Miami Heat v Dallas Mavericks

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.

Karl-Anthony Towns fakes out Luke Babbitt with spin move (VIDEO)

ATLANTA, GA - NOVEMBER 09:  Karl-Anthony Towns #32 of the Minnesota Timberwolves reacts after hitting a basket against the Atlanta Hawks at Philips Arena on November 9, 2015 in Atlanta, Georgia.  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 Kevin C. Cox/Getty Images)
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Since he came into the league, Karl-Anthony Towns‘ offensive footwork has been unusually advanced for a rookie. He showed off his impressive moves again on Monday night, getting to the basket around Luke Babbitt with this spin:

Kobe Bryant throws down old-man breakaway dunk (VIDEO)

INDIANAPOLIS, IN - FEBRUARY 8:  Paul George #13 of the Indiana Pacers defends against Kobe Bryant #24 of the Los Angeles Lakers in the first half of the game at Bankers Life Fieldhouse on February 8, 2016 in Indianapolis, Indiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using the photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Joe Robbins/Getty Images)
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Once upon a time, Kobe Bryant was one of the best in-game dunkers in basketball. Age and injuries have sapped him of his explosiveness, which makes it rare these days that he dunks at all. On his final trip to Bankers Life Fieldhouse, Pacers fans got a special treat of sorts, even if it was nothing like what we’ve seen from Kobe over the past two decades.

NBA local television ratings up, led by spike in Warriors viewship

PHILADELPHIA, PA - JANUARY 30: Klay Thompson #11, Draymond Green #23, Harrison Barnes #40, Shaun Livingston #34 and Stephen Curry #30 high five one another in the game against the Philadelphia 76ers on January 30, 2016 at the Wells Fargo Center in Philadelphia, Pennsylvania. 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 Mitchell Leff/Getty Images)
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Everyone wants to watch Stephen Curry and the Golden State Warriors.

Local television ratings for Warriors games on Comcast Sportsnet Bay Area have spiked 120 percent since last season, according to data compiled by the Sports Business Journal. An estimated 209,000 people tune in to CSN Bay Area for the games (plus the numbers of subscribers streaming Warriors’ games through CSNBayArea.com also has spiked this season).

It’s all part of an overall upward trend in ratings for the league, although about half the league’s markets have seen ratings fall.

Overall, as the NBA enters its All-Star break this weekend, the league’s local telecasts are up 6 percent year over year, according to Nielsen. Eleven teams have seen gains in their local ratings this season, while 15 have dropped. Denver Nuggets games on Altitude are flat with last year….

Golden State’s average rating is high enough to rank third in the NBA, an impressive achievement for a big-market team. Three of the top four teams as measured by ratings play in small markets: Cleveland, San Antonio and Oklahoma City. Additionally, with a league-best 209,000 households on average watching Warriors games locally this season, Golden State is far outpacing the New York Knicks for their games on MSG (160,000 households) and the Cleveland Cavaliers for their games on FS Ohio (141,000).

Interestingly, ratings for the Lakers are down 16 percent year-over-year, despite this being Kobe Bryant‘s final season, according to the report. That impacts the Lakers in that their massive cable television deal with Time Warner does have ratings ties — the Lakers could get a little less out of this deal than anticipated. Still, the average Lakers’ broadcast draws 92,000 viewers, fifth largest in the league.

LeBron has Cavaliers ratings up 36 percent over a year ago. The three biggest drops in ratings percentage wise are Atlanta (33 percent), New Orleans (33 percent), and Washington (34 percent). The average Pelicans game draws 7,000 viewers, according to the report.

That discrepancy in local television viewership — and the money that affords teams in local television deals — you can be sure is something the owners will fight about more in the upcoming Collective Bargaining Agreement discussions. There already is some sharing of that revenue, but as the gap grows you can expect a push from smaller markets to grow that sharing model (the only time rich owners suddenly want socialism in their lives). Expect the players’ union to bring it up as well when the owners cry poverty.

 

Love returns to Cavaliers’ lineup after missing 1 game

Cleveland Cavaliers' Kevin Love, right, drives past Phoenix Suns’ P.J. Tucker during the second half of an NBA basketball game Wednesday, Jan. 27, 2016, in Cleveland. The Cavaliers won 115-93. (AP Photo/Tony Dejak)
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CLEVELAND (AP) — Cleveland Cavaliers forward Kevin Love will return to the lineup Monday after missing a game because of a bruised left thigh.

Cleveland hosts Sacramento on Monday night.

Love sat out for the first time this season on Saturday in a win over New Orleans. He was injured in the third quarter of Friday’s loss to Boston and didn’t return.

He is averaging 15.9 points and 10.5 rebounds.

Love participated in Monday’s shootaround. He is nearing a pair of career milestones, needing three points to reach 9,000 and three field goals to hit 3,000.