NBA: Free Agency Altered; 'Superteams' A Thing Of The Past Thanks To New CBA
Jun 23, 2016; New York, NY, USA; NBA commissioner Adam Silver speaks at the conclusion of the first round of the 2016 NBA Draft at Barclays Center. Mandatory Credit: Jerry Lai-USA TODAY Sports
With a new CBA set to take place, free agency is bound for an overhaul. The Golden State Warriors may be the last superteam ever constructed
The NBA and the NBPA have agreed, in principle, to terms on a new collective bargaining agreement (CBA) that will take the league to unprecedented heights. The new money brought in through the television contract with ABC/ESPN and Turner Broadcasting will line everyone’s pockets to the tune of $24 billion.
Despite what could be a monumental change of fortune for small-market teams now being able to afford top-flight talent in the summer, superstars will be more inclined to stay with the team that drafted them for the long haul.
Star chasing is a trend that has never gone out of style and historically speaking, that has been the best way to earn a championship. The Lakers, Heat, and Celtics have all assembled freakishly talented teams in the past via the free agent or trade market, accounting for a combined 36 of the NBA’s 66 titles.
That may all be coming to an end, however, as players are encouraged to value money over championship contention. We explain exactly why.
Jul 7, 2016; Oakland, CA, USA; Kevin Durant poses for a photo with his jersey during a press conference after signing with the Golden State Warriors at the Warriors Practice Facility. Mandatory Credit: Kyle Terada-USA TODAY Sports
It’s All About the Dollar Bills
Kevin Durant and Dwight Howard are the most recent NBA stars to take paycuts in free agency, but will be far from the last. The new CBA allows 10-year max-level veterans to make $210 million on a five-year deal. Combined with the revised “Over 38” rule, players like LeBron James and Chris Paul will get one more colossal contract before they retire.
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Another CBA caveat that will effect this is the addition to the “designated player exception” each team possesses. The DPE for each team has been bumped to two rookie-level and two veteran-level contracts. To be eligible for a DPE, the player must have won the MVP, DPOY, or have made one of the three All-NBA teams in the previous season.
Organizations can then offer the new contract in the final year of the eligible player’s current deal, locking them in for a six-year max.
To compare what players will lose if they jump ship, the max for a superstar like Russell Westbrook would be a measly $162.5M over five years.
Financially it makes sense to take the extra $50 million and see what happens, but championships are notoriously more elusive than money. Carmelo Anthony picked cash over an improved title shot when he inked his latest deal with the Knicks. It is not unprecedented for the almighty dollar to sway a star’s decision.
The problem with Melo’s choice to chase that cheddar in New York is that he essentially abandoned any hope of winning a ‘ship.
Dec 26, 2016; New Orleans, LA, USA; New Orleans Pelicans forward Anthony Davis (23) is defended by Dallas Mavericks forward Harrison Barnes (40) during the second quarter of a game at the Smoothie King Center. Mandatory Credit: Derick E. Hingle-USA TODAY Sports
Winning is Everything? Right?
Fans tend to weigh a player’s career based on how many championships they have accumulated. Players like KD and LeBron, whether they like to admit it or not, listen to that criticism and act accordingly. Those Miami teams and the newly christened Golden State behemoth both formed as a direct response to the crucible that is public criticism.
The new CBA is designed to discourage the poaching of All-NBA type performers. Let’s look at the case of New Orleans big man Anthony Davis. It will be harder for a young, budding superstar like Davis to turn down what could eventually be a monstrous deal. Davis’ current contract will carry him through until his 9th year in the league, enabling the power forward to do a one year stint to get that 10th-year veteran status.
Presumably The Brow will be in his prime when his contract runs out. At 28 years of age, however, the burden will be on AD to choose wealth or winning. The New Orleans Pelicans have shown little in terms of improvement since acquiring the former Kentucky Wildcat, and the front office does not seem to know what to surround him with.
Taking a pay cut to play for a contender has consistently drawn the ire of fans, players, coaches, and analysts. On that same note, going for the money brings a nearly equivalent level of disapproval.
Dec 16, 2016; Salt Lake City, UT, USA; Dallas Mavericks owner Mark Cuban reacts during the first half against the Utah Jazz at Vivint Smart Home Arena. Mandatory Credit: Russ Isabella-USA TODAY Sports
Free Agency Philosophy Changes
The Dallas Mavericks’ tactic of rebuilding through free agency is going to take a significant hit. Teams will know much sooner when their star player is going to walk, however, allowing them to either obtain assets in return or build an exit strategy. With such a steep drop-off in salaries, it will become apparent much sooner whether a disgruntled superstar is going to re-sign.
Winning over a money-hungry free agent will not be completely impossible, despite the disadvantage that now afflict outside teams. Flexing the win-now muscle has worked in the past and will continue to work now. AD is likely to grow tired of New Orleans’ brass fumbling around with Tyreke Evans and Omer Asik in a failing attempt to build a playoff team, opening the door for another franchise to swoop in and sell Davis on the idea of a legitimate title shot.
Parity in the league may blossom under this new CBA. Retaining talent is a difficult thing to accomplish when players are bolting to greener pastures with other superstars. The Heatles formed because of LeBron James, Dwyane Wade, and Chris Bosh decided to play together. They all took less money to guarantee a title, but it was nothing like today.
Over the life of those contracts, D-Wade, Bosh, and James each gave up $15 million. Similar free agents today would be forking over over triple that amount.
Jun 23, 2016; New York, NY, USA; NBA commissioner Adam Silver speaks before the start of the first round of the 2016 NBA Draft at Barclays Center. Mandatory Credit: Jerry Lai-USA TODAY Sports
Draft Too Many Busts and You’re Doomed
Executives and GMs now need to rely more heavily than ever on the draft to field marquee players. Massive trades like Boston’s 2013 shakedown of the Nets will be things of the past due to franchises now coveting their draft picks even more obsessively.
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The ability to have the financial freedom to lock down two young superstars with additional DPEs will change the entire strategy that teams employ in the future.
An even footing for lesser-franchises who are constantly bottomed-out is a boon for competitiveness in the NBA. Phasing out superteams will be cheered at first, but there is a unique charm to a David and Goliath playoff matchup. Forming one of those polarizing squads also takes expert timing, a grandiose vision, and the gall to give every other competitor double middle fingers.
Players stand to make a ludicrous amount of money per year and over the life if they can reach the new max. Raises to every other level of the league’s contract system is a boon to veterans and rookies alike.
It’s a new day in the NBA, and the latest incarnation of the CBA is bound to generate new innovators.
In a changing landscape, the name of the game is adapt or die.