David Stern

Foul called on NBA owners’ claims of money lost


The NBA owners continue to say the lockout is going on because the players don’t understand the fundamental need to change the league’s poor financial system — that $300 million was lost this past year.

More and more reports are questioning the severity of that loss.

The latest is Nate Silver at the New York Times, who questions the heavy losses the owners claim, and particularly the claim that player salaries are to blame.

On this point he is spot on — NBA players salaries make up 57 percent of the Basketball Related Income the league takes in. That number is fixed in the current Collective bargaining agreement — it is a fixed cost, the owners know exactly how much the players will cost the league as a whole. It’s the non-player costs that increase faster than income, Silver notes.

Growth in non-player expenses has outpaced that of salaries, having increased by 13 percent over five years and 43 percent over 10 years. Although some of this undoubtedly reflects sound business ventures, like the league’s investments in digital media or efforts to expand the game internationally, they have nevertheless had a reasonably large effect on the league’s bottom line. Had nonplayer expenses been the same in 2009-10 as they were in 1999-2000 (adjusted for inflation), the league would have made a record profit that year.

Even with those costs, Silver says the owners are making money.

Even as it stands, however, the Forbes data suggests that the league is still profitable. Its operating income — revenues less expenses (but before interest payments and taxes) — is estimated to have been $183 million in 2009-10, or about $6 million per team. The N.B.A.’s operating margin (operating income divided by revenues) was about 5 percent in 2009-10 and has been about 7 percent during the life of the current labor deal.

A 5 percent or 7 percent profit is not dissimilar to what other businesses have experienced recently. Fortune 500 companies, for instance, collectively turned a 4.0 percent profit in 2009 and a 6.6 percent profit in 2010 (both figures after taxes). Profit margins in the entertainment industry, in which the N.B.A. should probably be classified, have generally been a bit lower than that.

Silver goes on to say that a lot of the losses the owners claim are tied to depreciation and amortization when a team is sold. However, the league has noted that amortization is not used in the $300 million loss figure for the past season. Silver misses the mark there.

The players need to understand that some owners are hurting and there needs to be adjustments to the system. Things like the players hotel rooms and food per diems are not taken out of that 57 percent — they get to count the revenue minus any expenses. Those expenses are rising. Players need to give up some of their pie (maybe by rather than taking 57 percent of the gross allowing some deductions of league expenses from that before the “net” is divided up, maybe just taking a much smaller percentage of the gross). The owners have some valid points about the needs to alter the system to create a chance for all teams to make money (although revenue sharing must be part of that).

But it’s still hard to buy the owners claims that the league is in that much financial peril. Particularly when people are stepping in to pay record prices for franchises.

Pelican’s Anthony Davis forced to leave game, has bruised knee

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It looked a lot worse than it turned out to be.

Late in the third quarter of Friday night’s Clippers win over the Pelicans, Los Angeles’ Josh Smith blocked a shot at the rim that came out to the top of the key to Chris Paul, and he started to race up court in transition with Anthony Davis next to him. At that point, CP3 veered into Davis to draw the contact and get the foul, but in the process injured Davis. Watch the replay in the video above, CP3 initiates the contact.

Watching Davis try to leave the floor was scary. It looked bad.

Fortunately, it turned out just to be a bruise.

Davis did not return, but he shouldn’t miss much time with a bruise.

As for the play, there has been plenty of Twitter talk about if it was dirty. I wouldn’t say that, I do not think there was any intent to injure.

I would say the play was reckless, the kind of thing more likely to lead to injury. What’s more, that should be called an offensive foul every time — CP3 initiates that contact. He veers into Davis to get the call, and that’s an offensive foul.

Fortunately for all of us, the ultimate result was nothing serious.

Watch James Harden score 50 as Rockets beat winless 76ers 116-114

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HOUSTON (AP) — James Harden had 50 points, nine rebounds and eight assists, and the Houston Rockets beat the winless Philadelphia 76ers 116-114 on Friday night.

Harden was 14 for 28 from the field and 16 for 20 at the line in his third career game with 50 or more points. He is averaging 36.2 points in his last five games.

Philadelphia moved one loss away from matching the New Jersey Nets’ NBA-worst mark of 18 losses to open a season. The Sixers have dropped 27 in a row dating to last season for the longest losing streak in major U.S. professional sports history, passing the NFL’s Tampa Bay Buccaneers from 1976 to ’77. The previous record was also matched by the 76ers in 2013-14.

Robert Covington had 28 points for Philadelphia, which made a franchise-record 16 3-pointers in 35 attempts. One day removed from a Boston nightclub altercation, rookie Jahlil Okafor had 11 points and six rebounds.

Facing an 11-point deficit to start the fourth quarter, the 76ers opened the period on a 24-8 run to take a five-point lead.

Down by two with less than 3 seconds remaining, Covington intentionally missed a free throw that was rebounded by Dwight Howard to secure the Houston win.

Harden led the Rockets to one of their best shooting performances of the season, helping Houston win for just the second time in its last nine games.

The Rockets shot 52 percent from the field, including an 11-for-20 night from beyond the arc. Howard added 14 points and 13 rebounds.

Philadelphia scored 100 points for the first time in nearly three weeks and just the fourth time all season. Isaiah Canaan had 23 points, and Jerami Grant scored 18.


76ers:C Nerlens Noel was a late scratch with right knee soreness. … SG Nik Stauskas returned from a one-game absence after suffering a knee contusion in Monday’s loss to Minnesota. … Canaan got his fifth start of the season over regular starter T.J. McConnell.

Rockets: Houston improved to 68-68 all-time against Philadelphia. … The Rockets had a season-high 35 third-quarter points. . PG Patrick Beverley received a technical foul in the second quarter after throwing an elbow near the face of Phil Pressey.



Report: Jahlil Okafor had gun pulled on him in another altercation in October

2015 NBA Rookie Photo Shoot

Apparently Sixers’ star rookie Jahlil Okafor‘s altercation outside a nightclub in Boston earlier this week — one for which he apologized, and there will be no law enforcement action — was not his only altercation since training camp opened.

Okafor had a gun pulled on him back in October, according to a report by John Finger at CSNPhilly.com.

The 19-year-old Sixers’ rookie was outside an Old City nightclub after 2 a.m. on October 4 when he and another person began arguing with two men sitting in a parked car near the corner of 2nd and Walnut Streets, according to a witness. The verbal disagreement escalated and a witness said he saw Okafor try to punch the driver through the open driver’s side window. During the altercation, the driver and passenger exited the car and the passenger pointed a gun in the direction of Okafor and his associate, per the witness.

U.S. Park Rangers — who patrol nearby Independence Hall — arrived on the scene during the altercation, according to separate reports filed by the U.S. Park Rangers and the Philadelphia Police Department and obtained by CSNPhilly.com. The man who exited the passenger side of the car fled on foot and appeared to toss his gun, per multiple witnesses. According to the police report, the driver got into a black Camaro with red stripes and sped off. The car was not stopped….

A law enforcement source told CSNPhilly.com that a gun magazine was recovered near the scene and submitted for fingerprint analysis. The law enforcement source said the investigation is ongoing. It is unclear what happened to Okafor or his associate after the incident or if they were interviewed by U.S. Park Rangers or PPD.

The Sixers told Finger that they were aware of the investigation but would not comment further.

Add this to the incident in Boston and it makes you wonder about the situations Okafor keeps finding himself in. That said, we’re talking about a 19-year-old, and if you’ve ever been that age you know it is not always when you make your best decisions. Okafor is just going to have to grow up more quickly — and under a brighter spotlight — than the rest of us.


Raptors center Bismack Biyombo: Cavaliers believe we’re tougher than them

Lebron James, Bismack Biyombo
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LeBron James and James Jones called a players-only meeting after the Cavaliers’ loss to the Raptors on Wednesday.

This is why.

Toronto center Bismack Biyombo, via Chris Haynes of Cleveland.com:

“The most important thing is that we played tough,” Bismack told cleveland.com. “Cleveland is a good team, but when they come in here, they feel like we are the tough ones and that’s what we want to accomplish as the definition of the Toronto Raptors.”

Those are harsh words from Biyombo. It’s one thing to say you believe your team is tougher than the opponent. It’s another to say you can tell the opponent believes your team is tougher.

Privately, though, I bet LeBron appreciates this comment.

The Cavaliers are not soft, but their goal is nothing short of a championship. They need to get tougher if they’re going to beat the Warriors, whom LeBron said look hungrier than Cleveland. So, LeBron has already begun challenging his teammates. He wants them to believe they have far to go, because that will pay off in the long run.

Biyombo’s answer furthers the Cavs toward that goal.

Plus, if the Cavaliers and Raptors meet in the playoffs, it’ll make it much easier for Cleveland to find motivation. But Toronto is a tough team. That series would be no walkover unless the Cavs use this criticism constructively.