Foul called on NBA owners’ claims of money lost

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The NBA owners continue to say the lockout is going on because the players don’t understand the fundamental need to change the league’s poor financial system — that $300 million was lost this past year.

More and more reports are questioning the severity of that loss.

The latest is Nate Silver at the New York Times, who questions the heavy losses the owners claim, and particularly the claim that player salaries are to blame.

On this point he is spot on — NBA players salaries make up 57 percent of the Basketball Related Income the league takes in. That number is fixed in the current Collective bargaining agreement — it is a fixed cost, the owners know exactly how much the players will cost the league as a whole. It’s the non-player costs that increase faster than income, Silver notes.

Growth in non-player expenses has outpaced that of salaries, having increased by 13 percent over five years and 43 percent over 10 years. Although some of this undoubtedly reflects sound business ventures, like the league’s investments in digital media or efforts to expand the game internationally, they have nevertheless had a reasonably large effect on the league’s bottom line. Had nonplayer expenses been the same in 2009-10 as they were in 1999-2000 (adjusted for inflation), the league would have made a record profit that year.

Even with those costs, Silver says the owners are making money.

Even as it stands, however, the Forbes data suggests that the league is still profitable. Its operating income — revenues less expenses (but before interest payments and taxes) — is estimated to have been $183 million in 2009-10, or about $6 million per team. The N.B.A.’s operating margin (operating income divided by revenues) was about 5 percent in 2009-10 and has been about 7 percent during the life of the current labor deal.

A 5 percent or 7 percent profit is not dissimilar to what other businesses have experienced recently. Fortune 500 companies, for instance, collectively turned a 4.0 percent profit in 2009 and a 6.6 percent profit in 2010 (both figures after taxes). Profit margins in the entertainment industry, in which the N.B.A. should probably be classified, have generally been a bit lower than that.

Silver goes on to say that a lot of the losses the owners claim are tied to depreciation and amortization when a team is sold. However, the league has noted that amortization is not used in the $300 million loss figure for the past season. Silver misses the mark there.

The players need to understand that some owners are hurting and there needs to be adjustments to the system. Things like the players hotel rooms and food per diems are not taken out of that 57 percent — they get to count the revenue minus any expenses. Those expenses are rising. Players need to give up some of their pie (maybe by rather than taking 57 percent of the gross allowing some deductions of league expenses from that before the “net” is divided up, maybe just taking a much smaller percentage of the gross). The owners have some valid points about the needs to alter the system to create a chance for all teams to make money (although revenue sharing must be part of that).

But it’s still hard to buy the owners claims that the league is in that much financial peril. Particularly when people are stepping in to pay record prices for franchises.

Damian Lillard says Paul George being a poor sport: ‘If anything, it was bad defense’

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Damian Lillard made the coldest shot the NBA has seen in years – a buzzer-beating, series-winning, 37-foot pull-up 3-pointer over Paul George.

George called it a “bad shot.”

Lillard on the Pull Up podcast:

It was a good shot.

I think a lot of people don’t know what goes into the moments. That’s because they’re not the ones that’s there. I literally work on those shots. And I don’t work on it so I can just come out and just shoot it for the whole game. I work on it just because, over my career, I know how much attention I’m going to get from defenses. So it’s just like you’re just keeping stuff, adding more things, adding more and more, keeping stuff in your pocket, in case these types of situations do present itself. Even if it’s not something you want to lean on, it’s something that you have there, that you worked on, you spent time doing. So, you’ve got confidence in it when the time does come. That’s why, when I was just standing there, I was like, well, it’s probably not good in a lot of people’s eyes. But I’m comfortable with this, and I’m confident in this. So, to me, it’s a solid shot.

For him to say that’s a bad shot, that’s just kind of being a poor sport. If anything, it was bad defense, because I had the ball in my hands with two seconds, and I wasn’t going to drive, so maybe he should’ve just bodied up.

Whether a shot is good or bad depends on the context. With the game tied, the Trail Blazers wanted to ensure they took the last shot of regulation, make or miss. The Thunder’s defense was set. Lillard has tremendous range.

In a good shot/bad shoot binary, I’d call this a good shot. It certainly wasn’t a great shot. But in that situation, I think it passes the test (though I’m obviously biased by seeing it going in).

The fact that it was such a difficult shot doesn’t take anything away from Lillard. It only adds to the accomplishment.

I’m loving his victory lap. After Portland got swept by the Pelicans in the first round last year, he faced questions about his ability to perform in the playoffs. It’s time to put those to rest.

There’s plenty of room to debate whether that incredible basket was a good shot or a bad shot by process. But Lillard is built for these moments. There’s no doubt.

NBA, Kings investigating sexual-assault allegations against Luke Walton

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Kings coach Luke Walton is being sued for sexual assault. He is not facing a criminal investigation.

Kings release, via NBC Sports California:

The Sacramento Kings and the National Basketball Association announced today that they have commenced a joint investigation into the allegations contained in a civil lawsuit filed Monday against Kings Head Coach Luke Walton.

The Kings have hired Sue Ann Van Dermyden, founding partner of Sacramento law firm Van Dermyden Maddux, who is an expert on employment law with decades of experience in conducting investigations, and Jennifer Doughty, a veteran investigator and senior associate attorney at Van Dermyden Maddux. They will lead the Kings investigatory team.

The NBA’s investigatory team will be led by Elizabeth Maringer, Senior Vice President and Assistant General Counsel, Integrity and Investigations. Prior to joining the NBA, Ms. Maringer served 12 years as an Assistant United States Attorney for the Southern District of New York, including three as Deputy Chief of the Criminal Division.

The Kings and the NBA take these allegations very seriously and will collaborate to conduct a complete and thorough investigation.

In 2016, Derrick Rose was sued – and found not liable – for sexual battery. The NBA did not investigate that situation as the lawsuit unfolded.

Why did the league change its approach now?

Rumor: Jeanie Buss mistakenly CCed Magic Johnson on Rob Pelinka’s emails critical of Johnson

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As he stunningly resigned as Lakers president, Magic Johnson bemoaned “the backstabbing, the whispering.” It seemed he was talking about general manager Rob Pelinka. And maybe he was.

But perhaps Johnson was also referring to owner Jeanie Buss.

Ric Bucher of FS1:

My understanding is is that there were some emails that were exchanged between Rob and Jeanie … about Magic and about what Magic was and wasn’t doing. They were critical emails. And somehow, some way – Jeanie, from what I understand, was CCing or blind CCing Magic on everything. That was sort of protocol, standard issue. Somehow, the exchange between Rob and Jeanie ended up on that string of the blind CCs that were going to Magic. So, Magic now is seeing emails from Rob to Jeanie that were critical of what he was doing.

And maybe most important in all this is that there was no indication that Jeanie was backing Rob up in terms of either going to Magic and letting him know that this was going on or going back at Rob and defending Magic. That was not happening. And so when he talked about the backstabbing, to me, my understanding is that’s what started it. And the fact that Jeanie waved goodbye and said, “Thank you for all that you did,” was that she didn’t necessarily disagree with what Rob was saying.

The problem with this story: It’s believable, and a lot of people want it to be true. I want it to be true! It’s hilarious.

But that opens the door for people spreading it, even if it’s untrue. It’s a lot of fun to pile on the Lakers right now.

Back to the believability. Johnson, even while resigning, has frequently called Buss his sister. Would she really participate in email chains critical of her own brother?

Oh, right.

Klay Thompson: I looked ahead to Warriors-Rockets rematch

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Even after advancing to the second round, the Rockets (except Clint Capela) insisted they weren’t counting on a Houston-Golden State rematch. The Warriors still hadn’t beaten the Clippers yet.

But even Golden State player Klay Thompson, after the Warriors’ Game 5 loss last night, admitted he was looking ahead.

Thompson, via Logan Murdock of NBC Sports Bay Area:

“Yup, start with me, I was,” Warriors guard Klay Thompson admitted. “I thought we were going to come out and win tonight, but sometimes life doesn’t go as planned. We’re still in a great position with hopefully only 48 minutes left to close these guys out.”

Players sometimes overlook a game. They rarely admit it.

But Thompson was quite fired up during his postgame interview. He also said:

Build from this game? This game sucked. We lost. Let’s go win Friday. Let’s win big. Let’s freaking win by 30 like we’re capable of.

Golden State coach Steve Kerr also seemed agitated last night. Murdock:

Just before Kerr walked off the podium late Wednesday night, he was asked by a reporter what the identity of his team is going into Game 6.

Kerr, almost taken aback, let out the frustration he’d been holding for much of the session.

“What’s the identity of our club?” Kerr asked back. “Back-to-back champions.

“Like, we’re really good. I mean, we’re hanging banners. What’s our identity? We play fast. We play defense. I don’t know. Maybe we should do an instructional video later, and we’ll send it to you.”

The Warriors’ identity has been raising banners. That won’t remain their identity unless they earn it.

For a team that doesn’t appear to be locked in, I’m not sure talking about their capability of winning by 30 or how great they are is the best course. Maybe that will motivate the Warriors, if they take pride in preserving their elite status. But hungrier teams usually fare better.

I’m just not sure how the Warriors regain that appetite.

On the bright side for them, they might be talented enough to win another title, anyway.