NBA's plan to cut salaries is double-edged sword for Pacers

October 25, 2010
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NBA Commissioner David Stern’s proclamation that the league may cut $750 million to $800 million in player payroll costs is a good news/bad news scenario for the Indiana Pacers.

The Pacers, under Larry Bird’s three-year plan, will get out from under about $32 million of its players’ salary expenses after this season. That means the team should have some cash to spend on a key free agent or two.

But that’s assuming the NBA has a salary cap near its current $58 million ceiling. If Stern wants to slice $800 million from player payroll costs, there goes $26.7 million off every team’s salary cap. Bird’s free agent money just got trimmed to $5.3 million. That might land the team a hot prospect—from the D-League.

The upside is the Pacers, according to team officials, have lost about $30 million each of the last two years. So, a $26.7 million savings just about wipes that away. But if the Pacers can’t upgrade the roster—and lose a good chunk of this year’s roster to boot—I’m almost certain that won’t be good for attendance.

Stern’s proclamation is likely little more than posturing, and the players’ union is sure to fight it during upcoming negotiations for a new collective bargaining agreement. Sources close to the league have said a $400 million cut to the player payroll is more likely. That means the salary cap would be lowered to about $42 million.

Bird would still be hamstrung, but at least he’d have $18.7 million to use to hunt free agents.

Carmelo Anthony is set to make at least $18.5 million next year, but he’s not coming to Indiana. There are some other quality players in that price range, such as Tyson Chandler and Tony Parker. I’m not saying the Pacers will acquire either of those players, they’re just an example of the caliber of player the Pacers might be able to acquire with the money that might be available.

Of course, the other NBA teams would be similarly affected, and who knows how Stern's proposal would grandfather in current contracts.

But suffice it to say, losing room under the salary cap could be another obstacle for Bird, now in his eighth season as the team’s president of basketball operations. No one would say the road he’s traveled in this job has been a smooth one. Along comes another challenge.
 
 

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  • Question
    Tony, it seems unlikely that the NBA would cut 46% of its payroll today as teams without free agents would be much worse off than the Pacers due to owed luxury taxes for being over the newly reduced cap. This move by Stern is to help the owners not hurt them.
  • Less than smooth
    Agreed...a tough road...one that few of his critics could have navigated any better...roster gutted to placate fans who demanded Jackson, Tinsley, etc.,be sent away. Bird has made a couple of mistakes, which are magnified because they needed every single pick and trade to work out. We knew when we got Murphy and Dunleavy that we had better outscore everyone, because neither one can play a lick of defense. But it all needed to be done to get to the point we are almost at now.
    It took Donnie Walsh forever to build a winner, but the NBA Pacers were never any good, so when it finally happened we were just grateful, and he was suddenly a genius (Walsh had many a misstep, and some bad breaks too, think Scott Haskin, and injuries to Steve Stipo). It would figure that the evil David Stern would stab us, and other small market teams in the heart...Walsh saddled us with a ton of long term max out contracts, and now that Bird has almost dug out, he maybe can't spend even remotely the $$$ he thought he would have available. I realize that this is all talk at this point, and the NBA certainly needs to rein in salaries some...but no body made all these self important billionaires spend all that money. I doubt Donnie Walsh signed O'Neal, Jackson, Tinsley without the Simon's blessing. Stern is just trying to protect these owners from themselves at this point. But it would figure what he would do might hamstring us when we are starting to get close. To real Pacer fans...just remember how long it took for the Reggie Miller teams to even get in the playoffs...after that, it took years of tweaking to get to the finals. Give Bird a little more time...and a note to Larry Legend, your loyalty to Coach is admirable, but if he takes the ball out of Darren Collison's hands, can't tweak his system to fit his players, then it is time for him to go.
  • Maybe
    It might seem like it would affect the Pacers in this way, but if the cap was set that much lower than a Carmelo Anthony, or other free agents, would not have the capability to ask for the same amount as they would this summer (contract ceilings work of a percentage of salary cap). Also, this cap room slice would cause other teams to make tough decisions with their current rosters; which could lead to Pacers having a number of opportunities to possibly pick up someone who wouldn't normally be available.

    So, if the salary cap were to be lowered, I believe the Pacers still would be in just as good of a situation. The actual number they would have to spend would decrease, but the amount each player can demand would also decrease....it's all relative...

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  1. liek the rest of America

  2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

  3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

  4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

  5. whoa!

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