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.

Report: Knicks will roll over cap space if they don’t sign Kevin Durant, Kyrie Irving, Kawhi Leonard

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The Knicks are chasing Kevin Durant and Kyrie Irving. New York will reportedly get a meeting with Kawhi Leonard.

But Irving appears headed to the Nets, and Durant might follow. Leonard appears to favor the Raptors in a two-team race with the Clippers.

Stefan Bondy of the New York Daily News:

New York still believes it’s in the hunt for Kawhi Leonard, Irving and Durant. But, according to a source, the Knicks will punt their $70 million-plus in cap space if they can’t land one of those Tier A free agents.

This plan would require patience Knicks owner James Dolan has rarely shown. The Knicks have missed the playoffs six straight years. Twice during that span – including last season – they posted their worst record in franchise history (17-65). Dolan publicly proclaimed confidence New York would sign major free agents this summer.

He’d really allow the Knicks to delay winning even further?

New York is positioned to wait until 2020 free agency (though Joakim Noah‘s cap hit will remain on the books after an avoidable error). R.J. Barrett and Kevin Knox will still be on relatively cheap rookie-scale contracts. As a second-round pick, Mitchell Robinson is even lower-paid. If they sign players to only one-year contracts this offseason, the Knicks will once again have massive cap room.

But good players generally want multi-year deals. So, New York would be choosing among a far more limited pool of free agents. Another gloomy season would likely await.

And then the 2020 free-agent class looks weak. Especially with Anthony Davis already on the Lakers, there probably won’t be an attainable superstar for the Knicks. There might not even be an attainable star.

Then what? Sacrifice the 2020-21 season to gear up for 2021 free agency? Maybe Barrett, Knox and Robinson develop and send New York on a different track, but that’s far from assured.

The genius of this plan is it allows Knicks president Steve Mills and general manager Scott Perry to keep their jobs while the team continues to stink. There would be no expectations of winning anytime soon – as long as Dolan abides.

Report: Kyrie Irving doesn’t like living in Boston

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Has Kyrie Irving been in contact with the Boston Celtics about his free agency? We have reports that say that Irving has “ghosted” the Celtics… and of course we have counter reports that say just the opposite.

It’s hard to believe anything that swirls around Irving, one of the more enigmatic and tiring personalities in the NBA. At the very least, Irving has appeared to send signals that he is looking to sign with the Brooklyn Nets. Chief among them being that Irving recently fired his longtime representation and signed with Roc Nation, which has a close partnership with the Brooklyn front office.

Boston has had a hard time getting free agents to come to play for the franchise, and that’s before they had a standing beef with Klutch Sports. According to ESPN’s Jackie MacMullan, one of our Irving’s problems with the Celtics was that he simply didn’t like living in Boston.

Via ESPN:

“Kyrie Irving didn’t like Boston. I’ve been told this by many people. He didn’t like living in Boston — he just didn’t. By the end he had issues with Brad, by the end he had issues with Danny… by the end he had issues with pretty much all of us.”

We have heard rumors that things started to go wrong in the Celtics locker room when coach Brad Stevens seemed to openly favor injured star Gordon Hayward a bit too heavily (Hayward played for Stevens at Butler in college).

Meanwhile, Danny Ainge has the propensity to rub folks the wrong way. He makes whatever decision he thinks is the best from a basketball perspective, relationships be damned. We learned that with the Isaiah Thomas trade.

At this juncture it seems unlikely that Irving will return to the Celtics. Meanwhile, we will probably continue to get stories like this out of Boston.

Chris Paul: “I never asked for a trade” and says he’s happy to be in Houston

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With Golden State laid low by injuries (and maybe a defection), Houston should be the team stepping to the front of the line saying “it’s our turn” in the West.

Instead, the Rockets two stars — James Harden and Chris Paul — are feuding, ownership is turning coach Mike D’Antoni into a lame duck, and everyone without a fantastic beard hears their name in trade rumors.

The Harden/Paul feud is real, but Paul tried to downplay it at a charity event in Los Angeles over the weekend, denying a trade request and saying he was happy to be in Houston, as reported by Jonathan Feigen of the Houston Chronicle.

“I never asked for a trade,” Paul said. “I never demanded a trade.”

“I’ll be in Houston,” Paul said. “I’m happy about that. I’m very happy about that. I’m good.”

The report goes on to note Paul was asked if he had to work things out with Harden and he kind of danced around that question but said the issues were around a season-ending loss. Certainly, two straight years of being bounced by the Warriors has the Rockets frustrated. However, there is also a style issue: Harden dominates the ball and likes to work in isolation, Chris Paul can’t be as efficient that way anymore and prefers a more fluid offense (and more pick-and-roll for him). Coach D’Antoni gives a lot of leeway to Harden.

Harden and Paul need to work their issues out because Paul is nearly untradable (unless the Rockets want to throw in a sweetener with a pick or young player). Paul still has value on the court — a master floor general he averaged 15.6 points and 8.2 assists per game last season — but he is 34-years-old, lost a step last season, has an injury history (he played 58 games last season), and is owed $124 million fully guaranteed over the next three seasons. There simply are not teams interested in trading for Paul.

Houston could head into next season the favorites in the West. Part of that depends on how things shake out in free agency (does Kawhi Leonard come West, for example), but a lot of it is just the Rockets getting their act together. I expect Paul and Harden to figure things out, at least well enough to make it work. Mostly because they don’t have a choice. Paul isn’t going anywhere, whether he asked to leave or not.

 

Zion Williamson on Pelicans: ‘I’m ready to stay here’ (VIDEO)

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Zion Williamson is finally, officially a New Orleans Pelican. David Griffin and the Pelicans front office selected Williamson No. 1 overall in the 2019 NBA Draft on Thursday.

Now, we just have to wait for the Anthony Davis trade to be official and we can put this whole thing behind us.

Meanwhile, Williamson has been celebrating. According to TMZ, he had a big pizza party with his friends after the draft in New York. Williamson has since reported to the team in Louisiana, where he’s already saying all the right things to the media.

Speaking during a team event, Williamson said that something just hit him and that it was a gut feeling that he was glad to be in New Orleans.

“This is my home,” said Williamson. “I’m ready to stay here.”

Via Twitter:

Williamson could also be seen getting recommendations for the excellent cuisine in the Bayou.

As No. 1 overall picks and future franchise cornerstones go, Williamson already seems to have the temperament of a guy who’s willing to take over from the last one in Davis.