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

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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.

Carmelo Anthony’s jumper with 0.3 seconds left gives Knicks 110-109 win over 76ers

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NEW YORK (AP) — Carmelo Anthony made a jumper with 0.3 seconds left to give the New York Knicks a 110-109 victory over the Philadelphia 76ers on Saturday night.

The Knicks blew a 17-point lead and fell behind by one when Jahlil Okafor scored with 9 seconds remaining. But Anthony dribbled left after a timeout, pulling up over Robert Covington to cap his 37-point performance.

The Knicks then intercepted the 76ers’ inbounds pass to hold on and snap their two-game losing streak.

Derrick Rose added 18 points and Justin Holiday had 14 for the Knicks, who won for just the third time in 11 games. They played without starters Kristaps Porzingis (sprained right ankle) and Joakim Noah (sore left hamstring).

Okafor had a season-high 28 points and grabbed 10 rebounds as the 76ers nearly pulled out the victory after beating Washington on Friday. Dario Saric had 19 points and 15 rebounds, and Covington finished with 20 points and 10 boards.

The Knicks avoided falling behind the 76ers into 13th place in the Eastern Conference, but they seem to realize it might be too late to get ahead of the teams they need to. They came in five games behind Detroit for the eighth and final playoff spot, and coach Jeff Hornacek before the game talked of players’ development as a goal instead of trying to make a playoff push.

Before the game, Philadelphia coach Brett Brown said his experience was that teams playing on the second night of a back-to-back usually started quickly before getting fatigued. But it was the Knicks was started fast thanks to Anthony, who was 7 for 10 for 17 points as New York led 31-25.

The Knicks led by 10 at halftime and Rose scored 10 in the third to keep Philadelphia from cutting into it. The Sixers were still down double digits well into the fourth quarter before Okafor and T.J. McConnell led them in what became a frantic finish.

TIP-INS

76ers: Philadelphia had won four of its previous five games. … The Sixers have dropped six straight at Madison Square Garden.

Knicks: Hornacek said Porzingis was considered day-to-day, with a possibility of returning in their next game Monday. But he said Noah would be out longer after having a setback in his recovery during the break. … Noah celebrated his 32nd birthday.

TWEETS

Knicks President of Basketball Operations Phil Jackson tweeted for just the fourth time this season on Saturday, wishing Tex Winter a happy 95th birthday. Winter was his former assistant coach and is considered the pioneer of the triangle offense. Jackson ended the tweet with a triangle emoji.

SPEAKING OF THE TRIANGLE

The Knicks have started running it more, according to Hornacek. He says it not only benefits the younger players on offense but also helps the Knicks be in better position to get back on defense. The Knicks ran the offense that Jackson used to win 11 championships as a coach under Derek Fisher and Kurt Rambis the previous two seasons, but Hornacek had opened up the offense this season to get the Knicks playing quicker.

UP NEXT

76ers: Host Golden State on Monday.

Knicks: Host Toronto on Monday. The Raptors have won the last five meetings.

Anthony Morrow says he’ll switch from No. 1 with Bulls after Derrick Rose fans complain

CHICAGO, IL - FEBRUARY 24: Anthony Morrow #1 of the Chicago Bulls participates in warm-ups beofre the Bulls take on the Phoenix Suns at the United Center on February 24, 2017 in Chicago, Illinois. 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 Jonathan Daniel/Getty Images)
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Anthony Morrow clearly didn’t follow the Michael Carter-Williams saga.

Morrow, like Carter-Williams, took No. 1 when joining the Bulls.

And Morrow, like Carter-Williams, swiftly changed course when Derrick Rose fans protested.

Morrow:

Morrow had never worn No. 1 in the NBA. The No. 23 he wore with the Mavericks is obviously retired in Chicago for Michael Jordan, and two of Morrow’s other previous numbers — No. 2 (Jerian Grant), No. 3 (Dwyane Wade) — were already taken. As far as Morrow’s other previous number, Cameron Payne, who came from the Thunder with Morrow, kept the No. 22 the point guard wore in Oklahoma City.

So, Morrow needed a new number. I’m just not sure why the Bulls didn’t warn him off No. 1 and the backlash that would come with it.

Doc Rivers on DeMarcus Cousins: “I’m 55. It’s tough for me to call a grown man ‘Boogie'”

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The Kings trade with the Pelicans has made DeMarcus Cousins the NBA’s mostdiscussed player lately.

But Clippers president/coach Doc Rivers isn’t sure he can address Cousins by his nickname.

J.A. Adande of ESPN:

Cool story, Glenn.

Deron Williams clears waivers, intends to sign with Cavs

CHARLOTTE, NC - DECEMBER 01:  Deron Williams #8 of the Dallas Mavericks brings the ball down the floor against the Charlotte Hornets during their game at Spectrum Center on December 1, 2016 in Charlotte, North Carolina. 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 Streeter Lecka/Getty Images)
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CLEVELAND (AP) — Free agent guard Deron Williams has cleared waivers and told the Cleveland Cavaliers he intends to sign with them.

Williams, a five-time All-Star, was waived earlier this week by Dallas. He will give the defending NBA champions a playmaker they’ve needed all season and one LeBron James demanded.

Williams cannot sign with the Cavs until Monday. Cleveland hosts the Milwaukee Bucks that night. The Cavs will be the fourth team for Williams, who is averaging 13.1 points this season.

Cleveland coach Tyronn Lue can bring him off the bench and also play him with Cleveland’s starters to give James and Kyrie Irving rest before the playoffs.