David Stern

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.

Hassan Whiteside gets triple-double as Heat hold off Hornets

Miami Heat center Hassan Whiteside (21) reacts to his team scoring a basket during the second half of an NBA basketball game against the Dallas Mavericks Wednesday, Feb. 3, 2016, in Dallas. The Heat won 93-90. (AP Photo/LM Otero)
Associated Press
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CHARLOTTE, N.C. (AP) — Miami Heat center Hassan Whiteside did his part to prevent the Charlotte Hornets from scoring inside.

Mix in a couple of key steals in the final seconds, and the Heat had a nice win on the road.

Whiteside had 10 points, 10 rebounds and 10 blocked shots, and Miami beat Charlotte 98-95 on Friday night.

Dwyane Wade scored 22 points and Chris Bosh added 20 points for the Heat, who have won six of seven. Goran Dragic had 12 points, nine assists and eight rebounds.

Whiteside, a native of nearby Gastonia, North Carolina, posted his third triple-double of the season and No. 4 for his career.

“I was at the YMCA around the corner two years ago; now I’m here,” Whiteside said. “When a ball is around my elbow area, I’m going to try and catch it.

“The last three minutes, they were so worried about pump-faking, pump-faking. I told the guys to just stay with the 3-point shooters.”

Marvin Williams scored 27 points for the Hornets, and Nicolas Batum added 21. Kemba Walker had 20 points.

“Whiteside just dominated every aspect of that game,” Hornets coach Steve Clifford said. “Right now, he’s the premiere rim protector in the league. It changed the game when he came in; they were a totally different team when he was out there.”

The Heat were coming off a close 93-90 win at Dallas on Wednesday. The last time Miami played at Time Warner Cable Arena on Dec. 9, Charlotte won 99-81.

“It’s hard not to notice what they’ve done on this home court,” Heat coach Erik Spoelstra said. “It seems that every top team in the East that comes in here walks out of here with a double-digit loss.

“It was something that we wanted to collectively do – get a win to put us at .500 on the road, and in a building that we haven’t played well.”

The Hornets led 93-90 with 1:10 remaining, but Wade made a layup and Bosh added a three-point play to make it 95-93 with 23.5 seconds left.

Charlotte had a chance to tie it, but Justise Winslow‘s steal set up a free throw by Luol Deng for a 96-93 advantage with 13.2 seconds left.

Wade then stole the ball from Walker and passed to Deng for a fast-break dunk with 4.3 seconds remaining and the Heat’s biggest lead of the game.

Before Miami’s flurry at the very end, neither team was able to grab much of an advantage. There were 26 lead changes and 12 ties, including 47-47 at halftime.

“We know we have to get stops,” Wade said. “We know we have enough offensive firepower down the stretch to get great looks. Tonight, Hassan was incredible down the stretch with protecting the basket.”

TIP-INS

Heat: Winslow had eight points and 10 rebounds. … Miami finished with 12 blocked shots. … The Heat outscored the Hornets 64-32 in the paint, and also enjoyed an 18-6 edge in second-chance points thanks to eight offensive rebounds.

Hornets: Shot 44.4 percent from the field (36 of 81), and made 10 of 26 3-pointers. … Also shot 13 of 15 from the free-throw line. … Charlotte’s reserves scored just 12 points, while Miami got 29 points from its backups.

 

HONORING `ZO’

Former Hornets star and 15-year NBA veteran Alonzo Mourning, now the vice president of player programs and development for the Heat, was honored by the home team during halftime of Friday’s game.

While he spent only three seasons in Charlotte (1992-1995), Mourning still holds franchise records for career blocks (684) and blocks per game (3.2), and is second in career scoring (21.3 points) and rebounds (10.1 per game).

 

Paul Millsap, Al Horford pace Hawks past Pacers 102-96

Atlanta Hawks center Al Horford dunks against the Indiana Pacers during the second half of an NBA basketball game Friday Feb. 5, 2016, in Atlanta. Atlanta won 102-96. (AP Photo/John Amis)
Associated Press
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ATLANTA (AP) — Hawks coach Mike Budenholzer wasn’t terribly concerned that his team gave up 19 offensive rebounds.

Not when Atlanta held on for a third straight win.

“Obviously we’d like to be better, but I think just because you give up a rebound doesn’t mean automatically they’re going to score two points,” he said. “Overall, our defense is a lot of times what’s giving us a chance.”

Paul Millsap scored 24 points, Al Horford added 21 points and the Hawks beat the Indiana Pacers 102-96 on Friday night.

Paul George finished with 31 points for Indiana, which has lost 17 of its last 19 regular-season matchups in Atlanta. Lavoy Allen added 13 points and a game-high 14 rebounds.

The Pacers missed their first six shots of the fourth quarter before C.J. Miles‘ runner cut the lead to 78-74 with 8 minutes remaining.

George’s 3 with 4:49 left gave Indiana its last lead at 86-84. He hit another 3 with 1:02 left, falling back and heaving the ball over his right shoulder for a 35-footer that brought the Pacers within two.

But Jeff Teague‘s jumper and Kent Bazemore‘s two free throws pushed the lead to six with 22 seconds left. Teague had 16 points. Bazemore had 15 points and tied for a game-high eight assists.

Neither team led by more than six until the closing seconds. The lead changed hands 12 times.

It was a particularly frustrating night for Indiana, which out-rebounded the Hawks 53-32 and outscored them on second-chance points.

“Our bigs did a great job of rebounding,” George said. “It’s hard to make plays when they’re getting whacked all day at the rebounding, but it’s another game that we should have had – one that we didn’t do so late in the game and put it away.”

Horford had two consecutive dunks to push Atlanta back in front 73-72 in the last minute of the third. Dennis Schroder hit a 3 to make it a four-point lead early in the fourth.

“I think guys were pretty excited about the dunk(s),” Horford said. “I felt like that defensively fueled us going into the fourth.”

Millsap, at 6-foot-8, and the 6-10 Horford caused problems for Indiana’s big men all night on the perimeter with their passing skills and athleticism. They helped the Hawks outscore Indiana by four points in the paint.

“We did some good things but we didn’t handle their pressure well enough offensively,” Pacers coach Frank Vogel said. “They got some very, very difficult coverages with Horford and Millsap out there spacing the floor we didn’t handle well enough either.”

The Hawks stayed in third place in the Eastern Conference with a 30-22 record. Indiana, at 26-24, fell to eighth place.

TIP-INS

Pacers: Indiana has dropped six of its last eight on the road. … George has scored at least 30 points in 15 of his 50 games. … G Monta Ellis, who averaged 20.5 points in the previous four games, scored 11.

Hawks: Atlanta has won nine of its last 11 at home. … The Hawks improved to 25-3 when scoring at least 100 points. … Led by Schroder’s nine points, the bench scored 20 – 60 less than the reserves combined for in Wednesday’s win at Philadelphia, the team’s highest total since 1987-88.

 

Bulls’ Jimmy Butler leaves game with sprained knee (VIDEO)

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This is not good.

With just more than a minute to go in the second quarter in Denver, Jimmy Butler drove the basket, absorbed some contact, and hit the ground hard. Butler — who seems to bounce back up from everything — stayed down. He hobbled out to take his free throws (the only way he could potentially return to the game) but then left it in a wheelchair. He did not return to the game.

The Bulls announced he has a left knee sprain. This is the same knee where he has been battling tendonitis.

Butler will have an MRI to assess the damage. As of now, there is no timetable for his return, but it seems he will miss at least a few games.

The up-and-down Bulls can’t afford to lose him for an extended stretch.

Celtics’ Avery Bradley’s three at buzzer beats Cavaliers (VIDEO)

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After two Kyrie Irving nailed free throws, the Cavaliers were up 103-99 on Boston with :07 left in the game. They had this.

Then J.R. Smith fouled Evan Turner on a driving lay-up with four seconds left, giving the Celtics the chance at an and-1. Turner missed the free throw, but the rebound bounced off LeBron James out-of-bounds, and Boston was going to get one last shot.

Avery Bradley nailed it from the corner. Celtics win.

Cleveland led this game by 22 at one point; they collapsed. This one is going to sting.