Forbes: Salary caps help make rich owners richer, poor poorer

Leave a comment

As we watch NBA owners and the Players Association play a game of chicken with our favorite sport, here comes a very interesting article out of Forbes (via Hardball Talk).

Part of that CBA debate will be about the salary cap — keep the soft cap with exceptions that exists now or move to a more NHL/NFL style hard cap. Some owners favor the hard cap as a way to control costs.

But smaller market owners hurt themselves with a cap and the current revenue sharing system, says Matt Ozanian of Forbes (who writes about all league finances for the magazine).

Tying team payrolls to league-wide revenue (currently about 50% of total revenue goes towards player compensation and benefits in each of four leagues) has served to make high-revenue teams enormously profitable and low-revenue teams unprofitable, or marginally so, relative to their rivals. The growing distortion in profitability has resulted in a bigger gap in team values…

The NBA had total operating income of $234 million during the 2008-09 season (our 2010 valuations and profits will be published in February). But three teams (Los Angeles Lakers, Chicago Bulls, Detroit Pistons) accounted for 64% of the league’s profits and 12 teams lost money. So billionaire Michael Ilitch is reportedly pondering buying the Pistons for some $400 million while Michael Jordan snapped up the money-losing Charlotte Bobcats for just $175 million in March.

The conventional wisdom is that salary caps benefit poorer teams. But in reality they benefit richer teams more. The owners know this, of course. Which is why the real bare knuckles fighting in the current collective bargaining negotiations in these three sports is among owners.

As we have said before, if you’re serious about bringing more parity to the NBA — and we’re not sure that you really can in basketball where one player can so dominate the course of a game, nor are we convinced that parity is good for the NBA in the way it has been for the NFL — than the real issue is revenue sharing by the owners. David Stern has said the owners are seriously discussing it and that “more robust” revenue sharing is on a parallel track with the Collective Bargaining Agreement.

But if it is on a true parallel track, then those discussions are stalled because of disagreements about how and how much money should be shared. A parallel track would mean they are talking but nowhere near a consensus.

Still, the thought of a bunch of very rich Republican owners in a room crying out for a more socialist system always amuses me.

Draymond Green goes down, Rockets rally to spoil Warriors ring night 122-121

Getty Images
1 Comment

Draymond Green is not the best player on the Warriors. He’s third or fourth best, depending on what you think of him vs. Klay Thompson.

But Draymond Green is the most important Warrior — what they do defensively does not work without him (and their small ball playmaking suffers as well). Without him, they are not the same.

That was on full display Tuesday night in the season opener — the night the Warriors got their 31-diamond rings and the latest banner went up at Oracle Arena. Green tweaked his knee in the third quarter and did not play in the fourth, and that’s when the Rockets outscored the Warriors 34-20 to come from behind and steal a win, 122-121.

Kevin Durant almost saved the day for Golden State with a baseline jumper as time expired — the referees called it good, but an official review showed the ball was still in his hands when the buzzer went off.

James Harden had 27 points and 10 assists to lead the Rockets. However, the real story was their revamped bench outplaying the Golden State bench — Eric Gordon looked like the sixth man of the year with 24 points, P.J. Tucker had 20 and shot 4-of-6 from three, and Luc Mbah a Moute added 14.

The Rockets made their final push in this one with Chris Paul sitting on the bench. CP3 sat the final four-and-a-half minutes of the game, and the Rockets thrived with Gordon, Harden and an old-school (meaning, like last season) offense. After the game, coach Mike D’Antoni said that Paul was out there “playing on one leg” due to his knee problem, and Paul could miss more time.

Golden State was also without Andre Iguodala, who tweaked his back lifting weights over the weekend, according to coach Steve Kerr. Not having Green or Iguodala hurt the Warriors defense, especially against an elite offensive team.

Kevin Durant’s game winner waived off, he didn’t get shot off in time

1 Comment

With Draymond Green sidelined after tweaking his knee in the third quarter, the Houston Rockets were able to make a dramatic fourth-quarter comeback and upset the Golden State.

But Kevin Durant almost saved the game for the Warriors.

Down one with 10 seconds to go, the Warriors were able to get Stephen Curry a good look at a three but he missed it. The ball was volleyballed around a little, and Durant got a hold of it and took a 15-footer along the baseline that the referees on the court ruled a game-winner — but when reviewed it left his hand a fraction of a second too late.

It was the right call. And this is a big boost for the Rockets as they try to find their identity going into a long season.

 

The Warriors’ championship rings have 31 diamonds in them (VIDEO)

1 Comment

Tuesday night meant the return of NBA basketball, and of course what we all wanted to see: the Golden State Warriors.

In the second game of the evening, the Warriors squared off against the Houston Rockets. Before the teams tipped, the Warriors received their championship rings in front of their hometown crowd at Oracle Arena.

Wearing special Nike hoodies with the phrase “The Champions” on the back, the Warriors received their rings to a standing ovation.

Perhaps the best part of the ceremony was finding out the official gemstone count in the rings. According to Sports Illustrated’s Ben Golliver, the rings have 31 diamonds in them.

Via Twitter:

Hmm. 31.

3-1.

3-1 lead.

Nope, doesn’t ring a bell.

Report: Cavaliers ditched Kyrie Irving tribute video idea vs. Celtics

AP
2 Comments

It was the first game for Boston Celtics guard Kyrie Irving back in Cleveland against the Cavaliers on Tuesday night. Irving spent the first six years of his career in Cleveland before being traded to the Celtics over the summer.

Of course, there was no love lost between the two teams nor between Cavaliers fans and Irving. Boston won the opening tip which Irving gathered, prompting a round of boos from the audience at The Q.

Perhaps more interesting was that the Cavaliers had a tribute video lined up for Irving but decided not to run it.

According to multiple reports, the video was set to run during a floating point in the game, but the operations folks in Cleveland never found the right time.

Another report from Cleveland.com has said that the aforementioned video had set off a few Cavaliers players.

Via Cleveland.com:

According to team spokesman Tad Carper, multiple Cavs officials, including majority owner Dan Gilbert, chose not to show the video because “we were expecting to run it at a floating opportunity based on the right moment, and we felt that moment never presented itself.”

Carper said the decision to cancel the video was not “directly” tied to the gruesome ankle injury to Celtics guard Gordon Hayward with 6:50 left in the first quarter, either.

A source with direct knowledge of Cavs’ players thinking told cleveland.com that several inside the Cleveland locker room were upset Monday upon hearing that a video was planned.

The video would have upset some inside the Cleveland locker room? I wonder which ones.