“We’re not going to lose any money,” Stern said. “I’m not going to be commissioner of a league that is comfortable [losing money]. Because I don’t have a group of owners who find it acceptable for me to have that conversation with them.
“You don’t have $4 billion worth of revenue and pay out over $2 billion in salary and benefits to lose money. It’s something that we have sort of gotten used to as the revenues have gone up … but the world has changed about the prospect for all franchises, the world has changed for a lot of reasons – and economically – and now people who make investments in buildings and things expect not to lose money.”
Nobody, not even the players, thinks the owners should have to lose money. But the issue is more complex — the league said before that 22 teams will lose a combined $300 million this year. But, the 8 teams making money have almost no revenue sharing. Put simply, the Lakers are about to make nearly $200 million a year in local television revenue and the Kings make $11 million and the Lakers do not have to share currently. It’s not a simple matter of just controlling costs.
But the owners have gone through a recession and seen revenues dip. More importantly, the value of franchises has dipped. Ten years ago you could count on the value of the franchise going up to cover any losses. (Think of it this way: If you bought a franchise for $100 million, lost $5 million a year for 10 years, then sold the team for $200 million, you would have made $50 million and those losses were really just an investment. Those days of the franchise value bailing owners out on paper are gone.)
The owners want fundamental changes to the system and Stern is clearly standing his ground. The players are pretty good with the system as is and are not moving right now either.
So, we are headed for a lockout. Enjoy these playoffs.
Joel Embiid on Monday will have an MRI on his injured left knee and is now listed as out indefinitely.
Embiid has been experiencing swelling and soreness in the left knee injury that has caused him to miss 16 out of the last 17 games. Bryan Colangelo announced back on Feb. 11 that Embiid has a minor meniscal tear. In his most recent press conference last Friday, Colangelo had targeted this Friday’s home game against the Knicks as a possibility for Embiid’s return. Now, that isn’t the case.
Embiid had been the biggest ray of hope for Philadelphia, but the 76ers shouldn’t chase watchability down the stretch. Sit Embiid until he’s fully healthy and secure the best draft position possible.
Maybe Embiid’s body just can’t handle the rigors of NBA basketball, but Philadelphia has no choice but to hope for the best with him and Simmons. And hope the nail the their first-round pick this year and get the Lakers’ first-rounder.
This could still be a dangerously good team in coming years. The Process created that potential.
But the threat of injury always looms around the corner, maybe especially so for Embiid.
Report: Knicks’ Joakim Noah likely to miss rest of season after knee surgery
Prepare for the talk next fall about Noah feeling refreshed and ready to help the Knicks.
But this surgery won’t reverse the underlying problem: Noah is a 31-year-old big man with heavy mileage. He can manage his knees, but it’s probably too late for him to regain enough athleticism to reliably contribute.
Just three years and $55 million+ remaining on his contract, which already looked like the NBA’s worst deal and is now even more unfavorable.
Buddy Hield: Vivek Ranadive told me at Kings-Pelicans games, ‘We’re still going to get you’