NBA expects big television revenue jump, which complicates lockout

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Nothing runs professional sports in the United States like television and television money. And it’s right in the middle of the NBA lockout.

That starts with the current television deal, set to pay the league $930 million next season (assuming there is a next season). We told you before about how the NBA’s television networks — TNT, ESPN/ABC — are set to lose $1.25 billion in revenue if there are no games.

Over at Hoopspeak, Ethan Sherwood Strauss explains how the NBA has missed the boat on its national television deal (first signed in 2007).

Ad Week reports that ESPN/ABC and TNT would miss out on up to 1.25 billion dollars from a year with no basketball ad money. If the 2011-2012 season actually happens, those channels would collectively pay 930 million dollars for that 1.25 billion return in broadcast revenue, a potential 320 million-dollar gap between what the NBA sells TV content for and what broadcasters make off of it. This is a quite a steal for the TV side considering that broadcasters often overpay for the privilege of attaching themselves to sports. For perspective, networks give the NFL 4 billion dollars in return for 3 billion in ad money. My suspicion is that pro basketball could easily make up the 300 million they claim to be losing–if only the league had a mulligan on TV rights negotiations.

They don’t get to redo those rights until 2016, although the current partners may be willing to do an earlier renegotiation to keep the rights without opening up the bidding.

But when they do, the NBA will see a big jump in revenue, according to Forbes.

The buzz in broadcasting circles is that the National Basketball Association’s terrific television ratings and greater competition for sports programming are going to result in at least a $3 billion increase in the league’s next deal (30 percent more a year than the current deal)…

While buzz sometimes nothing more than just buzz, in this case a 30% increase might be too conservative. The Los Angeles Lakers reportedly inked a new cable deal in February that will pay the team an average of $150 million a year, five times their current fee. Almost immediately after Peter Guber and Joe Lacob bought the Golden State Warriors last summer the team inked a new cable deal with Comcast. Although the figure has not been reported, I have been told the deal paid the new owners between $40 million to $50 million upfront, plus a more than 100% increase in the annual rights fee. Heck, even the National Hockey League just got a new deal with Comcast that will pay the league 170% more than its current agreement.

What Forbes is writing about both the owners and players realize — the league had the best ratings it had seen in a decade last year and they will be getting more television money in the future. Which brings us to the current Collective Bargaining Agreement negotiations and lockout.

The last offer from the owners wanted to cap annual player salaries at $2 billion (they made $2.17 billion this past season) for a decade. Meaning that player salaries would remain flat an all of the money from the increased television rights deal would go into the owners pockets.

The players currently get 57 percent of the gross Basketball Related Income that comes into the league, a figure that includes the national television revenue. While the players have offered to lower their share down to 54 percent, they want it to remain a percentage because they want to share in the increased television revenue when it comes.

And that is part of the standoff. There will be more revenue for the league in future seasons, but who gets the lions share of it has to be hammered out.

If back in 2007 the league had not signed such a long television deal, one that had more flexibility, we might not be dealing with the threat of such a protracted lockout.

Kevin Durant says he and Draymond Green have agreed to move on after spat

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Will Kevin Durant leave the Golden State Warriors in free agency this coming summer?

It’s entirely possible, and the big argument between Durant and fellow Warriors teammate Draymond Green last week led many to speculate that it might have an impact on the former’s pending free agency.

Both Green and Durant are back on the same floor for Golden State, and in a recent interview with Yahoo Sports Durant said that the row won’t have any effect on him choosing to stay or leave the Warriors.

Speaking with Yahoo’s Chris Haynes, Durant said that he understood Green’s personality and that he had decided not to let the dust-up affect him moving forward, presumably toward their ultimate goal of another championship.

Via Yahoo:

“I never really felt like it was a problem, because I know Dray and he says some crazy [expletive] out his mouth all the time,” Durant told Yahoo Sports. “But on top of that, it was just that there was so much coming with it from the outside, and so much stuff that we have to answer now.”

“I was upset, but I know that I can’t hold on to something like this,” Durant told Yahoo Sports. “I know that I’ve got to make a choice with myself, like how long are you going to be upset about this to the point where you’re going to let it affect what you do on the floor or how you approach the game? Once it gets there now, I got to make a grown-man decision and tell myself, ‘Look, man, no matter what, you still got to come to work every single day. It’s going to work out. It’s going to figure itself out.’ And I think everyone’s been handling it the best way they could and we’re just trying to move forward with it.”

All of Durant’s quotes are worth reading for more context on the biggest free agency of 2019. There’s a lot to unpack there, and if you have paid attention too much of what Durant has said in the past, it’s hard to put any weight on any comments given to Haynes in this instance.

Durant isn’t the most forthcoming person, and his angling when it comes to his career seems both clumsy and transparent at times. Durant could be seen mouthing what appeared to be an indication that he was going to leave the Warriors while on the floor against the Los Angeles Clippers, and we won’t get any direct comment on that anytime soon.

Durant did what he needed to do. He made public comments about how he is going to move forward from here on out so the Warriors can continue their run of dominance through the NBA. But short of signing a new contract (or both players holding a joint press conference where it’s clear from their faces that things are A-OK) everyone is going to assume there’s tension building under the surface with Golden State all season long.

Wizards fans are now wearing bags over their heads (PHOTO)

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The Washington Wizards are bad, and Tuesday night’s win over the Los Angeles Clippers won’t make up for that. John Wall‘s 30-point night won’t make up for that. Any kind of staid quotes from the coaches or players won’t make up for that.

The story is that this team just plain doesn’t like each other, and it’s hard to see how that will change enough to keep this core together. The Wizards front office is already taking calls for potential trades, and teams like the Charlotte Hornets are inquiring about stars like Bradley Beal.

Of course, fans in D.C. are not taking the news of the team’s pending separation lightly. As folks started to pour into the Capital One Arena on Tuesday, at least one fan showed up with the universal symbol of a vote of no confidence.

Via Twitter:

Washington beat Los Angeles, 125-118, but that won’t make up for the general malaise surrounding the franchise.

Given how long the Jimmy Butler Saga continued with the Minnesota Timberwolves, I don’t have any confidence in NBA teams to get trades done in a timely fashion anymore. But the tipping point seems to have been reached in our nation’s capital, and the Wizards will probably shake things up soon.

Watch Toronto’s Danny Green hit game-winning shot over Magic (VIDEO)

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The Orlando Magic gave the Toronto Raptors a bit of a scare on Tuesday night. After a close game and a late lead by the best team in the East, it was the Magic who appeared ready to snd things to overtime.

As things came to a head at the end of the fourth quarter, both teams found themselves gunning for the win as time wound down. The Raptors were up by two points when they missed a 3-point attempt by Kyle Lowry with 12 seconds to go.

The Magic grabbed the rebound and quickly called timeout. That allowed Orlando to reset themselves, resulting in an Evan Fournier bucket with just 2.3 seconds to go and the teams tied, 91-91.

Enter Danny Green.

Via Twitter:

Green hit the clutch shot with less than a full second to go, and the Magic were unable to score on a long-distance heave.

Late shot by Green helped the Raptors win, 93-91. Toronto moved to 14-4 on the year as they sit solidly in first place. Orlando is currently sitting in seventh place in the Eastern Conference.

Report: Sixers rookie Zhaire Smith has lost 20 pounds since allergic reaction incident

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The Philadelphia 76ers are still dealing with the apparent allergic reaction that rookie Zhaire Smith had to some kind of food material in the team facility. The team already knew that Smith had a peanut allergy, but it was revealed later that he also had a sesame allergy.

We were originally expecting Smith to see the floor again sometime in December. But now it looks like that timeline has been pushed back. According to the Ringer, Smith has lost 20 pounds since his allergic incident, and it’s not clear whether he will return this season.

Via the Ringer:

Several reports stemming from the November 9 background briefing mentioned that Smith had “lost weight” over the past month and a half, but I was told that he lost “upward of 20 pounds.” For someone who’s listed at 199 pounds on the team website, that’s significant. As is the difference between Smith not playing in 2018, as reported, and “being in danger” of not playing at all this season, which is how it was explained to me. I was also told that he had more than one procedure to address the issue, which is evidently what the Sixers meant by the fuzzy “additional medical treatment” line. (The team had no comment, according to a spokesperson.)

The Sixers are a curious source of medical drama. Point guard Markelle Fultz apparently will be seeing a shoulder specialist to further diagnose whatever issue he is having with his shooting stroke.

Even still, Philadelphia sits in fourth place in the Eastern Conference and they just traded for Jimmy Butler. The NBA is a weird league, so having a Eastern Conference Finals-hopeful squad with these types of issues — I suppose — shouldn’t surprise us by now.