Monday, July 4, 2016

Problems with NBA Free Agency

We should never knock another man's hustle. However, I think Jay Z would do a double take on the salaries that some of the current NBA free agents are getting. While the marquee players are deserving of large monetary compensation, players that are mid level are getting overpaid. The current collective bargaining agreement allows the rookies to be paid at a certain level based on how high they are drafted. This allows the veteran players to get more money until the rookies prove themselves. At the end of the rookie contract agreement they have the option to become a free agent.
The owners know have a body of work and will bid accordingly.
So why not do this with a veteran? As oppose to speculating on the worth of a player, pay them with a 70% guaranteed contract with 30% based on incentives. Performance would dictate earnings. Analytics of how the player's production affects the success of the team are available. Use the plus /minus ratio of how well the team does when the player is on the court. Did he win certain awards? Is the player durable? This would make the mid level player put in the work to train harder during the off season with conditioning and strength coaches.


Imagine yourself as an owner of a NBA team. Let's make it more real and now it's the business of your choice. You have a budget increase of 10,000 dollars. Would you spend the entire amount or part of it. If you spent all of it, would you over spend on any one area?  My point is that just because you have it does not mean you should waste it. Spending wisely is always the order of the day. Unless you are in the NBA.  Mary and Jay are up.

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Happy 4th of July!


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