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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: Multiple executives expect Knicks to keep Kurt Rambis

New York Knicks head coach Kurt Rambis calls out a play from the bench during the second half of an NBA basketball game against the Philadelphia 76ers, Friday, April 8, 2016, in Philadelphia. The Knicks won 109-102. (AP Photo/Michael Perez)
AP Photo/Michael Perez
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Phil Jackson reportedly pushed for the Knicks to give Kurt Rambis a multi-year contract. Jackson isn’t searching for another coach right now.

You do the math.

Stefan Bondy of the New York Daily News:

Multiple executives around the league expect Rambis to get the job.

The usual question applies: Do these executives know something we don’t, or are they just reading the same writing on the wall? They’re positioned to glean inside information, but that isn’t necessarily required here. All the public circumstantial evidence points to Rambis.

This is another signal the Knicks will make Rambis their permanent head coach, but it was already looking that way.

Goran Dragic’s teeth went through his lip last night (video)

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Goran Dragic has a habit of losing teeth, but not usually through his lip.

Cringe.

Report: Jeremy Lin indicates he’ll opt out, says he wants to re-sign with Hornets

Charlotte Hornets guard Jeremy Lin reacts after scoring against the New York Knicks during the second half of an NBA basketball game Saturday, Jan. 23, 2016, in Charlotte, N.C. Charlotte won  97-84. (AP Photo/Nell Redmond)
AP Photo/Nell Redmond
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Jeremy Lin said the Hornets “came out of nowhere” to sign him last summer.

His salary shows it.

With the market for Lin depressed following a dismal season with the Lakers, Charlotte snagged Lin for just the bi-annual exception. At least Lin – who bounced back with a solid year – got a player option for next season, when he’s due to make just $2,235,255.

Rick Bonnell of The Charlotte Observer:

Lin indicated he plans to opt out of his contract

Lin, who can opt out of next season on his contract, says he’d very much like to re-sign with the franchise this summer.

“I would love to,” Lin said Monday. “I don’t like moving every year, I don’t like packing and unpacking boxes. So we’ll see. But I’m definitely interested in coming back.”

“This is the most fun I’ve had in my six years” in the NBA, Lin said. “Being around a great group of guys and a coaching staff that really cares. I’ve learned so much about the game of basketball, particularly at the defensive end.”

The Hornets face a summer of tough choices after relying on so many players with expiring contracts.

Let’s say Charlotte renounces Troy Daniels, Jorge Gutierrez and Tyler Hansbrough and waives Aaron Harrison, whose salary is unguaranteed. The Hornets might not drop those low-cost players, but if it makes the difference between retaining a rotation player or not, they probably would. So, for these purposes, they’re out.

Counting cap holds for Nicolas Batum and Courtney Lee, Charlotte would project to have just more than $12 million in cap space. The Hornets could spend that money then exceed the cap to re-sign Batum and Lee, whose 2016-17 are likely to top their cap holds ($19,687,961 for Batum, $10,782,500 for Lee).

But that leaves just about $12 million to re-sign Lin, Marvin Williams and Al Jefferson.

Charlotte has Lin’s Non-Bird Rights (technically a form of Bird Rights), but because his cap would match the match the Non-Bird Exception ($2,682,306), that doesn’t matter here. It also doesn’t matter because Lin will command far more than that. So, cap space will be needed to re-sign him.

Ditto Williams and effectively Jefferson. The Hornets could pay Williams $12.25 million next season with the Early Bird Exception, but that likely won’t be enough to keep him. Charlotte has Jefferson’s full Bird Rights, but his 2016-17 salary is likely to fall short of his cap hold ($20,250,000). So, re-signing him or renouncing him creates more room than keeping his hold on the books.

With the salary cap projected to reach $92 million, giving most teams max cap space, $12 million might allow the Hornets to keep one of Lin, Williams or Jefferson. Maybe. Lin and Williams could probably get more elsewhere, and Jefferson would have an outside chance.

Now, Charlotte would clear more room if Batum and/or Lee walk. But the Hornets have called Batum their top priority, and he sounds like he wants to re-sign. Lee has also proven valuable, and I’d be surprised if there’s not also a major effort to retain him.

Charlotte could clear extra room by trading Spencer Hawes ($6,348,759) and/or Jeremy Lamb ($6,511,628), two players whose salaries will look decent in the new cap environment. But that still might not open enough space to keep two of Lin/Williams/Jefferson if Batum and Lee stay.

Williams, a starter, would probably be the top priority. But he could also probably draw the largest offers elsewhere, so he might price himself out of the Hornets’ range.

Lin holds more value than Jefferson, even as Kemba Walker‘s backup. Jefferson has ceded the starting center spot to Cody Zeller, and Jefferson’s low-post style might not fit Charlotte anymore.

But Lin might have also priced himself out of the Hornets’ range. It’s a thin free-agent class at point guard, and teams that strike out on Mike Conley (and maybe Rajon Rondo) could extend a huge offer to Lin.

He clearly likes it in Charlotte. The question might become: How much of a discount would he take to stay?

Byron Scott says he wants to coach again, should have played his veterans even more

Los Angeles Lakers head coach Byron Scott watches the action against the Oklahoma City Thunder during the first half of an NBA basketball game in Oklahoma City, Saturday, Dec. 19, 2015. (AP Photo/J Pat Carter)
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Deposed Lakers’ coach Byron Scott did a media tour on Thursday — radio interviews up and down the dial, plus speaking to some members of the Los Angeles media.

It was a tour d’ force of all the things that had Lakers’ fans shaking their heads all season long. Take this quote given to Mark Medina of the Los Angeles Daily News.

“If I knew this was coming, I would have played Lou [Williams], Brandon [Bass] and guys like that a whole lot more,” Scott said, referring to his veterans in an interview with this newspaper. “They gave me the best chance to win.”

He didn’t know his job was in danger? That would make one.

Scott was asked to do two contradictory things as Lakers coach: Put Kobe Bryant in the spotlight his final couple seasons while also developing the Lakers’ young talent. That was never going to lead to many wins — and Lakers’ brass understood that.

However, if your team is one of the two worst defensive teams in the league in consecutive years, that’s also not all about the roster. That’s about not getting buy-in from the players and effort to play whatever system he put in place. These Lakers teams didn’t hustle for Scott.

Scott admitted he was old school, but told Rich Eisen on the Rich Eisen Show (hat tip Eye on Basketball) that so is Gregg Popovich, and he’s doing just fine. Which shows a lack of understanding of the nuance with which Popovich works. Unlike the coach with a touch for praise at the right time in San Antonio, Scott’s old-school, tough-love ways turned off the young Lakers — it wasn’t just having them come off the bench, it was what was seen by the young players as a lack of communication as to why. A lack of coaching them up.

But Scott took credit on ESPN’s “The Jump” for the improved play and development of D'Angelo Russell and Julius Randle last season. He said he needed to rein in Russell’s ego and get him to be professional, and he said his plan “worked.” Whether Russell’s development happened because of or in spite of Scott depends on who you ask, but the young potential star’s relationship with his coach was not good. That’s one thing Luke Walton was brought in to change.

Scott said multiple times over the course of the day he wants to coach again. His last two jobs — Cleveland post LeBron and with the Lakers — were about developing young talent and none of those five teams finished better than 12 games under .500. I’d say that would damage future job prospects, but this is the NBA so who knows. He may get another chance in a few years.