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Why I don't think the NBA will miss any games next year

Discussion in 'NBA Dish' started by Carl Herrera, Jun 25, 2011.

  1. Carl Herrera

    Carl Herrera Member

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    Been thinking about the whole CBA thing, not so much about whose side I'm on (since it's just all businesses dividing up revenue), but just as an observer of the process and as a fan who doesn't want to lose NBA games (hell, I am feeling bad about losing the summer league). Anyway, here are some of my thoughts on it:


    1. I don't think we'll avoid a lockout in July (not enough time to reach agreement, the owners want to look tough), but I do think a deal will get done to have a 82-game season.

    Fundamentally, there is about $4.3 billion+ of revneue to be made and divided up among the teams and owners. If you don't play a game, most of that loot is gone while you squabble. Makes no sense. And this is not even considering the fan interest (and future loot) that can be lost due to work stoppage. There are even more things competing for people's entertainment dollars now compared to back in the late 90s. Why would you want to shrink the pie you are fighting over?

    2. I don't think this is like the NHL situation, which was never as big as the NBA and was in much worse shape than the NBA is nowadays. The NBA might have had to buy the Hornets, but the NHL had to buy the Coyotes out of bankruptcy. Mario LeMieux also acquired ownership of the Penguins out of bankruptcy back in 1999 because they owed him $30 mil in deferred salary. There is a difference.


    3. So how about this as an interim solution: Until negotiations conclude, the NBA operates as usual for up to one more season (same CBA rules) with one exception: 40% (or whatever % the sides agree on) of all player salaries are to be held in escrow. Neither the owners nor the players sees this money (about $850 mil) while they argue over the CBA. The money gets divided up at the end of the process as part of the overall settlement.

    So, nobody is very happy while the negotiations continue-- the players are losing a big chunk of their paycheck and the owners are not getting the salary relieve they want, just as nobody is very happy in the event of a lockout as players are losing their entire paycheck and the teams are losing pretty much their entire revenue and probably still has to pay many overhead costs (arena rent, debt service payments, salary for GM, coaches, etc.).

    You are still fighting. You are still not happy. The difference is you are not losing current and future revenue while the fighting goes on. Seems sensible unless both sides really want to maximize the pain experienced by the other side to maximize their leverage.
     
  2. sbyang

    sbyang Member

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    I don't think they'll miss games. Both sides have made concessions and they are actually not that far apart. I don't listen to the crap they spew in public, that's just posturing like politicians.
     
  3. t_mac1

    t_mac1 Member

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    They better not, and I hope not.

    But 2 former NBA players (Charles Barkley and Rick Fox) have publicly stated that they NBA will not have a season completely next year-bold statement.
     
  4. conquistador#11

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    It took roids and about three years for fans to embrace beisbol with open arms again.
    With all that revenue and fan interest this season has generated, it will be an extremely bad decision to not play ball for both sides. As to the actual negotiations, Jared Jeffries did not decide to give himself the contract he has. These owners have to be more responsible and stop blaming the players for what they've created.
     
  5. A_3PO

    A_3PO Member

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    I hope you are right but don't see it. They are very far apart and the players will only give the owners most of what they want after suffering huge salary losses. Money-losing, small market NBA owners won't feel any pain when games are missed.
     
  6. sbyang

    sbyang Member

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    In the latest proposal the owners essentially offered current players a good deal, the price is that players coming in later will pay the price. I think the current players will go for it because it doesn't affect them that much.
     
  7. Carl Herrera

    Carl Herrera Member

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    I think teams have, by and large, been more sensible. This past season only huge payrolls in the league are Orlando, Dallas, and the Lakers ($85-90 mil)-- and these teams can afford that money as far as I know. As for the rest, 4 more teams are between $70 and $75 mil, and the rest are all below the luxury tax. Also, pretty much every team has a good number of contracts that are expiring this season, which leave them in much better shape going into next year if they are sensible. (This is partly due to the fact that many teams created cap room to chase FA last offseason, btw). Gone are the days of the gargantuan payroll of the old Knicks. Even Cubans $86 mil payroll is sensible compared to what he used to pay.

    Also, the teams are now hiring more cap/money savvy front office people. Morey, ex-agent Lon Babby, Rich Cho, etc. instead of ex-players like Isiah and McHale.


    They are indeed far apart, I agree. However, I don't think it is correct to say that small market owners won't feel any pain. Yes, many of them are lost money the last couple of years. However, they probably will lose even more money if there is a lock out. A lot of them probably have debt-service payments to make with or without a season, as well as arena lease payments, coach salaries, and other items. They are still going to suffer a loss next year without having a season and paying the players. Also, the loss of fan interest in the long run hits them just as hard, if not harder, than it hits the Lakers of the world.

    Besides, the NBA is not just small market teams in the dumpster. What about the other teams? What about the currently profitable teams/bigger market teams like the Knicks, Lakers, Rockets, Celtics, Clippers, Heat, etc.? Can't imagine them being similarly motivated. I can't imagine Pat Riley and Mickey Arison wanting to miss a year worth of Lebron, Bosh and Wade. Can't imagine Cuban wanting to miss a year in career of his older stars Nowitzki and Kidd. Hell, even the small market Kings probably don't want to subject Jimmermania to a one-year cooling-off period.

    There is a reason why David Stern has put a gag order on all the teams. The ownership wants to present a united front (as do the players), and the league knows that if people start talking to the media individually, there are gonna be some teams coming out griping about the threat to next year.

    Among the owners, I'm sure a good number of teams are motivated to push for a different outcome than what the team currently proposes.
     
  8. A_3PO

    A_3PO Member

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    The larger market teams aren't what make the negotiations difficult. It's the small market teams driving this train that must be satisfied. Some of them will certainly lose more in a lockout than otherwise, but their pain will be relatively small compared to players missing game checks. This is what it's going to take to close a deal.
     
  9. Major

    Major Member

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    Baseball is not a good comparison to basketball. First off, baseball is the only real sport going on during the summer - so when it's not there, you see the huge void. With basketball, most people think the season is way too long and people are focused on football during the fall, so no one cares that much.

    Beyond that, baseball cancelled their season mid-season. People were already invested in the season and its outcome. That's very different than not starting the season at all. We saw this in the last NBA lockout - no one really cared much and the fans came back pretty quickly.

    The owners are going to go play hardball this time around, and the players aren't going to cave easily. That means an almost assured extended lockout. Like the NHL, this sport has major issues to work out in terms of their finances.
     
  10. Rockets4279

    Rockets4279 Member

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    I think it will be much more difficult. The league has had minimum revenue the last 2 seasons unlike the seasons before. There's no reason to think this season will be different, in fact i think it'd be worst than the previous 2 seasons. Something Stern mentioned was that the players benefited more then the owners did.
     
  11. Carl Herrera

    Carl Herrera Member

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    Actually, the NBA Finals (and the rest of the season) has had better rating this year than the years before. The teams finances also improved somewhat even by the NBA's own calculation. Even the NBA draft had its best TV rating in 15 years (according to ESPN's Darren Rovell). Moreover, the projections given by the NBA as part of the negotiations has revenue growing by 4-5% per year over the next few seasons and higher after that (the league's TV contract is expiring, and the next one is projected to be more lucrative). So, the NBA is not looking to suffer from a revenue stand point going forward even though the 2008 recession has caused a lot of problems over the last few years.

    This is not a league with an overall revenue crisis-- a shrinking pie problem-- going forward. The league does have a pie division problem, not just between owners and players, but rather a 3 way question among rich teams, poor teams, and players. They'll have to come to some sort of resolution, but the worst thing for all of them to do would be to piss off the fans and shrink the pie.

    Whether or not hoops is like baseball is not all that relevant. What we do know is that hoops did suffer from the 1998/1999 lockout.
     
  12. baller4life315

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    I hope you're right and I love your optimism. Just not sure if I believe saving the entire 82-game season is a possibility at this point.

    P.S. Fixed:

     
  13. JayGoogle

    JayGoogle Member

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    Agree with Carl.

    In the end I think there is a lot to lose for the Owners and that they will get this done to have a full season.

    But I am not a happy man that they are taking summerleague away :(
     
  14. Kojirou

    Kojirou Member

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    The thing is that the way Woj describes it, cheap bastards like Sarver and Sterling and fools like Kahn/Taylor don't care one way or the other if there is a lockout. After all, it's not like they are that concerned if the NBA goes to hell in a handbasket. And they have as much of a voice as people like Cuban, Riley, or Alexander. Stern needs to tell the first group of people to suck it, but he won't.

    So it depends. I want a way to end the superteam phenomenom, but really I blame ownership for this in the end.
     
  15. JayGoogle

    JayGoogle Member

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    The whole superteam thing is overblown. Especially watching a Dallas non-superteam beat the prototypical superteam.

    The other owners need to just build their teams better and stop giving non-superstars superstar money.

    Also even though we all hate to admit it the superteams has helped the NBA in popularity.
     
  16. Shroopy2

    Shroopy2 Member

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    Right, its not just owner/players, its rich vs poor and the players adjusting.

    I think part of it is:
    - Rich teams wont share (common theme there)
    - Poor teams then have to make their money back from the PLAYERS' share
    - Players and poor teams make their concessions.
    - They look to the rich teams to say "We've made adjustments, how about YOURS?" But the Lakers, Celtics, Bulls and Knicks won't do anything. And why should they?

    I think its cuz of THAT, there won't be a full 82 game season. The dreaded "revenue sharing" needs to be better but that won't happen without a fight, or ever.
     
    #16 Shroopy2, Jun 25, 2011
    Last edited: Jun 25, 2011
  17. Major

    Major Member

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    That's not necessarily true. The NBA did suffer after the lockout, but that also was the end of the Jordan Bulls - a team that drew a lot of interest and had a transcendent superstar. Much of the NBA's popularity was built on Jordan. Like golf without Tiger Woods, there's a drop of interest when you lose that type of personality, especially when you've marketed him so aggressively.

    And the bigger question for the two sides - and this applies to both sides equally - is whether any loss in fan interest and drop in the revenue pie is bigger than the potential gains they get by playing hardball. For the NFL, this is an easy question - both sides will lose dramatically. In the NBA? Not so much. The owners may actually be better off with a smaller revenue base but a stronger labor agreement. Players likely don't benefit by holding out, but they are being asked to make big concessions, which is going to be hard to sell.

    In the end, my guess is that there's a big lockout, and in the end, the players still break and are the ones that get hurt the most. Not only do they get a weak agreement on their end, but they also suffer from whatever revenue loss the league might suffer.

    But if the owners do break the union on things like sign-and-trades, salary dumps, etc - those things potentially make the league more competitive, which in the end would be a potential long-term net benefit.
     
  18. tosweet68

    tosweet68 Member

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    This lockout will take a long time to come to an end. I believe I heard that 22 of the 30 teams are losing money every season. That is not going to get fixed very easily and that is why they are pushing for a hard cap, or something closer to it, than the current soft cap. That is why this lockout will last a while.
     
  19. opticon

    opticon Member

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    Fully guaranteed contracts are Killing small market teams. The Bucks have had to pay Michael Redd's Corpse Millions of Dollars with virtually no return on investment.

    Not being able to use that money on a player that makes them better makes them suck.
    Which in turns makes the fans not want to come watch.

    And the Final result is the team looses money.

    A buy out prevision needs to built into every new contract signed going forward.

    All current deals should stand as is.

    If we wont to see the same level of parity we see in the Nfl owners need to have that same ability to turn their rosters over when things are not working.
     
  20. Space Ghost

    Space Ghost Member

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    Superteams are a big problem. Its not so much having a very powerful team, but more about all the talent converging onto one team, leaving a void in the rest of the league. Having all the talent on half a dozen teams kills the interest and revenue of the rest of the league. It also seems to be the small market teams that suffer. The small market teams have to pay more to get mid level players in just to compete.

    Here are some of the things I would like to come about:
    -League needs to contract 2-4 teams.
    -Hard cap. Allow for bird rights, but bird rights can not be transferred/traded. Bird rights would not go against salary cap.
    -End S&T
    -Shorten contracts and allow some sort of buyout of guaranteed contracts.
     

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