NBA Lockout: The real problem

Posted by By at 27 June, at 17 : 24 PM Print

NBA Lockout: The real problem

While people are crying over the potential loss of the football season, there is also the NBA season that is in jeopardy.  It has really irked me that this could potentially be the second lockout of the NBA I have witnessed.  The big problem in the NBA is the concept of the soft-cap on salaries.  There is a certain amount of greed involved in this situation. 

Last year’s salary cap was 58.044 million dollars.  Under the soft-cap the Los Angeles Lakers spent $91,645,878 on their team.  On the other end of the spectrum only 4 teams (Bulls, Kings, Clippers, Cavs) were under the salary cap.  The Bulls, the Clippers and the Kings will probably have to go above the cap to keep stars like Tyreke Evans, Derrick Rose, and Blake Griffin.  The NBA had a revenue of 4 billion and claimed to lose as much as 400 million.  The crux of the issue is teams are overspending to become competitive and they are not getting enough fans in the seats.  Of the 4 teams who were under the cap, only the Bulls were competitive.  The Kings tried to move from Sacramento due to lack of fan support.  The parity in the NBA no longer exists.  The creation of the soft-cap has been used to manipulate the system.  Teams are getting to spend ridiculous amounts of money on players to keep them.  Between Andrew Bynum, Kobe Bryant, and Pau Gasol, the Lakers are spending 56 million dollars.  With the team looking for 12-15 players to fill out their roster, the Lakers should have in theory 2.044 million dollars to pend on 9-12 more players. 

There is a bit of rambling going on here, but the point is the teams are not making money.  With 30 teams in the league, there are 26 of them spending more than 58.044 million dollars.  If each team were to be losing money, they would be losing around 13 million a team.  Since it is not out of the realm of possibility to say that some of these teams are spending close to 20 million more than the cap there needs to be some restraint by these teams.  The problem with this restraint is that these teams know that in order to get fans in the stands they need to win (or have so much money they don’t care how much they lose).  Also, the NBA players association is not helping either.  They want the soft-cap because they know that’s where the money is made.  The salaries under the soft-cap have become so large that many of the teams are married to the player even when he is no longer effective (Washington saved itself from Gilbert Arenas). 

If I had a solution it would be thus, raise the salary cap to 62.5 million and make the soft-cap a bit harder with a maximum spending of 77.5.  You would also need to create revenue sharing for teams that are paying 75 million dollars or more.  This would increase the amount of competitiveness because teams would not be able to spend ridiculous amount of cash to get players and force teams to seriously consider spending this money.  In the NBA where money is king, a lockout is looming.

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4 Comments

  1. David Topf, 6 years ago Reply

    Its all about the benjamins bro. The Players want more, and the Owners want more. Its sick if you ask me. Too much cash being thrown around.

  2. Francis Gross, 6 years ago Reply

    There needs to be a hard cap just like hockey did. Look how great the NHL is doing and its all because of a Hard salary cap. Bottom line.

  3. Daniel Storyn, 6 years ago Reply

    Its sick when players make over $20mill a year and they cry to make even more for longer periods of time. The NFL is dealin with the same crap right now, and who knows when oir if they gonna start up a regular season on time.

  4. THeBalloutKING, 6 years ago Reply

    BRING BACK SUMMER LEAGUE


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