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.

Jeremy Lamb hits game-winner despite Bismack Biyombo, others Hornets prematurely running on court to celebrate

Leave a comment

The Hornets sure were excited for Jeremy Lamb‘s game-winner against the Pistons tonight.

Too excited.

After Lamb hit a jumper to put Charlotte up two with 0.3 seconds left, several Hornets ran onto the court. Bismack Biyombo was nearly at halfcourt as Detroit tried to inbound! He was so far onto the court, I’m not even sure officials noticed him when dinging Malik Monk – closer to the bench –for the violation.

Ashley Holder:

The Pistons made a technical free throw to cut their deficit to one, but they still had to inbound from under their own basket. Their desperation pass was intercepted, and Charlotte held on for a 108-107 win.

Several Hornets were certainly relieved.

Crazily enough, this isn’t the first time we’ve seen this.

Suns’ T.J. Warren fined $15k for inappropriate language toward official following ejection (video)

Leave a comment

Everyone on the Suns seems frustrated.

In Phoenix’s loss to the Clippers on Monday, T.J. Warren got ejected. And his outburst will cost him extra.

NBA release:

Phoenix Suns forward T.J. Warren has been fined $15,000 for directing inappropriate language toward a game official following his ejection, it was announced today by Kiki VanDeWeghe, Executive Vice President, Basketball Operations.

This wasn’t a lengthy exchange. Warren didn’t linger on the court complaining. He must have said something extremely harsh to warrant two technical fouls and a fine that quickly.

(Despite confusion, the foul preceding the ejection was called on Deandre Ayton, not Warren.)

Pacers star Victor Oladipo returns from 11-game absence

Andy Lyons/Getty Images
Leave a comment

When the Pacers ruled Victor Oladipo out indefinitely a couple weeks ago, it seemed gloomy.

But Indiana weathered the storm, going 7-4 without its best player.

Now, Oladipo is back. He started against the Bucks tonight.

I still think the Raptors, Celtics, 76ers and Bucks will comprise the Eastern Conference’s top tier by the end of the season. But the Pacers (17-10, fourth in East) have a chance to crash the party. They acquitted themselves well without Oladipo, and it should get only easier with their offensive focal point/top perimeter defender.

NBA promotes Bulls’ Mexico game with video of their bus bottoming out

AP Photo/Nam Y. Huh
Leave a comment

The Bulls will play the Magic in Mexico City tomorrow.

Even amid all Chicago’s problems, that’s still a marquee game for the NBA as it expands its reach globally. So, the league is showcasing Chicago’s trip.

With unintentional hilarity.

NBA:

That sound eight seconds in is Chicago’s season.