The NBA is America

In case you didn't read about it earlier in the week, the New Orleans Hornets traded second year guard Marcus Thornton and cash to the Sacramento Kings for forward Carl Landry. While the trade might have ramifications on the hardwood - Landry is a tough banger down low, and is the exact type of player that will maximize his potential playing with a visionary point guard like Chris Paul - the effects off the court carry far greater weight. 

In my opinion, Mark Cuban was right to blast the deal this week, when he stated that it was ludicrous that a team that is currently owned by the other 29 NBA owners was allowed to take on payroll.  While the bottom line for Cuban might be relatively small (we are talking about less than $100,000 for a guy who probably tips that much at a steak house) the ramifications of this deal are very telling about the mindset of the NBA. 

To put it bluntly, the New Orleans Hornets are a failed franchise. Technically, this is the second time they have failed, as they left Charlotte with their tail between their legs (and if you really want to know what I think about some of these franchises, just ask me about the Charlotte Bobcats.) New Orleans is a city that does not have a lot of people with the disposable income necessary to support an NBA franchise. Their attendance is worse than the Seattle Supersonics experienced prior to their team being hijacked to Oklahoma City, yet the Hornets are allowed to exist in receivership. In my opinion, the only reason the Hornets still exist is because the NBA - read: David Stern - is terrified of the backlash of leaving a city that continues to get pounded by disasters, natural and man-made. 

What we have here is a form of socialism. And, frankly, this is nothing new for the NBA, or America. When the economy went in to the tank a few years back, our government decided to bail out the banks and the auto industry, and to essentially take over many of these corporations as the majority shareholder.  When George Shinn could not find a buyer for the Hornets last fall, the NBA owners approved David Stern's idea to take control of the franchise.  Since then, owners like Mark Cuban have held a 1/29th share of the franchise. 

And, while this week's decision by the Hornets to take on salary - thereby incurring further costs that others will have to pay - was offensive to those of us who believe that a business should succeed and fail on its own, this was far less abhorrent than what our government allowed. When the U.S. Government essentially took over Wall Street, they should have made it clear to those who got us in this mess (by which I mean the executives who prospered off of their own bad decisions) that the "fat times" were over and that they would no longer stand for the type of bonuses that these businessmen were paying themselves. 

Of course what followed was exactly what those of us right-minded individuals feared the most.  The banks went right back to business as usual. In 2010, executives at the Wall Street's biggest banks made more money than ever before. And the middle class continues to take it on the chin. All because our government failed to stand up for the other 29 owners of these banks, the American people.

While I agree with Mark Cuban - and to a greater extent Lakers coach Phil Jackson, who questioned how the Hornets are going to make personnel decisions moving forward - I cannot sympathize with them that much, as this is really no different than the example set by our very own government.  The difference however is that while Mark Cuban complains about pocket change for him, the American people continue to get dumped on, by large companies and our own government.