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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.

Before season starts, watch top 10 dunks of preseason

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Starting Tuesday night, the games matter. The dunks matter.

But before we move onto those dunks, let’s have some fun with the top 10 dunks of the meaningless preseason. They may not matter, but they certainly were fun.

Of course there are some expected highlights — can you have a dunk reel without Russell Westbrook? — but game-winning dunks always get the top slot.

Carmelo Anthony says rather than take knee during Anthem he wants action in communities

NEW YORK, NY - MARCH 26:  Carmelo Anthony #7 of the New York Knicks looks on against the Cleveland Cavaliers during their game at Madison Square Garden on March 26, 2016 in New York City.  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 Al Bello/Getty Images)

Colin Kaepernick certainly fired up a discussion — not always the conversation he intended, but a discussion of the treatment of African-Americans in our society was part of that conversation.

No NBA player has taken that same step through the preseason, taking a knee during the national anthem (only anthem singers have done that). Some teams are locking arms during the anthem in a show of solidarity, but they stand in two orderly rows.

Carmelo Anthony explained in an interview with Bleacher Report that what he and many others want to see is the next step in Kaepernick’s protest — action in the community.

“I’m past the gestures,” New York Knicks star Carmelo Anthony told B/R Mag. “I’m past that. It’s all about creating things now and putting things in motion. So, that’s what I’m on. I’m trying to get guys on board with that and help them understand that—enough of the gesturing and talking and all of that stuff—we need to start putting things in place….

“He’s done it,” Anthony said of Kaepernick. “He was courageous enough to do that. He created that. He created the kneeling and that protest. And people fell in line with that. Some people supported it. Some people didn’t. But at the end of the day, and I’m not taking nothing away from him…I just don’t think the gesturing is creating anything. I think it’s bringing awareness, but I think doing stuff and creating awareness in the communities [is more effective].”

What are those things? Players, the players’ union, the NBA itself, and it’s teams are all working to figure that out. This is not something where one blanket program fits all — what is needed in communities in New York is different from the needs in Milwaukee, is different from the needs in Sacramento. This needs to be local, with players involved.

There have already been some steps. The Bulls held a basketball tournament between police and a mentoring agency, which was followed by a panel discussion. Dwyane Wade biked with police through Miami. The Grizzlies have revived the Police Athletic League in Memphis. And that’s just the tip of the iceberg, there are teams from New Orleans to Los Angeles are working to bring youth and police together to talk.

It’s a start. A good start.

There is no one magic gesture, no one simple measure that can heal the deep divides in our nation right now. There are no easy answers, and as a nation we can be too dependent on easy answers. We need to listen. We need to talk to each other, not at each other. We need to practice empathy.

NBA players can help lead that effort, that conversation. It would be the next step after a protest — to act on those steps. Good on Anthony and the NBA for attempting to go down that road.


Rockets change from earlier reports, waive Pablo Prigioni, keep Tyler Ennis

HOUSTON, TX - MAY 17:  Pablo Prigioni #9 of the Houston Rockets celebrates in the third quarter against the Los Angeles Clippers during Game Seven of the Western Conference Semifinals at the Toyota Center for the 2015 NBA Playoffs on May 17, 2015 in Houston, 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 Scott Halleran/Getty Images)
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The Rockets traded for Tyler Ennis., sending Michael Beasley away in the deal.

Which is why it was a bit of a surprise on Monday when early reports had the Rockets waiving Ennis, but either the report was off or the Rockets changed their minds.

With Patrick Beverley out injured, this leaves the Rockets thin at the traditional point guard spot. However, in practice James Harden, Eric Gordon and others will initiate Mike D’Antoni’s offense, so the bigger challenge will be defensively. Prigioni was not much help there at this point in his career.

I wouldn’t be surprised if a team snaps up Prigioni as insurance, or he certainly can make money overseas. Prigioni played last season as a backup point guard for the Clippers.

Want some dance lessons from Hassan Whiteside? We got that.

MIAMI, FL - SEPTEMBER 26: A portrait of Hassan Whiteside #21 of the Miami Heat on September 26, 2016 in Miami, Florida. (Photo by Rob Foldy/Getty Images)
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Miami’s Hassan Whiteside is a lot of things: An elite shot blocker, up-and-coming NBA star who worked hard for the right to be that, a Heat cornerstone.

Dance instructor?

I’m not sold, but he’s showing off his groove in this Twitter video.

When you get a $98.6 million contract, you can do whatever you want. So he can be a dance if he wants to.