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.

Watch the Knicks and Lakers make every shot for 2 straight minutes of game clock

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Tuesday night’s game between the New York Knicks and Los Angeles Lakers was a good one, with the teams going-back-and-forth all night. In an OT game that came down to the wire, a sequence in the third quarter was perhaps indicative of the kind of contest it was in Madison Square Garden.

Starting with a little more than six minutes to go in the third the teams traded eight consecutive baskets while MSG rose to an accompanying fever pitch.

The whole sequence was pretty hilarious, and lent to that feeling you get sometimes while watching competitive NBA games of complete exhilaration.

Via Twitter:

The gap spanned from Kentavious Caldwell-Pope‘s missed 3-pointer with 6:21 left to Brook Lopez‘s missed shot with 3:51 to go.

New York wound up winning in OT, 113-109.

Joel Embiid says he thinks people are about to start hating him

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Philadelphia 76ers have been the Twitter darlings of the NBA for the past few years. Thanks to former general manager Sam Hinkie and the tanking process, guys like Joel Embiid have become even more admired now that the team is in the hunt for a playoff spot.

Of course, players like Embiid are part of the generation that is always online, and the fact that they play in the NBA doesn’t keep them from participating in social media with their contemporaries. Embiid has a great Twitter feed, and is often out on it trying to get dates from the likes of Rihanna while trolling other NBA stars on Instagram.

Of course, as we’ve seen with players in the past, good fortune does not always shine forever. Indeed, conscious of this fact, Embiid as much to ESPN’s Ramona Shelburne during a recent interview.

Via ESPN:

People love you at the beginning,” Embiid explains. “But at some point they’re gonna start hating you. LeBron. Russell Westbrook. All the superstars. Even Steph. He’s so likable. He does nothing wrong, but some people still hate him. It just comes with the nature of it. I’ve seen it.

“I feel like I’m about to go through it. I think it’s coming. People always want something new.”

The ups and downs of how NBA fandom changes the perception of certain players is fascinating, and some even try to directly manipulate that. And indeed, while Embiid is certainly hilarious on social media, the best thing to keep fans at bay will be him staying on the floor and playing games for the Sixers.

Let’s hope that keeps happening and nobody turns on him anytime soon.

Gregg Popovich says he was ‘guilty of over-coaching’ LaMarcus Aldridge

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LaMarcus Aldridge has been much better for the San Antonio Spurs this season. This comes after a tumultuous offseason in which it became clear that Aldridge was unhappy with his time in Texas.

That information came to light over the summer, and indeed both Aldridge and Spurs coach Gregg Popovich sat down to have a discussion to work out their differences in preparation for the upcoming season.

The results have been stupendous, with Aldridge playing better than ever in San Antonio despite the team lacking star Kawhi Leonard. Aldridge is averaging career highs in points per-100 possessions, which makes sense given his career-high 119 offensive rating.

Apparently part of Popovich’s change in dealing with Aldridge was how he coached him. Popovich told NBA.com recently that he made the mistake of over coaching Aldridge, saying that the veteran didn’t need as much guidance as young star players did when they came to him in the past.

Via NBA.com:

“We broke bread a few times, talked about it, laughed about it, discussed what we thought needed to happen, and frankly 95 percent of it fell on me because I made an error in trying to change him too much. That might sound odd, but he’d been in the league nine years and there’s one way he plays on the offensive end and feels comfortable with. I tried to turn him into Jack Sikma, told him I was going to teach you how to play on the elbow, go on the wing, face up. It was confusing for him. It really didn’t fit his style of play. I was guilty of over coaching in a sense.

“We came to an agreement on what had to happen. Well, on defense, I told him ‘I’m going to get on you like I do everyone else. But on offense, I don’t even want to talk to you. When they double you, kick it. Other than that, you be LaMarcus Aldridge.’ You see the result right now. He’s happy, confident and kicking everybody’s butt.”

Now that everything is sorted for the Spurs, we just have to watch out for them as they gain momentum heading into 2018. Leonard made his debut for the season on Tuesday night against the Dallas Mavericks, and as a publication time he had nine points in 10 minutes.

God help us if Gregg Popovich has finally found a way to make the mercurial LaMarcus Aldridge happy and pair him with a fully healthy Leonard.

Raptors’ Jonas Valanciunas offers advice to Ball brothers on Lithuania

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Lithuania is a hoops-mad country.

The Baltic nation has fewer people in it than the Seattle-Tacoma metropolitan area, yet it has three players in the NBA right now — Jonas Valanciunas, Donatas Motiejunas, and Mindaugas Kuzminskas — and has put 11 players in the league total (such as Zydrunas Ilgauskas, Arvydas Sabonis, and Sarunas Marciulionis). The country has won three bronze medals in the Olympics ( 1992, 1996, and 2000). It’s Lithuanian league also has been the launching pad for Celtics’ Aron Baynes to make the NBA.

Now the Ball brothers LiAngelo and LaMelo are headed there on professional contracts.

One of those players — the Raptors’ Valanciunas, had advice for the Ball brothers, speaking to ESPN.

“They’re getting themselves into a great opportunity. Lithuania is beautiful country… We have great basketball history. We’re such a small country, but we have many, many great players. Our basketball school is good., so they chose a really good school. They just gotta work hard — it’s all about working. You can be as good as you can be by working. Talent is one thing, but work you put in, that’s gonna show up.

“If they have any problems, let me know. I can help them out.”

Good luck finding anyone around the NBA who thinks this ends well, especially those who know the Ball family. They are sending a college freshman and a high school junior to a small city in a former Soviet bloc country with a very different culture, that will be a major adjustment. The coach doesn’t speak English and his former American players have not spoken highly of him. The Lithuanian league itself has men — far more physically developed than the Ball brothers — and is known for a physical style of play. It’s also known as a league where the players have a reasonably high hoops IQ and don’t like undisciplined players.

But if LiAngelo and LaMelo have any problems, they can call Valanciunas.