Details emerge of league’s new revenue sharing plan

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Revenue sharing was a big part of this summer’s Collective Bargaining Agreement talks, but the most secretive part. The owners wanted it to be something separate from the CBA itself, the players wanted it included, but what was going to be included was vague.

Even when the deal was finalized and the lockout lifted, the details of revenue sharing were not finalized and unclear. But now they are starting to come into focus. In part due to a story in the Sports Business Daily on Tuesday (hat tip to IamaGM).

Looks like the NBA is going with a “pool” system for revenue sharing, something that is dramatically different in both style and amount than it was in the last labor deal.

Sources said that the core of the plan calls for all teams to contribute an annually fixed percentage, roughly 50 percent, of their total annual revenue, minus certain expenses such as arena operating costs, into a revenue sharing pool.

Each team then receives an allocation equal to the league’s average team payroll for that season from the revenue pool. If a team’s contribution to the pool is less than the league’s average team payroll, then that team is a revenue recipient. Teams that contribute an amount that exceeds the average team salary fund the revenue given to receiving teams.

So, what does that really mean? Well, if you’re a small market team it means a lot of money.

For example, one high-revenue team could contribute 50 percent of its total revenue, minus certain expenses, for a total of $70 million put into the pool. A low-revenue team could contribute total revenue of $45 million. After allocating to both teams the average team payroll of $58 million, the low-revenue team would receive $13 million in revenue sharing to make up the difference between its pooled revenue from the league’s average payroll. The high-revenue team would be contributing $12 million to be distributed among receiving teams, adding financial balance between the markets.

Remember we are talking about the local revenue — money from ticket sales, concessions, parking and local television deals — not the national television deal revenue which is already split evenly between the teams.

There are caps on the percentage of revenue so that the big market teams — Lakers, Knicks, Celtics — get to keep a good percentage of their money. Jeanie Buss of the big-revenue Lakers toes the company line in the SBJ article. Of course, they have so much money coming in starting next year from their new local television deal this isn’t fazing them. At all.

Bob Myers says he initially told DeMarcus Cousins’ agent Warriors couldn’t afford center

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If the Warriors signed someone to a salary greater than the $5,337,000 taxpayer mid-level exception or acquired someone in a sign-and-trade, they would have been hard-capped at $129,817,000 this season.

That was obviously untenable for Golden State with its star-studded roster.

So, the idea of the Warriors adding DeMarcus Cousins seemed far-fetched – even to Golden State general manager Bob Myers.

Myers, as transcribed by Drew Shiller of NBC Sports Bay Area:

“It was early in the morning — I spoke to his agent. We had been preserving our taxpayer mid-level exception for somebody that might fall through the cracks and not get paid in a very tight free agency market,” Myers explained to Greg Papa and Bonta Hill on 95.7 The Game. “But mostly we were thinking wings. I figured if something like that were to happen it would happen July 8th, 9th, 10th.

“But we got the call and I just said, ‘Look. We don’t have anything more,’ because we’ve talked about other high-level free agents and the thought from their agent was, ‘Can you do a sign-and-trade? Can you get to a bigger number?’ And I kind of said, ‘Look, our roster is what it is. To move that many pieces around, to create $10 million in room, or $15 (million), it’s just prohibitive, I don’t want to waste your time.’

“So I thought that’s where the conversation was going … and I said to him, ‘We don’t have the money that you’re probably commanding out there.’ And this is the moment it became real — he said, ‘We understand what you have.’ And I said, ‘Well we only have the taxpayer mid-level.’ And then when he said, ‘I know,’ that’s when I knew it was real.

“They were very serious about it and they never really wavered.”

We’ve seen free agency from Cousins’ perspective. It’s interesting to blend Golden State’s into the story.

The Warriors are always eying stars. Their ambition might be unmatched. That not even they forecasted the possibility of signing Cousins – who accepted the taxpayer mid-level exception – speaks to just how much colder than expected his market was.

DeAndre Ayton draws himself dunking on Joel Embiid on trading card (photo)

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Joel Embiid issued a warning to pundits after the Suns drafted Deandre Ayton No. 1 overall: “Don’t compare Ayton to me either… I play DEFENSE.”

Ayton envisioned a response to the 76ers star while drawing on a trading card:

Embiid:

I’m impressed with Ayton’s artistic skills.

I’d be even more impressed if he dunks on Embiid, who does play quality defense – so far a hole in Ayton’s game.

Dwight Howard’s trainer: ‘He wants to evolve into Anthony Davis, into Kevin Durant, but his own version of that’

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In 2015, Dwight Howard said he wanted to play 20 seasons in the NBA. He also later admitted he considered retiring the same year.

After that career crossroads, Howard is back on the longevity track.

Entering his 15th season, the 32-year-old Wizards center is focused on getting into shape and developing his game.

Justin Zormelo, via Candace Buckner of The Washington Post:

“He wants to evolve into Anthony Davis, into Kevin Durant,” Zormelo says, “but his own version of that.”

This sounds silly at first. Durant and Davis are far more skilled than Howard. But those superstars provide reasonable goals for Howard.

Durant – who has expanded his game the other way, going outside to inside – shows how to blend playing different styles. Davis provides an example of how to work off the ball as a modern big man.

Howard shouldn’t want to lose his strengths as an elite rebounder and interior defender, but he can move in the direction of Durant and Davis.

After getting pretty big with the Hawks, Howard slimmed down with the Hornets and excelled in transition. He also improved significantly as a ball-handler, allowing him to put even more pressure on the defense in advantage situations and attack with face-ups.

Howard hasn’t shown proficiency as an outside shooter, but that could be his next step. The concern: Howard falls in love with shooting the way he did with post-ups, and he takes too many inefficient shots.

But there’s still something encouraging about someone working so hard to improve this far into his career.

Of course, on-court improvement won’t be enough for Howard. He has quietly produced or near star level in Atlanta and Charlotte. The problems came in the locker room. Howard’s attitude must improve, too.

Maybe it’ll all come together for him, and he’ll thrive through the rest of his 30s. He’s saying all the right things.

But we’ve also been here before.

Carmelo Anthony writes thank-you note to Oklahoma City: ‘I wanted nothing more than to make it work here’

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After last season, Carmelo Anthony summed up his time with the Thunder: “It wasn’t no strategy to me being here.” He waived his no-trade clause to facilitate a trade to and buyout from the Hawks, allowing him to join the Rockets – his preferred destination ever since his time with the Knicks was ending.

But he’s leaving Oklahoma City emphasizing the positive.

Erik Horne of The Oklahoman:

This is a nice letter, especially for someone who was there only one year. Thunder fans are extremely supportive, and I believe Anthony truly wanted it to work in Oklahoma City. He changed his game plenty to complement Russell Westbrook and Paul George.

It just wasn’t enough.

Of course, there’s more to the story. That’s self-evident in Anthony choosing to leave the Thunder rather than trying to solve their problems next season in a less-rushed situation.

But this isn’t an analysis of Anthony’s Oklahoma City tenure. It’s a thank-you note that seems pretty genuine and heartfelt – right until it’s signed “STAYME7o,” which is par for the course for Anthony.