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Vilgax, risk assessment, and the long term contract

In my latest Fan Post, "Evaluated At The End Of The Season" I wrote that guaranteed, long term contracts make a man soft, and I was impressed by the responses from the community. Sure, there was the guy who thought that I was one man, Obama death panel, and the requisite hyperboloator who thought I was advocating the idea that the entire team should play on 10 day contracts, and by extension, that Summer Leaguers should play their games between shifts at Mr. Smoothie's, still, I was impressed with the discourse.

The bottom line is that life offers very few certainties.  One thing I'd certainly bet on, however, is that every NBA team has ended up regretting at least one long term signing, and probably more than one. The team guarantees the big time cash, and the player does whatever it is that he does. The performance of the player, the effort, the cooperation, the on and off court behavior, and the grace with which he carries the fortune that has been bestowed upon him, it's the classic buyer beware scenario (see: the frog and the scorpion). The compensation is guaranteed, health and commitment to conditioning of the player is not. The contract is pretty much iron clad, and the club is stuck w/ what the player decides to give. Sure, the team can trade the contract, but as the Trail Blazers know all too well, paying Steve Francis $20 million not to play amounted to a poor return on their investment in The Hoops Family Cock Fighting Syndicate. One could refer to it as the price of doing business, but I see it as a problem that could be, and will be, eliminated.

As a fans of the home team, we have our collective spirits crushed when valuable cap space is absorbed by substandard performers- guys who take the money and give little in return. Take Darius Miles, for example, even after every last dime was gifted rather that earned, he still signed with Memphis (which was his right, at least technically). This was not only a cap buster, but also a breach of loyalty, a gross example of absolute selfishness, and lack of  integrity, in the extreme. You can argue this point, but Darius knows. We all know when we take more than we give.

You see, PA's money is really important to us, the fans, and I would argue that he is getting more careful with it every day. The Moneyball paradigm, where low priced assets play huge roles (see Rudy, Nic & perhaps Dante as well), is in play. Working the draft from the bottom of the first round down is so much more efficient than the free agent market. Phoenix has a broken business model. So does NY. Portland's strategy, with KP's instincts in play, looks to have legs. It's true that the trade market becomes difficult because these players make so little money(what with the salary matching +/- 10%), but the bottom line is that these role players make so little money (for a professional athlete, anyway). It's good for management. It's good for fans. And there's no crying for these athletes. They make a very nice living within the confines of the rookie contract structure. It's a good deal for everyone.

KP has adjusted. He knows exactly what he's doing. He looks for college grads who are mature. Foremost, he gets players that can actually play, and play right now, not 19 year-old phenoms who might, if they don't get ruined, or addicted, maybe, hopefully end up being great someday, for someone. They play. They develop. And maybe they get paid here, eventually, or maybe they move on. It's about the needs of the team. Great coaching, star players, a steady stream of young, talented role players, roster flexibility, and the cap management required to bring in a veteran piece, winning isn't something that happens on accident, and it takes quite a structure to sustain excellence over a prolonged period. That is Portland's path, and it's solid work because the lottery is no place to be.

Pritch also has a taste for the exotic. His low budget forays into Europe has produced some beautiful fruit.  If Victor Claver is awesome as well, public deification just might be the reasonable expectation. So, the Trail Blazers are resurrected in fine time, absolutely competitive at this moment, and well on their way to the promised land.  The problem is, however, that every team has not the same level of organization.

Detroit spent a ton of money on last years free agant class. Ben Gordon & Charlie Villanueva have led a solid core of players, Rodney Stuckey, Rip Hamilton, and Tayshaun Prince, to 23 wins so far this season. The Celtics have gotten a mere shell of what Sheed used to be, and for 3 years. Toronto (and yes, we probably got lucky here) did not improve with their $50 million investment in Hedo. Oddly, or perhaps as matter of incredible foresight, the Blazers low budget pick up (Andre Miller) was probably the best of them all, and certainly for the dollar.

Which brings us to the Lock Out. It's been written that life offers very few certainties. Another thing for certain: There Will Be A Lock Out. A year from now, we won't be talking about Tom Penn. We might not even be talking much about the playoffs. We will be talking CBA, and the bad management teams that gave too much good money to players who weren't good enough, or committed enough, to earn it. More than anything, owners will look to make dramatic changes in order to protect themselves from themselves, and we will be the ones that pay.

At least I'll have my wife, and I'll have my son, and we'll be watching Ben 10 reruns. It won't matter one lick that we won't have Comcast.

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Great post...

insightful and optimistic. i really liked this:
“KP has adjusted. He knows exactly what he’s doing. He looks for college grads who are mature. Foremost, he gets players that can actually play, and play right now”

Interesting assessment of the lock-out.

Elitism - It's lonely at the top. But it's comforting to look down upon everyone at the bottom.

by thankyouforblaze on Mar 29, 2010 8:17 PM PDT reply actions  

thanks PDXBuckeye ;)

more or less I meant the following being optimistic:

“Pritch also has a taste for the exotic. His low budget forays into Europe has produced some beautiful fruit. If Victor Claver is awesome as well, public deification just might be the reasonable expectation. So, the Trail Blazers are resurrected in fine time, absolutely competitive at this moment, and well on their way to the promised land. The problem is, however, that every team has not the same level of organization.”

the lockout was interesting IMO, but not necessarily likely

Elitism - It's lonely at the top. But it's comforting to look down upon everyone at the bottom.

by thankyouforblaze on Mar 29, 2010 10:29 PM PDT reply actions  

How often does a franchise have to hit the reset button to take advantage . . .

of the market inefficiencies in the draft?

KP did a great thing in drafting Roy and Aldridge (and Oden, too), but the market efficiencies of those contracts expires with the rookie contract. Portland is going to be moving into a phase where its budget is wrapped up in a few young stars. What is going to give? The budget? The depth? A star (i.e. trading away one of the big three for draft picks?)

by BlazerFanSince2001ish on Mar 30, 2010 2:59 AM PDT reply actions  

good point

never really considered that.

keep the big 3, while overpaying a little bit, and keep a steady rotation of young players with small contracts, eventually trading for picks, etc.
Oden may not be too expensive of a contract.

Elitism - It's lonely at the top. But it's comforting to look down upon everyone at the bottom.

by thankyouforblaze on Mar 30, 2010 3:35 AM PDT up reply actions  

I think the model is

if you have a good core, a good system and a good culture, you can keep on plugging in cheap assets as the seasons go along.

I know this is the way successful NFL franchises do it, at least. Ex. the Colts, solid core, able to plug in low cost new guys that produce for the team (Manning blowing the SB notwithstanding!).

by aimlessgun on Mar 30, 2010 11:16 AM PDT up reply actions  

Oden's contract is an interesting quandry.

There are options, however. If KP thinks he’ll eventually play on a consistent basis, and dominate on the court, he might consider trying to get him to sign a 4 year, $24 million extension. He hasn’t played, hasn’t been healthy, and it will never get less expensive to sign him. It’s risky though.
If he becomes a restricted FA, he’ll get at least one, and probably several big offers, count on it.

by damonrayhymer on Mar 30, 2010 7:56 AM PDT reply actions  

An excellent post!

Your analysis on how the Blazers have changed the way they spend their money, especially in light of how other teams are spending theirs is quite insightful. It’s always encouraging to see teams be successful without just throwing money at talent (more so in baseball, but very relevant in this case as well). Thanks for this post!

by jigglyai on Mar 30, 2010 12:01 PM PDT reply actions  

Great Post!

I really enjoyed reading it…

by Ilikeemall on Mar 30, 2010 1:59 PM PDT reply actions  

This was very good

welcome to the community and keep letting your voice be heard. I very much enjoyed this FanPost and can’t believe it isn’t rec’ed to the top yet!

"One of the bright spots of the young season has been rookie point guard Jonny Flynn, whose name sounds like he should be the lead character in a Broadway Musical. "What are you doing here, Jonny Flynn?" "Why I'm here to court trouble, and woo a girl, and build the most fantastical contraption the world has ever seen!" -- Dave, Game 7 Blazers versus Timberwolves preview

by BlazersOrBust on Mar 30, 2010 2:26 PM PDT reply actions  

PA's money

Lets hope that in the up and coming off season the Vulcans come to their senses and do what is right for the team and not follow their ego’s. What KP has done to turnaround this team is nothing short of miraculous and he should be rewarded for it. As far as the lockout goes I believe that the numbers given recently concerning contracts are just a low ball bid from the owners on a very long negotiations soon to come, which may very well end the 2011 as you say….it unfortunately probably will come to that.

I also believe that KP has a game plan and thus far he has worked it like a surgeon, with Nate at the helm on developing players like he does its a fantastic combination.

Great blog Damon

by rednblackattack on Apr 1, 2010 7:29 PM PDT reply actions  

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