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NBA Lockout Q&A: PBT explains it all (well, almost)

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Welcome to the NBA lockout. Pull up a chair, make yourself comfortable, you’re going to be here a while. If we’re all lucky it will be for just the summer, but it could be longer. Much longer.

I understand you all have questions about how we got here, where we are at and what is next. We don’t have all the answers, but let’s try to answer those questions as best we can.

Why is the league locking out now, after a season when ratings, attendance and interest in the league are at the highest levels in decades?

July 1 is when the Collective Bargaining Agreement (CBA) between the owners and the players union runs out. It was not so much they chose right now as this was the time the old deal was up and a new one needed to be hammered out. Both sides have known for years that this would be a tough negotiations — that the owners were going to look for big changes to the system — and both sides have anticipated for a couple years a lockout would come now.

That it came on the heels of a fantastic season for the league was a coincidence, but it may be the one thing that saves next season. Both sides understand the need to get a deal done that does not cost games next season or all that newfound momentum will be lost and it will take years and years just to get back to this point.

What are the two sides disagreeing over?

Everything. Much like the negotiations at the end of the Vietnam War, I’m not sure the two sides could agree on the shape of the table they should sit down at to negotiate.

But as always the big issue is money. Specifically how to divide up the money that comes into the league. That money is called “basketball related income” (BRI). That is the money from ticket sales, national television contracts, local television deals, luxury boxes, concessions, jersey sales — basically everything tied to basketball.

Currently the players get 57 percent of the gross BRI — 57 cents on every dollar that comes into the league goes to the players in salary. The owners want to change that number dramatically, their proposal would have the players in the low 40s percent wise in a decade. The players have agreed to go down to about 54 percent in their proposals.

In that gap is hundreds of millions of dollars per season. The two sides are nowhere near close – they can’t even agree on how to define BRI (the owners want to start taking a number of expenses out of it so it is more net than gross that is divided between them).

What are the owners proposing?

The owners want a radical change in the system. They want to put in a “flex cap” of $62 million per team. For some perspective, the Dallas Mavericks payroll last season was $86.2 million (the team with the lowest payroll was Sacramento at about $44 million). Teams could not exceed that $62 million number except to sign their own free agents, and even then teams could not exceed a second figure that would not be more than a few million higher.

What David Stern will gladly tell you is that this number guarantees the players about $2 billion a year in salary, which is not much below the $2.17 billion they made last year. The difference is the owners want to lock that figure in for a decade — even as revenues rise for the league the salary cap would remain flat. All that additional revenue goes to the owners.

The owners also want to reduce the length of contracts by two years when handed out (from five to three for signing a free agent, for example), so they don’t end up stuck with terrible choices and bad deals as long. (Yes, the owners want the CBA to protect them from themselves.)

What is the owners’ sales pitch?

For fans, they are selling parity. This season the Lakers spent more than $90 million on salary, with the luxury tax they spent more than $110 million. And as a franchise they will still turn a profit. Smaller market teams have a hard time competing with teams willing to spend like that. What this harder salary cap would do is put teams on a more even playing field financially.

Now will parity work in the NBA as a practical matter or in marketing manner like it does in the NFL? That’s a harder sell. The best times for the NBA were when Michael Jordan’s Bulls dominated the league, or when Magic and Bird ran the show. Parity has never sold the same in the NBA like it has for the NFL.

What do the players say about the owners’ plan?

What would you say if your boss asked you to take a pay cut then told you they expect record growth for the company in the next decade but you’d see none of the rewards? Yes, NBA players are very well paid, but they also realize that they are the product that drives the league and they should see money from any growth in the league’s business.

What do the players propose?

The players are essentially playing goalie in these negotiations — they want to keep the system pretty much the way it is now. They like the “soft cap” which allows teams to spend well over the cap to keep their own free agents and has a host of other exceptions (a mid-level exception, a veterans exception, and more).

The players have proposed a reduction in the percent of BRI they get down to 54 percent, which would be a give back of about $100 million per season. They say that is their percentage of the losses they admit some owners are suffering. But aside that they want even more flexibility for teams to make trades (not as restricted by matching salaries) and other steps to increase player movement.

What about revenue sharing?

This is the players’ other big push — they want the owners of big market teams to share much more revenue with smaller market teams. They also point to the NFL where about 70 percent of league revenue is shared; where in the case of the NBA it’s about 25 percent. (That is primarily because the NFL has much larger national television deals.)

For example, the Lakers new local television deal that kicks in for the fall of 2012 will pay the team upwards of $150 million a year, the Sacramento Kings made about $11 million last season on their local television deal. None of that revenue is shared right now, the players say it should be and they want to know the numbers.

The owners are talking about revenue sharing amongst themselves, but they say it is not part of the CBA negotiations and the players do not have a seat at that table.

So is the NBA lockout like the NFL lockout?

No. Not at all… well, in one key way yes.

But not in the details. The bottom line is the NFL is a league that is still making gobs and gobs of money, it’s just that the owners are not making as much as they used to so they are locked out. But at the end of the day, that argument truly is about how to divide the profits.

The NBA has lost money for several years in a row, and even though the players dispute the owners figures they do not dispute the losses overall. The losses this past season as a league were around $300 million according to Stern. And that is the key difference between the two lockouts — the NBA has far more serious issues to deal with, real revenue and expenditure issues to deal with.  Because of that the two sides are farther apart than they ever were in the NFL. A few minor issues are the same but the big issues are different in the two lockouts.

So how are the NBA and NFL lockouts alike?

The arc of how the problems will be solved.

The NFL has been locked out for more than 100 days but only now are we starting to see some real progress towards a deal, in time to save this season. (How much progress depends on who you ask.) The bottom line is this — in any negotiations, from teachers unions to longshoremen to sports leagues, nothing actually gets done until there is pressure on one or both sides to compromise. In the NFL, with the owners seeing the threat of lost games and the players fearing lost paychecks, the negotiations are getting serious.

It will be the same with the NBA. With the start of the lockout, the two sides will move farther apart. They have both known this lockout is coming for years — there have been proposals on the table since the 2010 All-Star Game in Dallas — and they have dug in their heels. Don’t be shocked if the owners start talking about going back to their original proposal of a $45 million hard salary cap.

But as we move into the second half of August and September, when the threat of lost games starts to become more real, then we will see movement and the two sides start to negotiate in earnest.

Then we will see the resolve of the two sides.

How and when does this end?

The when is unpredictable. I want to believe there will be a full season next year. But there are hardline owners — smaller market owners who leveraged themselves in recent years to buy these teams and who need a change in the business model — who are willing to lose some or all of a season to reshape the financial landscape of the NBA.

The players are going to come out of these negotiations with less money then when they went in (even under their own plans), the question is how far back will they go and how hard are the owners as a group willing to push for a deal they want? We’ll start to get a feel for that in August and September.

If we get to mid to late September and the two sides are nowhere near a deal like they are now, then my friends we may not see the NBA for a long while.

Watch Brad Stevens remain completely stoic after Avery Bradley’s game-winning 3 (video)

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Avery Bradley hit a perfectly dramatic shot Friday – a 3-pointer down two with time expiring against the conference’s best team.

When it fell, the Celtics justifiably went wild.

Well, not all the Celtics:

Tweet of the Day: Stephen Curry and crying Jordan

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Stephen Curry is a Carolina guy and a huge Panthers fan — he’s been that way since childhood, this was not a bandwagon jump.

Before the Super Bowl Sunday, he got to pound the drum for the Panthers (who also gave him a locker for the day).

We all know how the game went, it wasn’t a good day for Panthers’ fans. Curry handled it beautifully in this tweet.

Five Takeaways From NBA Sunday: Stephen Curry, Kevin Durant at Super Bowl

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Sunday was all about Coldplay… was there something else going on? If you didn’t watch Sunday’s NBA games because you were prepping for a Super Bowl only someone who bet the under could love, here is what you missed from around the NBA Sunday. Which includes some Super Bowl talk.

1) Stephen Curry pounding a drum was not enough for the Panthers. Curry is a Carolina guy — he did not just jump on the Cam Newton/Panthers bandwagon, he’s been a fan for a long time. The Panthers rewarded him on Sunday with a locker and jersey.

They also let him pound the drum for the team pregame. Turns out, that was not enough (apparently Curry cannot secure a win without some help from Draymond Green). But he handled it beautifully on Twitter after the game.

2) Kevin Durant joined the media for a day to be a photographer at the Super Bowl. Kevin Durant’s relationship with the media has been about as smooth as a Kardashian marriage, but since he was in the Bay Area this weekend to take on the Warriors (another Golden State win), he decided to join the media for a day and be a photographer for the Players Tribune. You know, the website that will break Durant’s plans this summer. Follow this link and you can see his account and his photos.

Associated Press
Associated Press

Now, on to actual basketball….

3) Nikola Vucevic saves Magic with fade-away game winner. Orlando looked to be in control of their game with the Hawks, up 11 entering the fourth quarter and leading by eight with 3:30 left in the game — then Atlanta went on an 8-0 run. A Kent Bazemore three with :48 left tied the game at 94-94 (Bazemore finished with 23 points on the day).

But as he had done earlier in the year, Vucevic hit a game-winning fade away (this time over some good defense from Al Horford), and Orlando got the victory.

4) Chris Paul starts slow, finishes fast and Clippers pick up a road win in Miami. Chris Paul and the entire Clippers team started this game out looking like they had the South Beach Flu (after a night on the town). CP3 opened the game 0-of-9. But Paul was 6-of-10 in the second half, and when his shots fell it opened up the roll for a couple of huge DeAndre Jordan alley-oops.

The Clippers got 22 from CP3, another 20 from Jamal Crawford off the bench, and the Clippers kept right on winning with a 100-93 victory against Miami. If you want to nit-pick this team and how the teams above them in the West might attack flaws in the playoffs, go right ahead, but you’ll be missing a fantastic show in the meantime. The Clippers are playing well on the offensive end and just keep winning without Griffin in the lineup.

5) Brad Stevens gets the most out of the talent he has in Boston, George Karl does not in Sacramento. So that matchup went as you would expect. Brad Stevens has proven to be one of GM Danny Ainge’s best moves — and Ainge assembled a title team. He has a team of nice role players as the third seed in the East, with a fantastic defense and enough offense from Isaiah Thomas to get the job done. On the other side, George Karl’s job is in jeopardy in part because he can’t get buy-in from a team with some good talent (except for Rajon Rondo, who likes Karl because Karl has given him carte blanche in the offense). This game was just a contrast of organizations, and as you would expect the Celtics won handily 128-119.

Also, know that Thomas can play a little defense — he blocked a DeMarcus Cousins‘ shot.

Paul shakes off awful start, leads Clippers past Heat 100-93

Los Angeles Clippers guard Chris Paul (3) drives to the basket past Miami Heat guard Goran Dragic (7) and forward Amare Stoudemire, right, during the first half of an NBA basketball game, Sunday, Feb. 7, 2016, in Miami. (AP Photo/Lynne Sladky)
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MIAMI (AP) — Chris Paul had the worst possible start to his shooting day.

His finish, however, was perfect.

Paul’s consecutive 3-pointers in the final minutes were daggers to a Miami comeback, and his game-high 22 points helped the Los Angeles Clippers hang on to beat the Heat 100-93 on Sunday.

“I kept shooting it,” Paul said, “because sooner or later it had to go in.”

J.J. Redick scored 14 points, Wesley Johnson had 10 and DeAndre Jordan and Cole Aldrich grabbed 11 rebounds each for the Clippers, who won despite a 1-for-15 start from the field and swept the two-game season series with Miami.

“That was a team win because nobody really had it going,” Clippers coach Doc Rivers said. “But our defense really had it going all game.”

Chris Bosh, Dwyane Wade and Goran Dragic all scored 17 points for Miami. Luol Deng added 15 points for the Heat, and Hassan Whiteside finished with 10 points and 10 rebounds off the bench.

“They did to us what we’ve been doing the last few games, just grinding an opponent,” Heat coach Erik Spoelstra said. “That’s what they did to us, then made the bigger plays down the stretch.”

Paul was 0 for 7 in the opening period, the worst one-quarter shooting performance of his NBA career, and was 0 for 9 before he finally got a shot to fall. But his 3-pointers in the fourth snuffed out a Miami rally, and his lob that set up Jordan for a dunk was the clincher for the Clippers – who, after that horrid start, shot 55 percent the rest of the way.

Redick made a layup on the game’s first possession and the Clippers proceeded to misfire on their next 14 shots, but recovered to win for the 11th time in their last 13 road games, most of that with Blake Griffin sidelined by injuries.

“We’re just trying to hold it down until our big fella comes back,” Paul said.

Miami went to the oft-used strategy of intentionally fouling Jordan in the third quarter to slow the Clippers’ offense. And while it worked to a point – Jordan went 3 for 10 from the free throw line in the quarter – Miami couldn’t score. The Heat were 4 for 20 in the third, got down by as many as 11 and never led again.

“They made big plays down the stretch,” Wade said. “That’s the way we’ve been winning of late, so we can’t be mad at that. We got a little taste of our own medicine.”

TIP-INS

Clippers: G Austin Rivers will miss four to six weeks with a broken left hand. For now, the Clippers aren’t planning on making any roster changes to add depth. “We may have to make a decision but we’re just going to try to ride it out,” Doc Rivers said. … Paul has faced the Heat 19 times, and his teams are 13-6 in those games.

Heat: Whiteside took his first charge of the season. … Wade’s first point of the day gave him outright possession of 41st place on the NBA’s all-time scoring list. He came into the game tied with John Stockton at 19,711 points. … Deng has scored at least 15 points in five of his last six games.

 

SUPER SATELLITE

The Clippers were using a different plane than usual for their postgame flight from Miami to Philadelphia, for Super Bowl 50 reasons. They changed planes in order to have satellite television access so they wouldn’t miss any of the Carolina-Denver game.

“It’s really nice of the NBA to have us play today and then travel during the Super Bowl,” Doc Rivers said. “Just really a great move. But at least we get to watch it.”