Investopedia.com defines a sunk cost as ?a cost that has been incurred and cannot be reversed.? When making decisions for the future and deciding on whether to invest in a project, generally sunk costs are ignored as they cannot be recovered. Therefore, they should not affect management?s decision making.
Jerome James has two years and close to $13 million left on his current deal. In my opinion, James is also the 16th man on a roster that must be cut down to 15 by tomorrow. Barring any other moves by Donnie Walsh, James should be cut by tomorrow, nearly three years too late. His contract is the equivalent of a sunk cost.
Now before I get questioned by all of the financial wizards out there, I understand that the Knicks have not incurred the cost of James? final two seasons as those two seasons have not been played yet. I also realize that James has the potential to provide value to this team (honestly, the only value I see him having is being an expiring contract at next season?s trade deadline). So don?t take my comparison of James? contract to a sunk cost literally. But in any case, the Knicks owe that money to James, whether he will be sitting on the bench or home on his couch.
James has not been in shape since he was brought in here. His signing was a mistake in the first place. Last season, James played in two games and logged a total of five minutes, or in other words, less than the amount of minutes that Pat Ewing Jr. and Anthony Roberson each played in this pre-season alone. Speaking of this pre-season, James did not play a single minute. I can go on for hours about this, but simply put, Jerome James does not have a spot on this team. Contract issues aside, this debate over who will fill out the roster would never even be mentioned. In the future, Roberson, a shooter, and Ewing Jr., an athletic swing man who brings passion and good karma to a team that desperately needs both, will each add value to this team. I am not sure how much value, but I can assure everyone that they will each provide more than James. Now it is not my money, so it is easy to say this, but I hope that Walsh makes the best roster decision for this team in a basketball sense, not a financial sense. Walsh may make a trade in the next day which will alleviate this roster glut?. but all else remaining constant, I think it is time for James to go.