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Raise Stars' max salary to restore competitive balance?

Discussion in 'NBA Dish' started by JoeBarelyCares, Oct 22, 2011.

  1. JoeBarelyCares

    JoeBarelyCares Contributing Member

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    I think the writer is on to something. Implement the stricter luxury tax, but also raise the max salary. Then each team will be able to afford only one star, putting an end the to superfriends trend:

    http://espn.go.com/blog/truehoop/post/_/id/32703/the-nba-clings-to-a-fragile-position

    The NBA clings to a fragile position

    By Henry Abbott
    ESPN.com

    Give them credit, they have been consistent.

    The NBA owners have always said that they want two things from a new CBA: To adjust player salaries so that owners stop losing money, and to change some other aspects of the league’s financial underpinnings to make the league more competitive, entertaining and successful.

    As the stakes get higher and higher the case behind that second part gets weaker and weaker.

    “We think the data is clear,” deputy commissioner Adam Silver said in Thursday's news conference announcing the end of this attempt at mediation. “I know we've had lots of back and forth with people in this room, but we think that a team that spends $100 million on its payroll versus a team that spends $50 million is at a huge competitive advantage. It's not a perfect one-to-one correlation, but there's a huge competitive advantage that comes from the ability to spend more money. And there's a reason we believe why the NFL has been so successful from a competitive standpoint with a hard cap and a reason that the NHL has been so successful from a competitive standpoint with their flex cap-type system, which has a hard, absolute cap at the top of the band.”

    That little line about “back and forth with people in this room” he said with a glance at me, and by no accident. I have been vigorously pursuing this concept with the league and others from the moment I first learned of it. I’ve talked to every expert they’ve ever mentioned on or off the record, as well as independent authorities.

    And the more I dig, the more startling it is how thin the evidence is to support the league’s assertion that they can spread hope around the league with financial tricks. Limiting how much the Los Angeles Lakers can spend might sound like a good way to make the Sacramento Kings better, but I'm not sure it works that way.

    Good teams generally spend

    I accept that there is correlation between payroll and winning. There are plenty of exceptions -- for instance, the team with the best record last season, the Chicago Bulls, had a bottom-five payroll. But the fact is that payrolls on teams deep in the playoffs tend to be high and payrolls on teams in the lottery tend to be low.

    The NBA is torching this season in no small part on the bet that there is not just correlation but causation. As in, that spending causes winning, and that if low-spending teams could spend more, they’d win more.

    Think about bad NBA teams, though. The playbook is as old as the hills. If you don’t have good players, you trade away all the big contracts, hoard draft picks and cheap young players, then spend as little as possible to preserve cap space in case good players come along.

    In other words, we all know that when your team is bad, you stop spending.

    And the opposite is true. When the Cleveland Cavaliers had LeBron James, they spent like crazy to surround him with talent because that was their time. Small-market teams poised to win almost always pay. This is not like baseball, in which the poor teams can’t afford to keep the studs. San Antonio, Orlando, Salt Lake (Utah), New Orleans, Memphis … there is no NBA market so small it wouldn’t jump at the chance to pay a real-deal superstar.

    Where's the precedent?

    Especially devastating to the league’s case is that it has never worked before in any major way. I have pressed the league’s leading experts on this for evidence that a hard cap has ever improved competitive balance anywhere on the globe. The NHL recently instituted a hard cap, and but for a passing comment from Peter Holt on Thursday, it’s impossible to find anyone even at NBA headquarters who thinks that serves as a strong example.

    They're similarly unable to come up with a better one.

    There is a widely accepted -- even by both sides of this debate -- measure of a league’s competitive balance called Noll-Scully. The NFL has always had a great Noll-Scully score -- which has not changed noticeably with changes in the NFL’s cap.

    In other words, this both defies a casual observer’s sense of how the league normally works, and has never worked convincingly in any other league.

    In a recent paper, researchers David Berri and Martin Schmidt review the entire history of major professional sports in America, and all of the measures any leagues have ever taken to improve competitive balance. They did not find that any “institutional changes” made leagues more competitive (what changes there have been to parity in leagues they trace to other factors).

    Schmidt and Berri aren’t outliers among economists either. Worth noting that the “Noll” in “Noll-Scully” is respected Stanford economist Roger Noll, who has written extensively about the competitiveness of leagues, and the anti-competitive effect of salary caps. Noll has testified against the NBA on the issue of salary caps in the past.

    Who doesn’t love the idea of a league riddled with close games? All kinds of teams in the playoff hunt? I’m enthralled by it too. I have even had it explained to me how such a thing would have a dramatic effect on TV ratings and the popularity of the league. With the right system changes, I’ve heard, the league could be so much more popular that 50 percent of new BRI (basketball related income) could be worth more than 57 percent under the old system. These tweaks could be worth billions!

    If that's so, why not get those billions with a much better solution?

    If you're serious about competitive balance

    Let star players earn way more. That's the solution. The Lakers are routinely used as the example of a team that outspends rivals. If Kobe Bryant and Shaquille O’Neal in their primes could both have earned their worth, not even the mighty Lakers would have been able to afford them both, and they would have made two teams really good instead of one team a three-time champion.

    If the current Miami Heat were allowed to pay Dwyane Wade $50 million a year, they would have started that years ago -- and they’d never have had the cap room to lure LeBron James and Chris Bosh.

    That’s a system that would really do what matters to make the league more competitive. It moves the stars around, which is the only reliable way to move the wins around.

    There’s no risk of total salaries going crazy -- both sides agree players will continue to share a pool of league revenues, and both sides agree to salary caps and some kind of luxury tax.

    But the league doesn't pursue this, of course, because owners like capping maximum salaries. (The union doesn’t push on this issue either, because if stars earned more that would hurt their bread-and-butter, the NBA’s middle class.)

    Instead, the league asks us all to celebrate competitive balance -- so long as the pain of creating it is felt primarily by the players. When owners could do something real to make the league more competitive, like change the playoff format or pay Chris Paul far more on the open market, they lose interest.

    Seems fishy to me, but I'm not the one they have to convince.

    What does Billy Hunter think of the NBA's efforts to improve competitive balance? Is he excited to reap its rewards? Hardly.

    "I think," he said Thursday, "it’s all about putting money in their pocket."
     
  2. RudyTBag

    RudyTBag Contributing Member
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    Domination...
     
  3. Icehouse

    Icehouse Contributing Member

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    Why would the league want to end superfriends? They had record revenues with superfriends last year and the majority of title teams since the 80's have had superfriends type talent.

    Parity in basketball is a myth.
     
    1 person likes this.
  4. t_mac1

    t_mac1 Contributing Member

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    David Stern promoted this, and now he wants "competitive balance," just after a ratings record year? Please. Stick with what works.
     
  5. cuddie

    cuddie Member

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    I would really have loved to give Joe Johnson $50 million/yr.
     
  6. opticon

    opticon Member

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    Basketball is the ultimate ME team sport.

    Its one of the few sports that if you have one player who is better then any one else your team can win.

    That's Why Elite players should be able to make Elite un capped money as long as they are Elite.

    Once they stop being Elite the should be cut or have their deal restructured.


    Owners don't realize that by capping Max salaries they made Winning more important than money.

    Money needs to have importance then winning from a player perspective in order for the League to have true competitive Balance.

    You don't want the leagues top players thinking this.

    What is the big deal if I loose 10 mil over the life of a 5 year deal? If I win championships and make a ton of extra money off endorsements by increasing the value of my personal brand.
    (sound familiar)


    IF Cleavland could Pay Lebron say 30 mil a year the way St louis could pay Albert Pulos if they wanted their would be no way LeBron would have left Cleavland.

    Back in the day part of the Motivation to be the MAN on a Nba team was to make the BIG money.

    The kind of Money that only a team that really needed you could pay.

    When just about every team with cap space can pay you the same money + or minus a few Million money players start weighing in other factors like opportunity to win, quality of life stuff like that.

    If the Nuggets could have given Melo a partially guaranteed 30 Mil a year, 5 year deal he would be in Denver right now screaming from the roof tops how much he loves Denver and never wanted to leave.

    In order for there to be competitive Balance, Money has to be Ultimate Carrot and great equalizer.

    Owners are finding out the hard way that Cost certainty can sometimes create new problems that you may not have been ready to deal with.
     
  7. dharocks

    dharocks Contributing Member

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    It's been pretty clear to me for a while that the superstars should be making more than they currently are and the middling guys should be making quite a bit less, not even from a competitive balance standpoint, just common sense.
     
  8. francis 4 prez

    francis 4 prez Contributing Member

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    THANK YOU! someone finally gets it. all the people complaining about the heat's super team and what it does to competitive balance don't even seem to understand how it was formed. i mean, you've got people calling miami a big market team.

    the heat didn't get their trio by outspending everyone yankees-style. they had something like the 17th highest payroll. they did it by taking a huge gamble (or a small one given how much you think they knew before free agency). they got rid of essentially every contract on their team (good luck if that doesn't work out) and then had to convince a bunch of high-profile free agents to join their team (good luck if that doesn't work out).

    and even if you want to argue that this particular team knew it could get these 3 players (certainly won't be the case with most teams clearing cap room), the only reason it could even theoretically work is what abbott (and plenty of others) points out, that star salaries are capped. if wade and lebron were making the $25M, $30M or whatever that they could get, they wouldn't be able to team up. the difference in sacrificing $2M/yr and $20M/yr might make the choice a little bit more difficult. as opticon pointed out, money is a great equalizer. but by all means, let's b**** about big market teams forming superteams when it was a mid-market team that did it and only did it with rules you don't want to change.


    and then of course, as Icehouse (and me and plenty of others) pointed out, there doesn't seem to be much evidence that parity works for the nba. the world let out a collective yawn when san antonio and detroit were showing up in the finals. and didn't when jordan, the lakers, and the heat were. it's funny, you have people talking about how much competitive balance would help the nba make money and then you have people (probably some of the same people) b****ing every time the lakers or knicks get a call, talking about how much the big market teams winning will help the nba make money. given the prevalence of the latter over the years, and all the supporting data to back it up, it's amazing how many people want to espouse the former.

    apparently competitive balance means no team should be bad or good for too long and no one should have to live with their mistakes or successes. signed a bad contract? don't worry, just cut the guy and start over next offseason, no reason your stupidity should hold you back in this balanced world. signed a great young team? well don't worry about dreams of years of long, dynastic playoff runs, we're gonna ship some of that talent off to the stupider (or less lucky) gm's to make sure they have fun, too. and then you all get a ribbon!
     
    #8 francis 4 prez, Oct 22, 2011
    Last edited: Oct 22, 2011
  9. da_juice

    da_juice Member

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    @francis

    Teams shouldn't be exempt from their mistakes, I think one way we restore competitive balance is by having the league be more strict about who owns teams, and how they're running them.

    Take the Knicks, for almost a decade they had Isiah Thomas screwing everything up. One bad trade or signing after another. What does Dolan do? Nothing. The league should intervene and punish the owner for not firing Isiah.

    Look at the Warriors or the Clippers. Both teams have made the playoffs, I think once each since the turn of the century. There should be a financial penalty on the owners who can't get their team to pull it together.
     
  10. Shroopy2

    Shroopy2 Contributing Member

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    Thats exactly right. If the league wants parity in TITLE CONTENDERS, they need to change the playoffs structure to allow more UPSETS, simple as that.

    Need to allow a team on a hot streak to streak all the way through to the Finals. Instead of them playing like 90 more games in the long postseason getting worn down and the more talented team wins.

    Upsets are upsetting though, thats partly why no one wants them.

    And its not about parity. Its about playing more games especially postseason games to get more ad revenue per-game back. A 7 game series makes MUCH more money than a 3 game series.
     
  11. meh

    meh Contributing Member

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    Morey has been talking about this for a while. Basically he wants hard cap with no spending limit on any player so that spending wisely becomes a good thing.

    And for those who keep talking about how great the ratings are, that would only matter if the NBA fully revenue shares. The Timberwolves and the Kings aren't exactly basking the glory of Superfriends lighting the league on fire.
     
    1 person likes this.
  12. OlajuwonFan81

    OlajuwonFan81 Member

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    I'm not sure how much sense it makes for superstars in the NBA to be making 30-40 million dollars a year. It would end up like the US economy in which 1% of the population holds the majority of wealth. This is just plain dumb.
     
  13. MemphisX

    MemphisX Contributing Member

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    The thing is that if you remove the MAX salary, hardened the cap just a little and had true revenue sharing...all problems solved. If you don't do all three then it will be business as usual with only an exchange in how much pie is given to each side.


    However, there is absolutely no system that can be created that will make people make smart decisions with their roster.
     
  14. Shroopy2

    Shroopy2 Contributing Member

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    Professional sports isnt like college or high school or amateur sports. Its just like movies and the entertainment industry. Tom Cruise is gonna get $30 mil for a film and everyone else gets peanuts, cuz he's the major draw. It would be silly of Cruise to ONLY accept $5 mil off a $500 mil movie, or to "cap" him at that amount when he's drawing CONSIDERABLY MORE in box office.

    Endorsements aside, for a while Michael Jordan's NBA salary was BARELY more money than Toni Kukoc. Until Jordan rightfully said screw it I'm gonna get paid $30+ mil for my work.

    It makes sense what Morey is saying about hard cap/no player spending limit. They'd have their OWN operating budget just like a movie or business, and they can balance the costs out however they wish.
     
  15. Shroopy2

    Shroopy2 Contributing Member

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    All that is true..

    Preaching to the choier...the max limits on contracts is both so they don't invest too heavily in bum players or players with diminishing returns. And its to keep front offices from spending STUPIDLY on THEMSELVES. (No one even had to pay Jerome James and Eddy Curry all that money in the first place.)

    And even in a hard cap/no max/revenue share there's gonna be an Eddy Curry contract. But yeah 6 years guaranteed of Eddy Curry, can see why owners would be upset with the current way lol.
     
  16. SuperMarioBro

    SuperMarioBro Member

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    What does that even mean? Yeah, parity doesn't exist right now, but it's certainly not impossible for us to have more of it.
     
  17. meh

    meh Contributing Member

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    True. But there won't be Eddie Curry's contract, Stephon Marbury's contract, Allan Houston's contract, Jared Jeffries contract, Jamal Crawford's contract, etc. etc. etc. all on one team.

    The hard cap let people spend stupidly, just not unlimited spending stupidly. The latter is very different from the former.
     

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