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.

Russell Westbrook hits game-winning 3-pointer to beat Kings (VIDEO)

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Welp, looks like Russell Westbrook is re-energized after All-Star Weekend.

As the first night of games after the break got underway on Thursday night, it was Westbrook who gave us a jolt as he helped the Oklahoma City Thunder beat the Sacramento Kings on the road.

With just a second to go, Sacramento’s Justin Jackson had tied the game up at 107-107. This came after Vince Carter pulled up confidently from nearly 30 feet out, missing badly. Sacramento missed another follow, and then Jackson put home the final try.

Via Twitter:

That left the Thunder to advance the ball with just one second left.

Oklahoma City ran a simple play with Westbrook running near-to-far across the arc from the inbounder, eventually settling at the top of the 3-point line.

He let it fly, and that allowed OKC to come away with a win, 110-107.

Bulls find way to lose despite being up by 5 with 35 seconds left

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CHICAGO (AP) Ben Simmons scored 32 points, making two free throws with 5.6 seconds left to complete Philadelphia’s rally from five points down in the final minute, and the 76ers beat the Chicago Bulls 116-115 on Thursday night.

Joel Embiid had 30 points and 13 rebounds, and Simmons added 11 assists and seven rebounds as Philadelphia won its sixth straight and snapped a four-game road losing streak.

Bobby Portis had a career-high 38 points and Zach LaVine added 23 for the Bulls, who were 18 for 34 on 3-pointers.

Chicago had a 115-114 lead and the ball with 8 seconds to go before Embiid deflected an inbounds pass to create a turnover. Simmons came up with the ball near half court and was fouled by Denzel Valentine. He made both free throws.

Portis had a chance for a game winner, but his short attempt – with Embiid defending – just missed.

The 76ers raced to a 25-7 lead midway through the first quarter before Portis got hot and Chicago started making 3s.

Philadelphia’s lead was down to 33-29 at the end of the quarter and the Bulls busted out for 40 points in the second to take a 69-67 halftime lead. Chicago was 9 of 12 on 3-pointers in the quarter, including 4 for 5 by Portis.

The 76ers were up by five early in the fourth before Portis scored six straight points – on a 3-pointer and a three-point play – to put the Bulls on top 101-100. A few minutes later, Portis dunked over Embiid to stretch the lead to 111-106 with just over four minutes to play.

LaVine hit a 3-pointer to make it 115-110 with 1:02 left.

TIP INS

76ers: C Embiid has nine straight double-doubles . Simmons has six triple-doubles this season, which ties him with Wilt Chamberlain (three times) and Billy Cunningham for most in a season in team history.

Bulls: To look at some younger players during the final 25 games, C Robin Lopez and G/F Justin Holiday were removed from the starting lineup. Both were inactive on Thursday as Cristiano Felicio and David Nwaba (21 points) started; Also, Cameron Payne – who played in his first game on Thursday – will replace Jerian Grant as the backup point guard.

“It really is hard,” coach Fred Hoiberg said. “It’s hard for Robin, it’s hard for Justin and it’s hard for Jerian, who’s probably making as big a sacrifice as anybody.”

UP NEXT

76ers: Host Orlando on Saturday.

Bulls: Visit Minnesota Saturday night.

Kelly Oubre gets caught untying Rodney Hood’s shoes (VIDEO)

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The NBA seems to have a secret obsession with tying and untying shoes mid-game. J.R. Smith once got a warning for doing as much, finally earning himself a $50,000 fine after doing it multiple times. Likewise, other players like Rajon Rondo and Danny Green have pulled down the shorts of opponents while the clock was rolling.

Perhaps that emboldened Washington Wizards forward Kelly Oubre on Thursday night as his team took on the Cleveland Cavaliers in Ohio.

During the game, game operations crew at The Q ran a video on the big board that appeared to show Oubre untying the shoes of Cavaliers guard Rodney Hood.

Via Twitter:

These guys have so much to think about during a game I’m honestly impressed that they have the time to remember to do petty stuff like this.

I suppose it worked?

Oubre had 17 points off the bench, adding five rebounds, two assists, and two steals. Hood had just eight points in 27 minutes on the floor.

The Wizards beat the Cavaliers on the road, 110-103.

Report: Warriors will spend trip to D.C. with kids, not Trump

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Donald Trump decided to disinvite the Golden State Warriors to the White House despite team winning the 2017 NBA Championship. Many members of the Warriors have been critical of Trump during his short tenure in Washington D.C., which the former mail order steak salesman has not taken lightly.

With no invitation to the White House on hand, and considerable doubts that the team would go even if the opportunity resurfaced, the Warriors have decided to take a private tour around the nation’s capital instead.

According to a report from ESPN, the team will take a trip with just players, coaches, and some kids to a discreet location as part of a tour.

Via ESPN:

Head coach Steve Kerr left it up to the players to determine how they wanted to spend their time, and the players selected a venue in which local kids would join them. It will be closed off to the media, sources said.

The players wanted the outing to be a personal, intimate experience.

“It’s their championship. They got disinvited to the White House, so it’s up to them what they wanted to do. So they made their plans,” Kerr told ESPN. “I want the players to have a good day and to do something positive and to enjoy what they’re doing.”

Golden State will be in D.C. to play the Washington Wizards on February 28. They will reportedly take their trip — sure to be fun for the kids — the day before.

Meanwhile, you have to wonder if an NBA team will ever visit the White House while Trump lives there. People from LeBron James to Gregg Popovich have spoken out about their disagreements with him, and the Warriors were pretty vocal about not attending a ceremony with Trump.