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.

Fergie says she “tried my best” after national anthem blowback

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LOS ANGELES (AP) — Fergie is apologizing after trying something different with the national anthem at the NBA All-Star Game.

“I’ve always been honored and proud to perform the national anthem and last night I wanted to try something special for the NBA,” the Grammy-winning singer said in a statement Monday. “I’m a risk taker artistically, but clearly this rendition didn’t strike the intended tone. I love this country and honestly tried my best.”

Fergie’s slow, bluesy rendition of “The Star-Spangled Banner” on Sunday night wasn’t particularly well received at Staples Center or on social media before the 67th edition of the NBA’s annual showcase.

A low chuckle rumbled through the sold-out arena after she finished the first line of the song with a throaty growl on “the dawn’s early light.”

Fans throughout the star-studded crowd reacted with varying levels of bemusement and enthusiasm while her languid, 2 +-minute version of the song continued. Although Fergie was on pitch, her tempo, musical accompaniment and sexy delivery were not exactly typical for a sporting event or a patriotic song.

Golden State All-Star Draymond Green captured Sunday’s mood – and became an instant GIF – when he was shown open-mouthed on the scoreboard and the television broadcast in apparent confusion over the unique vocal stylings. Green then chuckled to himself after realizing he was on TV.

After a forceful finish, Fergie finally got big cheers when she shouted, “Let’s play some basketball!”

The Black Eyed Peas singer, born Stacy Ann Ferguson, is from nearby Hacienda Heights, California.

Famed basketball commentator Charles Barkley joked that he “needed a cigarette” after Fergie’s performance during the TNT halftime show.

Former Lakers star Shaquille O’Neal leaped to Fergie’s defense, saying: “Fergie, I love you. It was different. It was sexy. I liked it. Leave her alone.”

Others on social media weren’t as kind, with criticism of the performance outpacing the positive reviews.

 

Did Lakers help keep LeBron James in Cleveland with trade?

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When the trade went down between the Lakers and Cavaliers before the deadline — sending Jordan Clarkson and Larry Nance Jr. to Cleveland in exchange for Isaiah Thomas and Channing Frye plus Cleveland’s 2018 first-round draft pick (top-five protected) — it caught the NBA by surprise.

The first reaction for a lot of people to the deal? This opens up as much as $70 million in cap space for the Lakers this summer (depending on other moves with players such as Julius Randle). Los Angeles could sign two max players — LeBron James and Paul George. Why would Cleveland help Los Angeles open up room to steal LeBron.

The Cavaliers didn’t see it that way — they knew they had to make a major shakeup or LeBron was gone. At that point, does it matter where? So in a series of moves, Cleveland GM Koby Altman radically remade the roster around LeBron. The goal was to energize them back into being the team to beat in the East, and from there make it hard for him to leave as a free agent. Since the trades, the Cavaliers are 2-0 and LeBron has clearly been reinvigorated, plus they will add Kevin Love back in a few weeks.

Altman’s plan seems to be working, one executive told Mark Spears of ESPN’s The Undefeated.

“I wouldn’t be surprised if he stays in Cleveland now,” one high-ranking Eastern Conference team executive said. “The Cavaliers put a really good team around him. The Cavaliers have made it really tough for him to decide to leave Cleveland again. The Lakers might have helped them keep LeBron.”

I had heard from sources for a while LeBron to the Lakers was not likely (Paul George is another story, that door remains open). As Spears notes, the Lakers did not have an All-Star in Sunday’s game. Even if LeBron and PG13 went to Los Angeles, that team was third or fourth best in the West next season. LeBron is in full on legacy mode and wants to win rings. Los Angeles is not the place to do it.

Houston is interesting (and it’s still a team I hear some execs think has a real shot), but the gutting or role players on that roster to make it work would be a concern. Maybe a dark horse such as Philadelphia can emerge. However, if LeBron can lead this newly-energized Cavaliers team to the Finals again (his eighth consecutive trip there), they get a high draft pick with the Brooklyn pick, then LeBron gets a commitment from Altman and owner Dan Gilbert to keep spending and being aggressive, where is he going to be closer to a title than at home?

Lou Williams trolls Jimmy Butler for resting during All-Star Game

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Jimmy Butler was in Los Angeles and enjoying his well-earned All-Star slot on Team Stephen.

Well, except for the actual playing basketball part. Butler did not set foot on the court during the All-Star Game at his own request.

“Rest,” Butler said when asked why he didn’t play. “I have to rest. I have to rest my body up. This Timberwolves season is very, very important to me. I’ve got to make sure I’m ready to roll when I get back there.”

Lou Williams, the Clippers’ guard who likely would have been near the front of the line for an open All-Star roster spot in the West (likely second in the queue behind Chris Paul), but instead took part in the Saturday Skills Competition then had Sunday off, trolled Butler for it on Twitter.

This seems more good natured than genuinely bitter.

Williams will roll with it, but his point’s a valid one — if you’re an All-Star, at least play a little and give the people what they want. Get out there for five minutes or whatever. LaMarcus Aldridge only played four minutes, no big deal.

If you’re not going to use the roster spot, give it up to someone who will.

Report: Raptors won’t sign Vince Carter if he gets bought out

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Of returning to the Raptors, Vince Carter said, “It’ll happen one day.” It sounds as if the Kings would buy him out if he wants.

Will he end the season with Toronto?

Josh Lewenberg of TSN 1050:

After speaking with a few team sources, I can confirm that they’ve had internal dialogue and debate about the idea of bringing Vince Carter back. It’s something that they wanted to do over the summer. That’s why they made him an offer, something that I’ve reported in the past. And it’s also something that they’d be open to in the future, perhaps next year in some capacity. But they’ve decided now is not the right time. And I think the consensus seems to be there’s so much going on right now, and they want this season to be about this team, their accomplishments and their playoff push and not the sideshow that I think would come with a Vince Carter return.

The Raptors (41-16) are on pace for their best record ever. They’re excelling offensively and defensively. Kyle Lowry and DeMar DeRozan are spearheading a more dynamic offense that spurs hope for more playoff success.

Toronto is probably correct to save the Carter reunion for another year – though it depends who else is available. That 15th roster spot could be useful. If Carter is the best player who’d sign, the Raptors should sign him and deal with the hoopla.

But it’s not clear whom they could get or whether they could even get Carter. He hasn’t sounded like someone who’d forgo guaranteed salary to play for the minimum.