Setting Market Value

[ballerblogger]

San Antonio Spurs coach Gregg Popovich reacted to the lopsided deal that sent Pau Gasol to the Lakers by calling for a trade committee that approves and disapproves all trades in the NBA:

“What they did in Memphis is beyond comprehension,” Popovich said. “There should be a trade committee that can scratch all trades that make no sense. I just wish I had been on a trade committee that oversees NBA trades. I would have voted no to the LA trade.”

I don’t know about a trade committee. But I would be in favor of a committee that approves and disapproves of contract extensions and free agent signing amounts. Free agent signings and contract extensions set market values that have far-reaching impact in the NBA.

If Monta Ellis is worth $11 million, how much is Ben Gordon worth? Luol Deng? One of the primary reasons Charlotte agreed to sign Okafor to his contract extension was because Biedrins signed for $10 million plus a season. Okafor is better than Biedrins, so apparently he's worth more than Andris.

I know that extensions are influenced by a team’s salary cap situation, available talent elsewhere, and a player’s age and potential. But what one team thinks is in its best interests, can be counterproductive to the league as a whole.

[loserX]

It's an interesting idea, but

1) impractical. The discrepancies between restricted FA, unrestricted FA, and players with Bird rights mean that different teams are capable of offering different amounts at different times. What use are Bird rights if you can't use them to offer your guy more than another team can because it's "unfair"? There would be ripple effects throughout the entire league.

2) the players' union would NEVER EVER EVER EVER allow this. EVER. They would refuse to sign any CBA that had such a provision in it.

[DFO]

Apples and oranges.

Trades, such as the Gasol one, affect competitive balance. It was grossly unfair to the other teams competing for a title in west. Didn't pass the smell test at all, what with Jerry West pulling the trigger. As well, it was obvious that the Grizz had no interest in reinvesting the money saved on incoming free agents. Just a salary dump. Giving all-star quality big man to leagues biggest market for nothing was unfair.

The large extensions that you are concerned with are another matter. To regulate them in any way would have serious CBA ramifications. As well, GMs that are overly generous in extending their own players (see Billy King) tend to do more damage to their own teams then the entire league.

I would be in favor of a trade committee. On something questionable they should convene a public forum where the GMs involved have to justify the trade. That would be great TV, and GMs would be held accountable.

There is no way that Chris Wallace could have justified the trade, other than saying ... "we are losing a ton of money and need to cut salaries. We know that we could get move value back by trading Gasol to the Bulls, Nets or 10 other teams ... but we just wanted an expiring contract so we could save the money. It was a bonus that it was the Lakers. I am sure the league office was happy with the deal."

[lakerfan10770]

Apples and oranges.

Trades, such as the Gasol one, affect competitive balance. It was grossly unfair to the other teams competing for a title in west. Didn't pass the smell test at all, what with Jerry West pulling the trigger. As well, it was obvious that the Grizz had no interest in reinvesting the money saved on incoming free agents. Just a salary dump. Giving all-star quality big man to leagues biggest market for nothing was unfair.

The large extensions that you are concerned with are another matter. To regulate them in any way would have serious CBA ramifications. As well, GMs that are overly generous in extending their own players (see Billy King) tend to do more damage to their own teams then the entire league.

I would be in favor of a trade committee. On something questionable they should convene a public forum where the GMs involved have to justify the trade. That would be great TV, and GMs would be held accountable.

There is no way that Chris Wallace could have justified the trade, other than saying ... "we are losing a ton of money and need to cut salaries. We know that we could get move value back by trading Gasol to the Bulls, Nets or 10 other teams ... but we just wanted an expiring contract so we could save the money. It was a bonus that it was the Lakers. I am sure the league office was happy with the deal."

Jerry West retired last summer, he had little to nothing to do with the trade. And on top of that you talk about Chris Wallace (the actual GM) not being able to justify the trade just a few paragraphs later.

And btw, this whole "they got Gasol for nothing" is bul". The Grizzlies effectively trimmed close to $50M off their payroll got 2 first round picks, a good young player in Javaris Crittenton & a guy that would have been a lottery pick this year had he been in the draft in Marc Gasol. Is it the fairest deal ever, of course not, but that package is hardly nothing. There have been plenty of other deals that were much more unfair, like Baron Davis for Claxton & Dale Davis, Vince Carter for the Williams & Zo.

Or how about one of my personal favorites, a quality center on an expiring contract in Nazr Mohammed to the Spurs for an over paid, undersized Malik Rose on a long term contract. Who just happens to finally be coming off the Knicks books this season, that trade happend like 3 or 4 years ago, freaking ridiculous.

[NetsForce]

Marc Gasol would not have been a lottery pick this year.

[doc.end]

Biedrins - Okafor. Not saying either was an overpaying but was it supposed that once a team overpays someone , slaries of other players should go higher?! And as a rule?! That would be unfair to careful front offices.

[LakerFanMan]

2) the players' union would NEVER EVER EVER EVER allow this. EVER. They would refuse to sign any CBA that had such a provision in it.

Exactly, there is no way in hell the players' union would be on board for something like a committee that looks over exstensions and etc... They absolutly love it when players sign for more then what they're worth. They love it when the market goes up because guys like Shard, Gordon, Okafor, Biedrins, etc... sign for a whole bunch of money. Good luck getting them to agree to losing money for their players.

[lakerfan10770]

Marc Gasol would not have been a lottery pick this year.

Perhaps he is biased, but Chris Wallace disagrees with you:

Gasol, 23, is considered one of the top players in Europe. Last year the 7-foot-1 center was named MVP of the Spanish League after averaging 16.2 points and 8.3 rebounds per game for Akasvayu Girona. He could join with 7-foot Darko Milicic to give the Grizzlies one of the taller frontcourts in the NBA.

Grizzlies GM Chris Wallace was not available to comment. But earlier this month he said Gasol would have been a lottery pick in the '08 draft.

"He was drafted 48th by the Lakers last year, but if he was in the draft this season he'd be deep in the lottery," Wallace said. "He's one of the elite players in Europe."

Link: http://sportsillustrated.cnn.com/2008/writers/marty_burns/07/01/gasol/

[sabi]

It's the team's fault for signing these players to the amount that they actually want. The players should be free to ask for whatever they can get the CBA rules, but that doesn't mean the owners should be bending over for them.

[dflash3]

The Gasol trade is a trade that could have been vetoed but at the same time a committee that oversees trade transactions wouldn't work. Its difficult to determine whether a trade is fair or not since some owners get involved in trades for financial reasons. The only thing the NBA can do is sit back and hope owners don't make boneheaded moves. And that's the way it should be since technically owners make moves with the goal of improving their team.

[jefe]

Apples and oranges.

Trades, such as the Gasol one, affect competitive balance. It was grossly unfair to the other teams competing for a title in west. Didn't pass the smell test at all, what with Jerry West pulling the trigger. As well, it was obvious that the Grizz had no interest in reinvesting the money saved on incoming free agents. Just a salary dump. Giving all-star quality big man to leagues biggest market for nothing was unfair.

The large extensions that you are concerned with are another matter. To regulate them in any way would have serious CBA ramifications. As well, GMs that are overly generous in extending their own players (see Billy King) tend to do more damage to their own teams then the entire league.

I would be in favor of a trade committee. On something questionable they should convene a public forum where the GMs involved have to justify the trade. That would be great TV, and GMs would be held accountable.

There is no way that Chris Wallace could have justified the trade, other than saying ... "we are losing a ton of money and need to cut salaries. We know that we could get move value back by trading Gasol to the Bulls, Nets or 10 other teams ... but we just wanted an expiring contract so we could save the money. It was a bonus that it was the Lakers. I am sure the league office was happy with the deal."

You obviously know nothing about the Grizz situation or their history with Gasol. A team built around Pau Gasol is nothing more than a playoff speedbump to the true contenders (as a best case scenario) - and a team built around ... who? Nocioni? is no better. Bitch all you want to, but the Grizz fans are happy to have a young core of Conley, Mayo, and Gay along with $20+ mill to spend in the 09 offseason - instead of hoping that this will be the year Gasol leads the Grizz to a playoff game win.

And if the Grizz were entirely motivated by saving money, then why was Darko signed to a 21mill deal not 7 months prior to the Gasol trade?

[jefe]

San Antonio Spurs coach Gregg Popovich reacted to the lopsided deal that sent Pau Gasol to the Lakers by calling for a trade committee that approves and disapproves all trades in the NBA:

“What they did in Memphis is beyond comprehension,” Popovich said. “There should be a trade committee that can scratch all trades that make no sense. I just wish I had been on a trade committee that oversees NBA trades. I would have voted no to the LA trade.”

I don’t know about a trade committee. But I would be in favor of a committee that approves and disapproves of contract extensions and free agent signing amounts. Free agent signings and contract extensions set market values that have far-reaching impact in the NBA.

If Monta Ellis is worth $11 million, how much is Ben Gordon worth? Luol Deng? One of the primary reasons Charlotte agreed to sign Okafor to his contract extension was because Biedrins signed for $10 million plus a season. Okafor is better than Biedrins, so apparently he's worth more than Andris.

I know that extensions are influenced by a team’s salary cap situation, available talent elsewhere, and a player’s age and potential. But what one team thinks is in its best interests, can be counterproductive to the league as a whole.

Isn't market value what a team is willing to pay for a player's services (absent coercion, duress, etc.)? So you're in favor of a regulatory committee to effectively say "no, that is not this player's market value" despite the fact that a team freely offered the amount for the player's services (absent coercion, duress, etc.)? Don't you think a committe to set market value is an oxymoron?

[RapsGM]

I think that is just a bitter popovich talking. Im sure if his team was to pull off a trade to send Bob Horry and a 2nd rounder to the Grizz for Gasol, he wouldnt be saying this type of ****.

The trade was good for both teams. It gave the lakers a chance at a championship and got the Grizz into rebuild mode alot quicker.