[Originally posted on Hoopsworld, 5th November 2013.] In February 2010, NBA commissioner David Stern spoke ominously of the league’s forecasted $400 million loss that financial year, as well as hundreds of millions more in losses over the previous few seasons. His words were one of the earliest warnings of an impending lockout, a threat that became a reality 16 months later. Financial inequalities and a broken system supposedly saw 22 out of the 30 NBA franchises losing money, and something had to be done to install some parity. Three months after Stern spoke, the NBA ratified the sale of the New Jersey Nets to Mikhail Prokhorov. Parity, it is said, is supposed to level the playing field between the large- and small-market teams. The reality of this market inequality is an unavoidable one, founded in socioeconomic factors far outside of the NBA’s control. It is what it is. The NBA’s self-imposed duty is to level the playing field within its control as much as possible. They do this in various ways. The draft, of course, is one – parity is not just financial remuneration, but also the opportunity for all teams to compete on the court. There is also, as of the new CBA, a new revenue sharing system ostensibly designed to make big brother pay for little brother, a significant development in the NBA’s hitherto limited revenue sharing history. And there’s the concept’s most public weapon – the luxury tax. Since its inception in 2001, $923 million has been spent in luxury tax by 24 franchises. Of that $923 million, some $568 million has been spent by only four of those franchises – the Dallas Mavericks, New York Knicks, Portland Trail Blazers and Los Angeles Lakers. That is one seventh of the teams spending three fifths of the money, […]
If you Google the term “creative financing otis smith”, you’ll find quite a few hits. It’s long been a favoured phrase for Orlando Magic general manager Otis Smith, and his most famous usage of the phrase came in the run-up to the 2007 offseason. Smith used the term “creative financing” to describe how the Magic were going to handle having maximum cap room, juggling signing other team’s free agents with retaining Darko Milicic. It was a fairly generic term that said something without really saying anything. And it only gained its resonance after Smith used all his money to give Rashard Lewis a massive, massive contract You’ll also, slightly depressingly, find this website fourth in those search results. There’s a reason for that. “Creative financing” is something that I’ve harped on about for a while. The financial side of the NBA gives me a jolly; watching and learning how the NBA teams manage (or mismanage) their salary cap space, the luxury tax threshold and all their exceptions gets me going in ways that it really shouldn’t. I don’t know why it’s fun, I only know that it is. I think you agree. Therefore, there follows a list of some of the better examples of creative financing in the NBA today, some of the ways in which executives and cap experts have manipulated the system, staved off the shackles of oppression, and beaten the terrorists. – The Bulls set a precedent by signing four players to descending deals at the same time. At one point, the contracts of all four of Kirk Hinrich, Andres Nocioni, Smiling Joe and Sulking Ben had contracts that shrunk on a year-by-year basis. The idea of this was to maintain future salary flexibility to allow them to retain Ben Gordon, Luol Deng and Tyrus Thomas […]
– Will Blalock: The Pacers have been said to be looking for a point guard all summer long now. They kept Jamaal Tinsley inactive for all of last season, despite him being able and willing to play. Jarrett Jack is a restricted free agent, and even though he’s expected back, he isn’t really a point guard anyway. Neither is Travis Diener, and they seem to hate T.J. Ford more than it seems as though they should. But while Will Blalock is very much a point guard, I don’t think the answer to the Pacers’ point guard problem lies in a man who averaged 4.5 points and 2.1 assists in the German league last season. – Derrick Byars: Byars was briefly covered in the Nuggets round-up, but here’s a bonus fact about him. Byars’ three point percentage by month, last season: November – 0% December – 56% January – 28% February – 50% March – 26% April – 0% Overall – 38% It might be a coincidence that the two months he shot the most threes in were December and February. Or it might not. – Tyler Hansbrough: Us Bulls fans discussed at length whether it would be a good idea to pick Tyler Hansbrough at #26. We eventually decided on “yes”. As draft day approached, we moved on to discussing whether it’d be justifiable to pick Hansbrough as high as #16. Opinion was split, but the majority said “no”. Turns out it was irrelevant anyway, as Indiana went for him at #13. And, since it’s the 2009 draft we’re talking about, I think they can get away with that. – Roy Hibbert: Frank admission – Roy Hibbert is better than I thought he would be. He can score at the NBA level. Just can. He’d be better […]
Many of the following people are called Hamilton. If you don’t want to know the result, look away now. – Brian Hamilton signed with the New Jersey Nets for training camp after playing for their summer league team, which guaranteed him a free trip around Europe. Hamilton didn’t make the team, though, and is currently unsigned. By the way, speaking of the Nets summer league team, look how stacked that bad boy was. They could have put together a depth chart of this kind of calibre: PG – Jamar Butler, Will Conroy, Yuta Tabuse SG – Chris Douglas-Roberts, Jaycee Carroll, Donell Taylor, Maurice Ager SF – Julius Hodge, Marcus Slaughter, Brian Hamilton PF – Ryan Anderson, Anthony Tolliver C – Brook Lopez, Sean Williams That team is friggin’ stacked, even if it is (as are all summer league teams) a bit short. This wasn’t quite how it worked out, as Jamar Butler didn’t turn up, Sean Williams started at power forward, and a combination of Conroy and Carroll did most of the point guard work. But, still. In relative terms, that team is heaving. God I love summer league. – Venson Hamilton is into his fourth season with Real Madrid. However, his playing time has all but disappeared. In the Spanish league, Hamilton averages 1.1 points and 1.8 rebounds in 6.7 minutes a game, slightly raising his scoring average to 1.6 ppg in EuroLeague play. On the year, he has 18 points and 21 fouls. The money must be good, because the opportunity isn’t. – Vernon Hamilton was acquired yesterday by the Colorado 14ers of the D-League, where he can back up Eddie Gill at point guard, or replace him should Gill get a call-up. Fun Vernon Hamilton fact: the highest that Vernon Hamilton has ever shot […]
