If you look at teams that are struggling in the league, for the most part they are small market teams. One that comes to mind immediately are the hometown Charlotte Bobcats. Michael Jordan is trying to build an empire with minimal resources in my opinion.
If you look at the teams that can compete, they have the ability to pay luxury taxes or they have the lure of their city to get talent at a cheaper price. The Bobcats don't have either of those luxuries. Michael Jordan is only worth at few hundred Million Dollars when the owners of most of the other NBA teams are worth at least a billion.
As soon as things start going bad for these small market teams they basically have to clean house because they can't afford to keep players that they can't afford during a stretch of bad play. Teams with more money and resources can weather the storm and find a way to keep the money coming in.
One of the things that has to happen is that small market teams can't afford to be minimally successful. They have to be really good to get better to lure in the free agents, or really bad to get better through the draft.
If they are mediocre, they will fall victim to getting stuck in the 7th or 8th spot in their respective divisions and they will never get the picks nor the free agents to move in the right direction. So when people say that it doesn't take money to make money, they don't know what the hell they are talking about.
Stay Breezy ~ I'm Out!