Report: NBA finally reaches buyout deal with former ABA owners still getting TV revenues

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It’s one of the great legends of the ABA:

When the NBA and ABA merged in 1976 four teams came in the league — the Nets, Pacers, Spurs and Nuggets — while the Spirits of St. Louis were left out (sort of like the Flint Michigan Tropics). The owners of the Spirit, Ozzie and Daniel Silna, wanted some compensation for missing out and they worked out a deal with the league to get one-seventh of the national television revenue that each of the four teams coming in was to get — in perpetuity. Forever.

Back in 1976 the sum was laughably small, but in the years since the NBA’s broadcast rights exploded and the Silnas got a piece of it every year, an estimated $300 million in the nearly 40 years since the merger. As you might imagine, the NBA has tried to get out from that agreement but to no avail, in fact a judge recently ruled that the Silnas should get a slice of international and league pass broadband rights, too.

However, finally the two sides have worked out a buyout, reports the New York Times.

On Tuesday, the Silnas, the league and the four former A.B.A. teams will announce a conditional deal that will end the Silnas’ golden annuity. Almost.

The Silnas are to receive a $500 million upfront payment, financed through a private placement of notes by JPMorgan Chase and Merrill Lynch, according to three people with direct knowledge of the agreement. The deal would end the enormous perpetual payments and settle a lawsuit filed in federal court by the Silnas that demanded additional compensation from sources of television revenue that did not exist in 1976, including NBA TV, foreign broadcasting of games and League Pass, the service that lets fans watch out-of-market games.

Still, the league is not getting rid of the Silnas altogether. They will continue to get some television revenue, some of it from the disputed sources named in their lawsuit, through a new partnership that is to be formed with the Nets, the Pacers, the Nuggets and the Spurs, according to the people with knowledge of the agreement. But at some point, the Silnas can be bought out of their interest in the partnership.

Why the Silnas chose to settle is the interesting question — while they had to fight the league for years and pay a lot of attorneys a lot of money, which deal was like a huge, never-ending annuity. The Times answered that as well.

But there is a reluctance, more by Daniel, 69, than Ozzie, 80, to keep fighting the league, said one of the people who discussed the agreement.

What does this mean to you the fan? Nada. It really means long term more money in the owners’ pockets.

And my guess is the Silna families will be able to live pretty darn comfortably on that sum for a few years.

Brandon Jennings no fan of the NBA’s new Awards Ceremony event

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Come June 26, Drake will be on stage in New York City, handing out the NBA’s awards — Most Valuable Player, Defensive Player of the Year, Coach of the Year, and so on. (We need to set an under/over on the number of players Drake hugs that night.)

The NFL does it. The NHL does it. And the NBA has decided to follow suit with a broadcast awards ceremony where everything — except the All-NBA Team — will be announced that night. It’s happening because the broadcast partners want it.

Brandon Jennings is not a fan. Here is what the Wizards’ point guard Tweeted:

Jennings took down a Tweet that said if he had won the award he would have wanted to get it with the organization and his teammates around him. (And no, he knows he’s not winning the award. If you were going to put that in the comments be more creative.)

There’s something to what Jennings is saying. The NBA award roll out was awkward at times in previous years, but it gave the fans a chance to celebrate the awards with their favorite player. Now, everyone will watch it unfold on television from a ballroom in NYC. That feels a little colder. Also, we will get to see the reaction of those who don’t win (particularly this season, where several players can make a strong case for MVP).

It will be interesting to see how this first year goes, and how the league tweaks it going forward. The more than two month gap between the end of the regular season and the awards could feel a bit awkward. But we’re not going to knock the idea until we’ve seen it in action.

Portland GM makes it official, Festus Ezeli will not be back with team next season

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This season the Portland Trail Blazers found their center of the future (and the present) in Jusuf Nurkic.

Which makes the next step fairly obvious: Portland will not pick up the option on Festus Ezeli for next season, GM Neil Olshay confirmed at the team exit meetings Tuesday.

Portland signed Ezeli on what they thought was a great contract (one-year, $7.4 million, with a team option for the second year) because he was coming off knee surgery last summer. However, Ezeli was never healthy, needed a second surgery, and never got on the court. After taking it slow over last summer he practiced with the team twice in mid-October, there was more swelling, so he pulled back.

This summer Ezeli will not draw any guaranteed money from teams, but some teams may take a look at him. Athletic bigs get a lot of chances in the NBA.

Gordon Hayward will play for Jazz in Game 5 without minutes restriction

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Gordon Hayward has averaged 20.5 points a game in these playoffs — and that includes a 40 point outburst in Game 3 — but what has been more impressive is he has done it efficiently, with a true shooting percentage of 61.1. While Joe Johnson and others have stepped up, Utah will need Hayward’s shot creation if they are going to win this series.

They will have it Tuesday night in Game 5.

After missing the second half of Game 4 due to food poisoning (he tried to play but was ineffective in the first half), he is back and ready to go this time around.

So is Rudy Gobert. The Jazz will be at full health, while the Clippers remain without Blake Griffin for the remainder of the playoffs.

Having those two back is a boost for the Jazz, they need to score more consistently against the Clippers, but the bigger key will be defensively trying to deal with Chris Paul on the pick-and-roll. He has been masterful this series, and the Jazz need to keep him in check to give their offense a chance.

When NBA switches to Nike uniforms next season, Hornets will move to Jordan Brand

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There are not going to be dramatic changes to the look of the NBA when Nike takes over the apparel contract for next season, replacing Adidas. Instead of the Adidas logo, there will be a swoosh, sleeved jerseys will fade away, and some teams will modify their alternate jerseys, but the league is not getting a total uniform makeover next season. Things will look basically the same.

Except in Charlotte — they will not have a swoosh, they will have the Jordan Jumpman logo.

The why is obvious — Michael Jordan is the primary owner of the Hornets and, obviously, the guy the Jordan brand was named after. The Jordan Brand is part of Nike. The Hornets made the announcement this week buried in a press release about moving the fan shop at the arena, hat tip to Sole Collector for finding this. Here is what the release says:

The re-opening of the Hornets Fan Shop will coincide with the launch of the team’s new Jordan Brand uniforms as Nike becomes the NBA’s uniform provider beginning this season.  The Hornets will be the only team in the NBA wearing Jordan Brand uniforms, and with the agreement taking effect, the Hornets Fan Shop will have even more of the popular Jordan Brand Hornets merchandise than it has had previously.

While it’s not like the Lakers or Celtics are going to be changing up their traditional uniforms, even teams like the Hornets will keep a similar look under Nike.

What should be interesting to see is what the Christmas Day and All-Star uniforms look like under a Nike touch.