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Can the Warriors let Jeremy Lin get some playing time on Christmas Day?

Another totally unbiased take on the NBA lockout situation from the folks at NMA.tv

Yes, please.

Yes, please.

The fate of the NBA season is in the hands of these guys

The fate of the NBA season is in the hands of these guys

sportsnetny:

@espn700spence

Good God be true. Be the truest thing that has ever been tweeted.  

sportsnetny:

@espn700spence

Good God be true. Be the truest thing that has ever been tweeted.  

An update on the current lockout situation from the always entertaining NMA.TV

NBPA Press Conference- LIVE NOW

(click picture to view press conference)

NBPA Press Conference- LIVE NOW

(click picture to view press conference)

The Paul Family on Family Feud

NBA Economics 101: Billy Hunter Speaks & Other Ramblings 
Bill Simmons posted up a new B.S. Report today where he was joined by NBPA President, Billy Hunter. If you haven’t listened to it, do so now. Billy spills the beans for the entire 1-hour long podcast about what owners wanted, what the players wanted and how the owners can’t even agree with themselves, let alone the player’s union. 
There were a lot of golden kernels of information in this episode and some of it confirmed a lot of theories most of us have had (or feared) about the owners and how long this lockout will last. 
Option to Extend - I think the most important thing Billy Hunter mentioned was that the owners had and still have an option to extend the old CBA one more year and have refused to do so. Hunter mentions that this will allow the league to get the season underway and play out all of 2011-12 while also negotiating the new CBA, thus saving us the pain of missing games. Unfortunately, Billy didn’t really expand on this point. Simmons tried to get him to talk about it but Hunter went off on a long tangent and I think they both just forgot to get back to it. 3%!?! That’s it?!? - The players came down from their 57% share of BRI from the last CBA to 53% for the new CBA and they won’t budge off that number much (They went as low as 52.5% but the owners refused to take it). Most people were left disbelief that the union and the owners were fighting over just 3%. Sure, 3% sounds like chump change when talking about the increase in the price of a can of Coke or a Kit-Kat bar, but when we’re talking about a revenue share of nearly $4 billion dollars, that 3% is big, big dollars. Here’s the math for all you nerds who are interested:
3% is about $120 million a year in revenue. And that’s based on $4 billion in BRI (BRI that is hand picked revenue by the owners). That $4 billion will surely increase over the next few years as the game will get more popular and then in 2016* when the new TV deals kick in, that 3%, which was $120 million a year, can turn into $150 or maybe even $175+ million a year (that’s only $5.8 billion in revenue, a modest possibility).
The CBA will most likely be a 7 or 10 year contract. Now if you do the math, that insignificant sounding 3% is worth somewhere around $1.2 to $1.5 billion dollars. That’s $50 million per owner or $3.75 million per player.
This isn’t pocket change. Not even for millionaires and billionaires. 
Mark Cuban and the “Good Guys” - Hunter mentions that a few owners were willing to be more flexable with the system, BRI and negotiations in general. I’ve mentioned this before but I’ll say it again, some owners have more to lose than to gain by this lockout and I’m not just talking about money.
Teams like the Mavericks, Lakers, Celtics and Spurs have a rapidly closing championship window. Teams like Miami, New York and Oklahoma are on the cusp of success and don’t want to miss a season in their prime. There are also teams with lucrative television deals, most of which are the same teams listen above, that would miss a significant chunk of revenue if we missed a season. There are also owners that their sole business is their basketball team. They don’t have secondary businesses that help support their basketball addiction. 
According to Hunter, Mark Cuban went as far as asking for a league with no salary caps. Perhaps Cuban should buy an MLB team. I’m sure most owners, even the extremely rich, aren’t for this idea but Mark is one of the few owners with an old school approach to owning a team. You do whatever it takes to win and worry about profits later. To Mark and the old school owners, profits always came as long as you were chasing wins. The NBA was more of a novelty the a net income. 
All of these owners in the “Good Guys” club want the season to start and it seems are willing to take the 53/47 split. The problem is that these owners don’t have enough numbers to help sway the final vote in their, and everyone’s, favor. So, we are still locked out. 
Globalization and Localization - the players have done a great job of getting out there and spreading their own brands and giving the starving fans a taste of basketball whenever they can. The head chef in this kitchen has been Kevin Durant. He’s played in every single park league and pick-up game on the planet during the lockout. If he could, he’d even cameo in a WNBA game or two. 
This past weekend, Kevin Durant hosted an “All-Star” level charity game in Oklahoma City which brought out names such as LeBron James, Chris Paul, Russell Westbrook and many more. The game was as close to an NBA game as one could be in terms of professionalism and setup. They even had a legit halftime show, as Nate Jones tweeted. Side note (we don’t have footnotes like Grantland.com), Michael Beasley led all scorers in this game with 56 points. That’s crazier than Michael Beasley. 
If this is any indication, the 6 city All-Star Barnstorming Tour that will feature Durant, Kobe, LeBron and more is going to be a must-see when it visits your city. What started out as a few innocent park league games between the famed Goodman, Rucker and Drew leagues has now expanded into a global extravaganza that the players could possibly capitalize and profit off of. This 6-city tour, which can be expanded if the lockout is extended, could be the beginnings of a player owned and operated league or just some much-needed leverage in the labor negotiations. 
Speaking of Globalization, Daniel Buerge of Lakers Nation has a great theory on how players playing abroad during the lockout would actually benefit the NBA: 

Take into consideration Deron Williams, who was one of the first NBA players to sign a contract with an overseas team for the lockout. He is currently signed on in Turkey, where he is on the court several times a week. Do you think any of the fans are looking at him and referring to him as Deron Williams, Turkish basketballer? Of course not. He is Deron Williams, NBA superstar. The same goes for Pau and Marc Gasol in Spain. Dirk Nowitzki in Germany. Kobe Bryant in Italy. Each and every time a fan looks at or thinks of one of these stars the first thing that comes to mind is American basketball, and in turn the NBA.

I guess the NBA wins, no matter what the players do. 
Can I get A Season? - One last important information that Billy Hunter and Bill Simmons discussed is something I wrote about last week, are some owners actually willing to miss a season to get the deal they want. Billy and Bill both seem to agree with my theory and even go as far as saying it’s looking like a strong possibility. 
I’d continue on about this but my keyboard is soaked in tears and I can’t continue typing. 
@Suga_Shane
More NBA Economics 101 posts. 
*EDIT: New TV deal starts in 2016, not 2017 like I originally wrote. H/T to Jared Wade for pointing that out. 

NBA Economics 101: Billy Hunter Speaks & Other Ramblings 

Bill Simmons posted up a new B.S. Report today where he was joined by NBPA President, Billy Hunter. If you haven’t listened to it, do so now. Billy spills the beans for the entire 1-hour long podcast about what owners wanted, what the players wanted and how the owners can’t even agree with themselves, let alone the player’s union. 

There were a lot of golden kernels of information in this episode and some of it confirmed a lot of theories most of us have had (or feared) about the owners and how long this lockout will last. 

Option to Extend - I think the most important thing Billy Hunter mentioned was that the owners had and still have an option to extend the old CBA one more year and have refused to do so. Hunter mentions that this will allow the league to get the season underway and play out all of 2011-12 while also negotiating the new CBA, thus saving us the pain of missing games. Unfortunately, Billy didn’t really expand on this point. Simmons tried to get him to talk about it but Hunter went off on a long tangent and I think they both just forgot to get back to it. 

3%!?! That’s it?!? - The players came down from their 57% share of BRI from the last CBA to 53% for the new CBA and they won’t budge off that number much (They went as low as 52.5% but the owners refused to take it). Most people were left disbelief that the union and the owners were fighting over just 3%. 

Sure, 3% sounds like chump change when talking about the increase in the price of a can of Coke or a Kit-Kat bar, but when we’re talking about a revenue share of nearly $4 billion dollars, that 3% is big, big dollars. Here’s the math for all you nerds who are interested:

3% is about $120 million a year in revenue. And that’s based on $4 billion in BRI (BRI that is hand picked revenue by the owners). That $4 billion will surely increase over the next few years as the game will get more popular and then in 2016* when the new TV deals kick in, that 3%, which was $120 million a year, can turn into $150 or maybe even $175+ million a year (that’s only $5.8 billion in revenue, a modest possibility).

The CBA will most likely be a 7 or 10 year contract. Now if you do the math, that insignificant sounding 3% is worth somewhere around $1.2 to $1.5 billion dollars. That’s $50 million per owner or $3.75 million per player.

This isn’t pocket change. Not even for millionaires and billionaires. 

Mark Cuban and the “Good Guys” - Hunter mentions that a few owners were willing to be more flexable with the system, BRI and negotiations in general. I’ve mentioned this before but I’ll say it again, some owners have more to lose than to gain by this lockout and I’m not just talking about money.

Teams like the Mavericks, Lakers, Celtics and Spurs have a rapidly closing championship window. Teams like Miami, New York and Oklahoma are on the cusp of success and don’t want to miss a season in their prime. There are also teams with lucrative television deals, most of which are the same teams listen above, that would miss a significant chunk of revenue if we missed a season. There are also owners that their sole business is their basketball team. They don’t have secondary businesses that help support their basketball addiction. 

According to Hunter, Mark Cuban went as far as asking for a league with no salary caps. Perhaps Cuban should buy an MLB team. I’m sure most owners, even the extremely rich, aren’t for this idea but Mark is one of the few owners with an old school approach to owning a team. You do whatever it takes to win and worry about profits later. To Mark and the old school owners, profits always came as long as you were chasing wins. The NBA was more of a novelty the a net income. 

All of these owners in the “Good Guys” club want the season to start and it seems are willing to take the 53/47 split. The problem is that these owners don’t have enough numbers to help sway the final vote in their, and everyone’s, favor. So, we are still locked out. 

Globalization and Localization - the players have done a great job of getting out there and spreading their own brands and giving the starving fans a taste of basketball whenever they can. The head chef in this kitchen has been Kevin Durant. He’s played in every single park league and pick-up game on the planet during the lockout. If he could, he’d even cameo in a WNBA game or two. 

This past weekend, Kevin Durant hosted an “All-Star” level charity game in Oklahoma City which brought out names such as LeBron James, Chris Paul, Russell Westbrook and many more. The game was as close to an NBA game as one could be in terms of professionalism and setup. They even had a legit halftime show, as Nate Jones tweeted. Side note (we don’t have footnotes like Grantland.com), Michael Beasley led all scorers in this game with 56 points. That’s crazier than Michael Beasley. 

If this is any indication, the 6 city All-Star Barnstorming Tour that will feature Durant, Kobe, LeBron and more is going to be a must-see when it visits your city. What started out as a few innocent park league games between the famed Goodman, Rucker and Drew leagues has now expanded into a global extravaganza that the players could possibly capitalize and profit off of. This 6-city tour, which can be expanded if the lockout is extended, could be the beginnings of a player owned and operated league or just some much-needed leverage in the labor negotiations. 

Speaking of Globalization, Daniel Buerge of Lakers Nation has a great theory on how players playing abroad during the lockout would actually benefit the NBA: 

Take into consideration Deron Williams, who was one of the first NBA players to sign a contract with an overseas team for the lockout. He is currently signed on in Turkey, where he is on the court several times a week. Do you think any of the fans are looking at him and referring to him as Deron Williams, Turkish basketballer? Of course not. He is Deron Williams, NBA superstar. The same goes for Pau and Marc Gasol in Spain. Dirk Nowitzki in Germany. Kobe Bryant in Italy. Each and every time a fan looks at or thinks of one of these stars the first thing that comes to mind is American basketball, and in turn the NBA.

I guess the NBA wins, no matter what the players do. 

Can I get A Season? - One last important information that Billy Hunter and Bill Simmons discussed is something I wrote about last week, are some owners actually willing to miss a season to get the deal they want. Billy and Bill both seem to agree with my theory and even go as far as saying it’s looking like a strong possibility. 

I’d continue on about this but my keyboard is soaked in tears and I can’t continue typing. 

@Suga_Shane

More NBA Economics 101 posts. 

*EDIT: New TV deal starts in 2016, not 2017 like I originally wrote. H/T to Jared Wade for pointing that out. 

Do you have a lockout related question or comment you’d like to share? Get at us on twitter (@OffseasonBlog) or via email (playoffsblog@gmail.com) and we’ll try to answer as many as we can in tomorrow’s NBA Economics 101 post. 

Do you have a lockout related question or comment you’d like to share? Get at us on twitter (@OffseasonBlog) or via email (playoffsblog@gmail.com) and we’ll try to answer as many as we can in tomorrow’s NBA Economics 101 post. 

NBA Economics 101: Why some owners prefer to stay locked out
Ken Berger of CBS Sports tweeted some updates from today’s on-going NBA negotiations, and they don’t bring an ounce of good news. By the way, if you aren’t following Ken’s lockout tweets, you’re not staying informed. 
Berger reports that some owners would rather miss the entire season than take a bad deal. No idea who these owners are, but there has to be more than just a couple or else this lockout would have been solved by now. But instead of speculating on who’s giving these negotiations the Mutombo finger wag, let’s explore why the owners would rather miss $4 billion in revenue instead of taking a less favorable deal. 
First we need to realize that the owners didn’t want to really start negotiating until they were able to force the players into a corner where they would be walled off by missed paychecks. This is the NBA’s most potent form of leverage.
Of course, the league has other perks that the players can’t find else where, at least not immediately. Things like sponsorship dollars, television deals, high salaries, and state-of-the-art arenas. I say immediately because if the players left the NBA for a new league, that new league would one day reach and probably surpass those current assets of the NBA, but that’s not important. What is important was that the owners wanted and needed to miss games to begin seriously negotiating with the players. 
Technically, no one financially benefits from missed games, at least not in the short term. Since the NBA is currently under a 57/43 BRI (Basketball Related income) split and any deal going forward would be around a 50/50 BRI, the owners would miss just as much revenue as the players if games are missed.
So how is lost games leverage and why are the owners, who are already pretending to lose money* be willing to lose more money? 
It’s leverage because the owners are invested in the NBA for much longer than players. According to the Sports Business Journal, the average NBA career is 4.81 years, much much shorter in comparison to how long some owners maintain ownership of their NBA teams. 
Currently the players have given back about $200 million a year by reducing their BRI cut to 53%. This hasn’t been accepted by the owners yet but if it was, each team stands to make, on average, $6.67 million more a year based on last year’s revenues and probably much more when the economy recovers and the NBA signs it’s new national television deals in a few years. 
Currently, the BRI split based on 43% and $4 billion in revenue leaves each team, on average, with $57.3 million a year after player salaries are taken out (57%). 
One lost season to an owner is nothing if they can make $6.67 million more a year for the life of their ownership. Even if an owner was only looking to hold the team for 10 years, that’s $66.7 million more revenue with a better deal. And that number would be even greater if they can get the players to come down to a 50/50 BRI split.
Even if an owner who will keep the team for 10 more years misses one year of revenue, which was about $57.3 million dollars last year, they still stand to make $9.3 million more dollars over a 10 year ownership. That’s because the amount they stand to gain from these negotiations over a 10 year span is greater than the revenue lost from a single lost season. 
Compare that to the average player. If someone plays and makes exactly the average amounts, they would have played nearly 5 years at about $5 million a year and made $25 million over their career. A missed season means they would lose $5 million or 20% of their career earnings. Even these missed games account for a large chunk of a player’s career earnings. And as we all know, the average player doesn’t play for that long and they don’t make that much money. Those numbers are inflated due to the superstars making $20 million a year and those super athletes that player 10-15 years in the NBA. The majority of players earn much less and have much shorter careers. These players who, again are the majority, will be much more willing to accept a deal once checks are missed. 
That $6.67 million figure is where we are now. Players have already agreed to roll back their share of BRI down to 53%. But the owners want more simply out of greed and the fact that they think they can get it. Not only would a lower BRI split give the owners huge profits over the life of this CBA, it will set them up in a more favorable position for when they have to renegotiate the next CBA in 10 years. 
If you’re asking why the owners don’t take the 53/47 share now and try to get the remaining 3% in the next CBA, it’s because right now is the perfect economic climate to pull this off. No one knows what the economy will be like in ten years (or 7-years, if the owners include the early opt-out clause as discussed). What if the economy makes a full recovery and no one believes the owners are losing money anymore? They would have lost a lot of credibility and leverage. Now is the time. 
Obviously not all the teams are willing to lose the season. Some teams, like the Lakers, Knicks and Bulls, who have giant media markets, make so much money from a single season that they don’t care to make a little more at the cost of missing a season. 
Other teams, like the Celtics, Spurs and Mavericks, have an aging core of superstars and they don’t want to miss out on a chance to win one last title before they have to start over. 
Then there are the teams that have large profits to gain and nothing to lose. Well, maybe a season to lose. 
@Suga_Shane
More NBA Economics 101 posts. 

NBA Economics 101: Why some owners prefer to stay locked out

Ken Berger of CBS Sports tweeted some updates from today’s on-going NBA negotiations, and they don’t bring an ounce of good news. By the way, if you aren’t following Ken’s lockout tweets, you’re not staying informed. 

Berger reports that some owners would rather miss the entire season than take a bad deal. No idea who these owners are, but there has to be more than just a couple or else this lockout would have been solved by now. But instead of speculating on who’s giving these negotiations the Mutombo finger wag, let’s explore why the owners would rather miss $4 billion in revenue instead of taking a less favorable deal. 

First we need to realize that the owners didn’t want to really start negotiating until they were able to force the players into a corner where they would be walled off by missed paychecks. This is the NBA’s most potent form of leverage.

Of course, the league has other perks that the players can’t find else where, at least not immediately. Things like sponsorship dollars, television deals, high salaries, and state-of-the-art arenas. I say immediately because if the players left the NBA for a new league, that new league would one day reach and probably surpass those current assets of the NBA, but that’s not important. What is important was that the owners wanted and needed to miss games to begin seriously negotiating with the players. 

Technically, no one financially benefits from missed games, at least not in the short term. Since the NBA is currently under a 57/43 BRI (Basketball Related income) split and any deal going forward would be around a 50/50 BRI, the owners would miss just as much revenue as the players if games are missed.

So how is lost games leverage and why are the owners, who are already pretending to lose money* be willing to lose more money? 

It’s leverage because the owners are invested in the NBA for much longer than players. According to the Sports Business Journal, the average NBA career is 4.81 years, much much shorter in comparison to how long some owners maintain ownership of their NBA teams. 

Currently the players have given back about $200 million a year by reducing their BRI cut to 53%. This hasn’t been accepted by the owners yet but if it was, each team stands to make, on average, $6.67 million more a year based on last year’s revenues and probably much more when the economy recovers and the NBA signs it’s new national television deals in a few years. 

Currently, the BRI split based on 43% and $4 billion in revenue leaves each team, on average, with $57.3 million a year after player salaries are taken out (57%). 

One lost season to an owner is nothing if they can make $6.67 million more a year for the life of their ownership. Even if an owner was only looking to hold the team for 10 years, that’s $66.7 million more revenue with a better deal. And that number would be even greater if they can get the players to come down to a 50/50 BRI split.

Even if an owner who will keep the team for 10 more years misses one year of revenue, which was about $57.3 million dollars last year, they still stand to make $9.3 million more dollars over a 10 year ownership. That’s because the amount they stand to gain from these negotiations over a 10 year span is greater than the revenue lost from a single lost season. 

Compare that to the average player. If someone plays and makes exactly the average amounts, they would have played nearly 5 years at about $5 million a year and made $25 million over their career. A missed season means they would lose $5 million or 20% of their career earnings. Even these missed games account for a large chunk of a player’s career earnings. And as we all know, the average player doesn’t play for that long and they don’t make that much money. Those numbers are inflated due to the superstars making $20 million a year and those super athletes that player 10-15 years in the NBA. The majority of players earn much less and have much shorter careers. These players who, again are the majority, will be much more willing to accept a deal once checks are missed. 

That $6.67 million figure is where we are now. Players have already agreed to roll back their share of BRI down to 53%. But the owners want more simply out of greed and the fact that they think they can get it. Not only would a lower BRI split give the owners huge profits over the life of this CBA, it will set them up in a more favorable position for when they have to renegotiate the next CBA in 10 years. 

If you’re asking why the owners don’t take the 53/47 share now and try to get the remaining 3% in the next CBA, it’s because right now is the perfect economic climate to pull this off. No one knows what the economy will be like in ten years (or 7-years, if the owners include the early opt-out clause as discussed). What if the economy makes a full recovery and no one believes the owners are losing money anymore? They would have lost a lot of credibility and leverage. Now is the time. 

Obviously not all the teams are willing to lose the season. Some teams, like the Lakers, Knicks and Bulls, who have giant media markets, make so much money from a single season that they don’t care to make a little more at the cost of missing a season. 

Other teams, like the Celtics, Spurs and Mavericks, have an aging core of superstars and they don’t want to miss out on a chance to win one last title before they have to start over. 

Then there are the teams that have large profits to gain and nothing to lose. Well, maybe a season to lose. 

@Suga_Shane

More NBA Economics 101 posts. 

Stephen Colbert’s Sport Report

(Source: offthebench.nbcsports.com)

Yes finally! The NMA.tv Taiwanese animation coverage on the NBA lockout. Even Maoist panda bears are clowning on LeBron.

NEW YORK — NBA commissioner David Stern canceled the first two weeks of the season Monday after owners and players were unable to reach a new labor deal and end the lockout.

NEW YORK — NBA commissioner David Stern canceled the first two weeks of the season Monday after owners and players were unable to reach a new labor deal and end the lockout.

The hardest part of these long labor meetings is when they have to pass the menu around for lunch orders and it gets to David Stern. He thinks everything looks good, but then again he’s hungry but he’s not hungry, ya know?
Plus he’s been losing money on lunch this whole time, ordering a bunch of pricey food just because it’s on the menu then watching it spoil. But he still eats the spoiled food. Contractual obligation. 

The hardest part of these long labor meetings is when they have to pass the menu around for lunch orders and it gets to David Stern. He thinks everything looks good, but then again he’s hungry but he’s not hungry, ya know?

Plus he’s been losing money on lunch this whole time, ordering a bunch of pricey food just because it’s on the menu then watching it spoil. But he still eats the spoiled food. Contractual obligation. 

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