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Monday, July 22, 2013

Big Spending Franchises vs Small Market Franchises: Who's Better?


Big spending franchises haven’t always panned out to be winners within their respective sports. The Brooklyn Nets have recently become one of the top spending teams in sports with the acquisition of Kevin Garnett, Paul Pierce and Jason Terry. Putting the franchise salary totaling 105 million dollars according to business sports daily.

Throughout the years, many teams have attempted to buy their way to a championship. The Miami Heat did so by acquiring Lebron James, Chris Bosh and bringing back then free agent Dwayne Wade. The New York Yankees are the probably the most infamous franchise in utilizing this strategy. The late great George Steinbrenner was the most ambitious owner that didn’t care about spending any amount of money for a winner, just as long as they won.

Mark Cuban is another owner who is not a shy spender in order to win. His attempts the past two NBA off seasons in trying to land an additional superstar next to Dirk Nowitzki, in order to pursue another championship proves owners pressure to win now. Probably one of the more recent teams using this strategy is the Los Angeles Dodgers. Spending nearly 2 billion dollars in reinvesting the teams stadium, roster and new ownership.

Despite the lucrative big market teams that have used this approach. Many small market teams have flourished on a high competitive level despite their market. The Oklahoma City Thunder has proven that within the draft and veteran acquisitions, you can be competitive. Star Forward Kevin Durant and Guard Russell Westbrook were both drafted by the Thunder.  Though consistent amongst the best teams in the NBA, the San Antonio Spurs are still considered a small market team.

With coaches and managers pressured to win at all cost, ownership now has a shorter leash in allowing systems to produce. George Karl set a Denver Nugget franchise record with 57 wins for the first time in team history. Even with an outstanding season with a young talented group, Coach Karl was relieved of his coaching duties after the season. Is it better to rebuild through the draft? Or is it better to buy a team of stars?

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