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.”

Hayward, Johnson, good ball movement lift Jazz past Clippers 98-94, Utah up 3-2

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LOS ANGELES — Chris Paul is the best player on the floor in the Los Angeles vs. Utah first round series. He’s also the best playmaker on either team, a guy who can survey the court and quickly decide whether he should score or what teammate he can set up. He also gets the Clippers points and plays solid defense.

However, for lengthy stretches of the game, he’s the only playmaker on the court for the Clippers. He has to be Mr. Everything.

Utah has multiple guys they can lean on to create looks — George Hill, Gordon Hayward, Joe Johnson — and with that has come better team ball movement and open shots.

It also came with a crucial Game 5 win over Utah, 98-94, putting the Jazz up 3-2 heading to Utah for Game 6 on Friday night. Utah has the chance to advance past the first round for the first time since 2010, when Deron Williams and Carlos Boozer were at their peaks, and Jerry Sloan was still patrolling the sidelines.

Gordon Hayward is Utah’s big star now, and he returned from missing Game 4 with food poisoning. This time he made the Clippers sick, with 27 points on 9-of-16 shooting, plus he made the little plays like a tip-out offensive rebound to Johnson late in the game that turned into a key made three for the Jazz.

“Hayward killed us early,” Clippers’ coach Doc Rivers said. “I thought Hayward set the tone tonight in the first six or seven minutes of the game (Gordon had 11 first quarter points on 4-of-6 shooting).”

The Clippers often use Blake Griffin as a secondary playmaker, because he has good handles and is a strong passer. However, with Griffin out for the rest of the series with a foot injury that will require surgery, the Clippers are stuck. Backup point guard Austin Rivers returned to the Clipper lineup, but he could only play 16 minutes. Too much of the time it felt like CP3 against the world to create shots for the Clippers. That’s rough against a long, disciplined Jazz defense.

Meanwhile, the Jazz were moving the ball and getting better looks — if guys such as Joe Ingles (0-of-4 from three) or George Hill (1-of-7) had knocked down their shots, this game may have been decided much earlier. Utah’s drive-and-kick game was in full force, and with Griffin out the Jazz have nobody who can check Joe Johnson effectively.

“That’s beating us off the dribble way too much and making us rotate,” Rivers said. “Also, we did a good job — we took the ball out of Joe (Johnson’s) hands… by doing that they’re going to get open threes. And listen, we were fortunate tonight with them being on the road, their role players didn’t make some of those.”

That’s what the first half felt like. The Jazz pushed the pace at times, moved the ball well in the half court, exploited mismatches, and largely got better looks than the Clippers, but missed enough good shots that the game was always close. It was 21-19 Clippers after one, led by six points from Paul Pierce nailing a couple open threes. By the half the Jazz had a small 46-43 lead behind 14 from Hayward on 5-of-8 shooting. But neither team was able to take control.

The third quarter was just ugly basketball — it was slow, physical, and Utah missed shot after shot. So did both teams — Utah “won” the quarter 18-15 to have at 64-58 lead after three. Still, it just felt like Utah was playing better and just missing looks.

Utah pushed the lead to 11 in the fourth after some threes started to fall, but the Clippers went on their own 11-0 run sparked by Paul to tie the game up 69-69. Staples Center was getting loud. But out of a time out the Jazz scored five quick points off well-designed plays, and order was restored (as far as Utah was concerned). From there Utah just held on.

Hayward finished with 27 to lead the Jazz, followed by Rodney Hood who came off the bench with 10. Utah had six players in double figures.

There was little pretty about this game, or for that matter the series. It’s become slowed down and grinding. It’s not a style the Clippers thrive in, but they’re going to have to find a way — or pick up the pace — by Friday night, or their season will come to an end. Then the questions will begin.

Russell Westbrook, Patrick Beverley get weak double techs for trash talking (VIDEO)

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Russell Westbrook and Patrick Beverley had no love lost during Tuesday night. The Houston Rockets closed out the Oklahoma City Thunder, 105-99, but that didn’t stop Brodie and Beverley from getting one of the weakest double technical foul calls we’ve seen during these playoffs.

The two squared off midway through the fourth quarter, with both players seemingly OK and a bit incredulous after getting techs for what amounted to trash talk.

I’ll let you be the judge for yourself whether it was worth of a tech.

Via Twitter:

The double technical foul is definitely one of the dumbest calls in the NBA.

Houston goes on to face the winner of the series between the San Antonio Spurs and the Memphis Grizzlies.

Kawhi Leonard, Patty Mills lead Spurs by Grizzlies for 3-2 series lead

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SAN ANTONIO (AP) Kawhi Leonard had 28 points and the San Antonio Spurs rebounded from two discouraging road losses to beat the Memphis Grizzlies 116-103 on Tuesday night and take a 3-2 lead in their first-round series.

San Antonio shot 14 for 28 on 3-point attempts, two off its postseason record, including 5-for-7 shooting by Patty Mills.

Mills finished with 20 points and Tony Parker added 16.

Mike Conley had 26 points and Marc Gasol added 17 for the Grizzlies, who have lost nine straight postseason games in San Antonio.

With each team winning on its homecourt, Game 6 is Thursday night in Memphis.

The Spurs went on an 11-0 run shortly after switching Leonard onto Conley defensively, holding the Grizzlies scoreless for 2:46 midway through the first quarter.

But it was the few times either team had success defensively.

San Antonio shot 53 percent from the field and Memphis shot 52 percent in a surprisingly explosive game between teams renowned for their defense.

Conley had seven points during a 17-3 run bridging the third and fourth quarters to pull Memphis within 87-83 with 9 minutes remaining.

The teams exchanged baskets over a 3-minute span before consecutive 3-pointers by Mills helped break the game open for San Antonio.

After failing to score in the first four games, Manu Ginobili had six points in 33 seconds in the first quarter and finished with 10 points.

James Ennis III had 11 points and Andrew Harrison added nine, as both took advantage of Leonard leaving them to help defensively during the second and third quarters.

TIP-INS

Grizzlies: Conley and Gasol are the only Memphis players to score in double figures in all four games. . Zach Randolph had nine points and six rebounds Tuesday after averaging 17 points and 9.7 rebounds in the previous three games. Randolph was held to six points and three rebounds in Game 1. . Tony Allen remained out with an injury to his right leg after being kicked in the calf during Memphis’ regular-season finale against Dallas. . Ennis was 4 for 9 from the field in scoring 11 points after averaging 7.0 points in the previous four games.

Spurs: San Antonio’s franchise record for 3-pointers made is 16 against Miami in the 2013 NBA Finals. . Leonard has scored in double figures in 25 straight playoff games, the longest streak in franchise history since Tim Duncan had 26 from 2011-2013. . The Spurs have lost three straight only once this season, dropping their final three games of the regular season after clinching the second seed. They have lost two straight on four occasions, including back-to-back losses in Memphis in this series. . Dewayne Dedmon returned after missing Game 4 due to an illness. . Ginobili’s eight points in the opening quarter are the most he scored in any quarter of a playoff game since scoring nine in the 2014 NBA Finals.

Watch Houston’s Eric Gordon yam it down over Thunder forward Jerami Grant (VIDEO)

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Eric Gordon is a leading Sixth Man of the Year candidate for the Houston Rockets for one reason: he can shoot the lights out.

But that didn’t stop Gordon from surprising a few folks during Tuesday night’s closeout Game 5 against the Oklahoma City Thunder.

Gordon scored just eight points in Houston’s 105-99 win, but two of those points came on a thunderous dunk over Oklahoma City’s Jerami Grant.

Via Twitter:

Wasn’t expecting him to get up like that.

Houston will go on to play the winner of the San Antonio Spurs and Memphis Grizzlies series.