On the point of the NBA, that's how you have to get good in todays league. There's no benefit to be a middling team as every year there is one or two distinct difference makers in the draft. So teams who could maybe pull out 30 wins don't bother and would rather win like 12 to get that elite talent. It takes more than one of those elite talents, so you see teams in the tank for multiple years to acquire talent.
Then went you snatch up that kind of talent with the NBA's convoluted salary cap rules, bird rights, early bird rights, exceptions, you can then pay 2-4 of your own homegrown talent anything you want up to max salaries while going out and getting other pieces and paying them ridiculous salaries too. It takes that elite talent up front though to entice other elite talent to jump to your team. Without Kyrie and the trade chips for Love, does LeBron come back to Cleveland? It's an interesting question and I'm not sure if you can give a definitive answer. I am pretty sure he wouldn't want to come back to a team that had a roster that looked like the 06 Cavs though.
Finally, in the NBA, you need an owner who is willing to pay all that money out. To spend not only to the cap but well passed it. The Cavs can be assembled the way they currently are because Dan Gilbert is willing not only to pay to the cap but well passed it. So well passed it that the Cavs have the highest salary in the NBA and are looking about 30 million in luxury tax penalty this year.
It doesn't really have to do with small market vs large market, it's all on the willingness of an owner to go out and spend like a drunken sailor IF his talent evaluators have done a good job grabbing talent during the lean years.