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How does the NBA stack up to the NFL, MLB, and NHL in spending efficiency?

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Periodically, one financially inclined publication or another takes a look at the performance of professional sports teams in relation to their payroll. What typically ensues is just basic division; the outlets divide the total salary cost by the team’s wins, and then rank the teams according to their total cost per win. It’s a fun exercise, but Ira Boudway of Businessweek took things a step further. After calculating that “cost per win” number for each team across all four major sports over the last five years, Boudway found the standard deviation for each team within their respective sports. Using that standard deviation — dubbed “Efficiency Index” for the purposes of that particular post — Boudway was able to compare across leagues, and determine the spenders who are getting the greatest payoff per dollar spent relative to their competition.

NBA clubs don’t rank too well overall; the Spurs (5th) are the only basketball franchise in the top 10 according to the aforementioned Efficiency Index, and the Jazz (14th) and Lakers (15th) just barely managed to squeeze into the top 15. There are a run of NBA clubs in the low-20s, but overall, pro basketball doesn’t quite seem able to keep up with the MLB or NHL in term of win efficiency in financial terms.

That said, there’s an interesting trend at the top of these rankings: the “smartest-spending” NBA, NFL, and NHL teams are rewarded for their spending efficiency with playoff berths and championships, while MLB teams often fail to compete despite showing well in terms of their cost per win. Only two of the seven baseball teams in the Index’s top 30 have participated in postseason play over the last five years. Three of those inept teams (Florida Marlins, Pittsburgh Pirates, San Diego Padres) have fallen short of the playoffs five straight times despite ranking in the Efficiency Index’s top 10. True to form, this kind of data speaks to the return on high-level spending in baseball, which is by nature inefficient.

However, even when we look at NBA teams within the context of cross-league comparison, it’s hard to draw any concrete conclusions. This kind of reframing is interesting on a self-contained level, but it doesn’t do too much to clarify the existing, oft-debated dynamic between big spending and big wins in professional basketball. We know that exorbitant spending in the NBA isn’t always efficient, but it clearly can be; teams like the Lakers, Mavericks, and Magic have benefited greatly from their ability to give and take on large contracts. However, a line can — and should — be drawn between teams that spend and teams who are willing to spend. The chicken-egg element of these discussions lies in the fact that some owners are willing to spend if they have the right talent base to justify such expenditures, but simply don’t believe their middling clubs are worthy of an excessive investment. This chart, while interesting, doesn’t do much to clarify that debate; we still don’t know if NBA teams spend because they’re good or if they’re good because they spend, and it’s difficult to determine that much without control data taken in different league conditions within the same sport.

So here we are, right where we were: some NBA teams spend intelligently, and some do not, and both of those facts are separate from the total payroll of the teams in question. Here’s hoping the league and the union have more conclusive data to back their competitive equity claims in their negotiations than the limited correlations we try to draw facts from on the outside.

Report: Magic makes first trade, Lakers send Lou Williams to Rockets for first-round pick, Corey Brewer

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Magic Johnson has pulled the trigger on his first trade — and it’s a solid one for the team that will give them another first-round pick.

It may be a better one for a Rockets’ team looking to make a deep playoff run.

The Lakers are sending Lou Williams to the Houston Rockets and getting back what they really want in a pick, reports Adrian Wojnarowski of Yahoo Sports.

Lou Williams seemed to confirm this on Twitter.

We don’t know what year that first-round pick is, most likely 2017 but we don’t know for sure yet.

Williams became a sought-after trade commodity because the guy who used to be a volume scorer still gets plenty of points but now does it efficiently. He leads the Lakers scoring 18.6 points per game, with a very good true-shooting percentage of 60.9, in part because he gets to the line a lot more. He’s doing all that in just 24.2 minutes a night off the bench, which is why he’s a leading candidate for Sixth Man of the Year.

For the Rockets, they now bring the scoring punch of Williams and Eric Gordon — probably the frontrunner for Sixth Man of the Year — off the bench. That will relieve some scoring pressure, and maybe reduce the minutes load, for James Harden.

Williams should blend almost seamlessly into the Mike D’Antoni offense. The only concern for the Rockets is potential playoff matchups where Williams can be exploited defensively, but that team is going to play fast and put up points.

For the Lakers, they get a first-round pick, although if it is a 2017 it will be about pick 27. Corey Brewer makes the salaries match up but he is a below replacement-level player at this point, don’t be shocked if the Lakers try to move him next summer. My only question with the Lakers is could they have gotten a higher first rounder from another team, but this seems a fair deal for Sweet Lou.

PBT Extra: Will Magic run Lakers like his businesses or his Twitter account?

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The Lakers needed a front office change, and they got it — two days before the trade deadline. Jim Buss and Mitch Kupchak are out, Magic Johnson is in.

It’s a good first step, but here is the question I ask in this latest PBT Extra: What kind of leader will Magic Johnson be?

Will he be like he ran his business empire, hiring smart people and getting everyone to collaborate into a greater whole?

Or, will he run the Lakers like his Twitter account?

Magic has said all the right things about it being the former, but soon will come time for action.

Reports: Agent Rob Pelinka set to become Lakers new general manager, finalizing deal

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Golden State broke the mold and hired an agent as a general manager in Bob Myers a few years back. Safe to say that has worked out fairly well for them.

Now the Lakers will try to replicate that experiment — they are on the verge of hiring Kobe’s former agent Rob Pelinka as their new general manager, according to both media reports and the players he has under contract. Adrian Wojnarowski of The Vertical at Yahoo Sports was first with the news.

Backing up those reports, several of Pelinka’s players have come right out and said the agent is taking the job. Via Calvin Watkins of ESPN.

Rockets guard Eric Gordon said his agent, Rob Pelinka, will become the GM of the Lakers. “I think he’s going to be good,” Gordon said. “He had a good reputation as an agent and definitely expect nothing but good things from him. “It’s a different challenge, and I think he’ll be just fine.” Pelinka not only represents Gordon but Trevor Ariza and James Harden.

Pelinka will serve as the right-hand man for Magic Johnson, and will handle the day-to-day operations of the basketball side of the organization. On his first day, Johnson talked about working closely with coach Luke Walton, Ryan West (an assistant GM and son of Jerry), Jessie and Joey Boss (two of the Buss children also working in the front office, and well respected). Pelinka would be part of that collaborative effort — which is how most successful front offices work. While one person with the hammer has to make the final call, the best organizations have teams of guys who provide views from scouts, analytic departments, coaching staffs, capologists, and more (including ownership on the biggest deals). The idea is to synthesize all that information into an informed decision.

Pelinka would bring to the table things Jim Buss and Kupchak did not — he is personable and good in the room with players. Kupchak and Buss were disasters in free agent meetings with stars in recent years, but if you don’t know how to recruit as an agent, you starve. Pelinka also ran a team with his agency of competing personalities, he knows the CBA well, player contracts well, and he has good contacts all over the league.

Plus, Kobe wanted it.

Jeanie Buss says decision to fire brother Jim was so hard “I probably waited too long”

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The question has been for weeks not if but when. Ever since Magic Johnson was brought on as a “consultant to ownership” for Jeanie Buss and the Lakers the writing was on the wall, Jim Buss and Mitch Kupchak were going to be out. Magic’s heavy-handed public campaign to take over Jim’s spot added to the obviousness of the situation.

Nobody expected to be this fast — and certainly not two days before the trade deadline.

Why now? Lakers owner and team governor Jeanie Buss and Magic — the new head of Lakers’ basketball operations — were on the Lakers’ cable network Spectrum Sportsnet in Los Angeles and answered those questions.

“It’s something I thought about for a long time, and once the decision became clear in my mind there was really no reason to wait, Buss said…

“In today’s NBA there is no offseason, you’re constantly preparing for the draft, for the season, for Summer League, so there was no time like the present.”

This was very different from most teams firing a GM and basketball president — Jim Buss is Jeanie’s brother (and will remain part owner), Mitch Kupchak has been a loyal Laker front office soldier for decades. For Jeanie Buss, this was emotional and was not just business.

“This was a very difficult decision,” Buss said. “It was probably so hard for me to make that I probably waited too long. And for that, I apologize to Lakers fans. But now with clarity and direction, and talking to with Ervin, really knowing a change was needed, and that’s why we’re here today.”

Why did she wait so long, through what she called an “erosion” of what the Lakers should be?

“I wanted for the current (she meant former) front office to show us what Laker basketball was going to be. It just wasn’t going in a direction that was satisfactory for what this organization stands for,” Buss said.

Magic added perspective.

“It really wasn’t about the last couple weeks, it’s been about years,” Magic said.

However, Johnson did say in a later Los Angeles radio interview that he was kept out of the loop on the Lakers’ pursuit of DeMarcus Cousins All-Star weekend. He would not say if that impacted the timing, and he dodged the question about whether he would have included Brandon Ingram in the trade.

Johnson said he has talked to numerous other general managers already, both getting well wishes and talking trades — Los Angeles remains expected to move Lou Williams before the trade deadline, according to sources around the league.

“After we leave (the studio where this interview was taking place) we’re going to go back to the war room with coach Walton, Ryan West (an assistant GM), Jessie and Joey (Buss children working in the front office), we’re all going to sit in a room and evaluate trade possibilities,” Magic said.

Johnson continually praised both Luke Walton and the young core of the team — all of which were put in place by the former front office. He said he wanted to build with this core.

“We have the right coach with Luke Walton and a lot of great young players, that we can build and make sure we develop, and help them turn into the stars we think they can become,” Magic said.

“This isn’t about going back to Showtime, we’re not turning back the clock,” Buss said. “The Lakers have figured out how to win in every era, and certainly the game has evolved, and the rules have changed. We, in our discussions, were looking at evolving with the game and what the modern NBA is about.”

Magic said he wants a GM who can work with him and who also knows the CBA and has relationships with teams, “someone smarter than me.” He also talked about everyone in the organization working together in the front office, in a collaborative way.

“That’s how I built my (business) organization, that’s how I want to build this one,” Johnson said.

As expected, both Johnson and Buss said this was about winning and getting the organization going back in the right direction.

“When we sat down for dinner, and she asked me to come back, I think the timing was right,” Johnson said. “It was right for me to put my businesses aside and focus on Laker business, try to build an organization fans can be proud of, both on the court and in the offices.”