When the NBA owners and players agreed to end the lock out, I think most people thought that was the end of all talks about competitive balance. However, as it turns out, the owners argued that revenue sharing among owners was an owners issue and not something that needed to be collectively bargained. And now it appears the owners are close to agreeing on a groundbreaking new revenue sharing plan.
From Ball Don’t Lie’s Kelly Dwyer:
And while notions of fairness suggest that revenue sharing should have been discussed in relation to player salaries if owners cared so much about a level playing field, this plan is still pretty significant. As Lombardo notes, the NBA’s previous revenue sharing plan depended almost entirely on the salary’s cap luxury tax. This deal is about total profits, including the local TV contracts that make teams like the Lakers so rich. This new agreement could very well make a major difference in the long-term financial viability of a team like the New Orleans Hornets. The same even goes for a small-market playoff mainstay like the San Antonio Spurs, a franchise likely to see a dip in wins as their best players grow older.
This shouldn’t impact the Cavaliers too much. Sure, getting a share of the TV revenue of the large market teams will be nice and will help infuse even more cash into the franchise, the fact is that spending is not the Cavaliers’ problem. They have the infrastructure to support high salaries and an owner willing to spend. The Cavaliers just need a superstar or two (or three?) to overlook the cold winter and embrace the great franchise and fans that Cleveland has to offer.