Blame falls on Stern, owners for loss of NBA games

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The NBA is about to shoot itself in the leg. After a season where the league generated more revenue than ever before, when television ratings were the highest they had bee since the Jordan-era Bulls, the league next Monday will cancel regular season games.

Because they can’t figure out how to divide up the fans’ money. In the middle of a deep recession. It’s idiotic.

There is plenty of blame to go around, but know this — most of it belongs on the NBA owners and Commissioner David Stern. They are pulling the trigger, they will seriously damage the league for years.

Usually fans blame players when professional sports leagues go on strike or are locked out. The players are faces and names we recognize, and we know exactly how much they make — and we don’t relate to those sums. Even the NBA league minimum salary puts a player into the nation’s highest tax bracket.

But we don’t really know who the owners are (outside of Mark Cuban). And we don’t know how much money they make off their teams (which is hard to determine as teams are in tangled financial webs). They are faceless unknowns, big impersonal corporations (except when Dan Gilbert writes letters). We blame the players because we know and understand them in a way we don’t the owners.

However, the NBA players are the ones making the real concessions in these negotiations, not the owners. The players have tried to negotiate in good faith, the league has tried to bury them.

The real labor issue is the definition and split of “basketball related income” or BRI. It’s always about the money. BRI is basically all the money that comes into teams from national television deals, ticket sales, a percentage of in arena concessions and sponsorships, and so on.

In the old deal, the players got 57 percent of BRI in salaries. They have offered to reduce that down to 53 percent according to both the union and league. That is about a $160 million give back of real dollars from the players to the owners next season. David Stern said Tuesday (in a press conference shown on NBA TV) that is not enough.

“In order for us to have the robust revenue sharing that the owners want, and that the players want, we have to be profitable as a league,” said Stern, who has claimed the owners lost $300 million last season (a very debatable figure). “And there’s simply no way that ($160 million give back by players) makes us profitable.”

The owners started these negotiations trying to move the middle — the spot of compromise where a deal can be struck — by making outrageous demands. They wanted to roll back salaries of signed contracts, they wanted an NFL-style hard cap, they wanted no guaranteed contracts, and they wanted the players to only take 46 percent of the BRI. Basically, they wanted everything, they talked about radical changes.

There was Stern on Tuesday talking about all the things the owners have given back in these negotiations — they moved off the hard salary cap, the demand for non-guaranteed contracts and the salary roll backs. All things they didn’t have in the first place, all just give backs on paper. And they upped their offer to 47 percent of the BRI. A whopping one percent.

The players have moved $160 million, the owners $40 million in real dollars.

The middle ground? With the owners starting at 46 percent and the players at 57 percent, the average is 51.5 percent of BRI. The players have moved toward that but stopped because the owners have barely budged.

The owners are not a group trying to make a deal, that’s a group trying to steamroll the opposition. The owners know they have the leverage and they plan to use it. They are led by hardliners that made bad business decisions — overpaying for franchises, bringing in a lot of partners and leverage to do it — then complain they can’t make enough money on it. Certainly they deserve the chance to make a profit, but it’s not the players fault that a bunch of owners have huge debt service payments on their franchises. The owners want to make those payments on the backs of the players.

Stern said that they floated the idea “in concept” to the players of discussing a 50-50 split of BRI under the old definition, but the players rejected it. Sources with the union told Alex Kennedy of Hoopsworld that was not how things went at all. Know this — BRI is not total revenue, the owners get to write off expenses off the top, then the rest is divided up. So even that 50-50 is less than half of what the league brings in.

And the league is about to bring in a lot more money. The Lakers local television rights deal is about to jump from around $30 million a year to more like $150 million a year. The Celtics just inked a new deal, as did the Nets with the move to Brooklyn. Then there is the new national television deal in 2016.

The owners are going to see more money, they are just fighting to keep a larger share of it. The good of the game be damned.

In the end, it’s the fans that get screwed over in this. Well, the fans and the arena workers and others who depend on the league and now will be looking or a second job to keep a roof over their heads and food in front of their children. Arena workers are not making big money and they have no way easily replace that income.

Fans should be angry. Just know that it is the owners that locked the doors. It’s the owners not really moving in negotiations. It’s the owners that want to see how the players react when they miss a paycheck or two, so they will drag this out. The owners are trying to steamroll the union, not find a fair deal in the middle.

This lockout is on the owners, make no mistake about it.

Andre Iguodala’s exit line on CNBC: “Nobody’s going to the Knicks. Sorry.”

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Andre Iguodala is a smart businessman who is heavily invested in tech startups (as are several Golden State Warriors players). That — and the fact he’s a famous NBA player — made him a good guest on CNBC’s Power Lunch show Monday.

Iguodala also has a few good connections to the thinking of the Golden State Warriors’ free agents Kevin Durant and Klay Thompson. Here is his response when asked about free agency and the Warriors on the show.

Of course, he said he expects Durant and Thompson to come back to the Warriors, what did you expect him to say? However, it was the exit line that got noticed:

“Nobody’s going to the Knicks. Sorry.”

More and more it’s looking like that.

Sources have said Thompson is staying with the Warriors since the start, he was never in play. Durant and the Knicks have been linked all season, but suddenly rumors of him going to Brooklyn with Kyrie Irving (and maybe Durant’s good friend DeAndre Jordan) have gotten a lot louder around the league. Brooklyn may be the frontrunner, with the Clipper still on the fringes of the conversation. The Warriors may be on the outside looking in.

The Knicks want a meeting with Kawhi Leonard, but that is a two-team race between the Raptors and Clippers, with Toronto seeming to have the edge after winning a title.

The smart play by the Knicks, if this happens, is not to spend wildly on the next tier of free agents but rather to sit on their cap space, develop and add to their young core, and wait for another star. That seems to be the plan, but how long before James Dolan gets impatient and forces something stupid to happen. For the Knicks, that’s always a concern.

Report: Atlanta trades Kent Bazemore to Portland for Evan Turner

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Portland is always on the search for some quality play and shot creation at the forward spots (something that is a long-running weak spot), and with this trade the Trail Blazers get a little better.

Atlanta is sending Kent Bazemore to Portland in exchange for Evan Turner in a straight up, two-player trade, a story broken by Adrian Wojnarowski of ESPN.

Both players are in the final year of their somewhat overpaid contracts, Bazemore will make $19.3 million while Turner will pull down $18.6 million. Atlanta does save about $640,000.

This trade makes a lot of sense for Portland. Bazemore is a quality wing rotation player who averaged 11.6 points per game, is athletic and can create shots. Last season Bazemore was on his way to a career year until a mid-season ankle injury, and while he did come back to the court he was never healthy and the same player. He’s not a knock-down three-point shooter but he has usually been at around 35 percent or a little higher five of the past six seasons (he was down to 32 percent last season because of the ankle injury). This is more than just Rodney Hood insurance, this is an upgrade.

Turner was the guy Portland counted on as another shot creator, but he could not do that consistently or under pressure. He averaged 6.8 points per game last season, shot 21.2 percent from three, and is not a great defender. He is a popular teammate and good in the locker room (something useful with a young Hawks squad), but this is not an upgrade for the Hawks.

Then why did Atlanta make this trade? Good question. The franchise does save $640,000, which is helpful but not earth-shattering. Maybe it’s a favor to Bazemore to get him on a team that went to the Western Conference Finals a season ago and is a threat going forward. However, the best reason may be the Hawks have three young players they like — Kevin Huerter, plus just-drafted DeAndre Hunter and Cam Reddish — at the same spot and this frees up minutes for them to play.

Whatever the reason, the deal can get done soon, before free agency opens.

Knicks fined $50K for violating NBA’s media rules

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Knicks owner James Dolan escalates fight after fight after fight after fight after fight after fight after…

One of his latest battles has been with the New York Daily News, the newspaper that urged him to sell the team. The Knicks have repeatedly denied Daily News reporters access. Barring the Daily News from a recent press conference apparently crossed a line.

NBA:

The NBA announced today that the New York Knicks have been fined $50,000 for violating the NBA’s rules regarding equal access for media.

The Knicks did not allow the New York Daily News access to their post-draft press conference on Friday, June 21 while allowing all other credentialed media who cover the team to attend.

The organization has agreed to comply with NBA Media Access Rules moving forward.

The Knicks released this statement:

“The Knicks acknowledge that we did not comply with the NBA’s media policy, and made an error in interpreting Friday’s announcement as an invite only event.  As we do throughout the year, we have and will continue to provide access to credentialed media as per the League’s policy.” <

This has been a dumb plan by the Knicks. Even executed as designed, it makes them look bad.

The Knicks should be trying to generate enthusiasm around No. 3 pick R.J. Barrett and double-max cap space (which could turn into Kevin Durant and Kyrie Irving). Instead, the Knicks are drawing attention to their thin skin and pettiness. And they’re not stopping the Daily News from writing about the team, anyway.

For Dolan, a $50,000 fine is small. But it’s larger than my confidence his franchise will abide by the league’s media rules – which are designed to ensure fans receive information – going forward.

Rumor: Kevin Durant not happy with Warriors

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Kevin Durant‘s torn Achilles in the NBA Finals is the type of life-changing event that could significantly alter his thinking entering free agency.

But we don’t know how Durant was thinking before the injury. And we don’t know how he’s thinking now. He has yet to speak publicly.

That won’t stop rumors, though.

Ric Bucher of Bleacher Report:

the indication from several league sources is that Durant is not happy with the team, and the presumption is that it stems from whatever role Warriors officials played in his decision to suit up. Coach Steve Kerr says he was told Durant could not further injure himself by playing, which obviously proved not to be true. If Durant was told the same, it would give credence to the notion that, as one league executive claims, “He’s really pissed off at the Warriors.”

Jay Williams, who’s close with Durant, said the Warriors misdiagnosed Durant and mishandled public statements about him. Williams doesn’t necessarily speak for Durant, but that might be the best indicator so far of Durant’s mindset.

Do Bucher’s sources have other reason to believe Durant is upset with Golden State? Or are they just assuming Williams is representing Durant’s thoughts? The possibility of the former is what makes this intriguing. But I’m skeptical, especially of someone Bucher identifies as just “one league executive.” That’s light credentials for someone spewing rhetoric like “really pissed off.”

Still, Kendrick Perkins and Brian Windhorst reported on momentum building toward Durant to the Nets. There’s plenty of smoke behind the idea Durant will leave Golden State.

Re-signing with the Warriors might be the way for the injured 30-year-old to maximize his earnings, though. Their max offer projects to be worth $221 million over five years. Other teams’ max offers project to be worth about $164 million over four years. Durant could agree to a delayed sign-and-trade. Of course, he couldn’t actually guarantee Golden State would ever trade him.

So, if he’s that upset with the Warriors, he’ll just leave once free agency opens next week.