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View Full Version : The reason the NBA is in a finacial crisis



JasonJohnHorn
02-26-2011, 07:56 PM
In the early 90's the Cleveland Cavaliers make one of ths biggest mistakes in franchise history when they gave Danny Ferry a long term contract that ate up their salary cap for years. How did they get around this? Well... they didnt, really. They picked up good pieces in the draft, through trades and free-agency, but were saddled with the contract for the duration. Brad Daughtery (one of the most under-rated Cs of all time) Larry Nance and Mary Price helped make the team solid and if it werent for a guy named Michael Jordan, they may have had a trip or two to the finals.


What does that have to do with the NBA financial problems now? It is an example of what teams need to do. Have a bad contract? Bite the bullet and work around it.

Over the last decade the NY Knicks have paid more players NOT to play than most teams pay players to play for the duration of a season. Buy-outs are all around. McDysse got bought out from Denver. Bruce Bowen got bought out after SA traded him. Marbury. Francis. Ben Wallace. Big Z. Finley. Jalen Rose. There are more players bought out over the last decade than I can hope to name, and the money that has been wasted on these buy outs is enough to more than make up for whatever money the league has lost over the last couple season.


Any business that pays people not to work is going to have a hard time making money.

In the next CBA, the league, players and owners alike, have to take a serious look at buy-outs. They are not healthy for the league.

I was hoping to hear some of your thoughts on the matter of buy outs.

RZZZA
02-26-2011, 08:04 PM
Well I thought it was just because many franchises contribute a net loss to the league instead of a profit

they need better accountants

Spurred1
02-26-2011, 08:11 PM
greed

Raoul Duke
02-26-2011, 08:50 PM
In the early 90's the Cleveland Cavaliers make one of ths biggest mistakes in franchise history when they gave Danny Ferry a long term contract that ate up their salary cap for years. How did they get around this? Well... they didnt, really. They picked up good pieces in the draft, through trades and free-agency, but were saddled with the contract for the duration. Brad Daughtery (one of the most under-rated Cs of all time) Larry Nance and Mary Price helped make the team solid and if it werent for a guy named Michael Jordan, they may have had a trip or two to the finals.


What does that have to do with the NBA financial problems now? It is an example of what teams need to do. Have a bad contract? Bite the bullet and work around it.

Over the last decade the NY Knicks have paid more players NOT to play than most teams pay players to play for the duration of a season. Buy-outs are all around. McDysse got bought out from Denver. Bruce Bowen got bought out after SA traded him. Marbury. Francis. Ben Wallace. Big Z. Finley. Jalen Rose. There are more players bought out over the last decade than I can hope to name, and the money that has been wasted on these buy outs is enough to more than make up for whatever money the league has lost over the last couple season.


Any business that pays people not to work is going to have a hard time making money.

In the next CBA, the league, players and owners alike, have to take a serious look at buy-outs. They are not healthy for the league.

I was hoping to hear some of your thoughts on the matter of buy outs.

This is a great post, I am in complete agreement, and I'd never really considered the issue in this context.

Bravo. Damn good observation.

bovice163
02-26-2011, 08:52 PM
Non-guaranteed contracts would take care of this sort of thing.

canzano55
02-26-2011, 09:00 PM
Non-guaranteed contracts would take care of this sort of thing.Yeah this is a no brainer.

If the all powerful NFL doesn't give them, why should the NBA?

PHX2daDEATH
02-26-2011, 09:52 PM
every fan here of every team can list at least 5 bad contracts over the last twenty years i bet..i can name too many from the Suns in the last 10..Just take the NFL's model with non-guaranteed contracts, set a hard cap@80 million, get rid of the luxury tax because obviously it hasn't been worth a ##@$%, I can point to KG and Alex Rodriguez's contracts between 98-00 that started giving super stars the bigger bucks , Scottie Pippen made about 38 million with the rockets n blazers around that time, almost twice as he much as made winning 6 championships with the bulls..

Allstar21
02-26-2011, 11:31 PM
Nobody wants to blame the owners for giving these contracts to the players?!? Really? Lets punish the players because owners/general management give out huge multi-million dollar contracts to bad players. Nobody is forcing the owners to give these contracts out...please. But go-ahead and make the players villains for accepting the contracts and punish them in the future collective bargaining agreement. What is the next excuse that bad teams with bad ownership come up with to blame for them not winning and losing money?

Allstar21
02-26-2011, 11:34 PM
I wonder how long it will be until the owners hire people to troll forums like these to try and sway public opinion their way. This CBA negotiation will sway heavily on public opinion of the players and owners.

jfree31
02-26-2011, 11:57 PM
r u guys kidding me? we already read about how broke they are within 2 yrs of leaving the league, about what 60% if im right. and now u greedy son of a guns wanna bankrupt them sooner, shame on you. hope u all gathered in the sarcasm there. no the players arent breaking owners arms to get the dough, but at the same time, u always hear its about the rings, but only after i gets mine 1st. pay me. lebron wants contraction, because theres not enough talent to go around on teams???, u mean theres not enough caproom for the heat to afford the "3" without everyone else to be vet minimum wagers(and their M.L.E.). welcome to reality lebron. its now happening all over this great land we live in.

Bramaca
02-27-2011, 02:46 AM
In the early 90's the Cleveland Cavaliers make one of ths biggest mistakes in franchise history when they gave Danny Ferry a long term contract that ate up their salary cap for years. How did they get around this? Well... they didnt, really. They picked up good pieces in the draft, through trades and free-agency, but were saddled with the contract for the duration. Brad Daughtery (one of the most under-rated Cs of all time) Larry Nance and Mary Price helped make the team solid and if it werent for a guy named Michael Jordan, they may have had a trip or two to the finals.


What does that have to do with the NBA financial problems now? It is an example of what teams need to do. Have a bad contract? Bite the bullet and work around it.

Over the last decade the NY Knicks have paid more players NOT to play than most teams pay players to play for the duration of a season. Buy-outs are all around. McDysse got bought out from Denver. Bruce Bowen got bought out after SA traded him. Marbury. Francis. Ben Wallace. Big Z. Finley. Jalen Rose. There are more players bought out over the last decade than I can hope to name, and the money that has been wasted on these buy outs is enough to more than make up for whatever money the league has lost over the last couple season.


Any business that pays people not to work is going to have a hard time making money.

In the next CBA, the league, players and owners alike, have to take a serious look at buy-outs. They are not healthy for the league.

I was hoping to hear some of your thoughts on the matter of buy outs.

Another thing to add to this is the % allowed for raises. It doesn't match the growth in the leagues income at all. Players generally get a 10.5% raise each season while over the last 6 years the salary cap (as well as revenue) has only grown by 2.9%. A player who signed a max contract in 2005, where the max salary is 30% of the cap, would now be making 38% of the cap this season because raises greatly exceed what is being brought in.

If a max salary is set at 30%, 25%, or whatever number they want it should stay that way. I think they should negotiate contracts as a % of the cap as opposed to a number based on the present years cap number, that way player raises aren't growing beyond what the leagues revenue is.

TopsyTurvy
02-27-2011, 02:33 PM
NBA players are among the BEST compensated players in ANY professional sport. The players are going to lose at with this next collective bargaining agreement - the question is, how much?

LA_Raiders
02-27-2011, 03:21 PM
Greed and ****ing Union.

Owners should be able to fire players at anytime if they dont perform...

JasonJohnHorn
02-27-2011, 10:51 PM
Nobody wants to blame the owners for giving these contracts to the players?!? Really? Lets punish the players because owners/general management give out huge multi-million dollar contracts to bad players. Nobody is forcing the owners to give these contracts out...please. But go-ahead and make the players villains for accepting the contracts and punish them in the future collective bargaining agreement. What is the next excuse that bad teams with bad ownership come up with to blame for them not winning and losing money?

I'm not blaming the players for taking the buy-outs, that is a no-brainer for them. I'm blaming the owners here. They are the ones doing all the buy-outs. They are paying players NOT to play. It makes no sense.

You dont see Hollywood companies paying actors not to act, or the music industry paying musicians not to make music. It seems the buy-out is just too common. If a franchise chooses to offer a player a contract, they should just ride it out and try to work around it.

There are a lot of things the OWNERS can do to change things. They can do profit sharing like the NFL does. They can stop indulging in bidding wars (like Dumars/Davidson did with Ben Wallace, Chi-town offered him crazy money, and they could have offered more, but they said, 'you know what, not worth it'). And they could get rid of the MLE. I mean seriously, 15-20 years ago Magic, Bird, Hakeem, Jordan, they were even making the MLE, but now guys who ride the pine or role players are making more per-season than Jordan, Magic and Hakeem made in their primes.

JasonJohnHorn
02-27-2011, 10:56 PM
Greed and ****ing Union.

Owners should be able to fire players at anytime if they dont perform...

I dont know about 'firing' players, most especially in case of injuries. If a guy like Roy gets a contract, gets an injury, and then cant play as well as he did, he's done nothing wrong. Or is a player ages quicker than others (guys who rely on speed, like many point guards, tend to fall quicker, and if you just cant perform as well because of age, they dont deserve to get fired).

Confusious
02-27-2011, 10:59 PM
The reason is because players are getting 20 million a year.

TWENTY MILLION. Like, ****. Give that money to starving children, for gods sake!

el_primo_nano
02-27-2011, 11:15 PM
Non-guaranteed contracts would take care of this sort of thing.

Seriously. Guys that get serious injuries and stuff, take up room and the owners pay for guys that are never playing.