” still to happen before we get to this. However, the idea of one or both of these guys being in Cavaliers uniforms by the start of next playoffs is not out of the question.