Jazz show how small markets can stay afloat, but winning costs

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The Salt Lake Tribune did a fantastic story over the weekend looking at the finances of the Utah Jazz and how that ties to the fortunes of late owner Larry Miller. It’s a great bit of reporting.

Some interesting tidbits out of that is how the Jazz have a passionate fan base — they averaged 19,511 people per game (seventh in the NBA) and had the second best television ratings and third best local sponsorship deals. This is a small market team that has kept fans happy and is rewarded with a loyal following and good revenue streams.

And yet they lost money. Why? Because you have to spend with the big boys to compete for rings and the Jazz were trying to do that, which left them with big contracts on the books. The blog SLC Dunk breaks it down well.

That of course is because the team was a luxury-tax payer for the first time ever starting with the 2010 season. They committed to that once Carlos Boozer, Kyle Korver, and Mehmet Okur all picked up their player options in a down off-season. They also had Andrei Kirilenko’s contract still on the books. In addition, Deron Williams’ max contract extension kicked in. So while they may not have been planning on going into the luxury tax that season, they knew it was a possibility. As a result, the team lost their first-round pick in Eric Maynor as he was traded to Oklahoma City in order for the Thunder to take Matt Harpring’s contract. That move saved them $12 million ($6 million for Hapring plus matching tax).

Last season also saw the Jazz go into luxury tax territory as they used a traded player exception received from Carlos Boozer going to Chicago in order to sign Al Jefferson. Again, AK’s deal was still on the books, Okur had a $10 million deal, and Williams was making the max. After a promising start to the season, the Jazz faltered and never materialized into a contender. The choice to go into the luxury tax last season was a little more of a conscious decision in an effort to remain a contender and to help appease Williams.

The owners will use this as an example of why the system needs to change, they will mask it as “competitive balance” but make no mistake it is all about the money. They spent it to keep Deron Williams, then unsure that was going to happen they shipped him out early to get a new building block in Derrick Favors.

The spending pattern in the NBA is not big markets spend and small ones don’t, it’s contenders spend and rebuilding teams don’t. The Lakers and the Mavericks are spending right now not just because they can but also because they are title contenders. The Thunder have not spent big yet but that is about to change as they have to really pay Kevin Durant and Russell Westbrook, not to mention good role players to go around them. They want to contend, they have to spend.

That doesn’t make the system flawed. Whatever system the owners put in that pattern will continue — teams will spend when they think they can win, will strip down costs during rebuilding.

The Jazz will spend less in the coming years as they rebuild with youth (after seeing him this summer, watch for Jeremy Evans), but when they get good again they will spend a lot for a chance to win. Frankly, it’s the way it should be.

Pistons’ Kentavious Caldwell-Pope suspended two games for DUI

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This is the standard penalty for coaches and players hit with a DUI. I don’t think the penalty is stiff enough in general for a serious issue, but this is the precedent that has been set.

Detroit Pistons’ guard Kentavious Caldwell-Pope has been suspended two games by the NBA for “pleading guilty to operating a motor vehicle while intoxicated, in violation of the law of the State of Michigan,” the NBA announced. He will miss the first two games of next season.

This will not stop Caldwell-Pope from getting PAID this summer.

A quality wing defender who hit 35 percent from three last season, he plays a position of need for a lot of teams and he is a restricted free agent. Other teams with cap space — Brooklyn and Sacramento come to mind — could step in and give him a max or near max offer. Then Stan Van Gundy needs to decide if he is going to match. He may not have much of a choice, if he wants to keep Andre Drummond and build an inside-out team around him, he needs Caldwell-Pope, and the Pistons don’t have the cap space to replace him.

One way or another, Caldwell-Pope is in line for a massive pay raise. This suspension will not slow teams, it just takes a little money out of his pocket.

 

Lonzo Ball tops Rookie of the Year early betting odds

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If you are betting right now on next year’s NBA Rookie of the Year award, you are a die-hard fan of your team and their new addition. Or, you have a problem and need to seek help. Maybe both.

Either way, the people at the gambling site Bovada have posted the early betting odds for the ROY award for next season.

Lonzo Ball (Lakers) 5/2
Ben Simmons (76ers) 3/1
Markelle Fultz (76ers) 5/1
De”Aaron Fox (Kings) 7/1
Josh Jackson (Suns) 9/1
Jayson Tatum (Celtics) 9/1
Jonathan Isaac (Magic) 16/1
Malik Monk (Hornets) 16/1
Dennis Smith (Mavericks) 16/1
John Collins (Hawks) 20/1
Justin Jackson (Trail Blazers) 22/1
Lauri Markkanen (Bulls) 22/1

Yes, Ben Simmons is in the mix.

The two bets I like here, if I were a gambling man, are Jackson in Phoenix and Dennis Smith in Dallas. I doubt Smith wins it, but Mavs coach Rick Carlisle said after the draft Smith will start for them next year, which means he gets opportunities and can rack up assists feeding Dirk Nowitzki at the elbow for a year.

Jackson is going to be unleashed in an up-tempo Suns offense where he will be the defender they need on the wing, play with high energy, and get buckets in transition. Winning ROY is as much about fit and opportunity as talent, and Jackson has landed in a good spot.

Paul George-Gordon Hayward-Celtics rumor doesn’t add up

AP Photo/George Frey
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Paul George reportedly wants to play with Gordon Hayward. George is also reportedly willing to join his desired team (universally accepted to be the Lakers) by means that don’t guarantee the highest salary.

Could the Celtics – who are pursuing Hayward in free agency – leverage those conditions into getting George?

Adam Kauffman of 98.5 The Sports Hub:

I don’t what George would do, but it’d be a MAJOR financial disadvantage to go this route.

There a couple ways it could happen – George getting extended-and-trade or George getting traded then signing an extension six months later. The latter would allow George to earn more than the former, but even if he pledged to sign an extension, would the Celtics trade for him knowing he’d have six months to change his mind if he doesn’t like Boston as much as anticipated?

There’s a bigger issue, anyway. Both extension routes would leave George earning far less than simply letting his contract expire then signing a new deal, either with his incumbent team or a new one.

Here’s a representation of how much George could earn by:

  • Letting his contract expire and re-signing (green)
  • Letting his contract expire and signing elsewhere (purple)
  • Getting traded and signing an extension six months later (gray)
  • Signing an extend-and-trade (yellow)

image

Expire & re-sign Expire & leave Trade, extend later Extend-and-trade
2018-19 $30.6 million $30.6 million $23,410,750 $23,410,750
2019-20 $33.0 million $32.1 million $25,283,610 $24,581,287
2020-21 $35.5 million $33.7 million $27,156,470 $25,751,825
2021-22 $37.9 million $35.2 million $29,029,330
2022-23 $40.4 million
Total $177.5 million $131.6 million $104,880,158 $73,743,861

Firm numbers are used when it’s just a calculation based on George’s current contract. When necessary to project the 2018-19 salary cap, I rounded.

The Celtics could theoretically renegotiate-and-extend, but that would require cap room that almost certainly wouldn’t exist after signing Hayward.

Simply, it’s next to impossible to see this happening. It’d be too costly to George.

Dwyane Wade on why he exercised his player option: ’24 million reasons’

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Dwyane Wade said he wanted to see the Bulls’ direction – winning now with Jimmy Butler or rebuilding? – before deciding on his $23.8 million player option for next season.

While Chicago was actively shopping Butler (before eventually trading him to the Timberwolves), Wade opted in, anyway.

David Aldridge of NBA.com:

This is most real answer answer you’ll ever see. Props to Wade for his directness.

This also speaks to the unlikelihood of him accepting a buyout, no matter how poorly he fits with the rebuilding Bulls now – though maybe he’d accept a small pay cut to choose another team.