Foul called on NBA owners’ claims of money lost

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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.

Twitter is confused: Isaiah Thomas, Damian Lillard got All-Defensive team votes

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Isaiah Thomas is deservedly an All-NBA player and likely finished fifth in MVP balloting after a monster season. Damian Lillard is an All-Star level player who averaged 27 points a game for Portland last season.

Neither of them are good defenders. At all.

Both got one NBA All-Defensive second team vote.

There are no great defensive metrics, but the best snapshot one out there is ESPN’s Real Plus-Minus, which weighs a lot of factors into how a player and team defends. Thomas finished 86th out of 86 potential point guards, and second to last in the entire NBA (to answer your question, Doug McDermott was worse). Lillard finished 65th among point guards, in the range of Brandon Jennings and J.J. Barea. One stat certainly should not be a deciding factor for voters, but Twitter was rightfully confused how either of them got an All-Defense vote.

Isaiah Thomas chimed in, but he wasn’t defending himself.

On Tuesday the NBA will release a full breakdown of which media members voted and who they voted for on all the awards. (For the record, I had a vote, and I didn’t vote for either of them here). The NBA’s voting system can be a challenge because it’s pulldown menus with a lot of players, it could just be an error, but you can bet Twitter will be ready to ask.

Sixers young core already nicknamed “FEDS,” Durant thinks they should play a game first

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Hype is high in Philadelphia.

They have two NBA All-Rookie players on the roster already — Joel Embiid and Dario Saric — and next year they add to the roster the last two No. 1 picks, Ben Simmons and Markelle Fultz. If I were a Sixers’ fan, I’d be Rocky climbing the stairs pumped — this team has real potential. So much so there’s already a nickname.

Kevin Durant and the Warriors were out taking batting practice at the A’s Stadium — that’s what you get to do when you’re NBA champs — and KD thought the Sixers may want to slow their roll and actually play a game together first.

Personally, I like the nickname. Now, will all four of them be on the Sixers in three years? Odds are at least one is gone, this is a cruel business. This was jumping the gun, but so what? Sixers fans deserve to be able to crow about something after the past couple of years.

Adam Silver’s view on age limit is evolving, Ben Simmons documentary helped change that

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The NBA age-limit discussion is like other, far more important debates going on in this country (such as health care) — there is no easy answer to be had. If there was a deal would already be done. What we know now is the current system doesn’t work.

“So my sense is it’s not working for anyone,” NBA Commissioner Adam Silver said during the NBA Finals. “It’s not working certainly from the college coaches and athletic directors I hear from. They’re not happy with the current system. And I know our teams aren’t happy either in part because they don’t necessarily think that the players are coming into the league are getting the kind of training that they would expect to see among top draft picks in the league.”

However, Silver is no longer just on the “raise the age limit to 20” bandwagon, as he told Dan Patrick this morning on the Dan Patrick Show. His views on this are evolving.

The Showtime documentary on Ben Simmons had something to do with it — it highlighted what a sham the one year, really one semester, elite players spend in college has become. Simmons was open that he was only at LSU because he had to spend a year in college, and making the NCAA Tournament was not really a priority for him. (The past two No. 1 picks, Simmons and Markelle Fultz, both did not play in the tournament.) This year, 16 first-round picks were college freshmen.

The answer needs to be more holistic than just the age limit. It has to involve a stonger G-League, two-way contracts and other good developmental programs, and changes even down to the AAU level.

“To be honest, I’m not standing here today saying I have the perfect solution,” Silver said back in June, and reiterated to Patrick today. “I do know that as I talk — increasingly the veteran players in this league, as well, who feel that the young players are not coming in game ready in the way that they were when they were coming out of college. And we’re also seeing a dichotomy in terms of the international players. They’re coming in when they come in at 19, many of them have been professional for up to three years before they come into the league and have a very different experience than what we’re seeing from American players coming through our college programs.”

There is no easy answer. But at least the players union and NBA will start talking about it this summer. They need to find a system better than the one we’ve got.

Draymond Green, Rudy Gobert, Kawhi Leonard headline NBA All-Defensive teams

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Later Monday night, one of Draymond Green, Rudy Gobert, or Kawhi Leonard will be named NBA Defensive Player of the Year. (The smart money is on Green to win, but you can make a legitimate case for any of the three.)

Before that award is handed out, the NBA released its All-Defensive teams.

Not a lot of surprises here, especially on the first team. Green, Gobert, and Leonard are the top three vote getters for DPOY, so they were going to make this team, and since this team is positionally tied that meant two guards had to join them. (Each team has to have two guards, two forwards, and one center, and the voters have to vote that way.) Chris Paul and Patrick Beverley made that cut. The ballots were cast by 100 members of the NBA media (full disclosure I had a vote). A full list of who voted for whom will be made public on Tuesday by the NBA.

The biggest surprise: No LeBron James. Good defenders such as Jimmy Butler, Avery Bradley, and Klay Thompson also didn’t make the cut.

Here’s who made the All-Defensive teams.

2016-17 NBA ALL-DEFENSIVE FIRST TEAM

Position, Player, Team, Total Points (out of 200 possible)
Forward Draymond Green, Golden State, 198
Center Rudy Gobert, Utah, 196
Forward Kawhi Leonard, San Antonio, 192
Guard Chris Paul, LA Clippers, 140
Guard Patrick Beverley, Houston, 110

2016-17 NBA ALL-DEFENSIVE SECOND TEAM

Position, Player, Team, Total Points (out of 200 possible)
Guard Tony Allen, Memphis, 80
Guard Danny Green, San Antonio, 68
Center Anthony Davis, New Orleans, 58
Forward Andre Roberson, Oklahoma City, 53
Forward Giannis Antetokounmpo, Milwaukee, 35

Other players receiving votes, with point totals (First Team votes in parentheses): Avery Bradley, Boston, 46 (12); Klay Thompson, Golden State, 45 (16); John Wall, Washington, 38 (14); DeAndre Jordan, LA Clippers, 35 (1); Paul Millsap, Atlanta, 35; Hassan Whiteside, Miami, 25 (1); Marcus Smart, Boston, 21 (5); Jimmy Butler, Chicago, 18; LeBron James, Cleveland, 12 (1); Robert Covington, Philadelphia, 11 (2); Russell Westbrook, Oklahoma City, 10 (5); Paul George, Indiana, 7; Kevin Durant, Golden State, 6; Dwight Howard, Atlanta, 6 (1); Mike Conley, Memphis, 5 (1); Jae Crowder, Boston, 5; Jrue Holiday, New Orleans, 5; Wesley Matthews, Dallas, 4 (2); Stephen Curry, Golden State, 3; Andre Iguodala, Golden State, 3 (1); Michael Kidd-Gilchrist, Charlotte, 3; Ricky Rubio, Minnesota, 3; P.J. Tucker, Toronto, 3; Trevor Ariza, Houston, 2; Nicolas Batum, Charlotte, 2; Marc Gasol, Memphis, 2; Eric Gordon, Houston, 2 (1); Karl-Anthony Towns, Minnesota, 2 (1); Steven Adams, Oklahoma City, 1; LaMarcus Aldridge, San Antonio, 1; Al-Farouq Aminu, Portland, 1; Kentavious Caldwell-Pope, Detroit, 1; George Hill, Utah, 1; Serge Ibaka, Toronto, 1; Damian Lillard, Portland, 1; Luc Mbah a Moute, LA Clippers, 1; Austin Rivers, LA Clippers, 1; Isaiah Thomas, Boston, 1; Cody Zeller, Charlotte, 1.

It should be noted that Atlanta’s Millsap had as many total points as Milwaukee’s Antetokounmpo for the final slot, but because the Greek Freak got seven first-team votes as opposed to zero for Millsap, Antetokounmpo wins the tie breaker. Also, Boston’s Bradley and Golden State’s Thompson had more points than Antetokounmpo, but they could only be listed as guards.