Tuesday, October 12th, 2010 at 10:30 am  |  14 responses

Economists: ‘The NBA is Reasonably Healthy’

A couple of smart folks who crunch the numbers for a living tell the Boston Globe that the L is doing just fine economically — how else could you explain Darko’s contract? Zing! — and that a lockout would be unreasonable. Here’s a blurb, but you should read the entire thing: “Two noted sports economists believe the owners’ most likely weapon toward achieving such labor control is a lockout, something the Players Association is convinced will occur. But the question is whether a lockout will shift the power to the owners or ruin a league that may be entering its most captivating era in its 60-plus-year history. The National Hockey League allowed labor strife to cancel the 2004-05 season and the league has never fully recovered. Therein lies the risk for NBA owners. Last February, Stern said the league’s owners would lose nearly $400 million for the 2009-10 season, an assertion union president Billy Hunter called ‘baloney.’ Stanford economics professor Roger Noll, who wrote ‘Sports Economics after Fifty Years’ in 2006, does not believe the NBA is mired in debt. ‘I think the NBA is reasonably healthy,’ said Noll. ‘If you extract the fact that it’s the worst recession in the lifetime of anybody who’s thinking about it, the league is healthy. I do not anticipate there will be a strike or lockout. I do not anticipate the next agreement will differ materially from the present agreement. Both sides blow smoke in the run-up to collective bargaining. But you shouldn’t pay any attention to what they say. They are jockeying for position and trying to put pressure on the other side through the media. Nothing they say now about the state of the league or the state of the collective bargaining negotiations has any particular truth value.’”

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  • JTaylor21

    See this is what I’ve being saying all along, the NBA is doing swell and will only get better. Clowns like to complain about there being no parity but who gives a F*CK. It’s better for the league to have more dominant teams because it means more haters which equals more viewers.

  • http://twitter.com/HarryByrdMan44 LA Huey

    I would like to see something like back when the current CBA was first ratified, teams could take one player’s salary off their cap by releasing him(but still had to pay the money owed to the player). As a fan, I’d like to see something similar this time around.

  • http://thekobebeef.wordpress.com LDR4

    STERN!!!! (shakes fist at the sky)

  • http://slamonline.com The Black Rick Kamla

    Stern is bout his paper….im telling you that Hebrew money is long bruh

  • MikeC.

    @LA Huey – I’d love to see the Allan Houston rule dusted off again too. Maybe allow teams to use it once every 3 years or something. That way the player gets the money he’s due, and the team isn’t crippled by carrying a bad contract. It would also allow for lots of speculation about when to cut a player based on who is coming due for free agency. If the union and owners agree to this, I can see Joe Johnson getting waived in 5 years when his performance is dipping and his contract is strangling the Hawks.

  • Jer Dawg

    These owners get shares from luxury tax teams @ years end. Teams get shares of TV contracts which run upwards of billions. Each team has enough equity from side contract money from sponsors, TV money, and their own businesses. Most of these owners started their own things before getting into NBA. Did i fail to mention sports gambling? They float well above water even when their teams suck.

  • http://theurbangriot.com The Nupe

    He didn’t really say anything concrete. What does ‘reasonably healthy’ mean or “If you extract the fact that it’s the worst recession in the lifetime of anybody who’s thinking about it, the league is healthy”.

    The fact is that the owners (just like many Americans – rich or poor) are facing a recession and the Players don’t want to have to feel the impact of the recession. I’m not sure what a fair deal would be, but at the end of the day I understand nobody wants to take a pay cut (regardless how much you earn or are worth). For the owners, who take the financial risk, to want to ‘pass the recession’ onto the players is reasonable, but I don’t think the players shouldn’t have to take on a heavier burden than the owners either.


    I’ve been saying this from day one. Business is good for the NBA and not just here but abroad. I think the owners just want a way to get out from under those salary cap killing Eddy Curry type contracts.

  • http://twitter.com/HarryByrdMan44 LA Huey

    @Mike C, you read my mind. I’d propose you could only use it once (but at any time) during this next CBA. I think we should rename it the “Joe Johnson Rule” this time around. Also, I think you’re pretty optimistic about JJ’s production. I see it falling off in two years.

  • http://google c_cantrell

    right on JTaylor21.. i love the nba like this it reminds me of all those stacked teams from way back that we never had the priviledge to watch but now we can watch several power houses go at it

  • The Philosopher

    Stern just made the deal with the bank.
    (shou tout to The Council On Foreign Relations)
    We will witness The King and his Men… destroy The League for years to come.

  • MikeC.

    @LA – It’ll either be the Joe Johnson rule, the Amare Stoudemire rule, the Rudy Gay rule or the Amir Johnson rule. As much as I like Amare on the Knicks, I still have to include him in the awful contract discussion. There is one name that people tend to forget when talking about long-term big-money contracts that won’t be worth it due to injuries. Dwyane Wade’s contract is comparable to Joe Johnson’s, but Wade’s injury history is more troubling than Joe’s. Joe’s major injury was a smashed face and was a total fluke. Wade’s injuries are the nagging kind that suck the life out of players as the get older. Joe is only a year older than Dwyane and people are killing Atlanta for giving long years to Joe.

  • spit hot fiyah

    joe’s game is not comparable to wade’s

  • Jumper

    In my opinion Joe Johnson is the only player that recieved a massive contract that has yet to prove why. He has a J when left open. hmm, great, give him another 78mil for 10 years!