The league’s salary structure is a free market system that signs players to maximum, minimum, mid-level, and everything in between contracts. There’s nothing wrong inherently wrong with the salary structure. But there are several contracts in today’s NBA that are limiting financial flexibility.
Here are the top ten NBA salaries:
1. Kevin Garnett $24,751,934
2. Jason Kidd $21,372,000
3. Jermaine O’Neal $21,372,000
4. Kobe Bryant $21,262,500
5. Shaquille O’Neal $21,000,000
6. Stephon Marbury $20,840,625
7. Allen Iverson $20,840,625
8. Tim Duncan $20,598,704
9. Tracy McGrady $19,614,000
10. Ray Allen $18,388,430
Of those ten players, KG, Kobe, and Duncan are earning their paychecks. The other seven players are grossly overpaid. Guaranteed contracts prevent hold-outs and hold General Managers accountable for their decisions. But they also make it difficult for teams to improve themselves through free agency.
Non-guaranteed contacts are far from the solution. The NFL allows teams to cut players for poor performance, but it also allows teams to cut players who are injured. That’s bad business. Instead, I think the NBA should shorten the length of maximum contracts from six years, to two.
Two years — even at the league minimum — is enough time for a player to gain some sense of financial security. And it would also insure that players remain hungry to ink another two-year deal.
The counter argument to this proposal is that no one is twisting NBA General Managers’ arms — forcing them to sign the likes of AI and Marbury to maximum contracts. But if the Philadelphia 76ers and Phoenix Suns hadn’t signed Iverson and Marbury to their deals, someone else would have. And it’s not so much the per year salary that is the problem, again, it’s the length of the contract.
Too many teams are stuck with players who aren’t earning the money they’re making. Only three teams (Sixers, Grizzlies, and Clippers) were far enough below the salary cap to make a run at a top-tier free agent. The rest of the league is being forced to use their mid-level exception to try and improve their rosters.
The Euroleague may be willing to overpay mid-level NBA players, but at least they can spend their money how they choose. For most NBA teams, it isn’t a matter of limited resources, it’s the red tape that limits how they can spend their revenue.
(Source: ShamSports)
July 27th, 2008 at 5:14 am
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July 30th, 2008 at 12:18 pm
Interesting idea, Hoff. I’ve always thought of 6 years as security for the team. For instance, if everyone knows Tim Duncan is locked in with the Spurs for 6 years, then maybe it is easier for them to attract free agents, because they have a REASONABLE assurance that the team will be in tact long enough for them to make their run.
But 6 years is too long.
How ’bout 4? Maybe that’s the magic number, after all, we put up with bad politicians that long.
July 30th, 2008 at 7:00 pm
Four-years would be an improvement.
And to be honest, I don’t think the player’s union would ever agree to two. Most people are paid according to their performance. Why should basketball be any different? Players shouldn’t be allowed to collect on their contracts if they fail to produce.