Report: Turner Broadcasting planning layoffs in advance of rising NBA rights fees

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Turner Broadcasting and Disney-owned properties ABC and ESPN exclusively share the national television rights to broadcast NBA basketball, and Turner wants to make sure that they keep their standing in this very lucrative partnership.

In advance of negotiations with the league on fees that are expected to soar in the next deal, Turner has reportedly planned layoffs in order to have the necessary cash on hand to pay whatever renewing the contract will cost.

From Darren Heitner of Forbes:

According to the New York Post, Turner Broadcasting is preparing to let go of roughly 550 employees in order to have enough money on hand to pay for an expected increase in NBA media rights fees.  The current media rights agreement with the aforementioned television networks is set to expire in 2016.  Rising rights fees, along with costs to broadcast more original programming, are predicted to lead to the layoffs at Turner owned TNT, TBS, CNN and truTV.

An internal memorandum circulated within Turner and dated August 19 reveals that the job cuts may be completed over the next two months.

“Information negotiations” concerning the NBA’s next media rights deal began in Summer 2013.  At the time, it was projected that a new deal would not be completed until Adam Silver took over the Commissioner position from David Stern.  Silver is now firmly established as NBA Commissioner.  The fact that Turner is seeking to move rather quickly in laying off a significant number of employees may be a sign that a new NBA media rights deal is forthcoming.

The current deal is worth more than $900 million per year to the league, but the next one could see those fees doubled.

Players are also planning for a new TV deal, in the form of signing shorter free agent contracts to wait and see how things play out. LeBron James is perhaps the most high-profile example, but others like restricted free agents Greg Monroe and Eric Bledsoe are considering playing under a one-year qualifying offer, in order to maximize their earning potential as the salary cap continues to rise in the seasons to come — something that is directly influenced by league revenue, which a new rights deal would help to dramatically increase.

TNT televises games on Thursday nights weekly throughout the season, and also chips in on the league’s bigger days on the schedule, which include the Christmas and Martin Luther King Jr. holidays. The company also shares in broadcasting the playoffs, all the way through to the Conference Finals, before ABC takes over exclusively for the NBA Finals.

Chris Paul thanks Clipper fans in online statement

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Chris Paul is as competitive a guy as there is in the NBA — he and James Harden are not the smoothest fit next to one another, but he would rather team with another star and go hard at the Warriors juggernaut than sit back and collect a check.

That’s why CP3 wanted to go to the Rockets as part of the trade reported Wednesday.

But before he left, he wanted to say thank you to Clippers fans.

Paul is committed to his charity causes, he’s not giving those up. He’s likely keeping his home in Los Angeles, too — L.A. is the unofficial off-season home of the NBA anyway.

Rockets make series of cash trades for expiring contracts to help line up Chris Paul deal

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While everyone was rightfully raving about the move by the Houston Rockets to trade for Chris Paul — you have to love a team not cowering from the Warriors but willing to take them on Game of Thrones style — there was one little catch. The trade, as first announced, didn’t pencil out.

Because the Rockets were over the cap, this trade needs to be a salary match. The Clippers were getting back nice young players in Sam Decker and Montrezl Harrell, plus a first-round pick, but the salaries still didn’t match up. Then a string of small cash deals for expiring contracts started rolling in.

All those deals are official — and led to one of the funniest tweets of the year.

All three of those players will head to the Clippers as part of the official trade, but then be waived by the Clippers so they don’t actually pay them.

Also of note, by staying above the salary cap line (as opposed to diving below it to absorb CP3’s contract) the Rockets will keep their mid-level exception, giving them a full $8.4 million to spend in free agency to get a role player to help fill out the roster in Houston.

The Rockets are not done big game hunting, GM Daryl Morey is reportedly going after Paul George and maybe free agents such as Paul Millsap. Carmelo Anthony reportedly would like a buyout so he can get to Houston now, but with Phil Jackson gone and $55 million owed over the next few years that seems more up in the air. Regardless, expect the Rockets to keep making small moves to set up big ones.

Reports: Rockets not done, looking at Paul George, other possible third big star

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If you’re going to go toe-to-toe with the Golden State Warriors, you can’t have enough elite talent on the roster. Which is turning the Western Conference into a Game of Thrones.

Houston has James Harden and just added Chris Paul — and GM Daryl Morey is not done, he’s targeting Paul George and other stars. That according to multiple reports from ESPN, starting with Jeff Goodman.

Rockets GM Daryl Morey not done yet, source told ESPN. Harden and CP3. Will try to add a third star to compete with Warriors.

The logistics of this would be difficult, but not impossible. The Pacers want a first-round pick, which the Rockets can include if the Pacers will wait until 2020 (the Rockets 2018 pick goes to the Clippers, 1-3 protected, which means they can’t trade 2019). With Sam Decker traded to LA, the Rockets may not have a young player of interest outside of Clint Capella (the Pacers have Myles Turner at center), but the Rockets have made a series of cash deals for non-guaranteed contracts to make this work with the Clippers and pave the way for future deals.

Also possible, the Rockets look for a way to land Paul Millsap (or maybe a lesser version, like Serge Ibaka) in free agency.

The Rockets also could target guys such as Carmelo Anthony or Dwyane Wade, if they are bought out. Anthony is rumored to want a buyout to go to Houston now, but with Phil Jackson out and being owed $55 million over a couple years, that may not happen.

The point is the Rockets are going all in — they see the window as now and, unlike much of the rest of the West and the NBA, they are not going to wait and hope for the Warriors to wilt in a few years.

Knicks fans celebrating Phil Jackson’s departure on social media

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When the Knicks hired Phil Jackson, he was a beacon of hope for an organization that had seen dark days. Jackson was going to keep owner James Dolan out of basketball decisions (he did that) and provide a direction for the franchise (he failed to do that).

Now, three year’s later, Jackson is out as president of the Knicks.

That had Knicks fans celebrating on social media.

HALLELUJAH.

A post shared by Spike Lee (@officialspikelee) on

That’s just a small sampling. So all is good with the Knicks now, right?