Maybe revenue sharing isn’t the answer for owner, players

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If there is one thing that both the players and owners almost, kind of agree on in the new Collective Bargaining Talks is the concept of increased revenue sharing.

The players see it as a way to help make small market teams competitive — allowing those teams to pay higher salary and avoid issues such as contraction (a loss of jobs). Small market owners want more money for obvious reasons, and NBA Commissioner David Stern said big market owners are willing to discuss the idea so long as there are safeguards to make sure that money is re-invested in the team and not just pocketed.

Behind it all is thinking of the NBA like the NFL model, where there is extensive revenue sharing, great parity on the field, increased competition and a rising tide lifts all boats. Whether that is a model which really works for the NBA — where one player like a LeBron James or Kobe Bryant can alone radically alter a game in a way no one football player can; and where stars have long driven the sport — is another debate.

But revenue sharing does not work for the players or owners, argues Adam Fusfeld at Business Insider.

He notes that that while big market teams such as the Lakers and Bulls have made money, so have franchises in Sacramento, Utah, Cleveland. Also, having that money does not automatically produce wins — see the Knicks or Clippers, two profitable but losing teams.

But the data shows that those deep-pocketed owners in New York and Los Angeles might as well keep their cash. The size of the market isn’t what makes teams profitable, and the size of the payroll isn’t what makes them winners….

Washington, in the nation’s ninth largest media market, had a nearly identical won-loss record to Indiana over the five-year span, but earned $87 million more in operating income. The Wizards generated slightly more income, but also spent $7.6 million less each year on player expenses. If the Pacers simply reduced their payroll to equal that of the Wizards, their $26 million loss would transform into a $12 million profit.

In this five-year span, eight franchises – Phoenix, San Antonio, Denver, Detroit, New Jersey, New Orleans, Chicago, and Utah – finished with more wins than Indiana despite paying substantially less in player salaries between 2005 and 2009. Of those teams, only the Nets lost more than $1 million per year.

Small market owners gripe that it’s impossible for them to stay afloat without sustained on-court success, while large-market teams rake in profits no matter what. But how does that explain the Dallas Mavericks? Mark Cuban’s $75 million loss dwarf those of Pacers’ owner Herb Simon.

Sure, Mark Cuban and Knicks’ boss James Dolan can afford to incur those losses, but they are losses nonetheless. In essence, the Pacers, Bucks, and other small market teams are griping over rival owners’ riches.

And that’s the true inequity in NBA financials.

Some owners are willing to bankroll losses to assemble the best roster they can, while others aren’t.

This disparity continues. Peter Guber and Joe Lacob purchased the Golden State Warriors and have promised to run it smarter, but also said they are not going to spend over the NBA luxury tax line. Meanwhile Mikhail Prokhorov purchases the New Jersey Nets and money is no object.

With both the Detroit Pistons and New Orleans Hornets available for purchase, the debate about the types of owners the NBA has and needs is a very relevant one.

Report: John Wall’s extension includes player option

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The Wizards had John Wall under contract for the next two seasons then signed him to a super-max extension that locks him in for an additional four three years.

Adrian Wojnarowski of ESPN:

I’m a little surprised the Wizards gave Wall a player option considering their leverage.

Wall’s extension projects to pay him $169 million over four years – $30 million more than another team’s projected max offer over the same span. Even if Wall wanted to stay in Washington, this was the only offseason he could’ve ensured receiving the super-max rate. Had he rejected the extension now, he would have been eligible for the super max only by making an All-NBA team either of the next two years – far from guaranteed.

Still, the Wizards gave Wall everything – the highest-possible salary, max raises, a player option and a trade kicker.* There’s value in pleasing the franchise player. Wall will be the team’s third-highest-paid player for the next two years (behind Otto Porter and Bradley Beal), which might have bothered Wall if not for the super-max extension about to kick in. This deal makes locker-room harmony more likely.

But it also allows Wall to hit free agency in 2022 rather than 2023. Maybe that won’t matter. Wall’s salary option-year salary projects to be $47 million when he’s 32-years-old. I doubt Wall opts out then, though it’s certainly possible.

Effectively, if Wall is worth that much in 2022, he’ll be a free agent. If he’s not worth that much, Washington committed to pay him.

*The trade kicker is unlikely to to matter unless the salary cap unexpectedly increases significantly. It can’t lift Wall’s salary above 35% of the salary cap in the season he’s traded, and he’ll likely be at or above that mark throughout the extension anyway.

Basketball Hall of Famer John Kundla dies at 101

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MINNEAPOLIS (AP) — John Kundla, the Hall of Fame coach who led the Minneapolis Lakers to five NBA championships, died Sunday. He was 101.

Son Jim Kundla said his father died at an assisted living facility in Northeast Minneapolis that he has called home for years.

Kundla coached George Mikan and the Lakers in the 1940s and 1950s, helping them become the NBA’s first dynasty. He went 423-302 before retiring at the age of 42 and went on to coach his alma mater, the University of Minnesota.

Kundla was the oldest living Hall of Famer in any of the four major pro sports.

Kundla was inducted into the Hall of Fame in 1995. A year later, he was named one of the league’s 10 greatest coaches as part of the league’s “NBA at 50” celebration.

 

Report: Magic signing Marreese Speights to one-year, minimum contract

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It’s a tough market for free-agent centers, as Marreese Speights learned the hard way.

Jeff Zillgitt of USA Today:

I wonder whether Speights regrets opting out with the Clippers, who were also slated to pay him a minimum salary. Not only is he stuck with a low-paying deal, he’s on a worse team and one with center depth.

Nikola Vucevic and Bismack Biyombo should play only center, where Speights is best. Speights can also play power forward, but Aaron Gordon should get all his minutes there. Maybe Jonathan Isaac should, too, though it’s more tolerable to play him at small forward while the rookie adjusts to the NBA.

Simply, there won’t be much playing time for Speights unless Orlando makes a trade (maybe this is a harbinger) or plays too big of lineups (a lesson it should have learned last season).

Likewise, the Clippers will be fine, though less versatile, without Speights. The acquired Willie Reed (free agency) and Montrezl Harrell (Chris Paul trade) to play behind DeAndre Jordan.

Speights clearly isn’t essential, but he has expanded his range beyond the 3-point arc. He defends with effort, though not necessarily well. There’s a place in the league for stretch fives like him. But he turns 30 in a couple weeks, and his stock is clearly low. At least he’ll have a chance for a bigger payday next summer.

Kristaps Porzingis on Knicks: “This is where I want to stay… this is where I want to win”

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There were multiple, connected reasons it was time for the Knicks to move on from the Phil Jackson era — a triangle of reasons, really — but this one should have been at the top of the list:

He was alienating Krisptaps Porzingis.

We don’t know yet if Porzingis can be a franchise NBA player, however, he shows the potential to do it. He could become a top five NBA player you can build a contender around. You endear yourselves to those kinds of players, not get into power struggles that lead to said player blowing off end-of-year meetings and being guided out the door.

With Jackson gone, Porzingis has more motivation to stay a Knick and be the guy that turns the franchise’s fortunes around. KP was running a youth hoops camp in his native Latvia and was taking questions from the children when one kid got in a question the New York media would have loved to ask: Are you going to abandon New York? Here is Porzingis’ answer, translated and obtained by the New York Post.

“I feel that it is the best place to win. And if you win in New York, you are king. For the last two years, I have had so many positive emotions here that this is where I want to stay and that this is where I want to win.”

The Knicks have their cornerstone big. Now they need a guy on the outside (Kyrie Irving will get mentioned, but he is not the only answer), they need to get and develop young players to go with their stars. It’s the next phase for the Knicks.

But if they can keep Porzingis happy, they can lock him up to a max rookie extension after next year and have that piece in place. Then it’s up to Steve Mills and Scott Perry to put the pieces around him.