Podcast with FillingTheLanes

I got a nice bump from my article on how people sometimes value fairness over money being linked to in the Truehoop Wednesday Bullets. This must be how Jason from @FillingTheLanes found me, and he invited me on to the podcast, and I offered some "Wages of Wins"-style analysis of the NBA lockout.  You can have a listen below, or head on over to the PodOmatic site and listen to it there.  I'm on at about the 43 minute mark.

Some of the things we talked about:

  • The lockout from the very beginning has been about rich people asking for more money.  And we aren't talking about the players.
  • Like a broken record, I bring up economic rent again, which means there's a reason NBA players make more money than most would be willing to take to play in the NBA.
  • I mention that salaries only explain about 8% of team wins in the NBA.  This was a big surprise to many.  David Berri writes about this in both The Wages of Wins and Stumbling on wins. Kevin Murphy (who worked with the NBPA as an economist) brings it up here.  Given that a pretty simple Excel correllation is all you need to verify this, it's pretty amazing that the mainstream media never mentions this (or asks David Stern any tough questions about it).  This is the big reason that arguments about salaray caps increasing parity are primarily bullshit.
  • If owning an NBA franchise is profitable, why are owners playing hardball?  It probably has to do with long-term profit.  An owner can own a team for 40 years.  A player can only play for a few years.  Profit gains in future years matter more to NBA owners than they do to players.
  • What's a "fair" BRI split?  My only point is that ten years ago, the NBA was making money hand-over-fist at 57%.

I also noticed that I need to work on my public speaking skills -- don't try to play a drinking game prompted by me saying any of "um", "you know", or "like" or you'll get wasted fast.

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