How far are the NBA and players, really? Well, it depends…

Leave a comment

This much is clear — the NBA and its players union are much closer to a deal today than they were a week ago.

Tuesday’s intense negotiations may have ended with threats of the first weeks of the season being canceled, but it also saw real progress. First, they are finally talking about the real issue at the heart of these talks, the split of “basketball related income.” (BRI is made up of all the money that comes into the league — national television contracts, ticket sales, etc.) In the just expired labor deal, the players got 57 percent of BRI.

In terms of formal offers on the table, the two sides remain divided on the BRI split of with the players staying at 53 percent and the owners offering the players 47 percent. But in reported “informal concepts” discussed the owners offered closer to 50 percent while the players (who have already surrendered $160 million a year in these talks) held firm at 53 percent.

What does that really mean? ESPN’s Larry Coon — the best writer on NBA collective bargaining agreements out there — breaks down the numbers.

Three percent. It’s the difference between an opening tipoff and an empty arena. For both sides, the negotiating process boils down to a simple question — should we accept the offer on the table, or can we do better if we say “no” and wait?

For the players, the cost of saying “no” can be easily quantified. The owners have offered the players 50 percent of BRI. This season’s BRI is expected to be around $4 billion, so the owners are offering the players a $2 billion slice of the pie. The players are holding out for a 53 percent share, so they’re looking for $2.12 billion.

That’s $120 million that separates them. Of course, that’s just in year one. Over the course of a six-year agreement, assuming four percent growth per year, the total is closer to $796 million.

Now, nearly $800 million apart is a lot closer than they were, but it is still serious bank.

Coon’s assuming something there I’m not willing to easily concede — how the two sides define BRI. There was the definition of BRI that was in the old labor deal (which Stern said the owners 50 percent offer was based on). But the owners have made previous proposals that would take $350 million a year off the top of BRI for expenses such as NBA building renovations or the NBA’s international outreach efforts. How many of those expenses work their way back into the proposal will define how big the total pie will be, and that impacts how the sides want to define it.

Coon also makes this point with his numbers — by mid-December both the owners and players will have cost themselves all the money they stand to gain from holding a hard line on this deal.

The players are holding out for an additional $120 million in 2011-12, but holding out costs them $82.4 million per week. They would lose everything they stand to gain this season in less than two weeks. On Monday the league is expected to announce the cancellation of the first two weeks of the season, which will cost the players $164.8 million. Over a six-year agreement, the players would burn through the $796 million in a little under 10 weeks.

Then there’s the fan anger impact on money — if the NBA misses games, will fans come back? Some will be offended and walk away from the sport, the die hards will return no matter what. The real question is this: If the league is playing regular season games by Dec. 1, in time for the Christmas showcase day and the All-Star Game, will fans even notice they were gone? Will there be a significant ratings dip, or with the fans focused on the NFL and college football will they not care until later?

There are a lot of questions out there and no easy answers. Which makes it hard to see why talks on Sunday — if the two sides even have them — could lead to a deal on Monday. There is still a gap between the sides that is not easy to bridge.

Timberwolves working on (max?) extension for Andrew Wiggins

Elsa/Getty Images
1 Comment

Andrew Wiggins is eligible for a contract extension that projects to be worth $148 million over five years. The Timberwolves could even include a clause that increases Wiggins’ compensation up to a projected $153 if he makes an All-NBA team or wins Defensive Player of the Year next season.

Jerry Zgoda of the StarTribune:

The Wolves have until October to complete a negotiation that shouldn’t take all that much negotiating if Wiggins accepts a contract that’s expected to approach $150 million.

Timberwolves president/coach Tom Thibodeau appears to be talking just generally about an extension. Zgoda brings up a max offer. It’s unclear whether Zgoda is reporting or supposing Minnesota has offered/plans to offer that much.

I’d hesitate to offer Wiggins the full max.

He’s a high-volume scorer with below-average efficiency (carrying enough of a load where that tradeoff is helpful). But his rebounding and defense lag WAY behind where his athleticism suggests those skills should be. For someone who dominated the ball, he’s not much of a distributor.

On the other hand, Wiggins is just 22 and possesses the physical tools to grow into a complete player. It’s reasonable to bet on him getting there, and an extension should be based on what Wiggins will do in future seasons, not what he has done already.

Plus, a max salary is the only allowable rate for a five-year extension. Offer any less, and the Timberwolves would be limited to a four-year extension. Do they really want to face his unrestricted free agency – in the midst of his prime – a year sooner.

It’s not as if they’d lose him now by forgoing an extension, though. Wiggins would be a restricted free agent next summer, and Minnesota could always extend a maximum qualifying offer, which would mean any offer sheet must be for three or four years (not including option years). The Timberwolves would also have a five-year max contract on the table (which would carry the same terms as a five-year max extension signed this offseason). Wiggins could accepted the $9,846,619 one-year qualifying offer and become an unrestricted free agent in 2019, but that would be an unprecedented risk with so much money on the table.

Minnesota can all but guarantee locking him up for the next four seasons (including the final year of his rookie-scale contract this year). A max extension would secure him for the five (six if it doesn’t include a player option).

Ultimately, I’d lean toward offering Wiggins less than a max extension. It’s a tight market with the salary-cap stagnating in coming years, and a max offer sheet might not be available to him in restricted free agency. The Timberwolves could evaluate him another season and offer Wiggins the max next summer if he deserves it. If Wiggins wants security now, he can take a slight discount. That might come with complications down the road, but so would overpaying a one-dimensional player. A five-year max extension wouldn’t be terrible – if Minnesota doesn’t grant a player or early termination option.

By the way, don’t worry about another Kevin LoveRicky Rubio situation. The new Collective Bargaining Agreement allows teams to sign two designated-player rookie-scale extensions, so the Timberwolves could still offer Karl-Anthony Towns (who more clearly deserves it) one after giving Wiggins one.

Celtics add toughness with Aron Baynes and Marcus Morris

AP Photo/Carlos Osorio
Leave a comment

WALTHAM, Mass. (AP) Aron Baynes and Marcus Morris are happy to be coming to Boston at the same time, if only so they don’t have to play against each other.

Baynes signed with the Celtics as a free agent on Wednesday, and he already has a familiar face in the team’s locker room: Morris, who was acquired in a trade for Avery Bradley on July 7. Baynes said Morris “brings a lot of toughness” to the court, and Celtics assistant general manager Mike Zarren said the 6-foot-10 Australian can do the same.

“Red Auerbach said, `Get the instigators, not the retaliators,”‘ Zarren said before introducing Baynes to the media. “He’s definitely an instigator.”

The two former Pistons shared the day, with the Celtics announcing Baynes’ signing an hour before a media call with Morris. Bradley, the longest-tenured member of the team and the only remnant from the New Big Three era, needed to go to clear the salary cap space for prize free agent catch Gordon Hayward.

Baynes and Morris join a team that earned the No. 1 seed in the East last season but lost to the Cleveland Cavaliers in the conference finals in five games. Baynes, who averaged 15.5 minutes last season for a team that missed the playoffs, said coming to Boston was “a basketball decision.”

“Hopefully, I’m a piece that helps them bring the puzzle together,” he said. “You always want to be able to play more. I didn’t see myself having much bigger a role than I’ve had the past two years.”

An undrafted free agent who won an NBA title with the Spurs in 2014, Baynes averaged 5.2 points and 4.1 rebounds in his five-year career. He played in 75 games last year for the Pistons, starting two, averaging 4.9 points and 4.4 rebounds.

After working out at the team’s facility in the morning, Baynes came out to greet children at a basketball camp taking place on the practice court. A noted BBQ enthusiast who tweeted out a request for recommendations in the area, Baynes said he hadn’t tried the local offerings yet.

“There’s a few lobster rolls around here,” he said.

Morris averaged 14 points last season in Detroit, where he was a mainstay in the starting lineup. He saw the Celtics up close while watching his twin brother, Markieff, play for the Wizards in a seven-game Eastern Conference semifinal series against Boston last year.

Morris said coming to Boston cushioned the blow of being traded.

“How can I be upset about being a Boston Celtic?” he said. “At the end of the day, I’m a competitor. I want to play against the best. I want to play for championships.”

Morris said he reached out to longtime Celtics star Paul Pierce after learning he was traded.

“He said I’m going to love it,” said Morris, who like Pierce went to Kansas. “That’s all I needed to hear.”

More AP NBA: https://apnews.com/tag/NBAbasketball

Adam Silver on sports gambling: “My sense is the law will change in the next few years”

2 Comments

This isn’t new ground for NBA Commissioner Adam Silver. He has called legalized sports gambling in the United States “inevitable” and advocated in the New York Times for the federal government to put in a framework to control it. He’s not been shy about telling the heads of the other major sports leagues what he sees coming. Mark Cuban has Silver’s back on this one.

The commissioners of the four major sports were all on hand for a panel called “GameChangers: Creating the Future of Sports” in New York on Wednesday, and Silver’s position hasn’t changed, reports ESPN.

“My sense is the law will change in the next few years in the United States,” Silver said when asked about gambling.

He also stressed the importance of in-game wagering to fan engagement, noting, “People want to bet throughout the game … It results in enormous additional engagement with the fans.”

I’m not sure about “the next few years” timeline. I would rather be forced to watch The Emoji Movie than try to predict what the current Congress will do, but with its current conservative makeup legalizing sports betting seems unlikely.

But in the next decade or two… it feels like Silver may be right. The Supreme Court is taking up the case of whether the federal government can block states — in this case, New Jersey specifically — from allowing sports gambling. That could open the door for other states to follow.  Governments state and federal will not see it as a moral issue so much as a new revenue generator — they can tax it. So it will happen. Eventually.

With that Silver is right, professional sports leagues need to be prepared for that reality. The NBA seems to be out in front of that, ready to ride the wave when it crests. For now, they are just paddling around waiting for the right wave to ride.

Wizards’ owner Ted Leonsis: “My prediction is John Wall will sign his extension”

Leave a comment

John Wall is one of the handful of NBA players who qualifies for the new designated veteran “super max” contract extension — and the Wizards want to give it to him. A four-year, $170 million extension of his current deal is on the table (it would kick in after the two years, $37 million on his current contract).

Wall has yet to sign it. He said at the time it was offered he wanted to talk about it with his family and see what the Wizards did this offseason. He’s not unhappy, he just wants to be sure before he locks himself in with Washington through his prime.

Washington owner Ted Leonsis told Candace Buckner of the Washington Post he thinks Wall will sign.

Maybe, but there’s not a lot of motivation for Wall to sign right now. Wall can bet on himself that he will make the All-NBA team again next year — there’s a deep class of guards but if he stays healthy he stands a good chance — at which time he’s still eligible for a designated veteran “super max” contract extension that would be five-years, roughly $200 million (and would kick in after the one year on his current deal).

That delay would also keep pressure on the Wizards to find ways to improve the roster. Washington is largely capped out and didn’t make any major moves this summer other than re-signing Otto Porter to a max extension (they matched a Brooklyn offer sheet). Washington is good, likely the third or fourth best team in the East, but a notch below Cleveland and Boston right now. Wall wants to push them to get another star and help Washington move up into contender status — he pushed for the Wizards to chase Paul George and have him replace Porter (a deal that was never going to happen, but you can see what Wall is thinking about being one star player short).

Ultimately, I think Leonsis is right, Wall will sign. It’s just a matter of when. Does he take this deal now, or wait until next summer and do it?