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Those terrible NBA contracts are not why there is a lockout

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Eddy Curry made $11.2 million last season to do nothing. Gilbert Arenas made $17 million and as three more years on his deal left. Joe Johnson just got more money than LeBron James. And the list goes on and on — did Luke Walton earn $6 million last season?

It is easy to talk about economic dysfunction in the NBA and point to the horrific contracts that seem to be on every team’s roster and say “if the team had just not given out that contract we’d be fine and there wouldn’t need to be a lockout.”

Wrong.

Tim Donahue has been doing a great series of stories on the lockout details over at the Pacers blog Eight Points Nine Seconds. In the latest installment looks at the good and bad contracts around the league in fantastic detail — then reminds everyone that those contracts, while bad for the individual teams, do not change the overall picture.

The players get 57 percent of the basketball related income that comes in to the league. No matter what the owners do.

In 2010-2011, negotiated salaries totaled about $2.02 billion. If my lists above are reasonable, about 37% of that sum was tied up in bad or under-performing contracts. If you assume that only half of that 37% can be considered “wasted” money (because those players of course did offer some production), it means the owners threw away about $375 million in salaries.

Yet, they still had to write a check for $26 million to reach their 57% promise to the players. What this means is that if the owners had made none of their myriad mistakes, they would have realized a savings of … wait for it …

Zero dollars. Yep.

Had the owners been as smart and efficient as they possibly could have been when signing players it would not have provided any savings whatsoever. It merely would have resulted in a larger check being written to the players — even after the escrow payout — to fulfill the 57% of BRI that players are guaranteed under the system currently in place.

I don’t agree with everything Donahue says — he suggests this negates the idea the owners want to protect themselves from themselves with this new CBA. Actually, they do want that, but it is separate from the BRI argument. They want shorter contracts and non-guaranteed deals (or at least ones with buyouts on the back end of deals) so they can get out of terrible contracts they agree to. They want a “get out of jail free” card on those bad deals we all know about.

Also, the cost of players did not force owners to increase spending on non-player expenses at a rate that was faster than revenue growth.

Still, being smarter about contracts would not change the bottom line for a lot of teams. Whether they pay it out in bad contracts or a supplemental check at the end of the season, they’d be paying out 57 percent of the gross to the players either way. Which is why we keep saying to watch the BRI split numbers as the negotiations move forward. Everything else — hard cap, contract length, guaranteed deals — are a slave to the BRI (and how the BRI is defined, the players want to keep it gross revenue, the owners want some expenses removed from it). When that is solved, everything else falls into place fairly quickly.

They are a long way from agreeing on any of that. But at least they are going to talk in the next few weeks.

Kings GM Vlade Divac on Rudy Gay’s communication complaints: ‘He has my number’

Vlade Divac
AP Photo/Rich Pedroncelli
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Rudy Gay complained about how the Kings are handling the trade rumors swirling around him.

Sacramento general manager Vlade Divac, via James Ham of CSN California:

“He has my number,” Divac told CSN California. “If I do something, I will call him. Obviously, if I didn’t call him, we didn’t do anything.”

“Look, I was a player, 16-17 years in the league, nobody called me everyday and tell me what management is doing,” Divac said. “Management was doing their job. If something big happened, they called and told me. Obviously, nothing big happened (so) I’m not going to call anybody.”

I suppose Divac can take that tack. He’s obviously not obligated to provide Gay regular updates.

But the Kings already have a reputation for putting their players in bleak positions. This doesn’t help.

Even if Divac feels calling Gay is going out of his way, so what? The alternative — Gay either coming to training camp unhappy or spreading word of Sacramento’s mistreatment of players to his new teammates after a trade — is far worse.

It’s not enough for Divac to just wait for Gay to call him — especially because Divac might not be as reliable with the phone as he thinks.

Union to fund health insurance for retired NBA players

LOS ANGELES, CA - FEBRUARY 23:  Professional basketball player Chris Paul commentates during the CP3 PBA Celebrity Invitational Charity Bowling Tournament presented by GoBowling.com at Lucky Strike Lanes at L.A. Live on February 23, 2016 in Los Angeles, California.  (Photo by Imeh Akpanudosen/Getty Images for Professional Bowlers Association)
Imeh Akpanudosen/Getty Images for Professional Bowlers Association
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The National Basketball Players Association has talked for more than a year about covering medical expenses for retired players.

Today, the union announced a formal plan.

NBPA release:

The National Basketball Players Association (NBPA) announced today that its player representatives have voted unanimously to fund health insurance for all retired NBA players with at least three years of service in the league. This program is the first of its kind among North American professional sports. It also exemplifies the NBPA’s focus on the health and welfare of its current, retired and future members.

“The game has never before been more popular, and all the players in our league today recognize that we’re only in this position because of the hard work and dedication of the men who came before us,” said Chris Paul, NBPA President and nine-time All-Star. “It’s important that we take care of our entire extended NBA family, and I’m proud of my fellow players for taking this unprecedented step to ensure the health and well-being of our predecessors.”

The unanimous vote – which took place during the NBPA Summer Meeting in New York on June 26 – established a multi-faceted health insurance program through UnitedHealthcare, the country’s leading health benefits provider. The current proposal includes:

  • Retired players with between three and six years of NBA service time but who are not yet eligible for Medicare would be offered a plan that includes medical, hospital and prescription drug coverage with modest out-of-pocket costs for deductibles and co-pays;

  • Those with between seven and nine years of service would be offered the same coverage with even lower out-of-pocket costs;

  • Retired players with at least 10 years of service would be offered the same coverage as the seven-to-nine year players, and would include coverage for their entire family;

  • Retired players with three-nine years of service who are eligible for Medicare would be offered a $0 deductible and $0 co-pay plan along with a low-cost prescription drug plan; those with 10+ years of service to receive this coverage for themselves and their spouse.

  • The open enrollment period for retired players would begin this fall, with coverage beginning on January 1, 2017.

This is a good thing.

It also could become a bargaining point in Collective Bargaining Agreement negotiations. Should current players face the entire burden of insuring retired players, or should owners split the cost? (The fact that the question is even being posed paints players in a positive light.)

But back to the bigger point: This is a good thing. It’ll help retired players who need it, retired players who helped position the current generation to afford this. Kudos to the union for stepping up.

Report: Bulls’ Cristiano Felicio ‘strong favorite’ to replace Anderson Varejao on Brazilian Olympic team

CHICAGO, IL - FEBRUARY 19: Cristiano Felicio #6 of the Chicago Bulls looks to pass against the Toronto Raptors at the United Center on February 19, 2016 in Chicago, Illinois. The Bulls defeated the Raptors 116-106. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using the photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Jonathan Daniel/Getty Images)
Jonathan Daniel/Getty Images
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Warriors center Anderson Varejao will miss the Rio Olympics due to a back injury.

Where will Team Brazil turn now?

Likely to Bulls center Cristiano Felicio.

Marc Stein of ESPN:

Felicio came on strong late last season. He puts his 6-foot-10, 275-pound frame to good use protecting the paint and rebounding. He showed potential as passer and mid-range shooter, too.

At age 24, he’s a candidate to break out in the Olympics.

If he’s not ready, Brazil can turn to a steady veteran at center, Nene.

Report: Equipment staffer punched by Blake Griffin no longer works for Clippers

Los Angeles Clippers forward Blake Griffin stands on the court as equipment manager Matias Testi, left, stands behind the bench during the second half of an NBA basketball game, Thursday, Feb. 18, 2016, in Los Angeles. Griffin broke his hand last month when he punched Testi in the face. The Clippers won 105-86. (AP Photo/Mark J. Terrill)
AP Photo/Mark J. Terrill
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Blake Griffin broke his hand punching Clippers equipment manager Matias Testi in January.

Make that former Clippers equipment manager Matias Testi.

TMZ:

The L.A. Clippers equipment staffer who was punched in the face by Blake Griffin during a fight in Toronto earlier this year is off the team — and will NOT be back for the ’16/’17 season … TMZ Sports has learned.

We spoke with a rep for the Clippers who confirmed Matias Testi “no longer works for the team.”

#Family