In case you don’t know, each team has $30,000 to spend in Vegas, which is a huge amount of money to spend on gambling. It also means that each team is able to spend their own money.
Somehow, while the teams split the profits, the payout is split evenly to each team. In some ways, this makes for a less equitable playing field. With the NBA making a profit on each player, it should give the most money to the best players, so that the most money can be used to help the most talented players.
But in reality, there are ways that this structure leads to a system in which the more talented players are able to have a greater bargaining position in negotiations with owners. When a player becomes a free agent, he has fewer guaranteed contracts with teams that are able to spend more to buy out his rights. If the player can sign contracts with more teams that are more profitable and able to pay him more, then he would likely have the leverage to get more money. And we can see how many teams are able to afford this, by taking away the maximum number of minimum contracts allowed from each team before the cap rises and increases the salary cap.
That’s a big change in how teams look at free agency.
Here’s an example. In the offseason, it would make sense to bring back three of the big names from last year. The New Orleans Pelicans would want another point guard, and the Seattle SuperSonics would like to keep their guards. But if they could trade the third spot to the Philadelphia 76ers for the two first-round draft picks that they wouldn’t take this year, and get two second-round draft picks next year, then the Pelicans would have four of their top eight players. And the team could afford to pay their top-rated player to stay rather than be the ones to sell.
If teams can do that, they can spend in a way that increases the odds that the best and brightest players will be able to find new homes. Because teams could be spending less, the chance that those players could also find their new cities are much higher. If the best and brightest players decide to stay home because it is more affordable, then the teams that will pay those players more will have more potential to have other top prospects. This could incentivize them to find new homes.
So if the players have the ability to make more money, teams will have a much higher chance to acquire their top players. That in
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