NBA commissioner Adam Silver
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Adam Silver acknowledges ratings drop as NBA tries to connect young viewers to broadcasts

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One of the NBA’s great strengths is its core audience is younger than the other major American sports.

One of the NBA’s great challenges is its core audience is younger than the other major American sports.

That means a lot of NBA fans are cord cutters — or, never had a cord to begin with — and don’t consume their entertainment the way their parents and grandparents did. Much the way we do a poor job measuring the economy by doing it the same way we did a century ago, using traditional Neilson rating measures is a poor way to judge the number of eyeballs on a game. Viewership is evolving.

But make no mistake, traditional ratings are down for the NBA, both nationally and at the regional level. Nationwide ratings are down by 12 percent, including 13 percent on TNT and 16 percent on ABC. On the regional level, the Sports Business Journal reports ratings are down by 13 percent. That is due to some big drops in certain markets (the Bay Area, for example), while the NBA says that ratings are up in 13 of the 28 markets that have reliable Neilson numbers (28 cities because Toronto and Denver are not included, the latter of which has a coverage/cable dispute that has much of the greater Denver region unable to view games at home).

NBA Commissioner Adam Silver owned the drop during All-Star weekend. He added that while the league could blame injuries to players that would be draws  — Stephen Curry and Klay Thompson with the Warriors, Zion Williamson with the Pelicans, Kevin Durant in Brooklyn, etc. — the bigger issue is connecting those younger viewers to NBA broadcasts.

“It’s well-known that on one hand we’re celebrated by some because we have such a young fan base, but that young fan base is disconnecting from pay television in record numbers, and by disconnecting, not just simply not subscribing to cable or so-called cutting the cord, they’re not watching traditional paid television the way they used to,” Silver said during his All-Star weekend press conference. “They’re watching over-the-top streaming services. They’re watching screens, but it’s not essentially pay TV.

“So the good news for the league is that, when we look at all other data points, particularly what we see in social media, what we see in terms of distribution of highlights and general chatter around our games, we’ve never been more popular. But we haven’t found a way to connect those young fans to our broadcast through whatever platform they’re going to be delivered.

“Again, I think it’s a very solvable problem. Our two primary media partners, Disney and AT&T, are both very engaged in these issues…

“So it’s not an issue unique to the NBA. We may be affected by it a little bit more compared to some properties because we have such a young fan base, but I’m super confident over time we’ll work through it because there remains enormous interest in our players and our game.”

Silver also showed at the NBA’s tech summit where he thinks the broadcast of NBA games is headed, trying to bring the courtside experience into the home (with an assist from Bill Murray).

Silver isn’t alone in thinking this way. Dallas Mavericks owner Mark Cuban, for one, said basically the same thing recently.

A well-respected media consultant recently told Forbes magazine he doesn’t think this ratings downturn is going to hurt the league in 2025 when it’s time to negotiate a new broadcast deal.

“This season’s NBA ratings story is silly. It is a small sample size. This is a year-round league with year-round stories,” says sports media consultant Lee Berke of LHB Sports. “The next NBA media agreements will be a substantially evolved set of deals because of streaming. There will be an increasing range of media companies that want the NBA for the U.S. and worldwide.”

The current $2.7 billion per year NBA deal with ESPN and TNT runs through the 2024-25 season, and Berke expects the next deal to roughly double in value.

That’s the vision Adam Silver sees. It’s just a matter of figuring out how to connect those young viewers to the content. Then to stop measuring viewership the way our grandparents did.

Duke’s Cassius Stanley declares for 2020 NBA Draft

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Two Duke players, point guard Tre Jones and big man Vernon Carey Jr., are expected to be in the 2020 NBA Draft and be taken in the late first-round or early second. We talked about them on the recent PBT Podcast breaking down some of this draft class.

Now a third Duke player, wing Cassius Stanley, has thrown his name in the mix.

“It was an absolute joy to coach Cassius this season,” Duke coach Mike Krzyzewski said in a statement. “I want to congratulate him and his great family on this decision. I’ve seen Cassius grow both as a player and person here at Duke, and I can’t wait to see how his career develops at the next level. Any NBA team will be very fortunate to get such a mature young man who is not only an incredibly-gifted athlete but a leader that wants nothing but the best for himself and his teammates.”

Stanley is projected as a second-round pick, but his incredible athleticism could get a team to use a late first-round pick on him.

Stanley is a 6’6″ wing and it’s his elite athleticism that will get him drafted as a potential 3&D wing. He averaged 12.6 points per game and shot 36 percent from three as a freshman (but on only three attempts a night). His athleticism gives him potential as a defender. The challenge is he relies on that athleticism, something that alone will not set him apart at the NBA level, he is not a shot creator for himself or others, and he struggles to shoot off the dribble. He can finish in transition, but at the next level nearly everyone can do that.

Stanley is a development project, but his athleticism makes him a good gamble for a team with a strong development program.

Nuggets GM Arturas Karnisovas reported early leader for Bulls’ top job

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What do the Bulls want in a new top executive? Near the top of the list: someone who can build an organization that drafts well and develops that talent. That’s why executives from Miami, Utah, and Toronto were high on the wish list.

Enter Nuggets general manager Arturas Karnisovas, who has done exactly those things in Denver. Karnisovas is the early frontrunner, reports Vincent Goodwill of Yahoo Sports.

Multiple sources told Yahoo Sports that Denver Nuggets general manager Arturas Karnisovas is the leader in the clubhouse…

Sources said [team president Michael Reinsdorf] wants someone who has a presence publicly, especially given the reticent nature of Paxson and Forman the last several years. The Bulls have embraced analytics the last few seasons but having someone who can discern how to apply the numbers against other basketball factors is important to Reinsdorf…

“He wants someone who’ll surround himself with smart people, a great talent evaluator. There’s a need to get better in the player development department, too,” a source told Yahoo Sports.

Karnisovas has worked mostly in the background in Denver, with Tim Connelly being the face of the basketball operations. That would be a big change for Karnisovas, but one he may be ready for.

John Paxson is helping Reinsdorf with the search, but Paxson reportedly will take on whatever role is asked — or step aside completely — to make things smooth for whoever takes over the organization.

While NBA taking big financial hit, rumor is salary cap will not see huge drop

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No NBA games are being played, no fans paying for tickets or buying arena beers, no revenue is coming in. The NBA playoffs will not start on time. If games are ramped up at any point in the next couple of months, it will not be in front of fans, just television only.

Which is to say, the NBA is taking a big financial hit right now. How much is impossible to say, but a billion is not out of the question.

The NBA is set up for the players and owners to split revenue, basically 50-50 (it’s more complicated than that, but it stays close to that range). If Basketball Related Income (BRI) drops around the league, then the salary cap drops and players get less money.

The league’s income is going to suffer, but the salary cap may not that much the NBA players union told agents in a call today, according to Ian Begley of SNY.TV.

What this implies is salary cap smoothing — the league would keep the cap artificially high in the short term, but when revenue spikes back up in the following years that rise will be artificially slowed a little to even things out. The idea is to smooth out the cap number rather than have wild fluctuations.

This is likely part of the negotiations going on between the league and players union over the force majeure clause of the CBA, which allows owners to reduce salaries if games are canceled. If the players give up salary now they don’t want to see future income fall too because the cap cratered for a season or two.

Most likely, the owners and players can work out a cap-smoothing compromise that works for both sides (something they could not do when the new NBA TV deal kicked in and the cap spiked back in 2016). The league’s cap projections were already reduced some by the loss of revenue from China following the Daryl Morey Tweet controversy, the missed games obviously will reduce it further.

How much further appears to be under negotiation.

Bulls’ John Paxson reportedly willing to play small role, or even step aside, for new front office

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It all seems a little too coincidental.

Early reports about a shakeup in the Bulls’ front office had John Paxson, the current vice president of basketball operations, retaining at least some power. There also was a push to help current coach Jim Boylen keep his job.

Then the Raptors’ Bobby Webster, Pacers’ Chad Buchanan, and Heat’s Adam Simon all dropped out of the running for the Bulls job.

Suddenly, there has been a series of reports that Paxson was willing to give up his power and is ready to play whatever role the new GM wants. There was this from K.C. Johnson of NBC Sports Chicago.

But the perception that Paxson will be some hovering presence, going kicking and screaming into the night, is simply wrong. Early this season, Paxson communicated his vision to ownership for a new-look, more modern front office. He initiated some of this need for change.

Michael Reinsdorf likely would have arrived at the same conclusion anyway and has taken the reins on addressing the issue. Well before news broke over All-Star weekend, he began performing due diligence and background on a wide variety of candidates.

Joe Cowley at the Chicago Sun-Times took it a step further.

A source told the Sun-Times on Tuesday that not only is Paxson all for stepping aside from his position and acting more as an adviser to the Reinsdorf family when the front-office restructure is finalized, but would completely step down from the organization if the Reinsdorfs and the new-look executive group deemed it better for the rebuild to continue.

Was the “perception that Paxson will be some hovering presence” just among fans, or did it exist among potential candidates, too? Each of the three candidates that dropped out have positons of some power in quality organizations, each is only going to leave for just the right offer, one with total control of the organization.

It all seems a little too coincidental that they all dropped out and then came the rash of reports about Paxson not wanting to retain power. Whether it was true or not Paxson was always willing to step aside, perception matters.

Chicago did interview Utah’s Justin Zanik, another experienced executive from a stable organization who could be a good fit with the Bulls. The Jazz have set up the kind of strong draft-and-development program (Rudy Gobert, Donovan Mitchell, etc.) that the Bulls should try to emulate. The Bulls are also expected to interview Nuggets’ general manager Arturas Karnisovas and Magic assistant general manager Matt Lloyd.

With no games going on, there is no rush to make a hire by the Bulls, they have plenty of time for due diligence (as do the candidates). Chicago will want its new head man and his front office staff in place before what is likely a compacted draft and free-agency period, whenever that comes.