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ClipsNation:Mysteries of the NBA Lockout-Why Does David Stern Still Have a Job?

Discussion in 'NBA Dish' started by Clips/Roxfan, Aug 2, 2011.

  1. Clips/Roxfan

    Clips/Roxfan Member

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    http://www.clipsnation.com/2011/8/1/2308725/mysteries-of-the-nba-lockout-part-3

    By Steve Perrin

    The longer the lockout goes on, the more I try to understand it all, the more mysterious it gets. At the most basic level, there's the mystery of whether the league is actually losing money. They say yes, but the closest thing we have to a legitimate outside source (Forbes magazine) says no. But there are other, smaller puzzlements along the way as well. In the absence of almost any other news, I've decided to write a series focusing on the lockout mysteries that currently have me scratching my head.

    So far we've covered:

    Mystery the first - Why does the league want a hard salary cap when they already have one?

    Mystery the second - Where did the money go?

    Which brings us to:

    Mystery the third- Why Does David Stern Still Have a Job?

    Star-divide



    OK, so maybe I'm being a little dramatic on this question, but seriously. If the NBA is asking us to believe that the league has lost money, even excluding interest and amortization costs, in every single season of the current CBA, then it begs a fairly obvious question - who the hell signed off on such a disastrously bad CBA? That would be Stern.

    Oh, and in addition to the current CBA that the owners now characterize as untenable, there's some indication that the latest TV deal the NBA signed may have left a significant amount of money on the table. That deal runs until 2016 with fixed revenues for the league, while ABC, ESPN and TNT benefit from ever-increasing ratings and ad sales. I don't know a lot about being a commissioner, but I would venture to guess that collective bargaining with your players and the National TV contract are pretty important responsibilities, perhaps the two most important. If he got those wrong, what exactly did he get right? The dress code?

    The guy has a tough task, I realize that. Most of the time he has to sell how great the league is, but now that he's trying to get the best deal he possibly can from the players, he has to convince everyone what a train wreck it is. It's beyond a balancing act - it's downright schizophrenic.

    The last time the NBA experienced labor strife back in the summer of 1998, there were definitely issues. Kevin Garnett had signed a 6 years/$120M contract to stay with the Timberwolves just a year earlier; that is still the most lucrative contract ever signed by an NBA player. (Garnett was an NBA pioneer in many ways. He was at the vanguard of the new generation of high school to NBA players, and as such was the first mega-star to become a free agent at such a young age in the post-Bird-Magic NBA.) Considering that the Wolves generated a TOTAL of $52M in revenue during the 1998 season according to Forbes' estimates, you can see how that contract was completely unsupportable for a small market team. The 1999 CBA's salary cap, and perhaps most importantly maximums on individual salaries, were major victories for the owners in their tug of war with the players. Kobe Bryant, drafted out of high school a year after Garnett, signed his new contract after the new CBA was in place - for 6 years/$71M - saving Jerry Buss about $50M. For once in his career, Bryant was not at the right place at the right time.

    But there's no such narrative in this lockout. There's no cautionary Kevin Garnett tale. Are player salaries bankrupting the league? I suppose they could be, but it doesn't make a lot of sense as they are set at a fixed ratio (57%) of Basketball Related Income (BRI). As a function of BRI, player salaries are neither higher nor lower than they have been since 1999, because that's what the current deal requires them to be, and presumably they are lower than they were in 1998.

    It's not unreasonable to suggest that maybe the league just got the number wrong back in 1999. That things really were badly, badly out of whack before, that the 57% figure was little more than an educated guess (and certainly better for the owners than no limit), and that it turned out to be just the wrong number. But if that were the case, then why was the CBA renewed with only minor modifications (and with no changes to the percentage of BRI dedicated to salaries nor even really discussions of changes that I can recall) back in 2005? (If you're curious, Larry Coon's Salary Cap FAQ has an appendix detailing the differences between the 1999 CBA and the 2005 CBA - it may seem long, but most of the changes are minor tweaks to existing clauses. A large portion of the changes are reducing the maximum length of contracts by a year, that sort of thing.)

    Now, it's important to remember that the NHL had just lost the entire 04-05 season when it came time for a new NBA CBA in the 2005 off-season, so Stern and the owners were more than a little spooked by the prospect of a lost season at the time. Partly for that reason, they quickly ratified a new deal. Then again, do they really have such short memories that they are any less concerned now? Do they not know what losing games in 1998 did to the NBA? Or what losing an entire season did to hockey?

    At the end of the day, something doesn't make much sense. The owners got the cost control they were seeking back in 1999. They played under that deal for seven seasons, and then renewed for another six seasons with more or less the same terms. And now things are so bad that they'd supposedly miss an entire season rather than play under the same terms? Or even under the better terms that the players have offered them?

    What changed? The league has done an exceedingly poor job of defining their plight, but there may be good reasons for that. I get it that small market teams are in trouble. But more than anything else that tells me that the league needs more robust revenue sharing - which is a conversation that Stern and the owners apparently do NOT want to have. Is the current crisis entirely a function of the drying up of public money to pay for arenas? That might be a legitimate issue for the owners in a new paradigm in dealing with municipalities, but it hardly paints them in a sympathetic light. Let's see, you billionaires are going to lock out the players and potentially cancel the season because you're no longer having the taxpayer foot the bill for part of your operation?

    David Stern doesn't do contrite - I understand that. But doesn't this situation call for at least some contrition? He won't resign - but it seems to me it would make a lot of sense for him to say "We are asking the players to help us come up with a new CBA because I got it wrong last time."

    Next mystery: Why Hasn't the NBA Addressed Revenue Sharing?
     
  2. larsv8

    larsv8 Member

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    Nice shot at Kobe lol
     
  3. smoothie

    smoothie Jabari Jungle

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    why does stern still have a job? because he fights for the owners and the league. you want a commissioner who gives in to the players demands? owners would lose money more frequently than they do now, teams would fold, the nba would weaken, and the commissioner would be replaced with one who fights for the owners.

    secondly, why is stern getting any blame when there are 2 sides who can't agree? IMO billy hunter and derek fisher are more to blame than anyone else. the players are being asked to take less money, however an nba season for them is ALWAYS a profitable one. players never end the season with LESS money than they had when it started... but some owners do. the amount of owners that are losing money is increasing. the nba had to buy the hornets this year when the previous owner couldn't afford them anymore AND couldn't even find a suitable buyer. if the nba didn't do this the hornets would've FOLDED.

    the players need to realize that taking too much money will cost them jobs if teams have to fold. the superstars will be ok, but what about the bench players who can't find another nba job if 1 or 2 teams fold? whats the point of a union if its giving away your job so lebron can make 10X more than you? the players are being greedy and stubborn. they need to realize that when the owners make money they are willing to spend, and vice versa. if they keep their teams earning money rather than losing, they are more likely to see that money and keep their jobs.
     
  4. across110thstreet

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    here's a companion piece for the OP and speaks to what smoothie is saying

     
  5. t_mac1

    t_mac1 Member

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    Stern contributes to this: I read his salary is $20-23 million/year.
     
  6. alethios

    alethios Member

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    I don't think the OP questions this, but the article is saying that if this problem exists where 22 out of 30 teams are losing money, 1) show us the books proving it, and 2) how did Stern and the boys allow the CBA in its current state pass in the 1st place? I agree that the question should also be, why isn't there revenue sharing? For Stern, it would make more sense to broach that subject because it would allow for broader acceptance of the NBA (IMHO), especially when things like this lockout threaten to undermine the NBA's popularity.
     
  7. showtang043

    showtang043 Member

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    sterns salary is 7 million by the way. I don't think you realize how much this guy has done for the game, how far he bought the game under his watch from the 80s to what it is. He is a marketing genius and had ambitious plans to take the league international which has taken the exposure of the game to new heights not ot mention his emphasis on nba cares, etc. The players are great and necessary, but the exposure and marketing the nba odes to put a final product like them is just unparallel.

    Go look at the euroleagues which have some damn good players, former college stars, and you can see the lack of infrastructure like the nba has. Its the best league in the world and it is impressive.

    THe players union thinks they are immune in a recession where most owners, fans, and all americans are taking cut backs and it is absurd. They are not held accountable for anything they do with the current contracts. If jerome james says he doesn't feel like working out any more, if eddy curry decides to stop getting in shape, if tmac decides he wants a surgery, owners lose those millions right off the bat iwthout any questions asked. There has to be more accountability on the players side at the very least. Both sides are the blame, but the players need to admit their side of the responsibility which they simply haven't.

    I really do laugh at the notion that because these stars(only a handful or two can be accomodated even) are going overseas that gives them leverage. If anything that gives the league leverage, these guys go over there to play for half or considerably less(in the millions) than what they get paid in the NBA. They don't fly in private airplanes or have the training facilities, doctors, arrangements, connections, exposures, tv deals, and all the resources and comforts the nba provides for them. If anything, this will show just how much they need to value being in the league
     
  8. bloop

    bloop Member

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    LOL @ marketing genius. He negotiated a TV contract in the mid 80s then pushed his boss out. He rode the Magic/Bird thing out until a small company named Nike hit gold with Jordan against all reason and has been looking for the next Jordan to replicate that lightning in a bottle for 25+ years. The league with the most dynamic athletes in the world has been stagnant for a decade.

    Stern's salary is unknown but yahoo sports is the latest to report that he earns in the $23 million range. And he has been in the 15-20 range for decades. He has made hundreds of millions in salary alone.

    As for why Stern is still in the league... he's the most powerful man in the league. Who is going to push him out. Typically Commissioners in US sports have been well-accomplished men who keep the mantle for a few years as a trust for the game. Stern is probably the first sports Commissioner with a lifetime appointment... like Stalin or Mao.
     
  9. roslolian

    roslolian Member

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    Ok, a history lesson for all the stern haters: the NBA was on the verge of bankruptcy when he took over. He transformed it from the dark ages to modern times. So whining about Stern still having a job is pretty stupid, if he hadn't done things the way he did guys like Durant won't be making 20M right now. Its pretty ridiculous that the article is blaming Stern for signing off on such a CBA, yet right now he's slamming Stern for playing hardball with the players. I personally don't like the way Stern handles PR and the referees, however he has been pretty kind to the players, which is shown by numbskulls like Starbury and Eddy Curry making 100M contracts. Saying he's against players when history has shown the contracts are lopsidedly in the players' favor is ridiculous.

    Secondly, I'm pretty sure the NBA owners will agree to have revenue sharing if the players agree to have unguaranteed contracts, just like the NFL. WHat smoothie said is correct, the owners put up $$$ to buy a franchise, but they aren't guaranteed to make money. however the players can just play hard during a contract year and then slack off and make millions. If you look at the old NFL CBA aside from the lack of rookie caps it is one of most pro-owner agreements ever, and the NFL became the most exciting and profitable sports franchise in the US. People like it because deadbeat players are a rairty when you compare it to baseball and basketball. IMO Stern and the owner should go nuclear and shut down the league until Billy Hunter and the players agree to whatever demands they want.
     
  10. Num1RoXfaN

    Num1RoXfaN Member

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    Ive always had a bad feeling about this david stern guy, he is acorrupted ******* qho I care nothing about.
     
  11. redhotrox

    redhotrox Member

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    <!-- http://twitter.com/#!/spencerhawes00/status/98158796475596800 --> <style type='text/css'>.bbpBox98158796475596800 {background:url(http://a0.twimg.com/images/themes/theme1/bg.png) #C0DEED;padding:20px;} p.bbpTweet{background:#fff;padding:10px 12px 10px 12px;margin:0;min-height:48px;color:#000;font-size:18px !important;line-height:22px;-moz-border-radius:5px;-webkit-border-radius:5px} p.bbpTweet span.metadata{display:block;width:100%;clear:both;margin-top:8px;padding-top:12px;height:40px;border-top:1px solid #fff;border-top:1px solid #e6e6e6} p.bbpTweet span.metadata span.author{line-height:19px} p.bbpTweet span.metadata span.author img{float:left;margin:0 7px 0 0px;width:38px;height:38px} p.bbpTweet a:hover{text-decoration:underline}p.bbpTweet span.timestamp{font-size:12px;display:block}</style> <div class='bbpBox98158796475596800'><p class='bbpTweet'>23 million a year for stern huh. Weird no rumblings about a pay cut for the commish while he asks every single player to do so.<span class='timestamp'><a title='Mon Aug 01 22:30:55 +0000 2011' href='http://twitter.com/#!/spencerhawes00/status/98158796475596800'>less than a minute ago</a> via <a href="http://blackberry.com/twitter" rel="nofollow">Twitter for BlackBerry®</a> <a href='http://twitter.com/intent/favorite?tweet_id=98158796475596800'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/favorite.png' /> Favorite</a> <a href='http://twitter.com/intent/retweet?tweet_id=98158796475596800'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/retweet.png' /> Retweet</a> <a href='http://twitter.com/intent/tweet?in_reply_to=98158796475596800'><img src='http://si0.twimg.com/images/dev/cms/intents/icons/reply.png' /> Reply</a></span><span class='metadata'><span class='author'><a href='http://twitter.com/spencerhawes00'><img src='http://a1.twimg.com/profile_images/1458868276/2015710095_normal.jpg' /></a><strong><a href='http://twitter.com/spencerhawes00'>Spencer Hawes</a></strong><br/>spencerhawes00</span></span></p></div> <!-- end of tweet -->
     
  12. Shroopy2

    Shroopy2 Member

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    I think taking the game international kinda works AGAINST Stern now.

    He actually helped create OPTIONS FOR the players to consider. Whereas the NFL is TOTALLY a domestic product and the players have to do whatever the NFL says because they can't get any jobs anywhere else.

    Thats the risk you have to take in expanding your name brand. But I think the NBA would have even more bargaining power if the NBA was the ONLY basketball job they could get. Knock the NBA player salaries down a lot, overseas teams can RAISE their salaries to where its closer to even, how is that not somewhat of a threat?

    I don't think NBA "scabs" would work. No one's gonna watch D-League 2nd stringer on the OKC Thunder while Kevin Durant balls over in Europe. Unless the league somehow fools the fans into thinking ex-NBA players are just a bunch of spoiled renegades making the players look like the bad guys.

    Which leads me to believe that the league actually IS losing money cuz they HAVE to consider that players don't HAVE to play in the NBA to live a good life.
     
  13. mylilpony

    mylilpony Member

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    This. He got lucky running the ship when there were spectacular players in the game. In reality, he has destroyed the game by marketing stars rather than teams.

    I mean look at us, the rockets. We needed stars. We got good ones in McGrady and Yao and paid them so we could win. They broke down and we were stuck with the bill and the mediocrity.

    Why were we mediocre? Because you need superstars to get superstar calls. I wonder who runs the foul calls department?

    Stern pushed the NBA into a place where the lower market teams have no chance and they are still paying the players ridiculous contracts.

    We all have examples of those kind of deals. Gooden, Joe Johnson, jamison, kato, larry hughes.

    Not to mention the old vets pulling in more money based on past production. Shaq, B. Miller, the barrys, etc.

    We have rookies that make money based on projected talent that fizzle. Oden is a big one (in all aspects). I wont single out our 2009 lotteries since they're still young, but I dont think they will all pan out.

    I think players should get paid, but it's not hard to see where teams are fishing for stars because they want to compete in the Stern NBA.

    The Stern NBA has turned the current stars into these wannabe soccer stars. Crying everytime they are touched. Playing to the refs more than the game.

    Rant over.
     
  14. OHMSS

    OHMSS Rookie

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    Strange, because ESPN claimed it was $25 million just the other day.
     
  15. heypartner

    heypartner Member

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    smoothie,

    The NBA is incredibly healthy. You are being bamboozled by Stern.
     
  16. Xerobull

    Xerobull You son of a b!tch! I'm in!
    Supporting Member

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    Ancient Freemason prophecy:

    He who has seen the Ark of the Covenant may lead the sacred ball in net tribe. *


    *
    see, the older Stern gets, the more his face looks like it's melting. the guys who saw the Ark of the Covenant had their faces melted.

    Also, boobies:
    [​IMG]
     
  17. heypartner

    heypartner Member

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    ^
    I think my face is melting
     
  18. cod

    cod Member

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    I don't know why you'd want to quote Hawes unless for fun. I've heard enough to figure out he's like the Sarah Palin of the NBA.
     
  19. AFS

    AFS Member

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    http://espn.go.com/nba/story/_/id/6829321/sources-david-stern-paid-nba-lockout
     
  20. redhotrox

    redhotrox Member

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    You don't think that's an insane amount of money Stern's making? Tough to ask players to take a pay cut when you're making more than all of them.
     

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