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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.

Jason Kidd suspended one game for slapping ball away from ref


Mike Budenholzer – to the dismay of someavoided suspension for making contact with a referee.

Jason Kidd sure wasn’t.


NBA release:

Milwaukee Bucks head coach Jason Kidd has been suspended one game without pay for aggressively pursuing and confronting a game official, slapping the ball out of his hands, and not leaving the court in a timely manner upon his ejection, it was announced today by Kiki VanDeWeghe, Executive Vice President, Basketball Operations.

The incident, for which Kidd was assessed a technical foul and ejected, occurred with 1:49 remaining in the fourth quarter of Milwaukee’s 129-118 loss to the Sacramento Kings on Wednesday, Nov. 25 at BMO Harris Bradley Center.

Kidd will serve his suspension tonight when the Bucks play the Orlando Magic at Amway Center.

One game is a standard suspension for bumping an official, and it’s probably what Kidd deserved (what Budenholzer deserved, too, for what it’s worth).

But slapping the ball from a ref’s hands looks so much worse than a standard bump. Kidd should feel fortunate the NBA suspended him on the merit of the action rather than perception of it.

Steve Kerr: Luke Walton not being credited with W-L record ‘the dumbest thing I’ve ever heard’

Luke Walton

The Warriors have surged to a 16-0 start with interim coach Luke Walton, as Steve Kerr is out after a bad reaction to his offseason back surgery.

Walton’s coaching record: 0-0.

Per NBA policy, the 16 wins are credited to Kerr.

Ethan Sherwood Strauss of ESPN:

Kerr and Walton are engaged in a brutal war of deferential humility. To hear Walton tell it, he’s just a functionary, carrying out Kerr’s well-laid plans. To hear Kerr tell it, Walton deserves all the credit.

“I think it’s ridiculous,” Kerr told ESPN.com when asked about getting all of Walton’s wins. “I’m sitting in the locker room and watching the games on TV, and I’m not even traveling to most of the road games. Luke’s doing all the work with the rest of the staff. Luke is 15-0 right now. I’m not. So it’s the dumbest thing I’ve ever heard, to be honest with you. I don’t even understand it.”

Walton expresses no angst over being winless, saying of Kerr, “Steve’s done a lot for me. It’s the least I can do to add a couple wins on his total for him with all he’s done for me.”

This is purely an academic argument. It doesn’t really matter which coach gets the wins.

But we care about records in sports, so it is important to get this right. Personally, I think Walton should get credit. He’s the head coach for these games.

The biggest counterargument is that Kerr is still involved, which is true. But he’s involved on a level more in line with an assistant. Several people are involved in a team’s coaching for every game. Only the head coach gets the win or loss on his record.

The Warriors have designated Walton their head coach. He should get the wins.

The biggest hindrance in changing the policy is probably retroactively altering other coaches’ records. Specifically, Don Nelson is the all-time wins leader with just three more than Lenny Wilkins. But the Mavericks went 10-4 in 2004-05 while coached by Avery Johnson as Nelson attended to health issues, both his own and his wife’s. Nelson stepped down for good later in the season, and Johnson’s 16-2 finish goes to Johnson. But Johnson’s first 14 games as acting head coach are credited to Nelson. Does the NBA want to revoke Nelson’s wins record over this?

So, this issue is bigger than the Warriors.

For them, the key facts much simpler. An undefeated team has two people fighting to credit the other for its success.

Whomever officially gets the wins, this is a healthy organization.

Report: 76ers supporting, not blaming, Jahlil Okafor

Jahlil Okafor


76ers rookie Jahlil Okafor fought a man in a Boston street.

The team has released a short, vague statement. CSN Philly:

“We are aware of the report and we are currently working to gather additional information. Until that time, we will have no further comment.”

But what do the 76ers really think?

Chris Broussard of ESPN:

I spoke with somebody close to him. They’ve talked to the 76ers. They’ve talked with the NBA.

The Sixers are very supportive of Okafor. They understand the situation, but they have to do their due diligence and look into it.

The Sixers are supporting him. They’re not blaming him. If they have to discipline, it still won’t sully him in their eyes.

Again, I’m told that they’re very supportive of him.

If the 76ers really support Okafor, they’ll do so publicly. Leaking their support anonymously doesn’t really move the needle.

I also find this report a little dubious, because Broussard only said he talked to someone close to Okafor. If the 76ers’ viewpoint came filtered through an Okafor rep, there could be a lot of spin – though it’s possible Broussard also spoke with someone from the team.

What choice do the 76ers have but to support Okafor, anyway? He’s a promising young player on a team that desperately needs hope. It seems he made a major mistake, but it’s not a career-ender. And as long as the 76ers are keeping him, they might as well stand by him.

However – based on what we’ve seen, which is obviously not everything – this incident should “sully him in their eyes.” He appeared to be the aggressor, and the team should be concerned by that. Perhaps, further investigation has provided extenuating circumstances, but absent new evidence, the 76ers should view him less favorably – and be proactive about helping him correct any underlying issues.

That’s the support Okafor needs from them.

Celtics president Danny Ainge on Brad Stevens: ‘He’s a keeper’

Brad Stevens

Celtics coach Brad Stevens has never finished a season with a winning record. He’s over .500 this year only because Boston came back to beat the lowly 76ers. He has never won a playoff game.

But Stevens – who signed a six-year, $22 million contract in 2013 – has plenty of job security.

Celtics president Danny Ainge, in a Q&A with Chris Forsberg of ESPN:

You’ve joked about it before, but are you ready to give him another six-year contract yet?

Ainge: [Laughs] Yeah.

You have to start thinking about that. Sure, we’re only in Year 3, but you can’t risk letting a good coach get away.

Ainge: No, listen, he’s a keeper. He’s great. He’s great to work with. Like I said, I think he’s going to be — if he stays in this game long enough — he’s going to be one of the great coaches.

I tend to agree with Ainge’s assessment. Stevens has looked like an excellent coach so far – implementing a sound defense, creating space on offense and communicating clearly with his players.

But Stevens has benefited tremendously from low expectations, arriving in Boston after Kevin Garnett, Paul Pierce and Ray Allen retired. Expectations sunk even lower when the Celtics traded Rajon Rondo last season.

That’s when Stevens appeared to do his best work, guiding a starless team to a 24-12 finish.

Expectations will keep rising, though. Some expected the Celtics to break out this year, but they’re just 8-7. Stevens faces the difficult task of managing a rotation full of pretty good – but no great – players. This might be his hardest NBA assignment yet.

Stevens has done plenty to earn praise from his boss. But to actually get a contract extension, he’ll have to keep meeting higher and higher expectations.

I believe Stevens is up to the challenge, but I’m not completely certain of it. He wouldn’t be the first coach to impress early in his tenure and then fizzle. Just look at how many Coach of the Year winners lost their jobs a short time later.

Again, I think Stevens will meet any reasonable expectations he faces. He just must actually do it to get a longer deal.