Maybe revenue sharing isn’t the answer for owner, players

1 Comment

If there is one thing that both the players and owners almost, kind of agree on in the new Collective Bargaining Talks is the concept of increased revenue sharing.

The players see it as a way to help make small market teams competitive — allowing those teams to pay higher salary and avoid issues such as contraction (a loss of jobs). Small market owners want more money for obvious reasons, and NBA Commissioner David Stern said big market owners are willing to discuss the idea so long as there are safeguards to make sure that money is re-invested in the team and not just pocketed.

Behind it all is thinking of the NBA like the NFL model, where there is extensive revenue sharing, great parity on the field, increased competition and a rising tide lifts all boats. Whether that is a model which really works for the NBA — where one player like a LeBron James or Kobe Bryant can alone radically alter a game in a way no one football player can; and where stars have long driven the sport — is another debate.

But revenue sharing does not work for the players or owners, argues Adam Fusfeld at Business Insider.

He notes that that while big market teams such as the Lakers and Bulls have made money, so have franchises in Sacramento, Utah, Cleveland. Also, having that money does not automatically produce wins — see the Knicks or Clippers, two profitable but losing teams.

But the data shows that those deep-pocketed owners in New York and Los Angeles might as well keep their cash. The size of the market isn’t what makes teams profitable, and the size of the payroll isn’t what makes them winners….

Washington, in the nation’s ninth largest media market, had a nearly identical won-loss record to Indiana over the five-year span, but earned $87 million more in operating income. The Wizards generated slightly more income, but also spent $7.6 million less each year on player expenses. If the Pacers simply reduced their payroll to equal that of the Wizards, their $26 million loss would transform into a $12 million profit.

In this five-year span, eight franchises – Phoenix, San Antonio, Denver, Detroit, New Jersey, New Orleans, Chicago, and Utah – finished with more wins than Indiana despite paying substantially less in player salaries between 2005 and 2009. Of those teams, only the Nets lost more than $1 million per year.

Small market owners gripe that it’s impossible for them to stay afloat without sustained on-court success, while large-market teams rake in profits no matter what. But how does that explain the Dallas Mavericks? Mark Cuban’s $75 million loss dwarf those of Pacers’ owner Herb Simon.

Sure, Mark Cuban and Knicks’ boss James Dolan can afford to incur those losses, but they are losses nonetheless. In essence, the Pacers, Bucks, and other small market teams are griping over rival owners’ riches.

And that’s the true inequity in NBA financials.

Some owners are willing to bankroll losses to assemble the best roster they can, while others aren’t.

This disparity continues. Peter Guber and Joe Lacob purchased the Golden State Warriors and have promised to run it smarter, but also said they are not going to spend over the NBA luxury tax line. Meanwhile Mikhail Prokhorov purchases the New Jersey Nets and money is no object.

With both the Detroit Pistons and New Orleans Hornets available for purchase, the debate about the types of owners the NBA has and needs is a very relevant one.

Pacers’ Myles Turner fined $15,000 for flipping bird at Sixers fans

Getty Images
1 Comment

Myles Turner had to know this was coming.

Frustrated after fouling Joel Embiid under the basket and being taken out of the game, the Pacers’ big man flipped off some Sixers fans as he walked to the bench.

Saturday the league announced Turner was fined $15,000 for “making an inappropriate gesture toward the spectator stands.” The league, understandably, is not a fan of its players flipping off fans.

That fine is pretty much the going rate for these kinds of incidences.

Embiid went on to score 40 Friday night in a dominant performance, but the Pacers won the game 113-101.

Why are Lakers saving their young core? Reportedly to chase Anthony Davis.

Getty Images
4 Comments

Anthony Davis is the target at the top of the Lakers’ wish list.

He’s also at the top of the wish list for the Boston Celtics and about 27 other teams, too. But if Davis is put on the trade block — something that is not likely until this summer, New Orleans is working to keep him — the Lakers and Celtics will be at the front of the line.

Which is why, when reports that the Lakers would not include any of their young core in a trade for Trevor Ariza came out, it fit with the Lakers’ long-term thinking. Adrian Wojnarowski of ESPN discussed this on a special trade season preview broadcast Saturday morning (transcription via Real GM).

“Here’s the line [the Lakers] have to walk: they’re not going to give away picks and their top young players in some deal that makes them incrementally better this season because they have to save all those assets for Anthony Davis, a big trade this summer either pre or post free agency…

“The absolute dream scenario, people talk about (how) they can trade for Anthony Davis or sign a free agent. The dream scenario is they do both.”

The dream is to sign Kawhi Leonard or Kevin Durant and get Davis, and while that dream may be a long shot the only chance they have is if they still have their core players to throw in a package.

The larger point also is valid — the Lakers are not going to beat the Warriors come the playoffs this season (assuming the Warriors are healthy) and L.A. should keep its powder dry for bigger battles. And Davis will be the biggest of battles.

New Orleans wants to keep Davis, they are actively trying to be buyers at the trade deadline, not sellers. Sources have told me the Pelicans’ plan is to win as much as possible this season and show Davis they are serious, then come July 1 offer Davis a designated veteran contract extension worth $230 million (or a little more, depending upon the cap). It’s roughly $40 million more than any other team can offer guaranteed. If Davis and his agent Rich Paul — the same agent as LeBron James — turn down that contract then the Pelicans will be forced to consider a trade.

If we get to that point, then all bets are off and the Lakers are all in. Until then, the Lakers are wise just to be patient.

Despite fast start in Toronto, Kawhi Leonard reportedly still eyeing return to Los Angeles

Getty Images
4 Comments

The Toronto Raptors are making their case to Kawhi Leonard this season — Toronto is 23-8, in first place in the East by 2.5 games, and look like a real threat to make the NBA Finals. Leonard, averaging 26.2 points and 8.2 rebounds a game, is a guy who has returned to the MVP conversation.

Still, the Raptors don’t know if he’s staying, or what he’s thinking, because Leonard doesn’t talk about it in a meaningful way.

“It’s been good so far,” Leonard told NBC Sports of the fit in Toronto. “Like I said, we’ve been winning, everyone’s playing well. Can’t complain.”

Nothing he’s done has slowed the speculation and buzz about what Leonard will do as a free agent next summer… which Leonard is working to ignore.

“I don’t buy into reading media, don’t have no social media, so just focus on what’s in front of me,” Leonard said before the Raptors faced the Clippers last week. “At that time it’s either my family or playing basketball.”

A lot of the speculation around the league has remained that Leonard is headed back to Los Angeles next summer, most likely with the Clippers. Here is what Adrian Wojnarowski of ESPN said on a special trade season preview broadcast Saturday morning (transcription via Real GM).

“They can’t change the geography. They can’t change the weather in Toronto. Those were always be things against them in this,” said Adrian Wojnarowski. “Home and L.A. has been the focus for Kawhi Leonard through all of this.”

“Just wear a jacket,” Leonard said about the weather. “We’re in a building. We’re not outside playing in the snow. And it’s good scenery.”

Clippers president Lawrence Frank and other Clippers executives have been a fixture at Raptors games this season, doing their part to recruit him early. They are going to make a strong play for him. So will the Lakers, although I have heard from multiple sources he’s not likely to play with LeBron and in that spotlight.

Nobody knows what Leonard will do next summer, or even what he’s thinking. Leonard doesn’t speak much, and when he does it’s in cautious cliches providing little if any insight. As long as that is the case, the speculation will continue.

Why didn’t Lakers trade for Trevor Ariza? Suns owner reportedly blocked it.

Getty Images
7 Comments

There were eight teams (that we know of) having some level of contact with Phoenix about getting in on a Trevor Ariza trade. The Lakers were one and — as with all things Lakers — were the most talked about.

But the Lakers were never going to pull off that trade because the Suns’ owner, Robert Sarver, didn’t want it to happen, according to David Aldridge of The Athletic.

Sarver — a very hands-on owner when it comes to basketball decisions — is probably still stung by buying out Tyson Chandler and watching him go to the Lakers and dramatically helping their defense (the Lakers are allowing less than a point per possession when Chandler is on the court). And certainly spiting the Lakers will play well with the Suns’ fan base.

However, the best franchises put aside petty thinking and do what’s best for them. If the Lakers had made the best offer (and we don’t know if it was) then take it. If it makes the Lakers better this season, or even the next few seasons, so what? If you’re the Suns, you’re in a rebuilding process and should be focused on the long term.

That said, the Laker trade was always going to be complicated and hard to pull off, LeBron James wasn’t going to be able to call up Suns GM James Jones and make this one happen. The Lakers wanted to land Ariza but also wanted to send out Kentavious Caldwell-Pope, and KCP doesn’t fit with what the Suns wanted (a point guard and young players or draft assets). That means a third team was going to have to get involved, maybe Philadelphia, and possibly even a fourth. The Lakers were not going to trade any of their four core young players, making this trade even harder.

What the Suns got in the trade with Washington was what they wanted: A point guard (Austin Rivers, who is not all that good, as evidenced by his 7.1 PER this season, but is better than anyone the Suns have) and a young wing in Kelly Oubre who fits on the timeline of Devin Booker and the other young Suns. Phoenix did reasonably well in this trade.

Could they have done better? Doesn’t matter, if the owner is shooting down an idea then it’s dead. That’s his prerogative.