In other words, two reasons: small market teams can compete, and undeserving players would be given smaller contracts. Most of what you said falls under the category of having all 30 teams compete. Thing is, paying less for guys like Gooden also means underpaying deserving players, so that cancels itself out. As far as all 30 teams competing goes, that's what the draft is for, and that's why teams hire intelligent and witty general managers and scouts. The Sixers are dishing out over $69 million, 9th most in the league, and it's not translating into wins. However, the Thunder are at $50 million, 24th most in the NBA, and they nearly upset the Lakers and won 50 games last year.