NBA free agency is winding down after a nice run. There were some big moves as expected and it was an exciting couple of weeks. Even before the free agency kicked off, the Chris Paul trade to the Clippers and the Phil Jackson firing by the Knicks set the stage for a fun off-season stretch. Even as CP3 left, Blake Griffin decided to stay in LA and canceled a previously scheduled meeting with the Phoenix Suns. I was excited a bit for that meeting, but all things considered, I have to say the Suns dodged a bullet. Blake is too much of a injury risk to invest that kind of money. The unexpected Paul George trade to the Thunder was a nice wrinkle as even the 24X7 NBA twitter machine had no clue about that one. At the end of all of this, the best story of the off-season might have been Kevin Durant taking almost 10 mill less than market this year.
The Warriors were constantly on the off-season news though they didn't have to make any big changes. Just keeping their team together as expected was a big and expensive activity. They super-maxed Curry and brought back Livingston and David West. The guy who proved challenging was Andre Iguodala. He negotiated his way to what I would say is a very generous contract at his age. This meant KD ended up taking a lot less than market to help the team out. The Warriors could have paid 5 mill a year more than what they paid KD and gotten Paul Millsap who can do about half the things on the court that Durant can! While other guys like Millsap were getting overpaid, KD gave money back. Real nice of Durant and the Warrior machine showed once again that it's firing on all cylinders. They didn't stop there as they signed Nick Young and Omri Caspi and also brought back Zaza Pachulia.
Dubs have reloaded and only JaVale McGee is not in the fold yet among the players they realistically want back. They apparently went way over budget and may even be better than last year. Don't forget the 3.5 mill they paid to get the second round pick Jordan Bell in the draft though they didn't have a pick this year. It reminded me of the Suns during the Nash golden era when they were trading away all their draft picks to save a mill here or there. That right there might be the difference between true championship teams and the wannabes. Back then, I didn't realize how stupid the Suns were because we were all entranced by the Nash-Amare-Marion brilliance and thought we don't need no damn rookies! But rookies are cheap and the Warriors know how to use them right. The Dubs are definitely not holding back their wallet and if you are a Dubs fan, you should be very happy about how they run their team.
Gordon Hayward was one of the most prized possession this off-season and his move to Boston was not a major surprise. He did the free agency dance, but ended up where he has been rumored to be going for 2 years now. A big blow to the small market Utah team. LeBron James maybe the only true super star left in a small market team now and if the rumors are true about him wanting to leave Cleveland next year and goto the Lakers with Paul George and others, the league in general and Cleveland in particular will have a tough challenge in their hands. LeBron not actively recruiting free agents this year to the Cavs only strengthens the rumors. Cleveland has spent a lot of money and mortgaged a lot of their future to keep the King's court going. If he bails, they maybe in a worse situation now than in 2010 when he first left town, though the championship he won last year softens the blow for the fans.
NBA has a decent economic system. I rank their system way above the MLB's when it comes to competitive balance between big and small market teams. Of course, NFL is the best system in that regard with their hard salary cap etc., but you could argue NFL is a modern-day slavery involving millionaire athletes. NBA strikes the right balance between player prosperity, flexibility for the teams, and competitive balance. But, despite their best efforts, the teams are having issues retaining their stars. The NBA system always enabled teams to overpay for their own players via Bird rights etc. They expanded this even more in the last collective bargaining agreement, but the players are still leaving their teams to go wherever they want.
The players do seem to be leaving for the right reasons, but the small-market teams are hurting in the process. They seem to be leaving mostly to win and to play with other stars they like. LeBron started this trend, but everybody is trying to create their own super teams now. So, Harden recruits Chris Paul and CP3 joins him forfeiting a more lucrative contract with the Clips. Though the rumor is, Clips didn't want to pay CP3 that much and he decided that in that case, he will just go to Houston. Hayward gave up extra years and money too when he decided to move to Boston. I think 2 things are happening here. One, the off-court earnings for superstars like Durant are so high that they don't mind giving up some shekels for a ring and to play with friendly superstars. You would think this may actually be good news for small market teams.
While the big market teams definitely have more money, cachet, and sex appeal to bring multiple superstars together, the fact the stars are chasing winning and friends more than money should mean the market size matters less. If the small market team and their incumbent superstar play their cards well, they should be able to attract other stars to town to build a winning roster. They may have to go over the luxury tax threshold and thats a challenge for smaller markets, but it's doable. If this doesn't ever work in their favor and if smaller market teams are perennially hurting, I am sure the NBA will bring an even bigger hammer to the next collective bargaining negotiation and make sure the luxury tax penalties are even more severe and the players have to give up even more to leave their home markets to go to greener pastures. I trust the NBA process and they will figure this out.
Secondly, there may be a temporary phenomenon at work currently with the players. The sudden 35% jump in salary cap last year has thrown the salaries out of whack. This generation of stars were hoping to score a max contract in the range of 18 to 20 million a year until last season. Suddenly, their choices now are either 32 mill or 38 mill a year depending on where they want to play and I think even the players themselves are confused and overwhelmed by it. They think it's great to make 32 mill and win with a star teammate of their choice rather than mortgaging everything for a 38 mill contract. It's all huge money anyways. So, who cares if it's 5 or 6 million less! This might change with the new crop of stars starting with the Lonzo Ball era as these kids may expect to make those kinds of money and they may be less willing to give that up. Their reference point may be different. Thats just my theory. Lets see if I am right in a couple of years.
In short, the players seem to have all the leverage, especially the stars. They pick the city, the teammates, the contract, and the options on when to become a free agent again. In some ways, the teams have themselves to blame. They wanted shorter contracts and more flexibility. But this also means the players have more flexibility as well. It feels like every star is a free agent every other year. It's fun for the larger NBA fan base in the off-season, but stressful for the GMs and the home town fans who are worried about their stars. On top of that, this season, it's very clear that the Warriors have sent every team into a frenzy. Every team is looking to build a super team to challenge them and the stars are obliging.
It almost feels like fantasy basketball as teams like Houston go get CP3 and are still in the market for Carmelo. And they have committed almost 220 mill to Harden. Wonder how much more he can make if he plays defense too! Cavs want another piece, Boston wanted a couple of pieces, John Wall was trying to get Paul George to Washington, and there are already rumors of how LeBron will join Paul George with the Lakers and get John Wall to join him too next year. John Wall coincidentally is represented by LeBron's buddies at Klucth sports and Wall is refusing to sign the big money extension with the Wizards. The league is gone crazy in a good way and the Warriors are pushing them over the edge. LeBron started the super-team trend in 2010 and it's getting worse now.
NFL has always been the envy of every other league. They have the most fans with the most attention span throughout the year and other leagues were trying to mimic them and steal their ideas. But when it comes to free agency, NBA has got it figured out. Even NFL has to be jealous of all the hype and attention the NBA free agency generates. The calendar is not even well thought out because it was not that big a deal in the past. Most big signings happen during the July 4th long weekend, which is not ideal for the media hype cycle, but the whole free agency period still generates intense buzz for 2+ weeks. As stupid as "The Decision" show was in 2010, we have to thank that for what has now become the modern free agency. Nobody will do that kind of a show anymore, but the activities of player movement and super team creation in July have become a yearly trend now.
This is all good as the NBA keeps us busy and occupied during the dog days of summer. NBA is experiencing a definite renaissance and you could attribute it to many things including a new set of talented stars and a fan-friendly style played around the league. And don't forget the health and concussion problems hurting the NFL either. But it recently struck me when I was listening to Bill Simmons talk about this that we have had couple of historic NBA records and events happen just within the last 2 years. I personally thought I will never see a team win more than 72 games a season or anybody average a triple-double in a season. The Warriors last year and Russell Westbrook this year achieved those 2 amazing feats. Those things are real fun to watch and track and no wonder NBA is on a magical run. The attention it draws during free agency and it's summer league may be the best proof of it yet. Hope the good times keep rolling for the association!
The Warriors were constantly on the off-season news though they didn't have to make any big changes. Just keeping their team together as expected was a big and expensive activity. They super-maxed Curry and brought back Livingston and David West. The guy who proved challenging was Andre Iguodala. He negotiated his way to what I would say is a very generous contract at his age. This meant KD ended up taking a lot less than market to help the team out. The Warriors could have paid 5 mill a year more than what they paid KD and gotten Paul Millsap who can do about half the things on the court that Durant can! While other guys like Millsap were getting overpaid, KD gave money back. Real nice of Durant and the Warrior machine showed once again that it's firing on all cylinders. They didn't stop there as they signed Nick Young and Omri Caspi and also brought back Zaza Pachulia.
Dubs have reloaded and only JaVale McGee is not in the fold yet among the players they realistically want back. They apparently went way over budget and may even be better than last year. Don't forget the 3.5 mill they paid to get the second round pick Jordan Bell in the draft though they didn't have a pick this year. It reminded me of the Suns during the Nash golden era when they were trading away all their draft picks to save a mill here or there. That right there might be the difference between true championship teams and the wannabes. Back then, I didn't realize how stupid the Suns were because we were all entranced by the Nash-Amare-Marion brilliance and thought we don't need no damn rookies! But rookies are cheap and the Warriors know how to use them right. The Dubs are definitely not holding back their wallet and if you are a Dubs fan, you should be very happy about how they run their team.
Gordon Hayward was one of the most prized possession this off-season and his move to Boston was not a major surprise. He did the free agency dance, but ended up where he has been rumored to be going for 2 years now. A big blow to the small market Utah team. LeBron James maybe the only true super star left in a small market team now and if the rumors are true about him wanting to leave Cleveland next year and goto the Lakers with Paul George and others, the league in general and Cleveland in particular will have a tough challenge in their hands. LeBron not actively recruiting free agents this year to the Cavs only strengthens the rumors. Cleveland has spent a lot of money and mortgaged a lot of their future to keep the King's court going. If he bails, they maybe in a worse situation now than in 2010 when he first left town, though the championship he won last year softens the blow for the fans.
NBA has a decent economic system. I rank their system way above the MLB's when it comes to competitive balance between big and small market teams. Of course, NFL is the best system in that regard with their hard salary cap etc., but you could argue NFL is a modern-day slavery involving millionaire athletes. NBA strikes the right balance between player prosperity, flexibility for the teams, and competitive balance. But, despite their best efforts, the teams are having issues retaining their stars. The NBA system always enabled teams to overpay for their own players via Bird rights etc. They expanded this even more in the last collective bargaining agreement, but the players are still leaving their teams to go wherever they want.
The players do seem to be leaving for the right reasons, but the small-market teams are hurting in the process. They seem to be leaving mostly to win and to play with other stars they like. LeBron started this trend, but everybody is trying to create their own super teams now. So, Harden recruits Chris Paul and CP3 joins him forfeiting a more lucrative contract with the Clips. Though the rumor is, Clips didn't want to pay CP3 that much and he decided that in that case, he will just go to Houston. Hayward gave up extra years and money too when he decided to move to Boston. I think 2 things are happening here. One, the off-court earnings for superstars like Durant are so high that they don't mind giving up some shekels for a ring and to play with friendly superstars. You would think this may actually be good news for small market teams.
While the big market teams definitely have more money, cachet, and sex appeal to bring multiple superstars together, the fact the stars are chasing winning and friends more than money should mean the market size matters less. If the small market team and their incumbent superstar play their cards well, they should be able to attract other stars to town to build a winning roster. They may have to go over the luxury tax threshold and thats a challenge for smaller markets, but it's doable. If this doesn't ever work in their favor and if smaller market teams are perennially hurting, I am sure the NBA will bring an even bigger hammer to the next collective bargaining negotiation and make sure the luxury tax penalties are even more severe and the players have to give up even more to leave their home markets to go to greener pastures. I trust the NBA process and they will figure this out.
Secondly, there may be a temporary phenomenon at work currently with the players. The sudden 35% jump in salary cap last year has thrown the salaries out of whack. This generation of stars were hoping to score a max contract in the range of 18 to 20 million a year until last season. Suddenly, their choices now are either 32 mill or 38 mill a year depending on where they want to play and I think even the players themselves are confused and overwhelmed by it. They think it's great to make 32 mill and win with a star teammate of their choice rather than mortgaging everything for a 38 mill contract. It's all huge money anyways. So, who cares if it's 5 or 6 million less! This might change with the new crop of stars starting with the Lonzo Ball era as these kids may expect to make those kinds of money and they may be less willing to give that up. Their reference point may be different. Thats just my theory. Lets see if I am right in a couple of years.
In short, the players seem to have all the leverage, especially the stars. They pick the city, the teammates, the contract, and the options on when to become a free agent again. In some ways, the teams have themselves to blame. They wanted shorter contracts and more flexibility. But this also means the players have more flexibility as well. It feels like every star is a free agent every other year. It's fun for the larger NBA fan base in the off-season, but stressful for the GMs and the home town fans who are worried about their stars. On top of that, this season, it's very clear that the Warriors have sent every team into a frenzy. Every team is looking to build a super team to challenge them and the stars are obliging.
It almost feels like fantasy basketball as teams like Houston go get CP3 and are still in the market for Carmelo. And they have committed almost 220 mill to Harden. Wonder how much more he can make if he plays defense too! Cavs want another piece, Boston wanted a couple of pieces, John Wall was trying to get Paul George to Washington, and there are already rumors of how LeBron will join Paul George with the Lakers and get John Wall to join him too next year. John Wall coincidentally is represented by LeBron's buddies at Klucth sports and Wall is refusing to sign the big money extension with the Wizards. The league is gone crazy in a good way and the Warriors are pushing them over the edge. LeBron started the super-team trend in 2010 and it's getting worse now.
NFL has always been the envy of every other league. They have the most fans with the most attention span throughout the year and other leagues were trying to mimic them and steal their ideas. But when it comes to free agency, NBA has got it figured out. Even NFL has to be jealous of all the hype and attention the NBA free agency generates. The calendar is not even well thought out because it was not that big a deal in the past. Most big signings happen during the July 4th long weekend, which is not ideal for the media hype cycle, but the whole free agency period still generates intense buzz for 2+ weeks. As stupid as "The Decision" show was in 2010, we have to thank that for what has now become the modern free agency. Nobody will do that kind of a show anymore, but the activities of player movement and super team creation in July have become a yearly trend now.
This is all good as the NBA keeps us busy and occupied during the dog days of summer. NBA is experiencing a definite renaissance and you could attribute it to many things including a new set of talented stars and a fan-friendly style played around the league. And don't forget the health and concussion problems hurting the NFL either. But it recently struck me when I was listening to Bill Simmons talk about this that we have had couple of historic NBA records and events happen just within the last 2 years. I personally thought I will never see a team win more than 72 games a season or anybody average a triple-double in a season. The Warriors last year and Russell Westbrook this year achieved those 2 amazing feats. Those things are real fun to watch and track and no wonder NBA is on a magical run. The attention it draws during free agency and it's summer league may be the best proof of it yet. Hope the good times keep rolling for the association!
3 comments:
This NBA offseason has been bananas -- in terms of player movement, rumors of player movement, the amounts of money being thrown around, etc. Even the summer league drew record ratings this year. I used to think that only the NFL could sustain interest year-round but the NBA is heading in that direction as well.
I wouldn't say that the NBA economic model is great for all parties -- it's great for the NBA itself but I think part of the reason for that is the TV rights deal which indirectly led to ESPN laying off a hundred employees. The salary cap did go up again this year but not by as much as people expected and I think it will stabilize in the coming years.
Think the Suns can get Kyrie Irving? I read on The Ringer that they have the assets to pull of a trade for him (if they wanted to) but it remains to be seen what actually happens. Stay tuned!
Interesting. So, you think the NBA deal was one of the reasons for the ESPN layoffs?
I think Suns may have the best offer for Kyrie, though they seem to be negotiating hard on the JJ part. Lets see what happens.
I think it was partially responsible. I think ESPN (and Turner Sports) overbid for the rights to broadcast NBA games ($24 billion over 9 years) and this is what created a surge in Basketball Related Income (BRI*) for the NBA which jacked up the salary cap. The CBA says that 50% of BRI must go towards player salaries and that's basically how the salary cap is calculated (BRI divided by the number of teams). Once ESPN realized (2 years after signing the deal) that they couldn't afford to pay that money (because of cord-cutters and dwindling cable subscribers) they had to cut costs and this might have led to the mass layoffs. So while the TV deal was good for the NBA it was a zero-sum game where ESPN was the loser.
I'm now hearing that the Cavs might wait until December to trade Kyrie because that's when all the free agents who signed new contracts this off-season become tradeable. Phoenix might still have the best offer but the competition will be more fierce.
* http://www.cbafaq.com/salarycap.htm#Q12
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