NBA Lockout Q&A: PBT explains it all (well, almost)

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Welcome to the NBA lockout. Pull up a chair, make yourself comfortable, you’re going to be here a while. If we’re all lucky it will be for just the summer, but it could be longer. Much longer.

I understand you all have questions about how we got here, where we are at and what is next. We don’t have all the answers, but let’s try to answer those questions as best we can.

Why is the league locking out now, after a season when ratings, attendance and interest in the league are at the highest levels in decades?

July 1 is when the Collective Bargaining Agreement (CBA) between the owners and the players union runs out. It was not so much they chose right now as this was the time the old deal was up and a new one needed to be hammered out. Both sides have known for years that this would be a tough negotiations — that the owners were going to look for big changes to the system — and both sides have anticipated for a couple years a lockout would come now.

That it came on the heels of a fantastic season for the league was a coincidence, but it may be the one thing that saves next season. Both sides understand the need to get a deal done that does not cost games next season or all that newfound momentum will be lost and it will take years and years just to get back to this point.

What are the two sides disagreeing over?

Everything. Much like the negotiations at the end of the Vietnam War, I’m not sure the two sides could agree on the shape of the table they should sit down at to negotiate.

But as always the big issue is money. Specifically how to divide up the money that comes into the league. That money is called “basketball related income” (BRI). That is the money from ticket sales, national television contracts, local television deals, luxury boxes, concessions, jersey sales — basically everything tied to basketball.

Currently the players get 57 percent of the gross BRI — 57 cents on every dollar that comes into the league goes to the players in salary. The owners want to change that number dramatically, their proposal would have the players in the low 40s percent wise in a decade. The players have agreed to go down to about 54 percent in their proposals.

In that gap is hundreds of millions of dollars per season. The two sides are nowhere near close – they can’t even agree on how to define BRI (the owners want to start taking a number of expenses out of it so it is more net than gross that is divided between them).

What are the owners proposing?

The owners want a radical change in the system. They want to put in a “flex cap” of $62 million per team. For some perspective, the Dallas Mavericks payroll last season was $86.2 million (the team with the lowest payroll was Sacramento at about $44 million). Teams could not exceed that $62 million number except to sign their own free agents, and even then teams could not exceed a second figure that would not be more than a few million higher.

What David Stern will gladly tell you is that this number guarantees the players about $2 billion a year in salary, which is not much below the $2.17 billion they made last year. The difference is the owners want to lock that figure in for a decade — even as revenues rise for the league the salary cap would remain flat. All that additional revenue goes to the owners.

The owners also want to reduce the length of contracts by two years when handed out (from five to three for signing a free agent, for example), so they don’t end up stuck with terrible choices and bad deals as long. (Yes, the owners want the CBA to protect them from themselves.)

What is the owners’ sales pitch?

For fans, they are selling parity. This season the Lakers spent more than $90 million on salary, with the luxury tax they spent more than $110 million. And as a franchise they will still turn a profit. Smaller market teams have a hard time competing with teams willing to spend like that. What this harder salary cap would do is put teams on a more even playing field financially.

Now will parity work in the NBA as a practical matter or in marketing manner like it does in the NFL? That’s a harder sell. The best times for the NBA were when Michael Jordan’s Bulls dominated the league, or when Magic and Bird ran the show. Parity has never sold the same in the NBA like it has for the NFL.

What do the players say about the owners’ plan?

What would you say if your boss asked you to take a pay cut then told you they expect record growth for the company in the next decade but you’d see none of the rewards? Yes, NBA players are very well paid, but they also realize that they are the product that drives the league and they should see money from any growth in the league’s business.

What do the players propose?

The players are essentially playing goalie in these negotiations — they want to keep the system pretty much the way it is now. They like the “soft cap” which allows teams to spend well over the cap to keep their own free agents and has a host of other exceptions (a mid-level exception, a veterans exception, and more).

The players have proposed a reduction in the percent of BRI they get down to 54 percent, which would be a give back of about $100 million per season. They say that is their percentage of the losses they admit some owners are suffering. But aside that they want even more flexibility for teams to make trades (not as restricted by matching salaries) and other steps to increase player movement.

What about revenue sharing?

This is the players’ other big push — they want the owners of big market teams to share much more revenue with smaller market teams. They also point to the NFL where about 70 percent of league revenue is shared; where in the case of the NBA it’s about 25 percent. (That is primarily because the NFL has much larger national television deals.)

For example, the Lakers new local television deal that kicks in for the fall of 2012 will pay the team upwards of $150 million a year, the Sacramento Kings made about $11 million last season on their local television deal. None of that revenue is shared right now, the players say it should be and they want to know the numbers.

The owners are talking about revenue sharing amongst themselves, but they say it is not part of the CBA negotiations and the players do not have a seat at that table.

So is the NBA lockout like the NFL lockout?

No. Not at all… well, in one key way yes.

But not in the details. The bottom line is the NFL is a league that is still making gobs and gobs of money, it’s just that the owners are not making as much as they used to so they are locked out. But at the end of the day, that argument truly is about how to divide the profits.

The NBA has lost money for several years in a row, and even though the players dispute the owners figures they do not dispute the losses overall. The losses this past season as a league were around $300 million according to Stern. And that is the key difference between the two lockouts — the NBA has far more serious issues to deal with, real revenue and expenditure issues to deal with.  Because of that the two sides are farther apart than they ever were in the NFL. A few minor issues are the same but the big issues are different in the two lockouts.

So how are the NBA and NFL lockouts alike?

The arc of how the problems will be solved.

The NFL has been locked out for more than 100 days but only now are we starting to see some real progress towards a deal, in time to save this season. (How much progress depends on who you ask.) The bottom line is this — in any negotiations, from teachers unions to longshoremen to sports leagues, nothing actually gets done until there is pressure on one or both sides to compromise. In the NFL, with the owners seeing the threat of lost games and the players fearing lost paychecks, the negotiations are getting serious.

It will be the same with the NBA. With the start of the lockout, the two sides will move farther apart. They have both known this lockout is coming for years — there have been proposals on the table since the 2010 All-Star Game in Dallas — and they have dug in their heels. Don’t be shocked if the owners start talking about going back to their original proposal of a $45 million hard salary cap.

But as we move into the second half of August and September, when the threat of lost games starts to become more real, then we will see movement and the two sides start to negotiate in earnest.

Then we will see the resolve of the two sides.

How and when does this end?

The when is unpredictable. I want to believe there will be a full season next year. But there are hardline owners — smaller market owners who leveraged themselves in recent years to buy these teams and who need a change in the business model — who are willing to lose some or all of a season to reshape the financial landscape of the NBA.

The players are going to come out of these negotiations with less money then when they went in (even under their own plans), the question is how far back will they go and how hard are the owners as a group willing to push for a deal they want? We’ll start to get a feel for that in August and September.

If we get to mid to late September and the two sides are nowhere near a deal like they are now, then my friends we may not see the NBA for a long while.

Winners, Losers in Kyrie Irving trade to Dallas Mavericks

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Kyrie Irving tried to force his way out of Brooklyn over the summer, but the market for him was thin and his plan didn’t work. He opted in to stay in Brooklyn.

Irving’s plan did work at the trade deadline — he again demanded a trade and this time, he got his wish and was sent to Dallas to team up with Luka Dončić on the Mavericks. It’s a deal with clear winners and losers, but the cases are muddier for both of the principal teams involved. Let’s break down who won and who lost in this latest Kyrie Irving trade. Let’s start with a reminder of what the trade itself involved.

Mavericks receive: Kyrie Irving, Markieff Morris.

Nets receive: Spencer Dinwiddie, Dorian Finney-Smith, an unprotected 2029 first-round pick, 2027 and 2029 second-round picks.

WINNER: Kyrie Irving

Irving made a brilliant business move demanding a trade before the deadline. His troubles with the Nets going back to the summer stem in part from him not getting the max contract extension he wants — four years, $198.5 million, with no strings. When the Nets weren’t going to give him that extension, Irving forced his way to a new team where he is more likely to get paid (not that it’s close to a lock, the Mavs are reportedly hesitant).

Irving now gets to play next to Dončić, another of the league’s top five players, and is on a team with the potential to contend in a wide-open conference, and he gets a relatively clean slate to prove he is worthy of that massive contract this summer. Irving got what he wanted out of this.

WINNER: Luka Doncic

Luka Dončić was good with this trade — Dallas went to him and got his approval before proceeding with it, reports Marc Stein.

Dončić has been at a historic usage rate this season and was physically wearing down from the load. Dallas desperately needed another shot creator and star next to Dončić to lighten his load. Now, Dallas has that in the guy with maybe the best handles in the league, someone averaging 27.1 points, 5.1 rebounds and 5.3 assists per game and shooting 37.4% from 3.

There are a lot of questions about the fit of Dončić and Irving together — will Irving accept a role as the No.2 option on this team (as he did with Durant most of the time)? How well will Doncic play off the ball? This trade makes the Mavericks’ 23rd-ranked defense worse. And that is just the start. But it’s a move the Mavericks had to make, and now Dončić knows they will do everything they can to land stars to put around him. Which is what he wanted to see.

LOSER: LeBron James and the Lakers

The Dallas Mavericks showed how desperate they were as a franchise with this potentially Faustian trade.

The only team that might have been more desperate? The Lakers. They are squandering an All-NBA level, record-breaking season of a 38-year-old LeBron James, sitting four games below .500 and outside the play-in tournament. LeBron wanted this trade to happen. The Lakers wanted it to happen. Irving wanted it to happen.

Lakers GM Rob Pelinka tried, the problem is the Nets want to retool a contender around Durant immediately — Brooklyn wanted players who can help them win now. That’s not what the Lakers could offer. The Lajers had tempting future picks, but the player at the heart of any offer was Russell Westbrook. The Mavericks could offer more, better players right now plus the picks (there is also a report that Nets owner Joe Tsai didn’t want to send Irving to his preferred destination). Dallas won the day. LeBron’s reaction?

There is no clear path to building a title contender around LeBron and Anthony Davis. Trading for Irving would have been a huge gamble, but that is where the Lakers are now. They have to roll those dice, and they will try again with the next superstar who becomes available.

ASK AGAIN LATER: Brooklyn Nets

There is a case to make the Nets did well in this trade — and maybe even got better by making the roster deeper, and more versatile. They got out of the Kyrie Irving business and don’t have to pay him long-term — if they had made this trade over the summer the conventional wisdom reaction would have been, “good job getting out from under all this.” And the Nets landed a couple of quality players who can help them now in Dinwiddie and Finney-Smith. Brooklyn GM Sean Marks did as well as he could with the situation.

Still, Brooklyn got worse in the short term — any team that trades a superstar does not get equal talent back.

Whether this ultimately is a win or loss for them will hinge on two future moves, or lack of moves:

1) Can the Nets make another trade or two before the deadline? Even with a healthy Durant and what is now a deep and versatile roster, the Nets lack the second high-end star they will need come the postseason (Ben Simmons is not going to be that guy). Brooklyn now has picks and players at its disposal to make more roster upgrades, particularly defensively.

2) Will Kevin Durant stay in Brooklyn, or ask for another trade? Can the Nets keep him happy? Durant didn’t think there was a future in Brooklyn last summer and asked for a trade, but the Nets didn’t really try couldn’t find one to their liking. If the rest of this season goes just okay and the Nets get bounced in the first round, that KD trade request very well could be back on the table, and the Nets could be back to rebuilding, but without their picks to do it.

There is one other disappointment in all this — it looked like the Nets, under Jacque Vaughn, had figured it out. They went 18-2 in the games before Durant got injured. Vaughn had quieted the noise around the team, had them focus on the court, and Brooklyn looked like a real threat in the East. Now that is gone.

ASK AGAIN LATER: Dallas Mavericks

The argument for this being a win for Dallas is it makes them a contender in the wide-open West — they have two superstars who can match any duo in the conference, and have surrounded them with shooting. The Mavericks’ offense should be elite.

The problem in the contender theory is the Mavericks already have the 23rd-ranked defense in the NBA and now have traded away their best defender in Finney-Smith. If the Mavericks are going to fulfill the promise of their offense, they will have to make more trades to upgrade that defense. Reports are the Mavericks are aggressively looking for other moves to bolster that end of the floor.

However, the biggest question for Dallas is the long term — do they want to give Irving the four-year max contract he wants at the end of this season? Marc Stein reported the Mavericks did not promise a new contract to Irving at the end of the year, but you don’t make this trade if you’re not open to it. The Mavericks get a test run through the final third of the season, although Irving will most likely be on his best behavior the next couple of months.

If the Mavericks don’t bring back Irving, they just traded away their two most valuable trade asset players plus a could of high-value picks — Dallas weakened their position to get the next star. Dallas gave up a lot, do they have to pay up now?

WINNERS: Boston Celtics and Milwaukee Bucks

For 20 games when both Irving and Durant were healthy and on the floor — and the distractions quieted down — the Nets looked like a team that could win the East. Now… not so much. The Nets are good, and maybe they have another move or two that returns them to contender status, but that is a long shot. The Nets are a dangerous opponent, but not one the real contenders in the East, the Buck and the Celtics, can beat.

The Philadelphia 76ers are the team the Bucks and Celtics should worry about.

WINNER: Houston Rockets

Remember when Houston traded James Harden to the Nets? The Rockets now control — either outright have or have swap rights — for every Nets first-round pick between now and 2027. Those picks look much more valuable tonight than they did 24 hours ago, and if Durant does ask for a trade and push his way out of Brooklyn this summer then the Rockets could be sitting on a treasure chest. This trade was good news for the Rockets.

LeBron, other NBA players react to Kyrie Irving trade to Mavericks

Dallas Mavericks v Brooklyn Nets
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Is there going to be a football game of some kind next weekend? You’d never know the way the NBA trade deadline can dominate the headlines.

Kyrie Irving is getting traded to the Mavericks, which has blown up the NBA world — Dallas looks like a threat in the West, and there is a countdown clock over Kevin Durant‘s time in Brooklyn. It wasn’t just fans and pundits stunned by the news, NBA players past and present took to Twitter and social media to react and give their thoughts on the Irving trade. Starting with LeBron James and one of the guys in the trade.

Nets reportedly trade Kyrie Irving to Mavericks for Dinwiddie, Finney-Smith, picks

Milwaukee Bucks v Brooklyn Nets
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Dallas desperately needed a second star and shot creator to go next to Luka Dončić.

They got one — Mark Cuban has always been willing to take risks to win. The question about how long this can last comes later.

The Nets are trading Kyrie Irving to the Dallas Mavericks for Spencer Dinwiddie, Dorian Finney-Smith, their unprotected 2029 first-round pick their 2027 and 2029 second-round picks, according to multiple reports.

Irving is reportedly “ecstatic” to make the move to Dallas (the hard questions about a future contract will wait until after the season).

Irving reportedly will land in Dallas Monday, take the standard post-trade physical, and could be available for the Mavericks on Wednesday against the Clippers.

Brooklyn had several suitors to choose from but wanted in return players it could slot in around Kevin Durant now (or, once he is healthy and returns) so they could still have a puncher’s chance to win the East. Dinwiddie gives Brooklyn a point guard and shot creator who can play some off the ball — and he returns to Brooklyn, where he made a name for himself in the league. Finney-Smith is a coveted two-way wing who can step in right now. Plus, the Nets add some potentially valuable picks down the line.

That offer gave the Nets more win-now possibilities than they got out of the Lakers’ offer (two future first-rounders and Russell Westbrook) or what the Suns and Clippers put in the mix.

There are questions for Dallas, but ones they believe they can answer — elite talents figure out a way to make it work on the court. Off the court, it helps that both coach Jason Kidd and former Nike executive turned Mavericks GM Nico Harrison have strong relationships with Irving. That’s a start.

The pairing of Dončić and Irving should lead to games and stretches where they look brilliant, but the question is not the highs but the lows — how deep and how prolonged will those be? Irving works well off the ball (as he has done with Durant and LeBron James) and should be able to play off Dončić. However, can Dončić play well off the ball when Irving is hot? Do the Mavericks — with Tim Hardaway Jr., Christian Wood, Maxi Kleber, Reggie Bullock and the rest — have enough around their two stars to be a serious threat in the West? Off the court, can the very different personalities of Irving and Dončić mesh, or at least work well enough not to be a distraction?

The biggest question: Do Cuban and the Mavericks really want to re-sign Irving for the four-years, $198.5 million he demands at the end of the season? There are reports that Dallas (like every other front office in the league, including Brooklyn) is hesitant to do a long-term deal with Irving that gives him that kind of guaranteed money.

But that is a concern for the future — Dallas got its second star. It has vaulted itself into the upper echelons of the Western Conference and positioned itself to contend.

Reports: Stephen Curry out ‘weeks’ with leg injury, Warriors hope for return after All-Star Break

Dallas Mavericks v Golden State Warriors
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This is bad news for the Warriors. How bad depends on how the word “weeks” is ultimately defined.

Stephen Curry has torn ligaments in his leg — in the shin area just below the knee — and while the team does not have an official timeline he will be out “weeks” reports Shams Charania of The Athletic.

“Weeks” is a vague word, and for the Warriors the difference in Curry being out three weeks (with one of those being the All-Star Break) versus him being out six to eight weeks could be the difference in how long a playoff run the Warriors have.

The Warriors are hoping for a Curry return just after the All-Star break, reports Monty Poole of NBC Sports Bay Area.

Of short-term concern, this has Curry out for the All-Star Game where the fans voted him a starter. NBA Commissioner Adam Silver will bump one of the reserves up to a starting spot — likely Ja Morant, who was third in fan voting — and name an injury replacement for the team. The top candidates are Devin Booker (if he returns from injury this week as expected), De'Aaron Fox or Anthony Edwards.

Longer term, the Warriors can’t afford to be without Curry for an extended period.

Curry is averaging 27.9 points, 6.4 rebounds and 6.4 assists a game, and the Warriors outscore opponents by 5 points per 100 possessions when he is on the court and get outscored by 5.4 when he is off. With the team one game above .500 and struggling to avoid the play-in, an extended absence for Curry is trouble for a Warriors team that has never found its footing this season.