View Full Version : Stern Says Teams Losing Money

02-14-2010, 07:19 PM
David Stern has announced that the league is losing 400 million this season. The article, or rather Stern, is unclear as to the details, but there are teams who are making money (Cavs, Lakers and Knicks to name a few) and these are teams with high payrolls. Stern is suggesting that the players will have to take a hit in pay, but is this the only answer?

I say no. The NBA is not the only pro-league in the world and therefore does not dictate market value by itself. Greek, Russian, Chinese and other international countries/leagues have pulled NBA talent away, some wanted (Childress), some unwanted (Marbury). Webber recieved offers during his last season, which he spurned (though his injury made that move moot), and other older vets like Rodman, Pippen and 'Nique have all played overseas in the twilight of their careers. With foreign teams putting up big money themselves, and keeping talent like Rubio and Splittner from heading state-side, will the NBA be able to put the best talent on the corut? Or will the league be watered down and see players go to Europe? The age limit has already encouraged players like Jennings to go over-seas instead of entering college, and the rookie salarly limits have prevented guys like Rubio, Scola and Splittner from coming into the league for some seasons. With the age limit and rookie contract rules, the NBA may be seeing not only European talent staying overseas, but may start losing American players to the Euro-dollar as young American players go to the other side of the pond to play pro ball instead of playing ball for free in the American collegiate system.

Perhaps NBA teams should consider doing profit sharing with each other like the NFL does. I agree with smaller contracts. Max contracts within the 11-15 million range (rather than 20+) make sense to me, but the bottom line is the teams that make money are the ones that also push up the size of contracts by over-bidding for mid-level talent. But the bottom line is even if the payrolls are cut slightly, European teams will not have their hands tied and will be able to pull talent away from the NBA. Profit sharing between teams will reduce losses for the smaller markets, and shrinking max contracts and perhaps limiting the numbers of max-contracts allowed will prevent teams from over spending select players and maintain the reasonably high payroll for mid-level talent that depend more on their NBA salaries than the top-tier talent that also have lots of income from endorsement deals.

Stern and the owners should have to relise though that they are the source of their own problems. The owners are the ones who over-pay for players like Arenas and drive up the market value by trying to out-bid each other. Profit sharing may help reduce losses for smaller markets like Phoenix and New Orleans while forcing teams like New York to over-bid on mid-level talent.

The current rules already prevent (or at least slow down) the process of bringing over European talent, and now encourages young American talent to go overseas. Shrinking the cap, or intorducing a hard cap is only going to open the door for European teams toe ransack the NBA for talent.

Any thoughts on solving the current moeny issues for the NBA?