League sends last season’s financial data to union. Baby steps.

Leave a comment

At this point, any little step towards the NBA owners and players union actually sitting down and having a serious conversation should be taken as a good sign.

So, in that vein, we tell you that the owners have sent the union the league financials from last season, as Ken Berger at CBSSports.com reports.

The data are crucial to both sides as they prepare for more heated negotiations that center on the financial health of the sport. Owners are seeking massive changes to the collective bargaining agreement, which expires June 30, based on their contention that the current model is not sustainable due to annual league-wide losses approaching $400 million. The NBPA, however, contends that the sport is healthier than the owners are willing to admit, citing last season’s record revenues — which are detailed in the documents furnished to the union in recent days. …

While the 2009-10 data are expected to support the union’s belief that revenues remain robust and at record levels, the owners’ case hinges on their assertion that costs are too high. While the ’09-’10 data have not been fully vetted, they are expected to reflect an approximately $100 million decline in gate receipts, which was offset by a $130 million increase in non-ticket revenues, according to a person familiar with the league’s finances. The $30 million net increase in revenues represents approximately a 1 percent rise from 2008-09, during the depths of the economic recession. During the same period, negotiated player salaries have decreased $120 million, the person familiar with league finances said.

Both sides are going to look at this data and see and say different things. The owners have said they had to discount tickets and take other harsh steps to get the revenue increase. The union has said before that losses and profits are more complex than the owners have shown — if an owner also owns the building the team plays in, money can be moved from one pocket to another (or not moved) and not impact the owner but be changed to alter the team’s picture of health.

Union head Billy Hunter and NBA Commissioner David Stern are expected to sit down next month and talk. These numbers will come up.

Expect nothing of it. Don’t expect real movement until there is the real threat of losing games (September seems a good bet). And even then…

Still, we’ll take the baby steps at this point. It’s the only hope for those of us who want a full NBA season starting in the fall.

Pistons’ Kentavious Caldwell-Pope suspended two games for DUI

Leave a comment

This is the standard penalty for coaches and players hit with a DUI. I don’t think the penalty is stiff enough in general for a serious issue, but this is the precedent that has been set.

Detroit Pistons’ guard Kentavious Caldwell-Pope has been suspended two games by the NBA for “pleading guilty to operating a motor vehicle while intoxicated, in violation of the law of the State of Michigan,” the NBA announced. He will miss the first two games of next season.

This will not stop Caldwell-Pope from getting PAID this summer.

A quality wing defender who hit 35 percent from three last season, he plays a position of need for a lot of teams and he is a restricted free agent. Other teams with cap space — Brooklyn and Sacramento come to mind — could step in and give him a max or near max offer. Then Stan Van Gundy needs to decide if he is going to match. He may not have much of a choice, if he wants to keep Andre Drummond and build an inside-out team around him, he needs Caldwell-Pope, and the Pistons don’t have the cap space to replace him.

One way or another, Caldwell-Pope is in line for a massive pay raise. This suspension will not slow teams, it just takes a little money out of his pocket.

 

Lonzo Ball tops Rookie of the Year early betting odds

2 Comments

If you are betting right now on next year’s NBA Rookie of the Year award, you are a die-hard fan of your team and their new addition. Or, you have a problem and need to seek help. Maybe both.

Either way, the people at the gambling site Bovada have posted the early betting odds for the ROY award for next season.

Lonzo Ball (Lakers) 5/2
Ben Simmons (76ers) 3/1
Markelle Fultz (76ers) 5/1
De”Aaron Fox (Kings) 7/1
Josh Jackson (Suns) 9/1
Jayson Tatum (Celtics) 9/1
Jonathan Isaac (Magic) 16/1
Malik Monk (Hornets) 16/1
Dennis Smith (Mavericks) 16/1
John Collins (Hawks) 20/1
Justin Jackson (Trail Blazers) 22/1
Lauri Markkanen (Bulls) 22/1

Yes, Ben Simmons is in the mix.

The two bets I like here, if I were a gambling man, are Jackson in Phoenix and Dennis Smith in Dallas. I doubt Smith wins it, but Mavs coach Rick Carlisle said after the draft Smith will start for them next year, which means he gets opportunities and can rack up assists feeding Dirk Nowitzki at the elbow for a year.

Jackson is going to be unleashed in an up-tempo Suns offense where he will be the defender they need on the wing, play with high energy, and get buckets in transition. Winning ROY is as much about fit and opportunity as talent, and Jackson has landed in a good spot.

Paul George-Gordon Hayward-Celtics rumor doesn’t add up

AP Photo/George Frey
2 Comments

Paul George reportedly wants to play with Gordon Hayward. George is also reportedly willing to join his desired team (universally accepted to be the Lakers) by means that don’t guarantee the highest salary.

Could the Celtics – who are pursuing Hayward in free agency – leverage those conditions into getting George?

Adam Kauffman of 98.5 The Sports Hub:

I don’t what George would do, but it’d be a MAJOR financial disadvantage to go this route.

There a couple ways it could happen – George getting extended-and-trade or George getting traded then signing an extension six months later. The latter would allow George to earn more than the former, but even if he pledged to sign an extension, would the Celtics trade for him knowing he’d have six months to change his mind if he doesn’t like Boston as much as anticipated?

There’s a bigger issue, anyway. Both extension routes would leave George earning far less than simply letting his contract expire then signing a new deal, either with his incumbent team or a new one.

Here’s a representation of how much George could earn by:

  • Letting his contract expire and re-signing (green)
  • Letting his contract expire and signing elsewhere (purple)
  • Getting traded and signing an extension six months later (gray)
  • Signing an extend-and-trade (yellow)

image

Expire & re-sign Expire & leave Trade, extend later Extend-and-trade
2018-19 $30.6 million $30.6 million $23,410,750 $23,410,750
2019-20 $33.0 million $32.1 million $25,283,610 $24,581,287
2020-21 $35.5 million $33.7 million $27,156,470 $25,751,825
2021-22 $37.9 million $35.2 million $29,029,330
2022-23 $40.4 million
Total $177.5 million $131.6 million $104,880,158 $73,743,861

Firm numbers are used when it’s just a calculation based on George’s current contract. When necessary to project the 2018-19 salary cap, I rounded.

The Celtics could theoretically renegotiate-and-extend, but that would require cap room that almost certainly wouldn’t exist after signing Hayward.

Simply, it’s next to impossible to see this happening. It’d be too costly to George.

Dwyane Wade on why he exercised his player option: ’24 million reasons’

4 Comments

Dwyane Wade said he wanted to see the Bulls’ direction – winning now with Jimmy Butler or rebuilding? – before deciding on his $23.8 million player option for next season.

While Chicago was actively shopping Butler (before eventually trading him to the Timberwolves), Wade opted in, anyway.

David Aldridge of NBA.com:

This is most real answer answer you’ll ever see. Props to Wade for his directness.

This also speaks to the unlikelihood of him accepting a buyout, no matter how poorly he fits with the rebuilding Bulls now – though maybe he’d accept a small pay cut to choose another team.