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.”

WNBA rescinds fines regarding protest shirts

FILE - In this Wednesday, July 13, 2016 file photo, members of the New York Liberty basketball team await the start of a game against the Atlanta Dream in New York. The WNBA is withdrawing its fines for teams and players that showed support of citizens and police involved in recent shootings by wearing black warmup shirts before and during games. WNBA President Lisa Borders said in a statement Saturday, July 23, the league was rescinding penalties given to the Indiana Fever, New York Liberty, Phoenix Mercury and their players for wearing the shirts–which was a uniform violation. The players started wearing them to show solidarity after shootings in Minnesota and Baton Rouge, La. (AP Photo/Mark Lennihan, File)
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LeBron James, Kyrie Irving, and a number of Cavaliers and Brooklyn Nets players wore “I can’t breathe” T-shirts in warmups after the death of Eric Garner in New York. LeBron and his then Heat teammates wore hoodies for a photo shoot after the Travon Martin shooting. NBA players have made other protest fashion statements, with no repercussions from the league.

But when WNBA players wore black warmup shirts in support of Black Lives Matter and other anti-violence protests, the WNBA came down with fines for the Indiana Fever, New York Liberty and Phoenix Mercury ($5,000) and players involved ($500) for uniform violations. That led to a lot of backlash — including among WNBA players. Some refused to answer basketball questions with the media after recent games.

Saturday, the WNBA rescinded the fines. As they should have.

The women’s players’ union supported the move, via a statement from the director of operations Terri Jackson.

“We are pleased that the WNBA has made the decision to rescind the fines the league handed down to the players on the Fever, Liberty, and Mercury. We look forward to engaging in constructive dialogue with the league to ensure that the players’ desire to express themselves will continue to be supported.”

I want a league — for men or women — where player’s individuality and statements can be made — I don’t want the NBA to be the button-down, cookie cutter NFL. Let the players be themselves. And if players want to weigh in on the biggest social issue of our time, they should. Without fear of repercussion.

Good on the WNBA for coming around to that.

Meyers Leonard says he hopes to be ready by start of Blazers’ season

CLEVELAND, OH - DECEMBER 8: Meyers Leonard #11 of the Portland Trail Blazers takes credit for a foul call during the first half against the Cleveland Cavaliers at Quicken Loans Arena on December 8, 2015 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
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Meyers Leonard could be poised for a big season in Portland. His minutes jumped last season because he provided spacing. With Portland adding Evan Turner on the wing to go with Damian Lillard and C.J. McCollum, any big who can stretch the floor is going to get run, and Leonard has turned himself into a stretch four.

Leonard just hopes he can show what he can do at the start of the season — he’s still recovering from shoulder surgery. Here is what he told the Associated Press.

“My hope is to be ready right around the start of the season,” he said. “It’s a progression, first introducing rebounding, grabbing stuff overhead, then one-on-one, three-on-three, extending to the full court. We’ll see. You just never know.”

Leonard had surgery to repair a torn labrum in his left shoulder in April (they could have used him in the playoffs), and the timeline then was to have him back around the start of the season. Before he was shut down, he proved enough to get a four-year, $41 million contract extension with the Trail Blazers this summer.

The Trail Blazers will start Al-Farouq Aminu at the four, and Moe Harkless can certainly play there too (I’m far less sold on the future of Noah Vonleh). Leonard wants to get back before someone starts to steal any of his minutes.

Pelicans sign Jones for 1 year, Frazier for 2 years

HOUSTON, TX - DECEMBER 21:  Terrence Jones #6 of the Houston Rockets reacts to a play as Cody Zeller #40 of the Charlotte Hornets looks on during their game at Toyota Center on December 21, 2015 in Houston, Texas. 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 Scott Halleran/Getty Images)
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NEW ORLEANS (AP) The New Orleans Pelicans say they have signed free-agent forward Terrence Jones and re-signed guard Tim Frazier.

A person familiar with the negotiations says Jones, a four-year veteran, signed a one-year deal Friday for the NBA minimum of about $1.14 million, while Frazier has signed a two-year deal worth about $4.1 million. The person spoke to The Associated Press on condition of anonymity because the Pelicans have not released contract terms.

The 6-foot-9 Jones, who was Anthony Davis‘ teammates on Kentucky’s 2012 national championship team, has spent his first four NBA seasons with Houston, posting career averages of 10.4 points and 5.8 rebounds.

Frazier played in 16 games for New Orleans late last season, averaging 13.1 points, 7.5 assists, 4.4 rebounds and 1.4 steals in 29.3 minutes per game.

Deron Williams says he is recovering well from sports hernia, will be ready to go at camp

DALLAS, TX - MARCH 01:  Deron Williams #8 of the Dallas Mavericks during the first half at American Airlines Center on March 1, 2016 in Dallas, Texas.   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 Ronald Martinez/Getty Images)
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Deron Williams will be back with the Dallas Mavericks next season — and be ready to go by the start of the season.

He’d like to say he’d be back for the next few seasons, but coming off a Sports Hernia injury his options were a little limited. However, his recovery is going well he told NBC Dallas in an interview from American Century Championships celebrity golf tournament in Lake Tahoe (which you can watch this weekend on NBC).

“Feeling really good. It’s healing pretty well, I’m doing a lot of work on and off the court. I haven’t got the full-go clearance yet, but that’s coming soon. I’ll be ready to go definitely by the time training camp rolls around.

“I’m running, I’m jumping a little bit. I’m just not going crazy. I kind of have to wait for August 1 for that, to go see the doc and get the go ahead. But it’s not much restriction right now.”

Williams averaged 14.1 points and 5.8 assists per game for the Mavericks last season and was solid at 32. His efficiency slipped a little (to be expected as he is on the wrong side of 30 and has plenty of miles) but he played well for Dallas.

Dallas signed him to a one-year, $10 million deal. Williams was hoping for a little more security.

“I was happy to come back. Would have liked a little longer deal but I’m back for one year and hopefully can build on last year and improve. I think there’s room for a lot of improvement. Hopefully I can stay healthy. I think that’s the biggest key but I’m excited about this year and this team.”

The one-year deal is more about Dallas than Williams — they could see a significant shift in plans when Dirk Nowitzki steps away (he inked a two-year deal but the second year is only $5 million guaranteed, so he could be in his final run if he wants).

Dallas added Harrison Barnes and Andrew Bogut from the Warriors to a starting five that also includes Nowitzki, Williams, and Wesley Matthews. If they can stay healthy — no little thing with that group — it’s a quality starting five that coach Rick Carlisle is going to love.