NBA owners want parity not for you but for their pocketbooks

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When was the NBA at its peak of popularity? When one dynamic star — Michael Jordan — dominated the game and his team was a dynasty for the better part of a decade.

Based on that — and what we saw with Bird and Magic, and what we saw last year with the Heat — I see the idea of parity in the NBA as being to way to bring in more fans as flawed. The NBA is about selling its stars, but because that has worked.

The owners disagree. Strongly. The owners want their hard cap and parity with it. NBA owners point to the NFL where “competitive balance” is hailed as the reason for the sport’s success and massive television ratings. The league contends that if you don’t let the rich owners overspend and you put in a system where even the smallest markets can make money then the rising tide will float all boats.

Is competitive balance good for the NBA? Over at the Wages of Wins journal, Dave Berri destroys that idea (link via TrueHoop). They use a ratio that shows the NBA has been the least balanced of all American sports for decades, despite having a cap and limits on player salaires, and that has not slowed its growth.

David Stern and the NBA owners want to impose further limits on the spending of owners in the NBA. The NBA (in 1984) was the first to impose any kind of cap on team payroll. And in 1999 the NBA was the first league to cap the salaries of individual players. As one can see, the 1984 cap didn’t alter competitive balance. And since 1999, the average ratio in the NBA has been 2.7 (by far the highest in American sports). So the 1999 salary cap also didn’t seem to have much impact on balance.

This is not a surprising result. Martin Schmidt and I presented research this past summer that looked at the impact of various institutions (i.e. salary caps, luxury taxes, etc…) the NBA, NHL, NFL, and Major League Baseball have created to alter competitive balance. We found that none of these institutions had any statistically significant impact on balance in any of these leagues.

Berri notes that in the NBA market size does not help a team win — Utah and San Antonio have had great success in small markets in the last decade, the Knicks and Clippers floundered in large markets.

Berri also throws out there that the NBA was a much more balanced league before David Stern took over as commissioner, yet he has been heralded for the growth of popularity of basketball.

So why are the owners so driven on competitive balance? It’s about the money. It’s always about the money.

Henry Abbot does a great job looking at the issue of parity and television ratings over at TureHoop, using the English Premiere League and other sports. His conclusion is spot on about the issue of competitive balance in the NBA:

I must tell you, of course, that whenever, any economist is asked this question, they will say well, the league in question, and I’m not getting at the NBA here, it’s true of every league, including the European soccer governing body at the moment, every sports league when it proposes something to improve parity, says it is what the fans want.

But every such scheme also reduces the salary costs to the owners. It’s a way of containing costs.

Report: Warriors, Jerry West nearing deal to keep him with franchise

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The Warriors decision-making process as a franchise is one of inclusion: A lot of voices in the room, a lot of discussion from different points of view, all ultimately synthesized by GM Bob Myers.

One of the most trusted voices in that room belongs to NBA legend — as a player and a front office mind — Jerry West. He was one of the strong voices against trading Klay Thompson for Kevin Love a few years back (in hindsight a move that was central to the kind of team the Warriors became). His deal as a consultant to ownership in Golden State is up after this season, and there were some rumors he could be leaving that role.

Doesn’t sound like it. Warriors’ co-owner Joe Lacob spoke to Tim Kawakami of the San Jose Mercury News and made it sound like West will be around for a while.

There is a growing sense that West and the Warriors are headed toward agreeing to extend his relationship with the franchise–Lacob confirmed he and West have spoken about a new contract and have now paused the discussions until after the Finals–but nothing has been finalized….

His contract is up, as you know. We have met; we have discussed the future. And it’s really something that I’m sure at the end of the season we will return to and figure out what Jerry wants to do.

We want him back. We love him. He’s been a great contributor to the organization, someone I consider a personal friend as well. We would love him back (beyond this season), and we’ve made that known.

There had been some buzz about West returning to the Lakers, but with Magic Johnson and Rob Pelinka now firmly in charge there West’s return to the team where is jersey is in the rafters seems highly unlikely.

Sometime this summer, expect a quiet announcement from the Warriors that the deal got done and West is sticking around. For their management style, he is a great voice to have in the room.

Watch Michael Jordan’s best highlight from each of his playoff runs (video)

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I’ve become a sucker for this highlight format.

Jazz deny rumored promise to draft D.J. Wilson

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Michigan forward D.J. Wilson said he’d stay in the draft only if he’d go in the first round. Yet, despite not doing any on-court work at the combine, the borderline first-rounder remained in the draft beyond the withdrawal deadline.

What gives?

Rod Beard of The Detroit News:

Kyle Goon of The Salt Lake Tribune:

NBA teams sometimes promise to draft a player. They never reveal that before the draft. So, Utah’s denial doesn’t mean much – even if it’s true.

The Jazz were the last team to give Wilson a full work out before he injured himself in a Spurs workout. So, this rumor could be based on circumstantial evidence rather than leak of a Utah guarantee.

Wilson would make sense for the Jazz, who could see their payroll bloat if they re-sign Gordon Hayward and George Hill (and maybe even Joe Ingles). They could move Derrick Favors, an interior who doesn’t exactly fit with Rudy Gobert. Wilson would give Utah another option with Trey Lyles as developing stretch fours behind Boris Diaw. (Utah could even move Diaw and count on Lyles/Wilson to emerge sooner than later.)

Watch LeBron James’ top highlight from each of his postseason appearances (video)

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LeBron James and Tony Parker are the only players to play in the last dozen postseasons.

(If you’re wondering, Manu Ginobili missed the 2009 playoffs due to an ankle injury.)

It’s fair to say LeBron was a bit more spectacular than Parker in that span. As LeBron enters his seventh straight Finals, the NBA released this awesome video showing LeBron’s best playoff highlight from each year:

There’s no entry for this year. Here’s betting it comes against the Warriors in the NBA Finals.