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Details emerge of league’s new revenue sharing plan

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Revenue sharing was a big part of this summer’s Collective Bargaining Agreement talks, but the most secretive part. The owners wanted it to be something separate from the CBA itself, the players wanted it included, but what was going to be included was vague.

Even when the deal was finalized and the lockout lifted, the details of revenue sharing were not finalized and unclear. But now they are starting to come into focus. In part due to a story in the Sports Business Daily on Tuesday (hat tip to IamaGM).

Looks like the NBA is going with a “pool” system for revenue sharing, something that is dramatically different in both style and amount than it was in the last labor deal.

Sources said that the core of the plan calls for all teams to contribute an annually fixed percentage, roughly 50 percent, of their total annual revenue, minus certain expenses such as arena operating costs, into a revenue sharing pool.

Each team then receives an allocation equal to the league’s average team payroll for that season from the revenue pool. If a team’s contribution to the pool is less than the league’s average team payroll, then that team is a revenue recipient. Teams that contribute an amount that exceeds the average team salary fund the revenue given to receiving teams.

So, what does that really mean? Well, if you’re a small market team it means a lot of money.

For example, one high-revenue team could contribute 50 percent of its total revenue, minus certain expenses, for a total of $70 million put into the pool. A low-revenue team could contribute total revenue of $45 million. After allocating to both teams the average team payroll of $58 million, the low-revenue team would receive $13 million in revenue sharing to make up the difference between its pooled revenue from the league’s average payroll. The high-revenue team would be contributing $12 million to be distributed among receiving teams, adding financial balance between the markets.

Remember we are talking about the local revenue — money from ticket sales, concessions, parking and local television deals — not the national television deal revenue which is already split evenly between the teams.

There are caps on the percentage of revenue so that the big market teams — Lakers, Knicks, Celtics — get to keep a good percentage of their money. Jeanie Buss of the big-revenue Lakers toes the company line in the SBJ article. Of course, they have so much money coming in starting next year from their new local television deal this isn’t fazing them. At all.

Russell Westbrook laughs off question about Kevin Durant

LOS ANGELES, CA - DECEMBER 21:  Russell Westbrook #0 of the Oklahoma City Thunder and Kevin Durant #35 discuss play during the first half against the Los Angeles ClipperLos Angeles Kingsat Staples Center on December 21, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
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At some point, Russell Westbrook will sit down with members of the media and discuss Kevin Durant leaving the Thunder, how he felt about the move, and how it impacted him both personally and professionally.

But not right now. He remains silent.

This Vine making its way around, where Westbrook laughs — probably at the question, although read into that whatever you want — when asked about Durant sums up where we are.

https://platform.vine.co/static/scripts/embed.js

In the full Facebook clip, Westbrook walks away, too. It’s his right. He can talk about it on his schedule.

Rudy Gay, Vlade Divac clear the air

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Rudy Gay expressed displeasure with how the Kings were handling trade rumors. Sacramento general manager Vlade Divac retorted that Gay had his phone number.

Apparently, Gay found it.

Sean Cunningham of ABC 10:

Following those comments, Gay told ABC10 on Thursday afternoon that he had since spoken with Divac.

“I have talked to Vlade,” Gay said from his Nike Skills Academy at Hardwood Palace in Rocklin. “I can’t say since Monday stuff has changed, but I just feel like we have a little bit of time to start changing things.”

Gay, who will be entering his 11th NBA season, has insisted he hasn’t demanded a trade and should he remain a member of the Kings by the time training camp opens in October, he says he’ll report and be ready to go.

“At this point in my career I just want to be happy,” said Gay. “I talked to Vlade and we’re trying to make that happen.”

Even if he hasn’t demanded a trade, it sure sounds like Gay would welcome one. I doubt the Kings would mind moving on, either.

But it takes another team to trade for Gay, and so far, one hasn’t emerged.

In the meantime, tensions appear to be eased. Open communication usually helps.

 

Jimmy Butler: I didn’t move Derrick Rose or Joakim Noah from Bulls

PHOENIX, AZ - JANUARY 30:  Joakim Noah #13, Derrick Rose #1 and Jimmy Butler #21 of the Chicago Bulls react during the second half of the NBA game against the Phoenix Suns at US Airways Center on January 30, 2015 in Phoenix, Arizona. The Suns defeated the Bulls 99-93. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Christian Petersen/Getty Images)
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Jimmy Butler said of the Derrick Rose trade, “It had to be one of us.”

Butler also says not blame him for the Bulls losing Rose — or Joakim Noah, who’s also headed to the Knicks.

Jimmy Butler, via Vincent Goodwill of CSN Chicago:

“That has nothing to do with me, I don’t move guys,” Butler said. “People are gonna think what they’re gonna think. I don’t let it bother me. I know where I stand, I know who I am. It’s one more thing for people to talk about. I don’t pay too much attention to it.”

I can believe Butler didn’t directly urge Chicago to trade Rose, but Butler’s presence matters.

Rose and Butler clearly didn’t ideally mesh on the court, and there might have been off-court issues, too. If it weren’t for Butler, the Bulls might have kept Rose.

Noah is a little different, because it seems he, more than the team, was ready for a breakup. Still, that might have also had to do with Butler.

Butler is trying to grow into a leader, a natural progression for someone who became his team’s best player. But that was awkward with the Bulls’ previous leaders — Rose and Noah — still in the locker room. There’s no simple solution, though moving on without Rose and Noah will clear that cloud.

So — without other information — it’s too much to “blame” Butler for Rose’s and Noah’s departures. But Rose and Noah moving from Chicago to New York can still be ascribed to Butler.

It might not have been something asked for directly. It’s just the reality of the situation.

Dwyane Wade: “It’s Jimmy Butler’s team”

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Dwyane Wade is back in sweet home, Chicago.

Wade met with the media for the first time and talked about the pairing of himself and Rajon Rondo with the Bulls’ existing star in Jimmy Butler — Wade used the term “three alphas” more than once. But he also was clear about whose team this was going to be on the court.

“We’re not going to go through this all year. It’s Jimmy Butler’s team. Myself and Rondo are here to bring what we bring as athletes.”

Wade added that he would not be a Bull if Jimmy Butler had not personally called him and asked him to come.

Wade took that cue from Shaquille O’Neal when he joined Wade’s Heat team — which eventually led to the Heat’s first title in 2006. The Bulls would love for that kind of result here, although it’s much tougher to see this Chicago roster having anywhere near that kind of impact.