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Trends of GMs

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Eric Bargemann

on 20 April 2010

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Transcript of Trends of GMs

Trends of General Managers in the NBA

Eric Bargemann
Ian Brophy
Benjamin Levy
Nick Ptak What is a General Manager? General Managers: Fast Facts Prototypical General Manager Salary Cap Luxury Tax The Value of Expiring Contracts Makes executive decisions in basketball operations

Serves as a liason between the head coach and the owner

Oversees financial and contractual agreements/obligations

Communicates with scouts and conduct own analysis Average tenure: 6.1 years

14 out of 30 GMs have played in the NBA.

Only four of the current GMs have ever won a championship as a GM: Joe Dumars (Pistons), Mitch Kupchak (Lakers), Danny Ainge (Celtics), and RC Buford (Spurs).

Three GMs are currently in their first year. Basketball background/knowledge

Understands contract litigation and the Collective Bargaining Agreement

Eye for talent

Ample communication with rest of the front office staff Soft cap, meaning that the final payroll amount is left up to the owners' discretion

Other professional sports leagues utilize the hard cap, in which the league holds a restriction on payroll.

Lowered to $56.1 million for the 2010-2011 season; at the moment, $57.7

Gives advantage to teams with bigger markets --> able to spend more

Teams below the salary cap may trade without regard to salary as long as they are not $100,000 above the cap after the transaction.

Teams above the cap cannot acquire more than 125% of overall outgoing salary. Current season's threshold: $69. 92 million

Dollar-for-dollar tax if you go over the limit

Example: The Suns are approximately $5 million over the threshold. Thus, they have to pay a total of $10 million more than they would if under the threshold.

Non-taxed teams end up receiving the extra revenue collected from the teams over the threshold, encouraging against overspending. Trading Trends Teams trade more for salary reasons than for talent.

Expiring contracts are dealt to free up cap space, while teams desiring more talent receive high-performance players.

Example: Tracy McGrady and the New York Knicks Future of the Salary Cap Recent decline due to the economy, will likely continue downward until recovery

This summer, many star players are becoming free agents as their existing contracts expire.

Star players are planning to sign for 3 years NBA Draft Salaries are based on draft rank

More international players being drafted

Risk to be made, as some international players will opt to stay with their original team or setting...
Example: Ricky Rubio

International players who are drafted before their former contract expires have to engage in a buyout. Teams who do not foresee immediate championship contention are convinced to trade big talent for scrub players and future draft picks.

In doing so, they free up cap space and allow for a significant free agent to sign with the team in the offseason.

Teams that are on the rise and successful look to take advantage of this situation, nabbing quality players while giving up very little in return. Summer 2010 Free Agency Teams Looking for a Big free agent: New Jersey Nets, New York Knicks, Indiana Pacers, LA Clippers, Charlotte Bobcats

Teams hoping to resign or keep Big free agent: Toronto Raptors (Chris Bosh), Phx Suns (Amare), Cleveland Cavs (LeBron), Miami Heat (Dwayne Wade), Dallas Mavs (Dirk Nowitzki), Atlanta Hawks (Joe Johnson), Memphis Grizzlies (Rudy Gay)

That leaves 11 teams hoping to sign 6 players so there will be teams who get left out and have yet another bad year. "You see the richer teams trying to rob the poor teams, but both teams are getting what they want. Whether they knew what they were doing or not, it's worked out for a lot of teams who have shed players." -Mike Dunleavy Jr.

Example: New Orleans Hornets Lopsided Trades Phoenix Suns traded Shaquille O'Neal to the Cleveland Cavaliers for Ben Wallace and Sasha Pavlovic (waived both players)
Memphis Grizzlies traded Pau Gasol to the Los Angeles Lakers for Kwame Brown, Javaris Crittenton, Aaron McKie, Marc Gasol, and 2 first-round picks
Caron Butler, DeShawn Stevenson and Brendan Haywood traded to the Dallas Mavericks from Washington for Josh Howard, Drew Gooden, James Singleton and Quinton Ross
Cleveland Cavaliers traded Zydrunas Ilgauskas to the Washington Wizards in a 3-team deal including the Los Angeles Clippers. In return for only Ilgauskas and rights to a 2nd round draft pick, the Cavaliers acquired Sebastian Telfair from the Clippers and Antawn Jamison from the Wizards. Comparing with Other Professional Leagues Unlike MLB and NFL, NBA players can usually be determined as stars or role players by their second year in the league.

Tougher to rebuild than in other leagues, where stockpiling of draft picks produces quick results

Conflict lies within the NBA's methods with regard to fan appreciation, as fans aren't able to become attached as much to marquee players who will be dealt within a few years for monetary relief. Questions/Comments Will LeBron James be a member of the Cavaliers next season? If not, where will he sign?

As a GM, would you be more inclined to trade for a star player or work to develop one, such as Kevin Durant?

Have you noticed the effect of these trades and methods in any playoff matchups so far this season? Thank you!

GO SUNS! Lakers Blazers Phoenix Suns: $74,927,102 (9th) Data collected from http://www.hoopshype.com Graphic: Teams and the Luxury Tax
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