Sports economists say NBA financially healthy, aren’t buying owners claims

1 Comment

NBA owners are crying poverty — the system needs to change because right now the NBA is bad business. One new owner, Washington’s Ted Leonsis, talked of a hard cap. Then was promptly fined by David Stern for talking out of school.

Two prominent sports economists interviewed by the Boston Globe
said not to believe everything you hear from the owners or players right now. (Found via TrueHoop.) They are negotiating through the media.

They add that the league is basically healthy, so a lockout would do far more damage than good.

“I think the NBA is reasonably healthy,’’ said [Stanford economics professor and author Roger] Noll. “If you extract the fact that it’s the worst recession in the lifetime of anybody who’s thinking about it, the league is healthy. I do not anticipate there will be a strike or lockout. I do not anticipate the next agreement will differ materially from the present agreement.

“Both sides blow smoke in the run-up to collective bargaining. But you shouldn’t pay any attention to what they say. They are jockeying for position and trying to put pressure on the other side through the media. Nothing they say now about the state of the league or the state of the collective bargaining negotiations has any particular truth value.’’

Noll’s solution is somewhat radical — put a cap on team salaries if you want, but let go of (or dramatically relax) what an individual player can make. Put simply, if LeBron James, Dwyane Wade and Chris Bosh could each command $30 million a year there is no way they could team up, allowing a more balanced spread of talent. In this scenario, the top players would make more but many “middle class” players would take a pay cut as the disparity would grow.

He also says revenue sharing needs to increase if the owners want parity.

“The NBA has relatively small revenue sharing in comparison to football and baseball, and so the financial disparity between the top teams and the bottom teams is not as bad as it is in hockey,’’ Noll said. “But it is a lot worse than it is in baseball and football, and one of the interesting features is that it gives the teams in the biggest cities a great deal of leverage over other members of the league.’’

The Globe also spoke with University of Michigan sports economics professor Rodney Fort, and he wasn’t buying what the owners were selling either.

“The argument somehow that owners are on the brink or anything of the kind is a little difficult to swallow, but that doesn’t mean they won’t posture themselves that way,’’ said Fort, who authored a 544-page textbook, “Sports Economics.’’ “But it doesn’t mean they won’t posture themselves that way to reduce the share of basketball-related income that’s going to players.

“They will argue that always, in any situation. Not because owners are going belly-up but because everybody likes more money than less.’’

Fort adds that whatever the owners’ motives, they benefit more from a lockout. Which means there will be one. Which sounds like what we have heard, where people on the owners’ side of the equation have been more adamant about a lockout when talking (off the record) than players, who just accept that it is coming.

“If there’s a lockout, the owners perceive that they are going to be in better shape when it’s over than they are right now,’’ Fort said. “And that’s going to be true, regardless.

“So if the owners feel like they can profit more from a new agreement by locking the players out for a year, you better believe that’s something they are considering.’’

Even if it kills the momentum the NBA as a whole is building right now.

Celtics lock-up Al Horford with two-year, $20 million extension

Washington Wizards v Boston Celtics
Brian Babineau/NBAE via Getty Images
0 Comments

Brad Stevens has locked up the core of this Celtics team — the one that reached the Finals last season and has the best record in the NBA to start this one — through the summer of 2025.

They did that with a two-year, $20 million extension (that kicks in next season). The story was broken by Adrian Wojnarowski of ESPN and later confirmed by the Celtics.

Horford, 36, is making $26.5 million this season, the final year of a four-year, $109 million deal he signed in Philadelphia. While he never fit well as a stretch four next to Joel Embiid, he has worked well as a role player in Boston’s front line. The Celtics have locked him up at a deal closer to the league average and about his value now, at an average of $10 million a season (both years are fully guaranteed). It’s a fair deal for both sides, and a low enough number that if Father Time starts to win the race it doesn’t hurt Boston much.

With Robert Williams still out following knee surgery, Horford has seen his minutes increase to start this season but he has handled it well, averaging  10.9 points and 6.3 rebounds a game, shooting 55.5% overall and 48.8% from 3-point range. Joe Mazzulla will likely try to get Horford some rest down the line when he can, but for now he’s leaning on the veteran.

And the team has rewarded him.

Donovan says Lonzo Ball’s recovery has ‘been really slow’

Milwaukee Bucks v Chicago Bulls
Jonathan Daniel/Getty Images
0 Comments

Watching the finger-pointing and heated moments between Bulls’ defenders on Wednesday night as Devin Booker carved them up to the tune of 51 points, one thought was how much they miss Lonzo Ball‘s defense at the point of attack.

Ball had a second surgery on his knee back in September and the team said he would be out at “least a few months.” It’s coming up on a few months, so Donovan gave an update on Ball and his recovery, and the news was not good for Bulls’ fans. Via Rob Schaefer at NBC Sports Chicago:

“It’s been really slow,” Donovan said when asked about Ball’s rehab. “I’m just being honest.”

Donovan added Ball has not necessarily suffered a setback. The Bulls knew this would be an arduous process. But he also noted that Ball is “not even close” to being cleared for contact or on-court work.

Ball had his first knee surgery in January and the expectation was he would be back and 100% by the playoffs. However, Ball’s knee didn’t respond well, and he was eventually ruled out for the season. Things didn’t improve over the summer, which led to the second surgery. How much do they miss him? The Bulls were 22-13 with him last season, and he averaged 13.1 points, 5.4 rebounds, and 5.1 assists, a game. However, it was his defense that was most crucial.

There is no timeline for his return. Which is not good news for Chicago.

PBT Podcast: Timberwolves without KAT, get Luka some help

0 Comments

Minnesota has stumbled out of the gate this season, and now they will be without Karl-Anthony Towns for around a month with a calf strain. Just how much trouble are the Timberwolves in?

Corey Robinson from NBC Sports and myself discuss that and then get into Giannis Antetokounmpo‘s Team USA vs. Team World matchup — does Evan Fournier get the world team in trouble? Who guards whom?

From there, it’s time for Corey’s Jukebox and some New Orleans jazz for Zion Williamson. Some Mavericks’ talk follows that — Dallas has put a big load on the shoulders of Luka Doncic, and while he’s playing like an MVP it’s a long-term concern for the Mavericks and their fans.

You can always watch the video of some of the podcast above, or listen to the entire podcast below, listen and subscribe via iTunes at ApplePodcasts.com/PBTonNBC, subscribe via the fantastic Stitcher app, check us out on Google Play, or anywhere else you get your podcasts.

We want your questions for future podcasts, and your comments, so please feel free to email us at PBTpodcast@gmail.com.

LeBron calls out reporters for asking him about Kyrie Irving but not Jerry Jones

0 Comments

Within days of Kyrie Irving being suspended by the Nets in the wake of a Tweet promoting an antisemitic film (and his initial refusal to apologize for it), Irving’s former teammate LeBron James was asked about it. He had to deal with the controversy, saying, “I don’t condone any hate to any kind. To any race.”

At the end of his press conference Wednesday night after the Lakers beat the Trail Blazers, LeBron scolded the assembled press for not asking him about the 1957 photo that surfaced of Dallas Cowboys owner Jerry Jones outside North Little Rock High School while white students protested the integration of the school when they had been quick to ask about Irving.

“When I watched Kyrie talk, and he says, `I know who I am, but I want to keep the same energy when we’re talking about my people and the things they’ve been through,’ and that Jerry Jones photo is one of those moments that our people, Black people, have been through in America. And I feel like as a Black man, as a Black athlete, someone with power and with a platform, when we do something wrong or something that people don’t agree with, it’s on every single tabloid, every single news coverage. It’s on the bottom ticker. It’s asked about every single day.

“But it seems like to me that the whole Jerry Jones situation, the photo, and I know it was years and years ago, and we all make mistakes, I get it. It seems like it’s just been buried under, like, `Oh, it happened. OK. We just move on.’ And I was just kind of disappointed that I haven’t received that question from you guys.”

Irving and LeBron were teammates in Cleveland and won a ring together, there was a direct connection (plus Irving had been linked to the Lakers in trade rumors over the summer).

However, there was a connection between LeBron and the Cowboys as well. LeBron was for many years a very public Cowboys fan (despite growing up in Browns territory). It came up as recently as October, when LeBron was on Instagram Live promoting his HBO show with Maverick Carter “The Shop” and he said he had stopped rooting for the Cowboys in the wake of Colin Kaepernick’s peaceful protests, “There’s just a lot of things that were going on when guys were kneeling. Guys were having freedom of speech and wanting to do it in a very peaceful manner…. The organization was like, ‘If you do that around here, then you will never play for this franchise again.’ I just didn’t think that was appropriate.”

When asked about the photo, Jones said he was a curious 14-year-old who was watching and didn’t understand the magnitude of the moment or situation.