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NBA Economics 101: Welcome To Miami’s Universe
While contemplating the future of the NBA that the new CBA will usher in, a thought that occurred to me was that the NBA is doing everything it can to make player movement difficult. The owners are asking for add financial burden on bigger markets to prevent them from loading up on super stars as well as curtailing the earning power of players who want to change teams. It’s a well accepted notion that the steep demands of ownership stem from, at least in some way, the Miami Heat free agency heist from last summer. But will a stricter CBA ensure that the Miami Heat are perinatal favorites to win for the next decade?
LeBron’s coup d’état during the summer of 2010 moved power out of ownership and squarely into the hands of players. LeBron dictated what teams came and serenaded him. He chose where he played and who he played with. His tour de force sent shock waves through the NBA.
Fans didn’t know how to react. Here’s a man exercising his freedom of choice. Breaking the shackles of common thought and building a super power in a way we hand’t seen before, through player’s choice. Many chose to hate him, partly for ‘The Decision’, but also for reasons we didn’t even know.
Owners hated what they saw because they knew what was coming next. Players would learn from this and empower themselves.
And as the story goes, the players did learn, they did arm themselves and some even pulled the trigger. Carmelo Anthony forced his way out of Denver and into the bright lights of the Mecca we call MSG. then out of no where, we heard Deron wasn’t happy in Utah. the Jazz took a proactive stance and traded their franchise player to save themselves from the mess Denver had stepped in. Utah got the ebst deal that they could, but was this the new NBA world we would have to live in? One where a team traded their franchise player in his prime out of fear they they would just up and leave anyway? Owners and fans braced themselves. Who was next? Chris Paul? Dwight Howard? J.R. Smith? You’re right, no one cares about J.R.
The owners decided they needed to end this before the NBA became a league with 4 All-Star teams and 26 Washington Generals. So came the lockout, the steep demands, the ugly negotiation sessions and missed games.
So where do we stand now? Owners have asked for larger luxury tax penalties as well as a lower BRI split. The combination would ensure that most teams refuse to or simply can’t afford to pay multiple superstars without sacrificing quality in players 3 through 15. Teams have also discussed lowering both max salaries and the number of years a player can sign for. To add to that, owners want to add penalties for a player changing teams in free agency by having to take a major reduction in pay. Owners have even called for the inclusion of the ‘Melo Rule’. Such a rule “would prevent players from signing Bird rights extensions with teams that acquired them via trade after the July 1 in advance of their final season under contract” according to Tom Ziller of SB Nation.
What would the future of the NBA would look like with all of these provisions in the new CBA? Dwight Howard wouldn’t be able to come to the Lakers unless he waited until he’s a free agent and signed for a huge pay cut. Chris Paul wouldn’t be able to force a trade to the Knicks. Blake Griffin isn’t going anywhere. Even the sweetheart Oklahoma City Thunder might not be together for much longer. Not unless OKC can figure out how to pay Westbrook and the impeding luxury taxes that would come with such an extension.
Where does that leave the NBA?
In Miami’s hands. Miami has already pulled off the greatest haul in free agency history. They already have their Big 3 and they are under the cap. No need to worry about extensions to their superstars or signing that would propel them into the upper atmosphere of the luxury tax. Miami is locked and loaded and if even half the CBA rumors are true, they are locked in for the term of the new CBA.
Who would be able to compete with them? No team would be able to stack up to match them. Teams would have to figure out how to get better via trades and drafts. Free Agency might no longer be a viable option unless teams like Chicago and New York can find stars willing to sacrifice a greater amount of salary than we have ever seen before.
Miami started this movement which in turn moved the owners into a position that would ensure that this type of player movement would never happen again. Ironically, locking the Heat into a position of power that no other team would be able to achieve again.
Miami, this is now your world. At least until the next lockout.
Photo - Don’t know where I found this awesome photo. If it’s yours let me know and I’ll dole the credit.
