Miami Heat v Dallas Mavericks

NBA owners want parity not for you but for their pocketbooks

2 Comments

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: Steve Ballmer in talks with Rams’ owner Kroenke to move Clippers to Inglewood

LOS ANGELES CA - OCTOBER 29: Steve Ballmer (C), owner of the Los Angeles Clippers, cheers for his team with his wife Connie Ballmer (L) at his side during pre game ceremonies before the home opener against Dallas Mavericks at Staples Center October 29, 2015, in Los Angeles California. 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 Kevork Djansezian/Getty Images)
Getty Images
Leave a comment

Since he bought the Los Angeles Clippers for a cool $2 billion, Steve Ballmer has been looking for ways to get them out of the shadow of the Lakers. While Los Angeles is big enough — and has enough corporate interests — to support two NBA teams, the city’s heart belongs to the Lakers. It’s still a wide chasm. You can take my word as a lifelong Angelino, or you can go look at the television ratings — the Lakers are in the worst stretch of on-court basketball in franchise history, the Clippers are loaded with stars and are one of the better teams in the NBA, and yet the Lakers still win the ratings battle.

One way to get out of the shadow — get out of sharing the same building. The Clippers moved to Staples Center with the Lakers when it opened (Donald Sterling loved having the team closer to his offices) but Steve Ballmer is talking about getting out, reports the Los Angeles Times.

Representatives of Steve Ballmer and Stan Kroenke, two of the richest owners in professional sports, have had multiple discussions about the Clippers joining the Rams and Chargers in the sports and entertainment district Kroenke is building in Inglewood.

Five people with knowledge of the conversations told The Times the arena could either be on the 298-acre site or an adjacent parcel. Either way, an arena would drive traffic to the planned mixed-use development and share parking with the $2.6-billion football stadium scheduled to open in 2019.

The Clippers are on a lease that runs through 2024 at Staples, but Ballmer and company have not-so-subtly been looking at potential sites for a new venue. There isn’t a question if the former Microsoft CEO has the money to finance such a building, but there could be both an economy of scale and joint energy joining the new football facility.

The project in Inglewood — on the former Hollywood Park horseracing location, right across the street from the Forum where Magic Johnson and the Showtime Lakers reigned — is designed like many modern arenas to bring dining, entertainment, and housing to the area with the arenas providing foot traffic. Staples Center did that for the L.A. Live development in downtown Los Angeles, helping spark a renaissance of the entire area. However, there are a lot of questions from parking to who actually would own the land and arena.

If nothing else, it’s a sign Ballmer gets what the previous owner either never did or simply never cared enough to try to fix — he has to get out of the Lakers’ shadow. One step in that path is getting out of the same arena.

Rockets’ Ryan Anderson gets engaged

WASHINGTON, DC - NOVEMBER 07: Ryan Anderson #3 of the Houston Rockets celebrates a three-pointer against the Washington Wizards during the second half at Verizon Center on November 7, 2016 in Washington, DC. 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 Patrick Smith/Getty Images)
Patrick Smith/Getty Images
Leave a comment

Ryan Anderson‘s girlfriend, Gia Allemand, committed suicide in 2014. I can’t even imagine having to handle that.

But it seems Anderson has found happiness.

Jonathan Feigen of the Houston Chronicle:

Fantastic news!

Carmelo Anthony says he doesn’t understand Knicks’ direction

PHOENIX, AZ - DECEMBER 13:  Carmelo Anthony #7 of the New York Knicks sits on the bench during the second half of the NBA game against the Phoenix Suns at Talking Stick Resort Arena on December 13, 2016 in Phoenix, Arizona.  The Suns defeated the Knicks 113-111.  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 Christian Petersen/Getty Images)
Christian Petersen/Getty Images
7 Comments

Carmelo Anthony said he’d consider waiving his no-trade clause if the Knicks want to rebuild, which could be welcome news considering that’s what Phil Jackson reportedly wants to do.

But, after letting the trade deadline pass without a move, New York must convince Anthony of a plan — any plan — before getting him onboard.

Ian Begley of ESPN:

New York Knicks star Carmelo Anthony said he doesn’t understand management’s vision for the future after the club’s inactivity at Thursday’s trade deadline.

“No, not now. No, to be honest with you,” Anthony said late Thursday night. “I think they were kind of planning on the trade deadline, whether they were trying to make moves. I think that was one plan. Now they’ve got to get back to the drawing board and come up with another plan about the future of this team.”

It seems the Knicks want to rebuild around Kristaps Porzingis, but they’re already down another road with long-term money tied to Anthony (32), Joakim Noah (31), Courtney Lee (31) and Lance Thomas (28). There’s no simple way to pivot into a new direction — especially with Anthony possessing a no-trade clause.

Maybe Anthony will never waive it, but appears the Knicks continue to approach this the worst way possible.

Report: Kristaps Porzingis out several days with ankle injury

CLEVELAND, OH - FEBRUARY 23: Carmelo Anthony #7 and Kristaps Porzingis #6 of the New York Knicks walk off the court during a timeout during the first half against the Cleveland Cavaliers at Quicken Loans Arena on February 23, 2017 in Cleveland, Ohio. The Cavaliers defeated the Knicks 119-104. 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 Jason Miller/Getty Images)
Jason Miller/Getty Images
Leave a comment

Of all the players the Knicks could have shed at the trade deadline — including Carmelo Anthony, Derrick Rose, Courtney Lee, Brandon Jennings and Kyle O'Quinn — New York is losing the one it values most.

Kristaps Porzingis sprained his ankle in the Knicks’ loss to the Cavaliers last night, but at least it doesn’t sound too serious.

Adrian Wojnarowski of Yahoo Sports:

The Knicks — 23-35, five games and four teams out of playoff position — were already going nowhere. Now, they’ll be a little less watchable while going nowhere.

As long as there are no lasting effects or indications of Porzingis being especially susceptible to injury, this is no big deal.