derek Fisher

Economist Murphy takes us all to school on players stance


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’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. (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.”

Philadelphia has dropped record 27 in a row dating back to last season

Brett Brown
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We tend to think of record streaks having to be in one season, not broken up across two.

But if you can suspend that, the Philadelphia 76ers are now the owners of the longest losing streak in NBA — and major professional sports — history.

With their tough two-points loss to Houston Friday night, the Sixers have lost 27 in a row. The Sixers dropped their final 10 last season and with the loss to the Rockets are 0-17 to start this one.

That bests the 26-game losing streaks of the 2010-11 Cleveland Cavaliers and these same Sixers from 2013-14. Looking across sports, the Tampa Bay Buccaneers of 1976-1977 also lost 26 in a row, which when you consider the length of the NFL season is pretty embarrassing.

The Sixers struggles are born from a plan by GM Sam Hinkie (and approved by ownership) to get better long-term by being bad now and hoarding draft picks. It’s a strategy that can work if Hinkie nails the draft picks (the book is out on how Hinkie is doing on that front). And they are committed to it through at least this draft.

But don’t think for a second the players and coach are trying to lose.

If you have watched the Sixers play their last few games you know the players are trying hard to get that victory (and almost have a couple of times). The effort is there, they are just outmatched and lack the kind of presence at the end of games to execute under pressure (something a couple of quality, regularly-playing veterans might help, but that’s another discussion). They have the point differential of a team that should have a couple wins; they just haven’t been fortunate. It happens. Go ahead and blame management if you think this plan is an abomination. Just don’t question the desire or effort of the players or coaches, that is not in doubt.

The Sixers play at the Grizzlies Sunday, then have maybe their best shot at a win for a while when they host the Lakers on Tuesday.



Byron Scott, is it time to bench Kobe Bryant? “That’s not an option.”

Kobe Bryant, D'Angelo Russell, Byron Scott

Kobe Bryant‘s shooting woes this season have been well documented. Let me explain… no, there is too much. Let me sum up. Kobe is shooting 31.1 percent overall and 19.5 percent from three, all while jacking up more threes than ever before. He was 1-of-14 shooting against Cleveland, and that’s as many shots as rookies D'Angelo Russell and Julius Randle got combined.

If Kobe keeps shooting like this while dominating the ball, is it time to bench Kobe? Coach Byron Scott laughed at the idea, as reported by Baxter Holmes at ESPN.

“I would never, never, never do that,” Scott said after practice at the Lakers’ facility. “That’s not an option whatsoever. No, that’s not an option.”

It’s not an option because this is the guy the fans have paid to see, at home and on the road (the Lakers have still sold out every road game this season, the only team to have done so). Kobe is the draw, he’s going to play.

That doesn’t mean Scott is handling all this well, Kobe has no repercussions for his actions.

Byron Scott is an enabler with Kobe. In his mind Kobe has earned the right to play poorly because of his career, which is just hard to watch.

The real issue I have with Scott enabling Kobe is the double standard — minutes for Russell and the other young players get jerked around when they make mistakes. Scott sounds and acts like a guy with a couple rookies on a veteran team where the objective is to win as many games as possible.

This can’t be emphasized enough: the primary goal for the Lakers this season is to develop Russell, Randle, and Jordan Clarkson (and Larry Nance Jr., who has impressed). But Russell has sat a lot of fourth quarters, and when Scott is asked if playing in those blowout minutes might help develop the young point guard faster, he says, “Nah.” Scott has benched Clarkson at points and called him out in the media.

Reduction of minutes can be a valuable teaching tool with young players — if the conditions of them getting those minutes are precisely laid out. Clear rules with rewards and consequences. That is not the case in Los Angeles, where Russell has said Scott has not spoken to him much about what he’s doing wrong and why he’s spending the ends of games benched. That’s not coaching a guy up; that’s not player development. There need to be clear guidelines and structures for young players to follow.

The only guideline in LA seems to be “Kobe has carte blanche.”

Boston police now probing fight involving 76ers center Okafor

Jahlil Okafor

BOSTON (AP) — Boston police say a man has come forward saying he’s the victim in a fight involving Philadelphia 76ers center Jahlil Okafor that was recorded and posted online.

Authorities say a man filed a police report Friday saying the fight outside a nightclub left him with stitches over his eye.

Police say the alleged victim reported the fight began after some of his female friends refused the advances of two men, including one believed to be Okafor. The man told police Okafor punched him and knocked him to the ground.

Okafor says he’s embarrassed about the scuffle and is dealing with the team and league on possible discipline.

The confrontation happened early Thursday morning after the 76ers fell to 0-16 on the season. The Sixers rookie said he was being heckled.

Previously, the police had said they were not investigating the incident.

Durant, Westbrook throw shade at Reggie Jackson after Thunder beat Pistons

Reggie Jackson
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Reggie Jackson‘s exit from Oklahoma City a year ago was not smooth or pretty. He wanted a bigger stage, he wanted out, and he let everyone know it. “We felt like everybody wanted to be here except for one guy,” Kevin Durant said after the trade that sent Jackson to Detroit.

The Pistons and Jackson were back in Oklahoma City Friday night. The fans let Jackson know they didn’t appreciate his words with plenty of boos. After the game, when asked about Jackson both Durant and Russell Westbrook threw shade at Jackson, as reported by Royce Young at Daily KD didn’t even mention Jackson among Detroit’s best players.

“Steven (Adams) did a great job on their best player and Andre (Roberson) did a great job on their second best player in (Kentavious Caldwell) Pope and Russ did his job,” Durant said…

“Who?” Westbrook said, after very clearly hearing who he was asked about.

Reggie Jackson.

“What happened?”

Those comments were more aggressive toward Jackson than the Thunder players seemed to be during the game, where he was treated as an afterthought.

Jackson has played well for Detroit this season — averaging 19.1 points and 5.9 assists per game, with a PER of 20.3 and real chemistry with Andre Drummond — but he was held in check against the Thunder. Spending much of the night battling foul trouble, Jackson had 15 points on 16 shots on the night.

Durant was the stud for the Thunder, with 34 points and 13 rebounds, and the Thunder won comfortably 103-87.