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ESPN Article about Payroll

orangello

Well-Known Member
If you followed NBA commissioner David Stern’s media tour last week, you probably heard him recite the following statement ad nauseum in one form or another:

The Lakers have a payroll of $110 million while the Sacramento Kings only have a payroll of $45 million. This is a real competitive balance issue that desperately needs fixing.

Stern is incredibly gifted when it comes to these things. He knows that the casual fan will look at those two figures and arrive at the tidy conclusion that the Kings simply cannot compete with the Lakers. I mean, look at that payroll disparity! Stern’s pitch is that the success of a team is directly tied to how much money they spend. And if you look at his example, how could you possibly disagree with him?

But then you look at the standings.

You notice that Stern did not sell the unfairness of payroll disparity by pitting the Orlando Magic against the Chicago Bulls. The Magic spent $110 million last season (the same as the Lakers) and the Bulls shelled out a lowly $55 million, or half as much as its Eastern conference foe. And the result? The poor Bulls won more games than any other team and reached the Eastern Conference Finals. The Magic? The nine-figure payroll bought them an embarrassing first-round exit.

If you scan through team payrolls, you begin to see that money doesn’t decide games. If cash was king, then the Bulls wouldn’t have a chance against the Magic. If spending power ruled all, how do we explain the Utah Jazz and their $80 million payroll winning 16 fewer games than the Oklahoma City Thunder, who spent just $58 million? The Toronto Raptors boasted a higher payroll than the Miami Heat, so why did the Raps lose 60 games while the Heat came within two games of a title?


Here is a link tothe rest of the article:

https://espn.go.com/blog/truehoop/post/_/id/32841/the-payroll-and-competitive-balance-myth
 
Stern is right. Sure, OKC and able to compete with a low payroll. The problem is, only teams like Chicago and LA can keep their teams together, the OKC's and Utah Jazz's cannot keep their teams together to be competitive long term. THAT is the problem.
 
Teams that have low payrolls and are competitive are usually teams with stars still on the rookie pay scale.
 
Isn't part of the problem, though, that parity is not what the big market fans want? I mean, if I were a Lakers fan, and 'my' team had to equally compete with the Jazz .. I suspect the average joeLaker fan just says screw it, I've got better things to do if we can't dominate.

The NBA needs ALL fanbases, but it needs to cater (albeit behind the scenes) to the largest crowds .. I'm probably wrong though.
 
Bigger payroll doesn't guarantee more success. ****ing brilliant. It's still an advantage. Not to mention many teams who can afford to throw money around also happen to have a geographical/big market advantage as well. The NBA can't make things fair across the board, but they can make the playing field a little more level.

Honestly, everyone I see making this argument just happens to be a fan of a team with deep pockets. They have an advantage, they know it, and they want to keep it. Alright, if you want to make this argument, I say teams with an advantage attracting FAs should have a lower cap than the rest of the league. If money doesn't matter, then you won't mind if it's YOUR team that has to spend less. Suck on that.

<end rant>
 
^^^ Cool, I also like bean burritos! You're wondering, I bet, how'd he KNOW that!!!11!1!??!!1?
 
it also doesn't account at all for the fact of teams overpaying for talent. One of the issues that's been mentioned by the owners' side in these salary discussions is how the current structure lends itself to creeping payroll inflation, and the hope that a new CBA will be able to lessen that trend.
 
While I don't think you can ever eliminate the large money/deep pocket advantage I think a hard cap would minimize it and allow smaller payroll teams to compete by being smarter/more prudent with the money. I also feel it would increase the overall NBA by allowing more teams to be competitive on a regular basis.
 
Stern is right. Sure, OKC and able to compete with a low payroll. The problem is, only teams like Chicago and LA can keep their teams together, the OKC's and Utah Jazz's cannot keep their teams together to be competitive long term. THAT is the problem.

We have a winner.
 
Isn't part of the problem, though, that parity is not what the big market fans want? I mean, if I were a Lakers fan, and 'my' team had to equally compete with the Jazz .. I suspect the average joeLaker fan just says screw it, I've got better things to do if we can't dominate.

The NBA needs ALL fanbases, but it needs to cater (albeit behind the scenes) to the largest crowds .. I'm probably wrong though.

You should not have used a Lakers fan as your example - the LA fan base is notoriously fair weather. Which is one reason why the NFL, possibly the best league in terms of finances and providing small markets with an ability to be competitive, did not last in LA.
 
So let me get this straight. All a team has to do is win the lottery and draft a game changing NBA all star/ hall of fame player? Well hell that's just to easy. All the GM's should be doing this. Stupid article.
 
If you followed NBA commissioner David Stern’s media tour last week, you probably heard him recite the following statement ad nauseum in one form or another:

The Lakers have a payroll of $110 million while the Sacramento Kings only have a payroll of $45 million. This is a real competitive balance issue that desperately needs fixing.


Stern is incredibly gifted when it comes to these things. He knows that the casual fan will look at those two figures and arrive at the tidy conclusion that the Kings simply cannot compete with the Lakers. I mean, look at that payroll disparity! Stern’s pitch is that the success of a team is directly tied to how much money they spend. And if you look at his example, how could you possibly disagree with him?

But then you look at the standings.

You notice that Stern did not sell the unfairness of payroll disparity by pitting the Orlando Magic against the Chicago Bulls. The Magic spent $110 million last season (the same as the Lakers) and the Bulls shelled out a lowly $55 million, or half as much as its Eastern conference foe. And the result? The poor Bulls won more games than any other team and reached the Eastern Conference Finals. The Magic? The nine-figure payroll bought them an embarrassing first-round exit.

If you scan through team payrolls, you begin to see that money doesn’t decide games. If cash was king, then the Bulls wouldn’t have a chance against the Magic. If spending power ruled all, how do we explain the Utah Jazz and their $80 million payroll winning 16 fewer games than the Oklahoma City Thunder, who spent just $58 million? The Toronto Raptors boasted a higher payroll than the Miami Heat, so why did the Raps lose 60 games while the Heat came within two games of a title?


Here is a link tothe rest of the article:

https://espn.go.com/blog/truehoop/post/_/id/32841/the-payroll-and-competitive-balance-myth

Well, the Heat came much closer to the finals (Over the Raptors) because they had a couple of guys named, LEBRON JAMES AND CHRIS BOSH playing for much less money than what they are worth. How can you use the Miami Heat and Toronto Raptors as fair examples? Have you forgot what the hate is all about surrounding these 2 guys is? Toronto Raptors didnt have 2 superstars agreeing to less money to win a championship!!
The point isnt that teams that make Cash are king, but they have a much better, much, much, much, much better chance of being dominant year after year. The Bulls did it. What does it prove? Any team can do it? NO! It proves that if you want to be a contender against high salary-contract teams, you have to have the right combination of a few quality (not yet, higher salary) vetereans, and a game changing, breakout player (that was a rookie, still under a lower contract) that no-one expects to break out in the way, shape, and form that he does. <----If you dont have that, YOUR SCREWED AS A LOWER $$$$$$ NBA TEAM.
It doesnt prove anything. If team's total salaries were close-to across the board, We wouldnt have the same teams in contention for the NBA championship like we do, year after year. How many times have we seen the Lakers in the finals over the last 30 years? How many times have the Jazz been in the finals over the last 30 years? Or any team raking in a lesser salary than the Lakers? The numbers dont lie. If you have a team thats given a much larger salary over every other team in the NBA, your going to win more championships. Just look at the L.A. Lakers and the Boston Celtics. The 2 most highest payed teams in NBA history (for their day). Also the 2 most winningest teams in NBA history!
If the NBA were to balance a reasonable dollar amount that was equal to all NBA teams, You would have different teams ruling the box, year after year.
 
The NBA can't make things fair across the board, but they can make the playing field a little more level.
Then why are they (the owners and thus David Stern, their representative) resisting more revenue sharing? If the owners are so invested in competitive balance, why are they demanding that only the players make concessions to make it happen?
 
If the NBA were to balance a reasonable dollar amount that was equal to all NBA teams, You would have different teams ruling the box, year after year.

If you limit salary opportunities, other factors come into play, like endorsement opportunities, taxes, etc. A top-level player earns more overall in New York than in Memphis, even if their salary is lower.
 
Then why are they (the owners and thus David Stern, their representative) resisting more revenue sharing? If the owners are so invested in competitive balance, why are they demanding that only the players make concessions to make it happen?

Because they're greedy billionaires?

Anyway, I don't think this entirely true, but rather than argue about it, why don't we wait until we get the details of the next agreement? I don't think the majority of owners are resisting revenue sharing, so much as the rich ones who would be losing out. It's those same owners who probably don't really want competetive balance anyway, because they have an advantage and want to keep it.

I think this situation is more complicated than just lumping all the owners into one group with the same interests, regardless of them trying to come off that way. I'll admit that I probably haven't read up on it as much as you have, so maybe I'm completely off base.
 
Regardless of what side of the fence you're on, it's certainly not good to let there be such a disparity between teams in terms of payroll. Why more leagues don't copy the NFL more is beyond me. Look at the Green Bay Packers. Because of the NFL and their revenue structure, they are not considered a "small market team" in regards to their ability to compete. In fact, you almost never hear the term "small market" in regards to NFL teams. The Milwaukee Bucks play in the same market as the Green Bay Packers, but they're not even close to being on the same footing in regards to competitive balance.

I'm a big fan of a hard cap. If the LA Lakers are forced to spend the exact same amount as the Utah Jazz, they're still going to have some advantages over Utah. Players still might be willing to take less to play in a town like L.A. over SLC, they're still more likely to get discounts on players who want to go to L.A. together, etc. It's not as if they lose all the advantages of being the almighty L.A. Lakers. However, it still makes it much easier for the Utahs and Milwaukees to get good players, and then actually have the chance to hold onto them longterm once they do get them.
 
NFL works for smaller markets because of length of season and TV rights. When you only need to sell out about 8 games a year, most fans (event the casual fans) can find the time and money to make it to the arena if they really wanted to. Going to an NFL game is an "event". Many people make a pilgrimage to one or two games a season. Each NBA team has 40+ games to try and garner fans to. Without parity, fans will only want to go see 2 or 3 games a year (so lets say they come back twice or whatever, you're looking at maybe 10 games where each team is probably going to sellout). But the size of arenas (much smaller than NFL arenas and even MLB stadiums) means that they need to sellout a lot more games than NFL teams do to make their money. Take the Green Bay Packers as the example. They will sell out all of their games most every season because fans are loyal. Even the most loyal Jazz fans, won't go to every game. I mean even if it were practical, most people don't want to travel out to 2 or 3 games a week for 6 months.

Also, because there are far few NFL games compared to NBA games, most of these will be aired on National TV. When 2 - 3 channels each week carry about 3 or 4 games you can see where I'm going with this. It just isn't possible to televise a lot of NBA games on national TV because they happen every day and mostly during "prime time" so major networks can't really block off time for them.

Thats why there won't be as much revnue in the NBA as there is in the NFL.
 
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