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The Decision Is Really ‘Small Market Revenue Sharing’ vs ‘Small Market Suicide’ October 23, 2010

Posted by geek-ish.com in Uncategorized.
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What if “The Decision” was about the CBA and the impending lockout…  Hmm.

I just listened to the illustrious Sekou Smith’s latest Hang Time Podcast’s:  http://hangtime.blogs.nba.com/2010/10/19/hang-time-podcast-episode-28/; and I realize Lebron James is smart.  More importantly, he’s not dumb.  The effect he had on Cleveland Cavaliers profitability and the city of Cleveland financially has to be a study in why hard salary caps cheat superstar players out of salary.  I’ve read economists estimate he was responsible for $100M annually and in the order of 6,000 jobs in Cleveland just by playing for the Cavaliers.  Wow.  If those number hold, it’s extremely difficult to envision how the current salary cap could fairly compensate Lebron James (a super-duper-star).  Moreover, it’s almost impossible to see how a hard-cap (like the NHL has) won’t widen the gap between:  what’s fair compensation for a superstar and what’s fair to expect owners to pay.  It seems likely a hard salary cap could come out of the impending NBA CBA negotiations.  If so…

  • Superstar players could get locked into small market without a way to recoup residual income for lost salary.
  • Small market teams will continue to loose superstar players. 
  • Superstar players will still sign shorter than max contracts to weigh their options sooner and make dispassionate decisions to carpetbag to larger markets and the potential for additional income sources outside of their NBA jobs. 
  • Small markets without superstars will S-U-F-F-E-R!  I’m from the Delaware Valley where our home team is the Sixers.  Post A.I., the Sixers have been suffering, to say the least (but that’s another story).

If any of this proves true, then I’m betting “The Decision” was about the CBA and the impending lockout.  It incentivizes small markets teams to try to include utilities in the next CBA to allow them to keep their superstars (no more Gilbert-James divorces).  Also, it makes Lebron James the Norma Rae for the 21st century.  Or at least he’s the first…  Watching the Carmelo Anthony & DEN situation just changed from being annoying to being inspiring – to me.

I love this game!

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