Mark Cuban, David Stern

Franchise value — the other way the owners win labor talks

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When the NHL lost a season due to lockout, the operative phrase used by the owners was “cost certainty.” The NBA owners were smarter about their spin and disguised it as “competitive balance” but the idea of controlling team spending has been the same.

One thing that happened for NHL owners when the lockout ended — their franchise values went up. Any business where you can better control costs becomes a more valuable asset.

Which brings us around to the NBA lockout. With each percentage of basketball related income the owners squeeze out of the players, not only do they get more revenue their franchise value will reflect it. Friend of this blog Larry Coon explains it well at ESPN.

How much will franchise values increase? It’s hard to say. There are a lot of factors that go into determining the value of a business, and a number of ways to do the calculation. A conservative estimate might be a $3 million to $12 million average increase in franchise values for each percentage point in revenues the league wrests from the players. Decreasing the players’ split of BRI from 57 percent to 50 percent therefore might be worth $21 million to $84 million per team.

The owners will only see this money when they sell their teams. But when they do sell, none of it is shared with the players.

Just a reminder how big the owners are winning these negotiations. The rich get richer. And maybe it’s why they can give a little on system issues and end this thing.

James Harden: “I am the best player in the league. I believe that.”

James Harden, Stephen Curry
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James Harden was the MVP last season — if you ask his fellow NBA players.

The traditional award (based on a media vote) went to Stephen Curry (in the closest vote in four years), and that was the right call (in my mind). But from the time it happened Harden did not buy it. And he still doesn’t buy it. In the least — and he’s using that as fuel for this season. That’s what he told Fran Blinebury over at

“I am the best player in the league. I believe that,” he said. “I thought I was last year, too.”

Well, it’s a more realistic claim than Paul George’s.

“But that award means most valuable to your team. We finished second in the West, which nobody thought we were going to do at the beginning of the year even when everybody was healthy. We were near the top in having the most injuries. We won our division in a division where every single team made the playoffs.

“There’s so many factors. I led the league in total points scored, minutes played. Like I said, I’m not taking anything away from Steph, but I felt I deserved the Most Valuable Player. That stays with me.”

That’s very Kobe Bryant of you to turn that into fuel. Defining the MVP Award is an annual discussion that nobody agrees on.

I could get into how Harden was the old-school, traditional stats MVP, how that ignores how Steve Kerr used Curry, and how that opened up the Warriors’ offense to championship levels. Curry put up numbers, but he was also the distraction, the bright star that Kerr used to open up looks for Klay Thompson, Draymond Green, and others. Curry’s strength was not just what he did with the ball in his hands, but his gravity to draw defenders even when he didn’t. Did the Warriors stay healthier than the Rockets? No doubt. Should Curry be penalized for that?

It’s simple for Harden — if he can put up those numbers again, if he can be the fulcrum of a top offense, he will be in the discussion for MVP again. And, if he can lead the Rockets beyond the conference finals, nobody will talk about that MVP snub anyway.