Thursday, August 18th, 2011 at 10:35 am  |  87 responses

Michael Jordan in Favor of Hard Salary Cap, Revenue Sharing


The NBA has forbidden team owners and front-office staff from talking about labor issues during the lockout. Michael Jordan, owner of the Charlotte Bobcats, seems to have not gotten the memo. From the Herald Sun: “Jordan, majority owner and operations boss for the Charlotte Bobcats, is banned from elaborating on the rift between owners and players that threatens to destroy the upcoming season. But he insists small-market teams, such as the Bobcats and [Andrew] Bogut’s Bucks, will never be able to compete while the system allows clubs such as the Miami Heat to effectively pounce on free agents with blank cheques. ‘The model we’ve been operating under is broken. We have 22 or 23 teams losing money, (so) I think we have gotta come to some kind of understanding in this partnership that we have to realign,’ Jordan said. ‘I can’t say so much … but I know the owners are not going to move off what we feel is very necessary for us to get a deal in place where we can co-exist as partners. We need a lot of financial support throughout the league as well as revenue sharing to keep this business afloat. We have stars like Bogut who are entitled to certain type of demands. But for us to be profitable in small markets, we have to be able to win ballgames and build a better basketball team.’ Jordan said small-market teams would benefit greatly from a ‘hard’ salary cap, and it would allow clubs such as Milwaukee to plan a future on key players including the Australian centre.”

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  • Chukaz

    you know what the problem really is? the deals are too long and the non-super star contracts. i’m a laker fan so i’ll use them as en example. The lakers don’t have a problem w/ kobe’s salary. They don’t have a problem with gasol’s salary. No problem with bymun and odom’s salaries. Our problem? Luke Walton, Steve Blake, Ron Artest. Teams always over pay role players. Think of big contracts. Most of them are good. The only bad big contracts belong to Eddy Curry, Rashard Lewis, and Gilbert Arenas. There’s probably something like 60 big contracts in the league (think 15+ million a yr) and only 3 of them are bad. If joe johnson’s contract was 4 yrs instead of 6 you wouldn’t think of it was a bad contract. Now think of mid level exception contracts. I’m sure 70% of them are bad. Look at the grizzlies. They payed a ton of money to rudy gay and Z-Bo and that’s okay. The problem? Mike Conley’s contract. How do you give 50 million to a guy who’s not one of the top 15 players at his position?

  • http://slamonline.com Bryan Crawford

    Allen, I have to disagree on your Sterling example. Pre-Blake Griffin, people didn’t go to Clippers games at all. The only time Staples Center filled up for Clippers games were for the games against the marquee teams. And even that was hit or miss sometimes.
    But now that Sterling has BGriffin, I honestly think that he could still care less about winning because now he has arguably the most exciting young player in the NBA. People go to Clippers games to see him dunk, not to see that team win.
    He’s probably the only owner in the NBA with a win-win situation right now.

  • http://slamonline.com Allenp

    Bryan
    You have to check the history. Sterling’s teams have always been profit makers because he draws just enough fans and sells just enough merchandise despite being a loser team. I’m not saying he’s drawing Lakers crowds, I’m saying that even a “bad” crowd in L.A. is pretty good compared to the pickings in some of these smaller cities.
    Chukaz
    With just Gasol, Kobe and Artest the Lakers are at the $45 million hard cap. Seriously. Kobe makes like $23 million, Gasol makes right about $18 million and Artest makes $7 million.
    That’s three players. If you substitute Bynum, who makes $13 million, for Artest, the Lakers are already over the cap and they only have THREE players on their roster.
    A hard cap affects everybody. Even the superstars. It depresses everybody’s salaries, and it doesn’t even include the automatic lump sum payments that players receive in the NFL. Hell, Mike Vick signed the richest deal in NFL history back in the day, and he got $20 million in guaranteed money. Kobe makes that in his base salary, and will make more than that for the next three years.
    The hard cap will change the financial landscape of the entire league.

  • http://slamonline.com Bryan Crawford

    And I’m tired of hearing about how the Heat players took a pay cut just play together and then people celebrate it as if it’s some sort of shining example of how players care more about winning than money. Please…
    Look, they each lost $15M over the life of their six-year deals which means they’re only giving up $2.5M/year. That’s only a minor sacrifice, not some groundbreaking and momentous achievement in NBA history.
    Now, had those guys taken a pay cut of $15M PER SEASON over the life of their deals, well, now we’re talking about something.

  • http://www.forbes.com/lists/2010/32/basketball-valuations-11_Charlotte-Bobcats_322435.html nbk

    Chuk – While I pretty much agree with what your saying. Big contracts can and often do become issues, especially if the Salary Cap gets any lower. FE using your Lakers and Kobe Bryant – We will assume the CBA doesn’t change, so the salary cap is $56.1 Million, Kobe’s production drops a little again, say he goes for 23PPG, 4APG, 4RPG on like 44% shooting at some point in the next 3 years (what he is under Contract for). Would he be worth half your salary cap? or even more? He is slated to make $25 Million in 2011-12, $27 Million in 2012-13, and $30 Million in 2013-14. While that is probably closer to his actual worth to the Lakers (in terms of how much revenue he alone generates) that is still a massive roadblock towards building a championship caliber team if your not allowed to go over the salary cap for outside players. IMO the whole system needs to be revamped not just adjusted.

  • bull22

    i find it funny how many of you morons badmouth michael jordan and yet dont own an nba team… a hardcap and revenue sharing is needed in the nba, even a disgruntled jerry jones needed to let go of some of his revenue.. thanks MJ for speaking up!

  • bull22

    give credit where credit is do, MJ and jerry richardson are of very few who
    have played and owned a franchise. perhaps both have had a hand in making some bad decisions, but who of us would not trade places with them to at least
    atry and run a franchise..

  • http://slamonline.com nbk

    bull22 idk if you have an issue with actually reading the comments, or you just speak in fictional generalities, but nobody is saying Michael Jordan is wrong. Everyone is just saying, DUH we already knew he felt that way. Except B.C. who knew it, but didn’t want to say it as an assumption before he had confirmation.

  • add

    how the tables have turned

  • http://slamonline.com Allenp

    Well, I’m saying he’s wrong. A $45 million hard cap, or even a $53 million hard cap with zero guarantees on contracts is bogus.
    I don’t watch the NFL for three main reasons:
    1. The game is so violent it’s becoming a bloodsport and I feel uncomfortable watching people kill themselves for my entertainment.
    2. I feel like the players get treated like children by their commissioner and there are some racial undertones to that treatment.
    3. I feel like they are getting screwed as far as the salary structure.
    I don’t want to see the NBA become the new NFL. I think it’s blatantly unjust to have players get paid less if they underperform, but not get paid more if they overperform, and I’m deeply bothered by the power shift occurring in the League.

  • http://slamonline.com nbk

    Well if they have Revenue Sharing and a Hard Cap (with a fair amount of money going to the players) then I understand and can see it working and being fairly competitive for the majority of the league (however i am well aware though that the owners offer with these rules is/was not fair). IDK where you got “zero guarantees on contracts” from, nowhere does it say that, and nowhere have I read that, that is what the owners offered.

  • http://slamonline.com Allenp

    That’s true. They said like 65 percent guaranteed. I should have written that.
    But, if the contract can decrease by 35 percent, it should be able to increase by 35 percent.

  • bike

    Whatever one thinks of what MJ is saying, it’s revealing to hear one owner’s take on things. This is sounding more and more like the owners are not going to budge an inch on this thing. Whatever one’s opinion is about this labor dispute–whether the owners are to blame or the players are to blame—it looks like at the very least the league has had some very serious issues. The player/owner relationship is becoming so poisonous that it might be coming close to the point of no return even after when the players eventually cave in. What we might be witnessing is the beginning of the end.

  • http://slamonline.com nbk

    I thought they offered 4-year guaranteed max? — Or was that just the max total length of a contract? — And I also read that the players actually accepted those terms, but only if there was no hard cap, which the owners are not budging on. ANd isn’t the real reason we as overly interested fans who normally seek out as much information as possible don’t know the current offers because the owners aren’t actually united on their demands?

  • biged

    I think the owners feel like thy don’t have a fair chance to compete for free agents, but I tony think tat is true The owners just need to learn how to better manage their teams that’s all. you can’t give out all of thesr bad contracts then get mad at the players for accpeting thr money.

  • http://slamonline.com Allenp

    According to Kevin Love, :“Love said the players don’t want to see years cut off guaranteed contracts and are not pleased with a proposal that they could lose money if not playing up to their contracts. He also said that the proposed revenue split (50-50, rather than the 57-43 split in favor of players) is unacceptable.
    I read that to mean partial guarantees based on performance. I think they have to roll back the BRI split and they have to shorten deals. That’s it. They should be able to do a deal just based on that with revenue sharing.

  • http://Slamonline nbk

    Ok that makes sense. I read from I believe Larry Coon that said the players were willing to make those changes (shortened contracts & little less revenue) but only if the cap is not made into a hard cap & players still get something like 53%. I follow him on twitter and it was in june i believe.

  • http://thetroyblog.com Teddy-the-Bear

    ^ CO-SIGN. That should be more than enough.

  • bg

    @la huey check your sources. MJ did not make $30mil his last few in Chicago. He took less to make sure the team could buy the players they needed to compete. He made enough on endorsements

  • http://Slamonline nbk

    Michael Jordan made $33,140,000.00 in 1997-98 & $30,140,000.00 in 96-97. Basketball-Reference

  • http://jayemmbee23.tumblr.com Clutch Performer

    well it works in the nhl. do we really want an mlb situation where only the yankees and red sox can compete? where teams like the blue jays who have winning records still cant make the playoffs. in nhl the leafs were the yankees of hockey paying their way to the playoffs after there lockout and salary cap and bad drafting they are in the hockeys crap bin and lower markets like carolina are making winning runs. i want the nba to be like nhl or nfl where almost every year some one has a chance. so i cant hate on mike for what hes saying but hes got a unique view having been player and now owner.

  • http://twitter.com/BeezKneezy LA Huey

    @nbk, thanks for backing me up.
    @Clutch Performer, here are your World Series champs in the last ten years: ’10 Giants, ’09 Yankees, ’08 Phillies, ’07 Red Sox, ’06 Cardinals, ’05 White Sox, ’04 Red Sox, ’03 Marlins, ’02 Angels, ’01 Diamondbacks. Notice Boston and New York have combined for 3 championships during that time. Furthermore, in the NFL, since 2001, two teams have combined for half a decade’s worth of championships.
    Also, your point about teams with winning records missing out on the playoffs have more to do with MLB rules that only allow for 8 out of 30 teams to participate in the postseason. I’m not sure what your point was about that considering my city’s Seahawks made it into the 2011 playoffs with a losing record.

  • http://Slamonline nbk

    Gotchu slamily

  • http://slamonline.com Ugh

    “Michael Jordan made $33,140,000.00 in 1997-98 & $30,140,000.00 in 96-97.” I distinctly remember that it was 20 and 25 million. Inflation isn’t high enough to make that much of a difference – unless they’re weighing inflation against the Euro (lol, etc).
    All of those Bulls players were underpaid and not by choice. That’s why everyone fled town after the second threepeat. Reinsdorf was a cheapskate.

  • Youngindy21

    A hard cap helps teams because it sets a limit to how much a team can spend on players. That being said, It helps prevent teams from overpaying sad role players. In the old system a small market would have to overpay sad role players because they risked losing them to the big markets because teams like LA and Dallas can spend A LOT more money on players. This puts small-market teams at a disadvantage because LA spends 90 million dollars on players salaries. I am just using LA as an example. This means LA can severely overpay a sad role player(s) and still be able to afford its high paid Superstars. However if a team like Indiana paid Dahntay Jones(role player) what LA could afford to pay him then Indiana would not be able to resign a star such as Danny Granger because they can’t afford to go over the cap and pay the luxury tax.

  • ab40

    shut up fellas and some girls. A hard cap is bad for the leauge. Especialy if they let it be like that for 5 years. Makes no sense oh and MJ is a cheapskate probably one of the poorer owners in the L so of course he wants that. He got his in the last few years but before that he made a max of 8 mil per? some low single digit million number like that.

  • Justin

    Kind of funny how a lot of guys are pointing out how much Jordan made in his last 3 years in the league. How many remember when he was the 37th highest paid player in the late 80′s/early 90′s and told management to spend the money to get better players on the team? Reinsdorf had said giving Michael that money was a thank you for what he’s done for the organization since he’s been there. They went from something like 8000 fans to sell outs every night for 20 years. How many individuals can make that claim for their team?

  • http://slamonline.com Allenp

    Nobody is arguing that Jordan didn’t deserve it. We’re pointing out that with a HARD CAP there is no way he could have ever gotten those salaries and still had a competitive team.
    And in the NFL the same few teams, Steelers and Patriots, have dominated the last decade with only minor blips from the Saints and Giants.
    People complain about player turnover, but in the NFL, there is CRAZY player turnover.

  • LA Huey

    I specifically noted earlier in this section how I thought he was still underpaid in his last couple years. You could field a team with just Jordan and mascots and still sell out an arena.
    Also, the NFL’s single-game-elimination playoff system has a lot to do with their perceived parity. In a one-and-done playoff format, the best team doesn’t always win. You catch a superior team asleep and you can beat them (see ’08 Giants, ’11 Seahawks).

  • http://slamonline.com Allenp

    ^Very good point man. I hadn’t even thought of that difference. That is so true, like the NCAA. Strangely nobody really thinks there is parity in the NCAA as a whole, but they do believe that the tournament allows a lot of random teams to compete. Very good point.

  • http://slamonline.com nbk

    All of you (that are arguing about Jordan’s last years in Chicago) need to realize there are 2 reasons for the current financial system in the NBA. The first, Kevin Garnett signed a 6-year $126M Contract (unheard of amount of money at the time) – and Michael Jordan made over $63M over his last 2 seasons (because he excluded himself from the NBPA and had right to negotiate his image….which is why he wasn’t in video games. FOr Example) – So the NBA Owners decided they didn’t want this turning into Baseball – So they enacted the current (or real close to it) CBA. – And the figure I used for Jordan’s salary is on Basketball-References website, inflation has absolutely nothing to do with it.

  • http://slamonline.com Allenp

    He wasn’t excluded from the NBPA.
    He didn’t allow the group to package his likeness with everyone else’s, but he was still part of the union.
    He just negotiated one year deals and there was no salary cap in place. They say that one of the reasons he retired in 1998 was because of the potential lockout, along with other stuff. Anyway, just wanted to clear that up. He was part of the union, but he refused to sign off on the union allowing video games to use his likeness. Those are separate issues.

  • http://slamonline.com nbk

    Yeah my bad I didn’t mean he was excluded as in not part of the union. I meant the league had no rights to his image. He signed 1-year contracts (just 2 of them) after his 8-year contract he signed in 1988 expired. (The Bulls paid the full length of the contract, even when he was playing baseball. and at the time, the $20M 8-Year contract was the biggest in NBA history. (Well Magic Johnson signed a 25 year, 25 Million Dollar Contract in 1980 but that was so long I don’t count it.) His 1 year $30M and 1 year $33M contracts at the time equaled more money then entire teams, and that irked owners. my bad on the last comment that was a mess

  • http://slamonline.com Allenp

    I’m thinking of a new blog post about all-time NBA backcourts. And the best current backcourts.
    Here is the all-time list
    Top Five NBA backcourts:
    1. Isiah and Joe Dumars
    2. Walt and Pearl
    3. West and Goodrich
    4. K.C. and Sam
    5. Porter and Drexler
    Thoughts?

  • http://slamonline.com nbk

    That’s a solid idea. There was a similar post on the winningest tandems on wageofwins. Click my name Allen — Also, what about Rick Barry and Jamaal Wilkes? Or was Wilkes playing a forward spot for those Warriors teams?

  • http://wagesofwins.net/2011/08/09/the-winningest-tandems/ nbk

    my bad, click my name on this post.

  • http://philosopher.view@blogspot.com The Philosopher

    Magic and Byron…

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