As NBA slides toward lockout, owners talk revenue sharing

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In negotiations that have had a lot of sticking points — percentage of Basketball Related Income (BRI), hard cap — one of the other big ones has been revenue sharing.

The owners know they need to address it and David Stern has called the discussions on the topic “robust.” The players think it is an essential part of the current CBA negotiations — why should the players take massive salary cuts to make the league profitable when the owners of big market teams do not share much of their revenue with struggling smaller markets?

The NBA owners’ planning committee is discussing the issue Monday via conference call, and the owners will talk about it again when they meet Tuesday in Dallas. Ken Berger at CBSSports wrote about revenue sharing talks.

But a key tipping point in bargaining could be what revenue-sharing details the owners come forward with this week. Owners have long rejected the players’ request that revenue-sharing be collectively bargained, but the players believe many of the issues owners have addressed with regard to improving competitive balance could be satisfied by redistributing revenues from successful to struggling teams…

It has been difficult for the NBPA to justify the massive salary reductions the league is seeking without knowing how owners plan to address this enormous disparity among teams. One option at the NBPA’s disposal would have been to file a request with the National Labor Relations Board seeking a ruling that revenue sharing should be a “mandatory subject” of collective bargaining. Sources say union officials have opted not to go this route and instead have trusted the owners to come forth with an effective and transparent approach to getting their own financial house in order before getting further salary concessions from the players.

How big is the disparity?

In the NFL — the gold standard for revenue sharing among professional sports — about 70 percent of what is considered football related income is shared (which is an issue because that used to be more than 80 percent just a few years back). In the NBA, that number is about 25 percent. That NFL number is driven largely by the massive national television contracts the league has. (Numbers via EightPointsNineSeconds.)

Or look at it this way, The Lakers new local television contract that kicks in next seasons and will pay them upwards of $150 million a season, which is more than some teams will make in total revenue in a season. Yet, under the current system the Lakers have to share none of that money.

It’s an issue the owners need to deal with. Big market owners have valid concerns that if they share more money that needs to be invested back into the business and not just pocketed by owners.

The question is — should the revenue sharing between owners be part of the CBA negotiations? The players say yes, the owners no. It’s just another in the long line of sticking points between the two sides that makes a lockout inevitable.

Increasing buzz teams well out of playoffs will not come to Orlando for games

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The Golden State Warriors have been public about it, they expect their season to be over. Golden State is far from alone, multiple teams well out of the playoff picture have questioned the expense and risk-to-reward ratio of coming back to play a handful of regular season games without fans in Orlando.

More and more, the buzz has been the NBA league office sees things the same way. I am not the only reporter hearing this: Steve Popper of Newsday wrote a column saying there was no reason to invite all 30 teams to the bubble city and the USA Today’s well-connected Jeff Zillgett added this:

This is where we throw in the caveat: There are no hard-and-fast plans from the NBA yet and every option is still being considered. One lesson Adam Silver took from David Stern was not to make a decision until you have to, and Silver is going to absorb more information in the coming weeks — such as from the recent GM survey — before making his call.

That said, the league seems to be coalescing around a general plan, which includes camps starting in mid-June and games in mid-July in Orlando.

For the bottom three to five teams in each conference, there is little motivation to head to Orlando for the bubble. It’s an expense to the owner with no gate revenue coming in, teams want to protect their NBA Draft Lottery status, and the Warriors don’t want to risk injury to Stephen Curry — or the Timberwolves to Karl-Anthony Towns, or the Hawks to Trae Young — for a handful of meaningless games.

The league is considering a play-in tournament for the final seed or seeds in each conference (there are a few format options on the table, it was part of the GM survey). That would bring the top 10 or 12 seeds from each conference to the bubble, depending upon the format, and they would play a handful of games to determine which teams are in the playoffs (and face the top seeds).

Either way, that would leave the three or five teams with the worst records in each conference home. Which is the smart thing to do, there’s no reason to add risk to the bubble for a handful of meaningless games.

Eight-year NBA veteran Jon Leuer announces retirement

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Jon Leuer is only age 31, but the big man has battled ankle and other injuries in recent seasons, playing in only 49 games over the past three seasons. Last July, the Pistons traded him to the Bucks in a salary dump, and Milwaukee quickly waived him. Leuer struggled to get healthy and did not catch on with another team.

Sunday he took to Instagram to announce his retirement.

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I love the game of basketball. I still want to play, but I know deep down it’s not the right decision for my health anymore. The past 3 years I’ve dealt with a number of injuries, including 2 that kept me out this whole season. It’s taken me a while to come to grips with this, but I’m truly at peace with my decision to officially retire. As disappointing as these injuries have been, I’m still thankful for every moment I spent playing the game. Basketball has been the most amazing journey of my life. It’s taken me places I only could’ve dreamed about as a kid. The relationships it brought me mean more than anything. I’ve been able to connect with people from all walks of life and forged lifelong bonds with many of them. What this game has brought me stretches way beyond basketball. I’m grateful for this incredible ride and everyone who helped me along the way. 🙏🏼🙌🏼✌🏼

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Leuer — a second-round pick out of Wisconsin for the Bucks in 2011 — averaged 10.2 points and 5.4 rebounds a game for the Pistons in the 2016-17 season, and for the years at the peak of his career he was a quality rotational big man teams could trust, either off the bench or as a spot starter.

Over the course of his career he played for the Bucks, Cavaliers, Grizzlies, Suns, and Pistons. He earned more than $37 million in salary, most of it from a three-year contract the Pistons gave him in 2016. It was not long after his body started to betray him.

Leuer has been riding out the quarantine in Minnesota is wife Keegan (NFL coach Brian Billick’s daughter) and the couple is donating thousands of meals a week to the needy in that community.

 

New York Governor clears path for Knicks, Nets to open facilities for workouts

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As of today, 19 NBA teams have their practice facilities open for players to come in for individual workouts, but 11 have yet to open the doors. Some it’s the decision of the team, some it’s that the municipality or state had not allowed it.

The Knicks and Nets — in the heart of New York, the part of the nation hardest hit by COVID-19 — are two of those teams whose facilities are closed. However, on Sunday New York Governor Andrew Cuomo said they could open the door for practice.

“I believe that sports that can come back without having people in the stadium, without having people in the arena — do it! Do it!” Cuomo said at his press conference. “Work out the economics, if you can. We want you up. We want people to be able to watch sports. To the extent people are still staying home, it gives people something to do. It’s a return to normalcy. So we are working and encouraging all sports teams to start their training camps as soon as possible. And we’ll work with them to make sure that can happen.”

While the teams have not formally announced anything yet, it is likely at least the Nets will open soon for the players still in market to workout (the majority of players from the New York teams went home to other parts of the country). The Knicks, well out of the playoff picture, may be much slower to open their facilities back up.

When they happen, the workouts come with considerable restrictions: one player and one coach at each basket, the coach is wearing gloves and masks, the balls and gym equipment are sanitized, and much more.

One part of a potential plan for the NBA to return to play called for a couple of weeks of a training camp at the team facilities, followed by 14 days of a quarantined training camp in Orlando at the bubble site. Multiple teams reached out to the league about doing their entire training camp in Orlando to avoid having players quarantine twice (once when the player reports back to market, once when the team goes to the bubble city).

Warriors’ Bob Myers says he would ‘consider’ trading draft pick

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Even if the NBA decides to play a handful more regular season games upon return, the Golden State Warriors are going to finish the season with the worst record in the NBA (they have a 4.5 game “lead” for the worst record). That means they have a 14% chance at the No. 1 pick, a 40.1% chance of a top-three pick, and a 47.9% chance of having the No. 5 pick.

Those same Warriors are returning next season with a healthy Stephen Curry, Klay Thompson, and Draymond Green, a team with title aspirations.

That’s led to a lot of speculation the Warriors would try to trade down, something Warriors co-owner Joe Lacob confirmed. Warriors president Bob Myers, speaking to NBC Sports’ Bay Area’s Monte Poole, said as much as any executive in his shoes would: He’d consider trading the pick.

“Yeah, we’re going to consider all that,” the Warriors president of basketball operations told NBC Sports Bay Area over the phone, before pausing for a moment. “Now, I don’t know if the headline is going to be that we’re trading our pick. So, be clear that I said ‘consider.’”

On the ProBasketballTalk podcast, NBC Sports’ Rob Dauster said if he were in Myers’ shoes he would try to trade down, get a veteran, and land in picks four through six. There he can likely land a player such as Obi Toppin, Isaac Okoro, or Deni Avdija — players who should not go No. 1 but are better poised to help immediately. The problem for the Warriors, or whoever lands the top pick, is this is a weak draft at the top, depressing the value. Dauster described it this way: the top three picks in this draft would go 6-10 most years.

The 2020 NBA Draft Lottery and Draft Combine have been postponed, and the draft itself will get the same treatment soon (it has yet to be officially changed, but everyone expects it).

Until there is a lottery and the Warriors know where they land, it’s tough for Myers to do much more than plan. Just like the rest of us.