Tag: salary cap

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Could the Blazers get a disabled player exception for Greg Oden?

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The news Greg Oden’s latest microfracture surgery was a crushing blow to both the Blazers franchise and its fans, but there may be the smallest of silver linings on the horizon. Over on BlazersEdge, cap guru “storyteller” outlined how the Blazers may be eligible for a Disabled Player Exception because of Oden, and what they might be able to do with that exception:

If an injury occurs between July 1 and November 30, the physician determines whether or not the player will be unable to play (due to injury or death) during the current season.  If so, an exception can be offered…

Now onto the specifics regarding Greg Oden.  I assume that the team will apply for a disabled player exception.  If granted, the amount of the exception would be $3,380,262 and they would have 45 days to use it.  The league in the past has been pretty good about granting such extensions to teams who have disabled players…

A) Portland could use the exception to sign a larger-than-minimum-salary free agent, presumably a big man.  Someone like Erick Dampier would be an option.  I’m not a big fan of Dampier, but …..

B) Portland could use the exception to make an uneven (money wise) trade.  For example, sending Sean Marks and the New Orleans 1st round pick received in the Bayless deal to Philadelphia for Spencer Hawes.

C) Portland could use the exception to facilitate a trade to aid a team that is over the luxury tax threshold.  For example, sending a 2nd round pick to Denver for Renaldo Balkman and a 1st round pick (first waiving a player to create a roster spot).

Excellent work from storyteller, and a league source told BlazersEdge’s Ben Golliver that the Blazers will in fact seek a disabled player exception for Oden. Dampier, Hawes, and Balkman certainly won’t give the Blazers what a healthy Oden would, but at least they might be able to do something to fill the void left by Oden’s latest setback.

Wizards’ owner Ted Leonsis likes NHL-style hard salary cap. Must like lockouts, too.

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Leonsis_Wizards.jpgUPDATE 7:31 pm: NBA Commissioner David Stern tried to contain any damage that came from Leonsis (plus hit Leonsis with a $100,000 fine for talking about the CBA, all done within a few hours, just so you know Stern is not messing around):

“We’re negotiating and that was one of our negotiating points,” Stern
told the Associated Press, “but collective bargaining is a negotiating
process, and that was not something that Ted was authorized to say and
he will be dealt with for that lapse in judgment.”

4:23 pm: Washington Wizards and Capitals owner Ted Leonsis went through the ugliness of the NHL lockout that cost the league an entire season — and set the sport back considerably in public opinion. Check the television ratings.

But Leonsis seems to like what came out on the other side of that, enough that he thinks the NBA should go down the same road. He said as much meeting with a Virginia business group today, as reported by Fanhouse:

“In a salary cap era — and soon a hard salary cap in the NBA like it’s in the NHL — if everyone can pay the same amount to the same amount of players, its the small nuanced differences that matter,” Leonsis said.

Because Leonsis is not officially authorized to speak regarding the ongoing NBA labor negotiations, he refused to expound on his remarks when asked to clarify after his speech. But he did note that he is a huge fan of the NHL’s system, praising it and noting that it is a good one that works fairly.

“It’s working,” he said. “The teams are very, very competitive. There is no way that big markets teams can outspend small market teams. So when the season starts everyone thinks their team can compete for the Stanley Cup.”

Two thoughts here.

First, the NBA Players Association is not going to take a hard cap — not when the owners just sold $100 million more in season tickets than they did a season a go. After a year where the overall league revenue was up. If you want a hard cap you’re in for a long, drawn out, ugly fight.

Commissioner David Stern has countered that teams had more expenses to get that revenue up. They had to discount tickets and hire more sales staff, for example. My thought — welcome to the recession. At my favorite restaurant down the street from me, the owner is surviving and doing pretty well but he has to give away more meals now, market more and smarter, and generally work harder for a little less. The NBA is no different. Suck it up and don’t complain about it.

Secondly, the NHL salary cap is not the simple solution you may think.

As of this year, NHL players will have a salary cap set based on 57 percent of “hockey-related income.” Which is almost identical to the percentage of Basketball Related Income the NBA players get right now. It’s divided up differently (and the NBA’s pie is larger), but the percentage is the same. If the NBA used that model, the salary cap would likely be much closer to or higher than the luxury tax line now.

Also, some sites keep talking about the $40 million cap the NHL had when it came back from a strike. That was 2005-06 season. This year, the cap is $59.4 million with a salary floor of $43 million. As Joe Yerdon from our own ProHockeyTalk told me, a lot of teams are now complaining the must spend more than they could spend at all just a few years ago. Not all NHL teams are raking in money.

In the NBA’s case, whatever system is in place will need much better owner revenue sharing. And don’t for a second think all the owners are on the same page with that.

Also, if fans think you get a deal out of this, think again — NHL ticket prices now are higher than they have ever been.

One final note on all this — the NBA is having a renaissance of popularity. The Lakers/Celtics finals followed by what happened in Miami this summer vaulted the sport up the popularity ladder to Jordan era levels.

A lockout that costs games kills that. Fast. Dead. The NBA will lose the casual fan it is getting back now, and it will be 10 times harder to get them back. And then everybody’s revenue goes down.

Wizards' owner Ted Leonsis likes NHL-style hard salary cap. Must like lockouts, too.

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Leonsis_Wizards.jpgWashington Wizards and Capitals owner Ted Leonsis went through the ugliness of the NHL lockout that cost the league an entire season — and set the sport back considerably in public opinion. Check the television ratings.

But Leonsis seems to like what came out on the other side of that, enough that he thinks the NBA should go down the same road. He said as much meeting with a Virginia business group today, as reported by Fanhouse:

“In a salary cap era — and soon a hard salary cap in the NBA like it’s in the NHL — if everyone can pay the same amount to the same amount of players, its the small nuanced differences that matter,” Leonsis said.

Because Leonsis is not officially authorized to speak regarding the ongoing NBA labor negotiations, he refused to expound on his remarks when asked to clarify after his speech. But he did note that he is a huge fan of the NHL’s system, praising it and noting that it is a good one that works fairly.

“It’s working,” he said. “The teams are very, very competitive. There is no way that big markets teams can outspend small market teams. So when the season starts everyone thinks their team can compete for the Stanley Cup.”

Two thoughts here.

First, the NBA Players Association is not going to take a hard cap — not when the owners just sold $100 million more in season tickets than they did a season a go. After a year where the overall league revenue was up. If you want a hard cap you’re in for a long, drawn out, ugly fight.

Commissioner David Stern has countered that teams had more expenses to get that revenue up. They had to discount tickets and hire more sales staff, for example. My thought — welcome to the recession. At my favorite restaurant down the street from me, the owner is surviving and doing pretty well but he has to give away more meals now, market more and smarter, and generally work harder for a little less. The NBA is no different. Suck it up and don’t complain about it.

Secondly, the NHL salary cap is not the simple solution you may think?

As of this year, NHL players will have a salary cap set based on 57 percent of “hockey-related income.” Which is almost identical to the percentage of Basketball Related Income the NBA players get right now. It’s divided up differently (and the NBA’s pie is larger), but the percentage is the same. If the NBA used that model, the salary cap would likely be much closer to or higher than the luxury tax line now.

Also, some sites keep talking about the $40 million cap the NHL had when it came back from a strike. That was 2005-06 season. This year, the cap is $59.4 million with a salary floor of $43 million. As Joe Yerdon from our own ProHockeyTalk told me, a lot of teams are now complaining the must spend more than they could spend at all just a few years ago. Not all NHL teams are raking in money.

In the NBA’s case, whatever system is in place will need much better owner revenue sharing. And don’t for a second think all the owners are on the same page with that.

Also, if fans think you get a deal out of this, think again — NHL ticket prices now are higher than they have ever been.

One final note on all this — the NBA is having a renaissance of popularity. The Lakers/Celtics finals followed by what happened in Miami this summer vaulted the sport up the popularity ladder to Jordan era levels.

A lockout that costs games kills that. Fast. Dead. The NBA will lose the casual fan it is getting back now, and it will be 10 times harder to get them back. And then everybody’s revenue goes down.

NBA salary cap to increase next year. Which sadly means a lockout is more likely.

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Thumbnail image for stern_Hunter.jpgBusiness is good in the NBA. No. Seriously.

The NBA released the salary cap numbers for next season and after all the reports of doom and gloom the numbers are going up for next season.

The salary cap will be $58.044 million next season, making the luxury tax threshold $70.307 million (for every $1 in salary over the luxury tax line, teams pay $1 in tax). That is well above the $50 million cap figure some teams feared for about a year ago.

The mid-level exception will be $5.765 million. By my estimation, the max contract for a Bird-rights player in the league seven years or more (a team keeping a player, like Joe Johnson in Atlanta) will be $127 million for six years. Non Bird-rights players (like Amare Stoudemire in New York) will work out to about $99 million for five years. The max deal for younger players (like Kevin Durant in Oklahoma City) is $87.7 million for five years.

Those numbers are all up from last year — because basketball revenue was up slightly last year from the year before. The salary cap is based on the “basketball related income” for the teams and league.

So we are seeing teams come out of a recession, it’s all good, right? The teams are spending like that right now, it seems. So all those lockout fears are overblown, right?

Wrong. It’s worse.

The owners still want to change the economic structure of the game. They do not like the soft cap and its seemingly endless parade of exceptions.

Why? Well, I’d argue it’s because they can’t restrain themselves from overspending. They have no self-control, look at this off-season. Only a few owners show discipline. And when only a few do, they get outspent and their teams lose out on players, then they lose on the court. Right now Oklahoma City gets credit for doing it all right, but they are not a huge market, and they just gave a max deal to Durant. What happens when they need to pay Russell Westbrook, James Harden and the rest of the team bigger money, too. And everyone is telling them to get the one free agent that puts them over the top. Then are they disciplined?

But back to the point at hand, the owners are going to push hard for a new system. Maybe a hard salary cap, certainly more punitive measures for teams that keep spending well above the cap (sliding luxury tax scale?). And they will want to negotiate salaries down, shorten contract lengths and make deals non-guaranteed (again, to cover their own mistakes of bad deals).

The players now have ammunition to call them on this. The economic system must be just fine if the teams’ income rose last year despite the national recession. And by looking at the way they are spending. The players are not going to buy the economic hardship the owners are selling.

And that, my friends, means a lockout is more likely, not less.

And that is good for nobody.