The Cleveland Cavaliers shocked many pundits and draft analysts last night by choosing Anthony Bennett as the top overall pick in the 2013 NBA draft. While many considered this year’s draft to be a weaker draft, that’s a bit of a misnomer; most drafts don’t bring in elite stars, but rather bring in several solid players, several players who will ultimately be journeymen and role players, and quite a few players who won’t be in the league after five years. This is true every year, so why the 2013 draft would be considered significantly weaker is just conjecture.
At any rate, this draft is the last for commissioner David Stern, who won’t be missed, and leaves a league that is rife with unprofitable teams and a business structure based on a few players rather than solid team properties like every other league in the world. During Stern’s tenure, the NBA has limped along with weak profit margins – while the NFL’s profit margin has exploded over the $1 billion mark, and Major League Baseball has almost half a billion, the NBA is just around $183 million in profit (on $4.1 billion in revenue…you have to work really hard to lose that much margin, but Stern has managed to do it), just barely ahead of the NHL. Despite so many people writing that Stern is a fantastic commissioner, the reality is they aren’t business people. After all, a lot of people thought interest-only home loans with adjustable rates were a great idea, too.
But back to the NBA and it’s heralded draft night, there are almost certainly players who will be much better than the pundits think, and time will continue to tell which teams are horrible at evaluating players. The draft also set off several massive trades which may ultimately prove that Danny Ainge and the Celtics know more about building a team than most of the league.
So while no championship is won on draft night, it does show patterns for teams, and it’s always interesting to see which teams consistently blow it while others walk away with solid contributors every year.
From: Top Business Degrees