Friday, April 25, 2014

Magic Rank 9th in NBA Smart Spending

Bloomberg's Businessweek came out with an intriguing ranking of the 122 major sports teams in the U.S. (NFL, NBA, MLB, NHL) and called it 'Smartest Spenders in Sports 2014'. As you noticed, the Magic rank 9th out of the thirty NBA teams, and 31st out of the 122 franchises. Here are their described parameters for coming up with the rankings:

"Our ranking of all 122 franchises in the NFL, NBA, NHL, and MLB rates teams based on how much they spent in player payroll for every win during the last five seasons. Each team is compared against the average price per win in its league to produce a score we call the efficiency index. The less a team spends compared with its peers, the lower its score. Playoff victories and championships get extra weight. Payroll data come from the best available published sources.*
Playoff wins count for 10 percent of a season (e.g., 16.2 wins in baseball); Wild Card wins get half credit.

Championships count for 50 percent of a season (81 wins in baseball)."

As you can see, Businessweek took data from the past 5 years. So basically, as long as you had a fair amount of success regular season and playoff success - see Miami being #1 thanks to two titles - you're going to be near the top. Although Orlando had the worst record in the league last season and the 3rd-worst this season, the Stan Van Gundy era is the reason for the Magic being in the top ten. Even though the Magic were in cap hell, winning won out in these franchise comparisons because of the '09 Finals run, the '10 Eastern Conference Finals trip, and SVG's teams posting great regular season records. You can imagine how much higher Orlando would be if the 2011 and 2012 playoffs yielded more success. 

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