Franchise value — the other way the owners win labor talks

1 Comment

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.

John Wall scores 37 as Wizards down LeBron James, Cavs 127-115

Associated Press
1 Comment

CLEVELAND (AP) John Wall scored 37 points, Bradley Beal added 27 and the Washington Wizards began a challenging road trip by beating LeBron James and the Cleveland Cavaliers 127-115 on Saturday night.

Wall scored 18 in the first quarter, when the Wizards shot 82 percent, and Washington held on down the stretch to avenge an overtime loss to the NBA champions last month.

James, who briefly wore goggles to protect an eye injury sustained Friday night, scored 24 and added 11 rebounds and eight assists. Kyrie Irving added 23 points and Kevin Love 17 for Cleveland, playing at home for the only time in a seven-game stretch.

Washington’s victory cut Cleveland’s lead in the Eastern Conference to a half-game over idle Boston.

Rudy Gobert calls out Jazz teammates after loss: “We’ve just got to compete. We’re too nice.”

Associated Press
1 Comment

Utah and the L.A. Clippers are almost locked into a first round, four vs. five battle in the Western Conference. The only question is which team will have home court, and the Clippers took a big step towards that beating the Jazz at home Saturday. While the Jazz still has a half-game lead, the Clippers have a much softer schedule the rest of the way.

After that loss, Jazz center Rudy Gobert was ticked off and called out his teammates. Via Tim MacMahon of ESPN.

“We’ve got guys that compete, but some of us don’t compete. Some of us just think about scoring. That’s what it is. … Coach keeps repeating it: We’ve just got to compete. We’re too nice. Those guys, we know they’re going to get calls. We’ve just got to come out aggressive and ready to fight.”

Interesting comments for a team that is third in the NBA in defensive rating and 13th in offense.

Gobert is frustrated as Utah has dropped four of its last five, and the slump has been on both ends of the court. The defense has struggled, but if guys are looking to score too much they aren’t doing it efficiently because the offense has been worse.

This slide likely costs Utah home court in the first round, which could matter in what will be a tight matchup with Los Angeles. Utah needs to find its grinding rhythm again heading into the playoffs, at their best they can knock off the Clippers in the first round. Just not like they are playing now.

One thing to watch, Utah’s Gordon Hayward asked out of the game in the fourth quarter due to what is being called a bruised muscle in his leg. If he misses any time or if this lingers, it could be trouble for the Jazz in the postseason.

 

LeBron James starts game with protective goggles. That lasts about a minute.

1 Comment

LeBron James suffered a scratched cornea Friday night when he went up for a layup late in the third quarter and Jeremy Lamb tried to contest and caught him clean across the face. LeBron got the and-1, but had trouble keeping his eye open in postgame interviews Friday.

Saturday he did play — wearing protective goggles. As you can see above.

That lasted about a minute.

LeBron was likely frustrated as the Cavaliers defensive woes had the Wizards up double digits much of the first half.

Kobe Bryant says he’s “only a phone call away” if organization needs his advice

4 Comments

For the first time since he walked off the court in his final game, Kobe Bryant was back at Staples Center Friday night.

The reason was Shaquille O’Neal was getting a statue out in front of Staples Center (a building that may not have gotten built without the two of them). The two famed feuders sat next to each other and joked around through the ceremony. Time heals all wounds.

With the new management of the Lakers — specifically Kobe’s former agent Rob Pelinka as GM — there has been speculation Kobe could take on a role. He’s not looking for something formal, according to reports, but he didn’t say no, either, when asked.

I picture Kobe as a guy who someday buys a team, not a guy who wants to haggle with agents over the details of a contract. He’s not going to take on a day-to-day role, he likes the retired life and what he is building with the Kobe brand.

That said, the Lakers front office can use all the smart voices it can get as they try speed up a rebuild. They should give him a call every once in a while.