derek Fisher

Economist Murphy takes us all to school on players stance

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Kevin Murphy is smarter than you.

And me. And David Stern and Billy Hunter and everyone else in the negotiating room. There’s no objective way to prove that, but do you have a MacArthur Foundation “genius grant?” Are you the guy the people who wrote “Freakanomics” think is the smartest person they know?

That’s Murphy. And he’s the players’ economist. Union head Hunter said that pretty much every projection Murphy made back in 2005 about how the labor deal hammered out then would play out was spot on. He may grasp all the moving parts of this negotiation better than everyone.

And he spoke at length with NBA.com’s Steve Aschburner. You need to read this. All of it.

Know that Murphy has a dog in this fight — the union pays him. But he is too insightful not to read.

And this goes back to the core arguments of the entire lockout — how much money are the owners really losing? And who should pay for it?

I would say the primary disagreement is not over the accounting numbers. It’s what you include and how you interpret the numbers. For example, the accounting picture of the NBA isn’t very different from what it was five years ago or 10 years ago in terms of ratio of revenues to costs and all the rest — it’s changed very little. Which immediately tells you, wait a minute, if the underlying financial picture is similar today to what it was five years ago or 10 years ago, and people are paying $400 million or whatever for franchises, and you’re telling me that these things lose money every year, something’s missing, right? These people aren’t stupid, right? These guys are worth billions of dollars. So why did they pay all this money for franchises that, it looks like, lose money?

Well, the answer is pretty clear. There are a couple of things that are really attractive. One is, historically, you’ve seen franchises appreciate in value and that appreciation has more than outstripped any cash-flow losses that you’ve had. And if you’re in the right tax position, it’s actually pretty good because you’ve got a tax loss annually on your operating and you’ve got a capital gain at the end that you accumulate untaxed until you sell it and then pay at a lower rate. So you get a deferred tax treatment on the gains and an immediate tax treatment on the losses, that’s not a bad deal.

I’ll be honest, the last couple sentences are hard to follow for me. My tax position does no require a lot of thought. But you get the idea that what is in the official books is not the entire picture.

To all of you people saying “name another industry where the workers would get half the revenue” (yes, we read the comments) Murphy has an answer:

In certain sectors, there’s a ton. You go to a law firm, most of its cost is labor. You’ve got to remember, labor is 60-something percent of the economy. In the service sector, it can be much higher than that. And these people really define the product. These are the ones people come to see.

What separates the NBA from a different basketball league? Well, it’s the players. The basketball’s’ the same, the court’s the same, it’s the players who really are the distinguishing feature. That’s not to say that the league doesn’t have value. But the defining characteristic and the scarce resource, if you think about it from an economic point of view, is the talent. It’s not unlike Hollywood, the music business or any of the other ones where the thing that distinguishes one person from another is the talent.

Then there is the competitive balance issue. The idea from the owners that there needs to be more parity, something Murphy says clashes with the NBA’s star-driven league. Like another report yesterday, Murphy says that what you spend really only has about a 5 percent to 10 percent impact on wins on the court.

NBA.com: (The owners) want Milwaukee fans, for example, to not only root for the Bucks but to have most seasons with hope that their team can compete with bigger-revenue markets.

KM: There’s an element of that. But also, be careful what you wish for. When you get a Sacramento-Charlotte NBA Finals, guys will be crying over the TV ratings. We know that even with baseball — it’s an exciting World Series but the ratings aren’t there because it’s the Texas Rangers and St. Louis [Cardinals]. Basketball is even more star-driven. You get to an NBA Finals that doesn’t have one of the premier players in the league in it, it becomes a lot less interesting. And with 30 teams, not everybody is going to have one of the premier players.

All the number crunching is nice. But let’s get to what really matters:

Can the two sides reach a deal soon so we can have basketball?

“I was very pessimistic last week after the Thursday blow-up but I’m beginning to come around and think we’ve got a shot,” Murphy said. “If there’s a deal here, it’s going to be a deal that nobody likes. That’s what deals are. Nobody walks out feeling like they got a complete victory. That’s initially. But then you get back to playing and you realize, geez, I can live with this.”

Hakeem Olajuwon has nothing but praise for Joel Embiid, can “see himself” in rookie

Hakeem Olajuwon
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The most interesting comparison I heard a scout make about Joel Embiid was this is what people expected Greg Oden to be, before Oden’s body betrayed him.

But do you see some Hakeem Olajuwon in his game?

Olajuwon does, and he has nothing but praise for the rookie, as you can see in this video via the NBA’s Twitter account.

https://twitter.com/i/web/status/821424375819685888

I can see it in terms of mobility — Embiid is agile for a big man. He’s also a good passer and has a good feel for the game.

But he’d be the first to admit he has a long way to go to be in the same club with one of the greatest centers ever to play the game. Embiid needs to become a much better defender, and he needs a lot more polish on the offensive end.

Embiid has the potential to get there. That’s what we all see.

It’s official: NBA, NBPA announce new CBA signed

LONDON, ENGLAND - JANUARY 12:  NBA commissioner, Adam Silver speaks during a press conference prior to the NBA match between Indiana Pacers and Denver Nuggets at the O2 Arena on January 12, 2017 in London, England.  (Photo by Dan Mullan/Getty Images)
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When was the last time you saw any labor contract — not just the NBA, not just pro sports, but in any business — get done before either side could opt-out, let alone the actual deadline?

That’s what happened with the NBA’s new Collective Bargaining Agreement (CBA). The teams had until Dec. 15 of last year to opt out, with the real deadline for a new deal being July 1 of this year. Yet the two sides reached a deal before either side even opted out.

Thursday the NBA and National Basketball Players’ Association announced that the new CBA had been signed. It’s a seven-year deal that kicks in July 1.

The deal got done primarily for two reasons. One, the league is awash in cash with the new television deal and neither side wanted to put that at risk. Second, NBA Commissioner Adam Silver and NBPA Executive Director Michelle Roberts do not have the long, scarred history of their predecessors (David Stern and Billy Hunter), so they didn’t come to the table with distrust and looking to settle old scores.

The new CBA is largely status quo, which is another reason it got done quickly. Here are the highlights.

• The roughly 50/50 split of revenue remains in place (the players get between 49-51 percent of “basketball-related income” depending on if the league meets revenue goals). It’s always about the money, once this got done the rest tends to fall in line. The rising tide of the new national television contract has floated all boats and nobody wanted to rock that boat.

• The college one-and-done rule will remain. However, both sides will continue to look at the issue. (Will it change eventually? It’s a negotiation, if one side really wants the limit moved they are going to have to give something else up.)

• A new “designated player” rule, which we should just call the Kevin Durant rule. The rule allows teams that have a player they drafted that is entering their seventh or eighth year in the NBA to be offered a longer, larger contract extension — five years starting at 35 percent of the salary cap, same as 10-year veterans. The qualifications are the player has to be with the team that drafted him (or have been traded during his rookie deal, the first three seasons), and have been MVP or made the All-NBA team that season (or two of the previous three). Other teams could only offer four years starting at 30 percent of the cap. For example, Golden State can and will offer Stephen Curry that extension this summer. The more interesting test will be DeMarcus Cousins — the Kings say they will offer it and Cousins has said he will sign it.

• The NBA players’ union now will handle negotiations for player-likeness rights (such as those used in video games). This is something the union wanted and they see as a growth area of revenue, and how were the owners going to push back on the idea of players controlling their own images?

• The preseason will be shortened by three or four games, allowing the regular season to start a week to 10 days earlier. That additional time will be used to reduce the number of back-to-backs and nearly eliminate four games in five nights situations.

• The scaled salaries for rookies will increase.

• There will be some changes to cap holds that will make it harder to do what Kawhi Leonard and Andre Drummond did with their rookie deals, delaying signing an obvious max extension to allow the team to use that cap space to put a better team around them.

• The NBA will create a fund to help with medical expenses and more for retired players who need it.

• NBA teams can have up to three “two-way contracts” that will pay between $50,000 and $75,000. This is something the NBA borrowed from the NHL. These players will have two salaries on the books, their D-League salary and an NBA salary (the minimum, most likely) and will get pro-rated portions of said salaries depending on where they are playing. Teams will be able to move the player between the leagues much more freely.

• There will be changes to the NBA’s domestic violence policy which will clarify the disciplinary procedures in dealing with domestic violence incidents. This will include fines and suspensions, but also will go beyond that and include counseling and other steps to end the cycle.

There was the time Barack Obama taunted Joakim Noah for his shot, so Noah shut him down

Barack Obama
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Barack Obama is the biggest basketball fan ever in the White House, and the best basketball player ever to be president (Abraham Lincoln maybe could have given him a run for his money, except the game hadn’t been invented yet).

Over the past eight years, Obama has hosted a number of pick-up basketball games with NBA players, celebrities, and government officials. It’s pretty standard for half of Washington D.C. to pick up the hobby of the president, and when Obama took office suddenly everyone was a baller. Or wanted to be.

At GQ, they put together a great oral history of some of those games, and there are a bunch of great stories. But this one with Joakim Noah is my favorite.

David Axelrod: [The President] ticked off Joakim Noah because the president was trash-talking him about his shot, [which is], shall we say, unorthodox. The president said, “Where’d you get that shot? That’s the ugliest shot I’ve ever seen.” So at some point, Noah decided, “Okay, let’s see about yours.” And he completely smothered the President. I mean he was guarding him and the President could not go anywhere. But I will say that with all of that, somehow playing against all these NBA players, he mysteriously was able to hit the winning shot.

Obama is a lefty with — according to those who played against him — some old man at the Y in his game. He’s crafty.

Here’s another good story, but you should go read the entire piece.

Marty Nesbitt: The first possession when the president had the ball, Chris Paul was guarding him. He took a couple of dribbles right, and then he crossed over and went left, and then he threw this behind-the-head pass to Pau Gasol, who made a lay-up. It was spectacular. I was teasing Chris Paul a little bit. He said, “Hey, man, I led the NBA in steals. If I wanted to take that—” And I said, “No question, but you didn’t know the man could really play, right? So he surprised you.” He just didn’t expect that Barack could play as well as he could.

Chris Paul (Guard, Los Angeles Clippers): I was shocked at how good he was. Nice lefty jump shot. But he got lucky one time on the break. I sort of jumped out, made him guess which way to go and he made the right play, crossed over, made it look like he crossed me up. It’ll never happen again. Hopefully now that he’s out of office we’ll have some time to see if it was real.

I’m going to miss having a Baller-in-Chief in the White House.

TNT to cover NBA games with only former players, no traditional play-by-play men

LOS ANGELES, CA - MAY 19:  Grant Hill #33 of the Phoenix Suns looks to move the ball as Derek Fisher #2 of the Los Angeles Lakers defends in the first quarter of Game Two of the Western Conference Finals during the 2010 NBA Playoffs at Staples Center on May 19, 2010 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 Harry How/Getty Images)
Harry How/Getty Images
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NEW YORK (AP) — TNT will use broadcast teams featuring only former players and no traditional play-by-play men during five NBA doubleheaders later this season.

The “Players Only” schedule runs Monday nights from Feb. 27 to March 27 and includes matchups such as Golden State-Oklahoma City on March 20 and Cleveland-San Antonio a week later.

Brent Barry will serve as the primary host of one team with Derek Fisher and Grant Hill, while Greg Anthony partners with Kevin McHale and Richard Hamilton on the other.

Lisa Leslie and Dennis Scott will serve as reporters.

Turner Sports says Thursday that Chris Webber will anchor the studio coverage with Isiah Thomas and Baron Davis, and that additional NBA players will contribute to the five-week program.