My idea for NBA fiscal responsibility: Early Exit Plan
While dozens of players changed uniforms in the hours leading up to the trade deadline, no doubt some fans were left wondering why so many borderline-useful NBA players are being paid ridiculous sums of money.
The Bulls alone offered several examples. Departing guard Larry Hughes, who hadn't played for his old team since Jan. 12, is owed $13.7 million next season. New arrival Jerome James has played in four games the last two seasons but still will be paid $6.6 million next year.
On the list of highest-paid NBA players, Stephon Marbury ranked second at a whopping $21.9 million, despite the fact that New York refused to let him play in a game this season. Marbury finally agreed to a buyout and joined the Boston Celtics last week.
Guard Steve Francis was supposed to be in the final year of his contract at $19.8 million but was bought out by Portland and isn't even in the league.
This is a two-way street, in my view. Teams hurt themselves by making poor decisions when handing out contracts. But also many players simply aren't living up to the deals they signed.
Something needs to change, and it's probably inevitable that owners will fight to reclaim fiscal sanity when the collective-bargaining agreement expires in June 2011.
Inappropriate pay scales are tougher to stomach in harsh economic times, since fewer fans are willing and able to buy tickets, but those megamillions player salaries are all guaranteed.
My long-standing proposal of trimming all player salaries and ticket prices by 50 percent, effective immediately, would be difficult to legislate. So here's a simpler idea that might ease the financial burden on NBA franchises and keep players interested in performing at a high level:
A widely utilized provision in the CBA is the early-termination option. Players often have a choice to terminate long-term contracts a year early and become free agents. Kobe Bryant and Carlos Boozer are two examples of players who can opt out of their deals this summer, but there are many more.
If players have that choice, why not teams? The Knicks should be able to exercise an early-termination option on Marbury. He's not worth anything close to $21.9 million, so why should he collect it?
Teams naturally expect a certain level of performance when signing a player to a long-term contract. If the player can't deliver, go back on the open market and see what teams are willing to pay.
This wouldn't apply to players who are injured. A set of rules already is in place for handling injuries and insuring contracts.
My Early Exit Plan (EEP, for short) is all about getting rid of players who aren't worth the money left on the final year of their contracts. Franchises that are bleeding cash and need to cut payroll, feel free to trim away.
In the real world, companies that lose money are forced to lay off employees, so why should NBA players get a free pass? If the players still are performing at a high level, their contracts can remain intact. If not, other teams will be interested.
I see no downside to this idea. If players are feeling underpaid, they often have the right terminate the final year of their contracts. If teams think a player is a useless waste of money, then force him to vacate the locker room. If everything's good, let the contract play out.
What could be more fair?
In all sports, not just basketball, fans are sick and tired of athletes who turn in career performances when they are about to become free agents, then start coasting once they get paid.
The NBA already is feeling the financial crunch. The league plans to borrow $200 million, according to recent reports, to help 12-15 teams cover operating expenses.
For years NBA teams have been digging into the pockets of fans and trying to scrape out as much money as they can. Why, so a player can build a new garage to house his next five luxury cars?
This league needs a financial reality check badly.