David Stern will step down as NBA Commissioner on February 1, and be succeeded by Adam Silver. Stern leaves behind a storied 30-year legacy where he helped to lead the league to unprecedented international and monetary success. Before his arrival in 1984, Stern dealt with an NBA, which had rampant drug use by its players, but simultaneously was on the cusp of great success, highlighted by the meteoric rise of legends Larry Bird and Magic Johnson.
Stern arrived in 1984, the same year as NBA greats Michael Jordan, Charles Barkley and John Stockton were drafted into the league. 30 years later, the league has enjoyed remarkable success both within the U.S. and abroad. The fabled 'Dream Team,' which featured 12 of the league's best players and won the 1992 Olympics was seen as the apex for the sport. Ever since then, revenue continues to soar.
"The NBA is doing great. The average team is worth about 634 million, 24% more than last year, and I think the most impressive thing, if you look at the league right now is almost every team is making money. The average operating profit for the league was $24 million, that's by far the most since we've been tracing NBA franchises," Forbes' SportsMoney's Mike Oznian recently said in an interview on YES Network.
However, if there is one thing a true NBA fan has learned: a team's annual revenue does not necessarily guarantee its winning success.
Case in point: The New York Knicks.
"The NBA's most valuable team for a second straight year, the Knicks are now worth $1.4 billion, up 27% from a year ago. A three-year $1 billion renovation of Madison Square Garden pushed the Knicks' revenue sharing last season," writes Forbes' Kurt Badenhausen who focuses largely on the business of sports.
Despite exorbitant spending by its mega-millionaire owner James Dolan, the Knicks have won only one playoff series since 2000. Their team has been mired in futility for so long that winning a championship seems like a pipe dream for even its most ardent fans. In the past decade, the Knicks have been derided for not just their basketball futility, but also for bad management and shenanigans off the court. The team experienced some degree of winning success last season, but have considerably dropped off this year.
Spending mismanagement has trumped the concept of any semblance of team chemistry.
While jerseys for their "franchise player" Carmelo Anthony are selling like hot cakes throughout the city, his future with the team remains uncertain. Such is the nature of free agency.
Jeremy Lin, the little known bench player who became the "talk of the town" two seasons ago, is now but a distant memory. Before too long, 'LinSanity,' which had been the 'rage' throughout the 5 boroughs of New York, was recently signed by an improving Houston Rockets squad.
By this time next season, Anthony could also sign with a new team if the Knicks continue with their losing ways. The team is currently 10 games under .500, as of January 28.
While NBA experts admire Anthony's incredible gifts as a scorer, dumping him for younger talent may be prudent for a team seeking a winning formula.
"Despite all the attention we pay to the rigidity of the team salary cap and luxury tax penalties, player caps remain [David] Stern's most important financial feat. Turning rookie hold-outs into rarities and ensuring star salaries stayed at 30 percent of the team cap was a brilliant bit of institutionalizing collusion. Making collusion the norm and getting players to sign off on it, of course, means that it's not collusion at all. It just has the exact same effects," writes Tom Ziller in SB Nation.
Compare the Knicks to the 4-time NBA champion San Antonio Spurs, which have proven to be the exemplar for team success, a model franchise. They reflect all that is great with a team. They have top-notch team management, led by a great head coach with players "locked in" to the concept of team chemistry.
The Spurs, despite 5 NBA Finals appearances since their indefatigable Head Coach Greg Popovich took over in 1996, are just the 10th richest team by revenue. But stars like Tim Duncan, Manu Ginoboli and Tony Parker are commited to their team's success. The Spurs' scouting teams also continue to bring in players from all over the world, and some journeymen who fit in nicely within its structure.
The up-and-coming Oklahoma City Thunder, led by its MVP candidate Kevin Durant with a host of young talent, and seasoned veterans, also reflect the beauty of team concept in today's age of multimillionaires. Sometimes it seems as though the Spurs and Thunder are the exception rather than the rule in professional sports.
Talent often wins out in the end, as exemplified by the Miami Heat. Led by 4-time MVP LeBron James, and standouts Dwayne Wade and Chris Bosh, Pat Riley has clearly built a winning franchise. The Heat are the 6th richest team in the league.
The NBA seems to always generate great revenue but with a new commissioner stepping in next week, the winning formula to a team's success requires more than just forking over millions of dollars to its players.
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