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.

Report: Dallas’ Dwight Powell to turn down $10.2 million player option

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Dwight Powell came to Dallas as a seeming throw-in with the Rajon Rondo trade back in 2014, but he evolved and grew into a solid rotation player for Rick Carlisle’s team. Last season he averaged more than 21 minutes a night off the bench, averaging an efficient 10.6 points and 5.3 rebounds a game.

Now he’s going to be a free agent, turning down the $10.2 million player option on the final year of his contract, reports Chris Haynes of Yahoo Sports.

Don’t expect him to leave Dallas, they want to keep him and now will have even more cap space to do so (Dallas already has enough cap space to re-sign Kristaps Porzingis and look for a max or near-max player to put next to KP and Luka Doncic). This is most likely a situation where Powell will make a little less than the $10.2 million he would have made next season but will get more money locked in over three or four years.

Dallas wants to keep him, not only is he a trusted part of their rotation but also he is very active in the Dallas community. He’s an excellent ambassador for the Mavericks.

That said, other teams likely will inquire about a solid rotational big man, Powell will have some options.

 

 

 

Warriors first team to win five straight conference titles

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Presenting the Western Conference-championship trophy in 2015, former Warriors coach Al Attles worried about dropping it. He told Stephen Curry to pick it up directly, avoiding a potentially troublesome lift and handoff. Curry raised the trophy to a jubilant Oakland crowd.

Golden State hasn’t lost control of the trophy since.

The Warriors won their fifth straight conference title – the longest streak of all-time – with a 119-117 Game 4 win over the Trail Blazers in the Western Conference finals Monday. Only the Boston Celtics, who won 10 straight division titles 1957-1966 before the NBA adopted conference in 1971, have gone to so many consecutive NBA Finals.

Here are the longest streaks of NBA Finals appearances:

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Blazers start hot, again. Warriors come back, again, win in OT to eliminate Portland

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Monday night saw the third installment in the Portland/Golden State movie franchise. We had seen this same plot in the last two films/games— Portland races out to an early lead thanks to unexpected hero, Golden State comes back and executes better down the stretch, then Golden State finds a way to win.

Monday night was just more dramatic.

It was almost the Meyers Leonard game — he had a career-best 25 points before the half and finished with 30 points on 12-of-16 shooting.

Adding to the drama, the Warriors delayed their comeback to the fourth quarter, but comeback they did.

Stephen Curry — who had a triple-double on the night and had 37 points to lead all scorers — sparked the comeback but was almost remembered for traveling with an exaggerated Harden step back rather than taking a potential game-winning two (and his brother Seth Curry was all over the travel call).

In the end, none of that mattered.

It was Draymond Green — who also had a triple-double with 18 points, 14 rebounds, and 11 assists — that hit a dagger three in OT off a Curry assist, and that proved to be too much for the Trail Blazers to overcome.

Golden State won 119-117 in a game of little defense, and with that takes the series in a 4-0 sweep.

The Warriors will now have nine days off to get Andre Iguodala, Kevin Durant, and DeMarcus Cousins healthy — all three sat out this game — before taking on either the Bucks or Toronto in the Finals (which will start in the East city).

Portland is done for the season, but they should look back with pride on the growth this team has shown. They found a third star in Jusuf Nurkic, and then without him still made it all the way to the Western Conference Finals. This season was a step forward for Portland, something to build on.

Portland just did not have the matchups or answers for Golden State.

Steve Kerr, without three guys who started Game 1 of the playoffs against the Clippers, threw out the kind of rotations usually seen on the second night of a back-to-back in January, but the Warriors depth came through. Kevon Looney had a strong game with 12 points and 14 rebounds. Shaun Livingston had eight points, Jordan Bell started and had 7.

More than depth, what separated the teams in this series was Golden State could crank up the defense when it needed it. The Warriors played with more defensive intensity in the fourth, holding the Trail Blazers to 6-of-23 shooting. In overtime, Portland shot 3-of-10.

The Warriors shot just 3-of-12 in overtime, but had five offensive rebounds and Green’s dagger three, and that was enough. They won a tough game without their stars. It’s the kind of win you expect from champions.

It’s a movie we have seen before.

Unstoppable Meyers Leonard drops 25 on Warriors in first half (VIDEO)

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Stephen Curry had an I-don’t-want-to-play-Game-5 kind of first half for Golden State, scoring 25 points and hitting 5-of-7 from three.

However, he was the second best player on the court because Meyers Leonard held that crown.

Yes, Meyers Leonard.

He had 25 points of his own on 10-of-12 shooting.

Fans broke out a “Mey-ers Leon-ard” chant.

All that had Portland up 69-65 at the half in a defense-optional Game 4 where it is win-or-go-home for the Trail Blazers.