Wednesday, July 21, 2010

The NBA, Race & Economics

The following is an excerpt from a column by Dr. Boyce Watkins for thGrio.com:

Third, one area where race does enter the picture is the fact that NBA players (most of whom are black) are certainly the property of the league. Most of the players think they're getting rich, when the truth is that they are being financially pimp-slapped.

Collective bargaining agreements keep salaries so restricted that players are not earning anything near their full market value. Not to say that we should ever feel sorry for someone earning millions of dollars per year, but a fair market would have led to Kobe Bryant earning over $50 million per year, since he brings at least that much to the Lakers organization with his presence.

Instead, that money gets pocketed by the owners. Additionally, when one throws in the manner by which players are controlled by the league in almost every aspect of their lives, William Rhoden's concept of the "40 million dollar slave" is certainly in full-effect.



It is frustrating to read things like this. I would like to ask Dr. Watkins if what is being done to NBA players is a financial "pimp slapping" then what would he describe regular employees who are being laid off, who dont have guaranteed contracts, and many of those whom have kept their jobs have seen benefits begin to fall?

I don't want to get caught up in semantics though so let's get to the meat of this. His statements evidence a horribly flawed understanding of the CBA system. The CBA system is not a "star system". The CBA hurts stars and helps your average to below average players. Having a system like he described would be the most damaging thing possible for all except a few. Yes, without a CBA Kobe would make $50 million. LeBron would have made $70 million. What Watkins completely overlooks is the flip-side of that coin. If LeBron is making $70 million, that money is largely coming out of his teammates pockets. There is no way in a non-CBA system Daniel Gibson gets a guaranteed 5 year $20 million contract. There is no way Amir Johnson gets 5 years $32 million. The limit on the exorbitant earnings of the elite players benefits all of the other players (as Dr. Watkins points out, most of whom are black).

Think of it this way. If the Cavs were making a movie last year and their players were the cast how would everyone get paid. You would pay your star Denzel Washington (LeBron) $25-$30 million. Then you probably have your 2-3 supporting actors that lets say make $10 million (Halle Berry, Christian Bale). Guess how the rest of the cast is filled out. Everyone else makes $2 million or less and many below $1 million.

Watkins's idea of what would be a better system for NBA players would drastically cut the earnings of most of the league's players. Right now the least an NBA veteran is allowed to be paid is $1.4 million and the average NBA salary is over $5 million a year.

The idea of control is also slightly misguided. Highly paid professionals in most industries are often controlled in many ways whether directly or indirectly so as to protect the image of business and the relationship of the business with partners, sponsors, customers, etc.

I have no doubt that racism still exists and that it still happens that, a minority will be at a disadvantage and have to work harder than his white counterpart to achieve the same compensation. It is these jobs--the everyday jobs that affect millions more than those unfortunate few subjected to being controlled and forced to play a game they love for $5 million per year.

1 in 4 US households makes under $25,000 per year. One of those households would have to work for 160 years to make what Daniel Gibson made this season playing for the Cavs. Gibson averaged 6 points and 1 assist in 19 minutes per game.

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