Oklahoma City Thunder v San Antonio Spurs - Game Five

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


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.

Mark Cuban suggests supplemental draft for undrafted free agents

Mark Cuban
Leave a comment

A lot of people around the NBA have ideas to improve the draft, free agency and the D-League, and Mavericks owner Mark Cuban has never been shy about sharing his. His latest idea seems pretty logical: a supplemental draft for undrafted free agents.

Via Hoops Rumors:

“I would have a supplemental draft every summer for undrafted free agents of the current and previous 3 years,” Cuban wrote in an email to Hoops Rumors. “If you are more than 3 years out you are not eligible and just a free agent.”

The supplemental draft would have two rounds, and teams would hold the rights to the players they select for two years, Cuban added. Players can opt out and choose not to make themselves eligible, but those who get picked would receive fully guaranteed minimum-salary contracts when they sign, according to Cuban’s proposal.

“That would make it fun a few weeks after the draft and pre-summer league,” Cuban wrote. “It would prevent some of the insanity that goes on to build summer league rosters.”

It’s an interesting proposition. Most undrafted players who sign during the summer don’t get guaranteed contracts, so when deciding to enter this supplemental draft, they would have to weigh the value of having guaranteed money versus getting to decide where they sign. It’s unlikely that anything like this could happen anytime soon, because of all the hoops to jump through to get the league and the players’ union to sign off on it, but it’s a worthwhile idea that deserves some consideration in the next CBA negotiations.

Kevin Love to practice with Cavs on Saturday

Kevin Love
Leave a comment

The Cavaliers’ training camp has so far been filled with bad news and uncertainty, from Tristan Thompson‘s continuing contract holdout to Iman Shumpert‘s wrist injury (which will sideline him for up to three months) to Kyrie Irving continuing to be limited. But here’s some good news: Kevin Love will fully participate in practice with the team on Saturday for the first time since suffering a shoulder injury in last year’s first-round series against the Celtics.

From Cleveland.com’s Chris Haynes:

Head coach David Blatt announced on Wednesday that power forward Kevin Love will make his first full practice debut on Saturday. The three-time All-Star has been rehabbing ever since undergoing shoulder surgery in May.

“He’s coming along real nice,” Blatt said.

On Monday Love was cleared to participate in 3-on-3 basketball workouts. Prior, he was only allowed to do individual work that consisted of absorbing contact from a pad in the post.

It’s unclear when Love will be able to play in a game, but the fact that he’s been cleared to return to practice is undoubtedly a good sign for Cleveland, and there’s hope that he’ll be able to play on opening night against the Bulls on October 27. With all the bad breaks the Cavs have caught this summer, it’s nice to see some good injury news for once.