The Problem with Trading: Everyone Buckle Up

[moofs]

http://sports.espn.go.com/espn/page2/st ... ons/090227

The most important trade for playoff purposes? A seemingly minor three-teamer between Houston (landed Brian Cook and Kyle Lowry), Orlando (landed Rafer Alston) and Memphis (landed a 2009 first-rounder from Orlando). It happened because Memphis is hemorrhaging money and supposedly saved $2 million, even if it meant turning Lowry (who had been outplaying 2008 lottery pick Mike Conley for two solid seasons) into a meaningless pick in one of the worst drafts ever. I'd say the Grizzlies hurled a flaming bag of dog feces at their fans, but they don't have any fans.

More importantly, than either of those, the whole planet's credit system drying up when everyone runs on credit is.. scary.

How did we get here? The economy turned in August, well after deposits had been sent in for season tickets, courtside seats and luxury suites. The league would love for you to believe that attendance hasn't been affected, but the NBA's official tally counts only total "customers," counted as paid tickets, comps (seats given to celebrities, sponsors, friends of the team or whomever, a number that can be fudged any way you want), discounted tickets and no-shows. The numbers don't reflect any falloffs with parking money, concessions, merchandise and restaurant/bar revenue around arenas. (For instance, at least half the concession stands have been closed for every Clippers home game this season -- except when the Lakers or Celtics were the opponents.) They definitely don't reflect aggressive giveaways like Chicago's recent buy-one-get-one-free promotion or Memphis' Pepsi Family Plan Pack (four tickets, four Pepsis and four hot dogs for $48). When you hear the Grizzlies are averaging 12,600 a game, that's like Amazon.com bragging, "We sold 12,600 books this week" and glossing over the fact that 65 percent of them were bargain books for $3.99 or less. (Amazing but true fact confirmed to me by multiple people: Memphis makes about $300,000 per home game. That's gross, not net. Even more amazing, four or five other teams are within $100,000 of that number.) So, yeah, attendance is "up" 1.9 percent, as this recent Sports Business Daily story would lead you to believe. But not really. Especially when you include Seattle's move to a sold-out arena in Hijack City and how it skewed the overall numbers.

And the strangest fact of the article:

An inordinate number of NBA players live paycheck to paycheck. Yes, even the guys making eight figures a year. You can play high-stakes poker with them … and you will win.

[moofs]

And you wonder why I didn't want to write about All-Star Weekend. Looking at the big picture, the league won't struggle even 1/10th as much as the NHL in years to come -- of all the wildest predictions I heard in Phoenix, the craziest came from a connected executive who predicted that fifteen NHL teams would go under within the next two years (and was dead serious) -- and Major League Baseball is about to get creamed beyond belief. Other than the NFL, the NBA will emerge from this financial quagmire in the best shape of any professional sport; not just because its billion-dollar deals with Disney and Turner (inked fortuitously in the summer of 2007) run through the 2015-16 season but because the Lockout That Hasn't Happened Yet will ultimately solve every major league issue except its stupefyingly dreadful officiating.

gah!

[HTown_TMac]

[moofs]

Here's why this all worries me... I don't think the economy is "doom doom!", more that this is another contraction.

You used to actually be able to own land, that ability was taken away (property taxes, some other things - but this has always looked to me like it was a push almost from the founding of the U.S.).
You used to buy houses in cash if you even bought them instead of building them with your own resources. Then you bought houses on credit.
After that, you still bought cars in cash and they lasted a long time. Then they lasted less time and you bought them on credit.
Now there's a push to buy even small $1-3k items on credit, and a lot of people have to. If the contraction is successful, they may REALLY have to.
What's in the future, payment plans on a steak?

That's what I'm worried about. That, and the time in the middle of that contraction won't be fun. But it should pull out, always has before. It's just a long, continual move to force everyone to use more and more credit and own less and less. Remember how Andrew Jackson loathed banks?

I've thought for several years now that the president (at the very least, recent presidents) didn't really run the country, just pulls some certain strings. This article makes it look like even a large group of the wealthiest men in the world are shuddering and losing their power. That's just... Is anyone else reading this differently? I've been known to be a bit paranoid at times.

[PocketRockets]

Here's why this all worries me... I don't think the economy is "doom doom!", more that this is another contraction.

You used to actually be able to own land, that ability was taken away (property taxes, some other things - but this has always looked to me like it was a push almost from the founding of the U.S.).
You used to buy houses in cash if you even bought them instead of building them with your own resources. Then you bought houses on credit.
After that, you still bought cars in cash and they lasted a long time. Then they lasted less time and you bought them on credit.
Now there's a push to buy even small $1-3k items on credit, and a lot of people have to. If the contraction is successful, they may REALLY have to.
What's in the future, payment plans on a steak?

That's what I'm worried about. That, and the time in the middle of that contraction won't be fun. But it should pull out, always has before. It's just a long, continual move to force everyone to use more and more credit and own less and less. Remember how Andrew Jackson loathed banks?

I've thought for several years now that the president (at the very least, recent presidents) didn't really run the country, just pulls some certain strings. This article makes it look like even a large group of the wealthiest men in the world are shuddering and losing their power. That's just... Is anyone else reading this differently? I've been known to be a bit paranoid at times.

Totally agree. I've said and thought for the longest time that Politicians and Presidents don't "own" or control this country. It's the rich. The Jews and other people (even wealthy foreigners) that own the U.S. or at least it's economy/stock market. The people in control want to be hidden b/c that's how you stay in control....pulling strings from the background. When you talk about increasing taxes for the wealthy....realistically what are they going to do? They're going to protect themselves any way they can. They aren't losing their houses, but instead they let the "lesser" take the fall. These people are economy-proof, they'll let people like you and me worry about missing rent/car payments as they pull their assets out of the market. Hell, they probably see it as buying things on wholesale as banks take over the mortgages.

We can't just blame them though, we have to blame ourselves more. A lot of people can't think long term (the media factors into this a lot). MTV, movie stars, etc. give us the impression to live for the moment. Buy/have the nicest newest things with no regard for the future, and people will do whatever it takes to get it. People have lost touch with reality and it started with these "reality" tv shows. Now normal peeps like you and me think that hey, I should be going out every night like on real world and I should have Rolls royces and bentleys like Rev. Run/Paris hilton. Half the **** we own goes "outta" style in 6 months or drops in price (electronics) in 3 months. If they really had value, do you think it would drop in price or go out of style so quickly?

Overall, Americans/whole world needs to get back to realizing what's a "necessity" and what isn't.

[kam_soluusar]

Not being the most mathmatically minded person, I don't know the "in's and out's" of the financial crisis. Our league in Australia sucks, but this is more a reflection of the Australian mindset with more, homegrown, type sports, (Aussie Rules, Cricket, Rugby League and Rugby Union.) In the 90's, Basketball was huge in Australia. And this year is the last year of our NBL (National Basketball League) as we know it. Next year it is being re-branded and re-named. We do not have large payrolls, all of our great players dissapear to Europe, or if they are able, to the U.S. to play. which is bad for us, because none or hardly any of our top flite players play in Australia. therefore the game isn't as good, so people don't go. Teams have gone from playing in Stadiums such as Rod laver arena, (The Tennis Centre where the Australian Open is held for Tennis.) to now playing at the State Hockey Centre, which has roughly 1/3 the capacity seating.

And I say this with all due respect, I think that the league's financial crisis could have been averted if players and owners were willing to make less money. Play less, get paid less. Then the season is shorter, say 56 games, so there are less overheads. Seriously, in the scheme of important means of gaining employment in the world, what a Pro Basketballer does, as compared to say a Neuro Surgeon, or some other Doctor/Scientist trying to fix some of the worlds problems is comparatively minor. Tell me, does someone really need to own 10 cars, or a Mansion with 20 bedrooms. I know that the old saying goes if you've got it, flaunt it. And I know they do heaps of work for charities etc........

I know there are certainly contradictions of sorts in this post, I don't have an answer, except for i wish there was less greed from all involved, Period.

[HoustonRockets]

COMMUNISM!!!!!!!!!!!!!!!!!!!

[HoustonRockets]

Honestly, I think Texas should secede from the Union and become the Republic of Texas once again...

TEXAS IS THE GREATEST!!!!!!!!!!!!!

[PocketRockets]

hahaha if texas did separate...they would get owned outright by Mexico.....they are only doing it "internally" now