Tag:NBA lockout
Posted on: July 9, 2011 12:15 pm
Edited on: July 9, 2011 12:52 pm
 

Amar'e Stoudemire to play in Israel?

Posted by Royce Young

Last summer, Amar'e Stoudemire spent the hot months exploring his Jewish roots by taking a huge trip to Israel and has since been extremely interested in his Jewish ancestry.

So with players like Deron Williams signing up to play overseas, Stoudemire might consider it as well and naturally, he's looking at playing in Israel.



Two major problems here though: 1) Stoudemire's health concerns make it a challenge because he'd be risking his NBA contract plus he wouldn't have insurance. 2) He is still under contract in the NBA so like Williams, would have to get FIBA clearance to be eligible to play. Not a hurdle that can't be jumped, but it's something that stands in the way.

And a third: Stoudemire is still recovering from the back injury he battled during the playoffs.

Hard to know if Stoudemire is really serious about this or if he's just kind of joking about, but whatever the case, New York's franchise player (or one of them) considering playing overseas and risking injury is something that has to catch the attention of the Knicks and James Dolan. It would be at least a little added pressure applied.

Maccabi Tel Aviv is the biggest team in Israel, winning five Euro titles and 49 Israeli league titles. If you remember, Tel Aviv came to Madison Square Garden last preseason to play the Knicks. It's one of those European franchises that's big outside of Israel and one of those franchises that has money. So they could give Stoudemire a little money I'm sure.

But don't expect this to happen. Like I said, Stoudemire's knee issues are a major concern. The Knicks didn't have an insurance policy on his knees before the 2010 World Championships and as a result, he had to sit out. The risk of injury is probably too great for Stoudemire to actually play in Israel. He was likely just thinking out loud.

Still, it would be pretty neat if he did.
Posted on: July 9, 2011 12:17 am
Edited on: July 10, 2011 10:21 pm
 

What teams risk in a lockout: Atlantic Division

Posted by Matt Moore



Talk of losing an entire season is a bit ridiculous to us. There's just way too much at stake. Money, momentum, fan support, money, loyalty, money -- it's just hard to imagine losing any games much less a whole season.

But it's a possibility. And with all this hardline talk going on, it seems like neither the players nor the owners are wanting to budge. There's incentive for teams to get a deal done and not just for the money, but because a year without basketball and more importantly, basketball operations, could greatly affect each and every NBA franchise. We continue with the Atlantic Division.

Boston Celtics

The Celtics have already started keeping an eye on the future past this core. Their trade of Kendrick Perkins for Jeff Green and the Clippers' draft pick were both aimed at the future. In 2012-2013, the Celtics have less than $30 million comitted. But their best shot at a title is now. Losing 2011-2012 ends the Big 3 era in Boston. Kevin Garnett and Ray Allen's contracts would expire just as their ability to anchor a championship team also goes the way of the dodo. Losing next season means they wind up with a single championship for all that money invested, all that excitement created. 

On top of that, no city needs the current structure to hold as much as Boston. The ability to outspend the small markets under a flex-cap, using its big market status combined with its superiority as a historical powerhouse are both tied to the current luxury-tax system. Savvy spending, reasonable contracts, creative maneuvers? Does any of that sound like the team whose current core is the product of Kevin McHale pitching his old team a favor?

New Jersey Nets

Mikhail Prokhorov did not get into this business to lose an entire season, the last he has Deron Williams under contract before an extension he hopes to sign him to, and then begin to build a contender under a system which negates every advantage moving his team to Brooklyn provides. But that's the reality that faces the Russian mogul.

Deron Williams is the big key for the Nets. They sent a fortune in the trade for Williams, with the understanding they would convince him of their grand vision and build around him on his next contract. It was a gamble. But they need the 2011-2012 season to convince Williams that the plan works, that the vision is in place, that they can succeed as the team Williams wants to commit to. Without the 11-12 season, Williams will end up entering free agency with his only time as a Net filled with failure. He may wind up with more wins with his team in Turkey than he won with New Jersey.

From there, Prokhorov would actually be better suited to a system that allows for overspending. If small market teams succeed under the new CBA, his advantage is leveraged. And in such a scenario, New York's power would be amplified within the market. If you're getting paid the same amount regardless, going to the team with the most cache is the best idea.

New York Knicks

Speaking of the Knicks, they have quite a bit to lose in this scenario. A harsher cap drives up the likelihood they won't be able to build effectively around Carmelo Anthony and Amar'e Stoudemire, if at all. They're already struggling to fill in the gaps (as Donnie Walsh put it in his conference call after stepping down), with a lower spending ceiling that job only gets more difficult. Dolan has failed to succeed when he's broken the bank open. What happens when he can't spend his way out of a problem?

Bigger than that, however, are the risks of the actua lockout. Amar'e Stoudemire is an injury risk. Despite the fact that he's had no problems since microfracture surgery five years ago, scouts and execs are still hesitant about him. Stoudemire is talking about heading to Israel to play during the lockout. Any uninsured play could wind up wiping out time for Stoudemire which devastates the Knicks' prospects for contention. They need to have the stars available so build around, and another year to see what direction they need to go to build a complete team. Losing the season is a disaster. 

Philadelphia 76ers

Hey, look! They could spend a whole year thinking more about whether to trade Andre Iguodala! They haven't really done enough of that so far.

The lockout could actually help the Sixers on two fronts. First, their attendance was terrible again last season despite making the playoffs. They need the kind of financial overhaul the lockout aims to create. Second, losing the 2011-2012 season means they lose out on a year where they are on the books to pay Elton Brand, Andre Iguodala, and Andres Nocioni (remember him?) over $37 million next season. They can probably do without that with a fanbase that still hasn't bought in.

Elton Brand has an early termination option for 2012-2013, but he is unlikely to exercise it. Instead, the Sixers will be hoping for the amnesty clause to allow them out from under that final year of Brand's contract.

If any team could use all of the ramifications of the lockout, it's the Sixers, big market or not.

Toronto Raptors

The Raptors won't be winning the title any time soon. Their huge contracts won't be moving off the books any time soon. Their fanbase is still angry over giving Andrea Bargnani his extension and the damage done by Chris Bosh's departure.

So pretty much the Raptors are fine with however the lockout works out. Lose the season, they get Jose Calderon into a contract year, and have more time to come up with inventive ways to ditch Andrea Bargnani, plus Jonas Valanciunas is available to come over from Europe. A new salary cap may mitigate the uphill climb they face with their market and location.

They're pretty much fine with however this shakes out.
Posted on: July 8, 2011 9:08 pm
Edited on: July 8, 2011 9:26 pm
 

Darius Songaila signs to play in Turkey

Posted by Royce Young

Add another player to the slowly growing list of NBAers headed overseas. Darius Songaila, most recently of the Philadelphia 76ers, has agreed to a one-year deal in Turkey with Galatasaray worth $1.5 million, according to his agent.

The contract doesn't have an NBA opt-out clause, so Songaila is there for the year.

Of course this comes a day after Deron Williams made big news by signing a deal with Besiktas in Turkey, though Williams' deal includes an NBA out clause. Songaila, unlike Williams, isn't under contract with any NBA team as he was set to be an unrestricted free agent this summer.

"Darius didn't play a lot of minutes last season in Philadelphia and with the uncertainty surrounding the lockout, he wanted to make sure he'd play next season," his agent, Mark Bartlestein, told ESPN.com.

Songaila is older at 33 and has played for five different teams over the last 10 seasons. He didn't play much for the Sixers though, appearing in just 10 games last season. And really, his role with any NBA team probably wouldn't amount to much more than that.

Galatasaray is one of Turkey's best teams, having lost four games to two to Fenerbahce Ulker in the Turkish League finals last month. 

Songaila, a native of Lithuania, plans to play for his national team as well this summer. 

The main thing to take from Songaila signing there is it just means there's $1.5 million less for a team to throw at another NBA player. It's not a major impact signing, but with every penny less there is in Europe -- and there's not as much money as people think -- the worse it is for mid-level NBA players.


Category: NBA
Posted on: July 8, 2011 6:15 pm
 

Friday 5 with KB: Looking back at "The Decision"

Posted by Matt Moore 



In this week's return edition of the Friday 5 with KB, we look back on "The Decision," the future of Chris Paul, how a hard cap affects trades, and who among the owners could end this insanity.

1. Well, it's been a year since "The Decision." Beyond the context of the lockout, how does the Decision look to you now?

KB: It still looks as self-serving, tone-deaf, and poorly orchestrated as it did then. But I think everyone's sensitivities have been muted -- even residents of the great state of Ohio. You can't be mad forever, right? Plus, LeBron managed to carry himself even worse during the Finals than he did during the Decision, so there's that. As far as your caveat, it's impossible to look at anything in the NBA through a prism other than the lockout. The way free agents flexed their muscle last summer, I think, was at least part of the motivation for owners to put the hammer down with this lockout. They want cost cutting, but they also want control back from the stars who owned them last July. One important point that bolsters the players' argument for a flexible system with maximum player movement: Look at how much revenue and interest were generated by last summer's player movement. If the NBA wants to maximize both, wouldn't it want a fever-pitched free agency period every year?

2. Compared to the relative calm of the lockout, how do you look back on the insanity of last summer's 2010 free agency period?

KB: With horror. I mean, from a coverage standpoint, it was one of the most challenging things I've ever had to deal with as a sports writer. I'm not whining or complaining, but we're talking about three hours of sleep a night, days without shaving or seeing family members, just a flat-out bunker mentality in a small bedroom in our apartment, talking, texting, and emailing until well past 3 a.m. every night for weeks. There are a lot of incomparably good things about the job, but the first two weeks of July last summer were pure hell.


3. You unloaded The Berger Plan Part II late this week. One question for the hard cap. How's that going to impact trade movement? In the NFL we hardly see trades at all, and in basketball, that flexibility is crucial as you said. How does a hard cap influence that kind of player and contract movement?

KB: Trade restrictions are one area I didn't get into too much, but I agree, it's an important topic. I favor doing away with base compensation and other impediments to trades. I think the Sept. 1 cap-casualty deadline will add to the player movement as sort of a second wave of free agency. But I also believe for competitive balance to be maximized, teams need to have as much flexibility to trade players as possible.

4. Lot of talk about the fact that if David West leaves, CP3 will be right behind him. What's the temperature of the water in New Orleans right now?

KB: Hard to say, because everyone is in lockdown mode for the lockout. Personally, I've always believed that CP3 was going to leave New Orleans anyway -- provided the new CBA allows it -- so I don't think having David West or not having David West was going to make a whole lot of difference.

5. If there was one owner we could put in charge to get a deal done to end the lockout, who do you think it should be?

KB: I think Peter Holt, the chairman of the labor relations committee, is reasonable and has enough clout to bridge the gap between high- and low-revenue owners. Mark Cuban is the smartest, the most creative, and the best businessman, but he's too much of a radical hard-liner to get any sort of consensus or compromise with the players. Clay Bennett is indebted to David Stern for helping him move from Seattle to Oklahoma City, and his clout is on the rise. I'd probably say Holt, who gives you the best and worst of both worlds -- a small-market owner for a team that carries a high payroll and, at least in terms of gate receipts, brings in big-market revenues.
Posted on: July 8, 2011 5:14 pm
Edited on: July 8, 2011 5:27 pm
 

Report: 76ers sale to be done in a couple days

Posted by Royce Young

About a month ago, we told you that all indications were that a 76ers sale was imminent. And according to Bloomberg, it's getting even more imminent.

The Philadelphia 76ers likely will be sold to a group led by Joshua Harris, a director at Apollo Global Management LLC, in the next few business days, two people familiar with the negotiations said.

Harris will pay about $280 million, according to one of the people, who were granted anonymity because they weren’t authorized to discuss the sale publicly. Harris co-founded Apollo Management in 1990, and holds a bachelor’s degree from the University of Pennsylvania’s Wharton School of Business and a master’s degree from the Harvard Business School.

Apollo went public in March.

It will definitely be an interesting sale, especially because the league is currently locked out, claiming major losses and a system that is broken. So the price tag for the 76ers will certainly be something the union and others will have an eye on.

Forbes.com recently valued the 76ers at $330 million, good for No. 17 out of the NBA's 30 teams. The Sixers went 41-41 last season and were ushered out of the first round of the playoffs by eventual Eastern Conference champion, the Miami Heat.

Category: NBA
Posted on: July 7, 2011 5:08 pm
Edited on: July 7, 2011 6:05 pm
 

Report: Nets books show major losses

Posted by Royce Young

The NBA hasn't just been fighting the Players Association over a new Collective Bargaining Agreement. It has also been fighting a pretty major PR battle against the media and public over how truthful all these claimed losses are.

The league says 22 of 30 its 30 teams lost money last season. The league says in total, it lost about $370 millon, give or take. The league says owners are currently operating in a broken system that makes it extremely difficult to turn a profit, especially if you're not in a major market.

Some are having a hard time believing that. After a NY Times piece earlier in the week questioned how true some of the league's claims were, things only ratcheted up another notch. The league responded with a rebuttal, providing more facts and numbers in an attmept to quell some of the skepticism. The league claims $1.8 billion in losses over the past six years, but as many have noted, it's kind of hard to just take the league's word for it. We need to see stuff. Like open books.

Well, CNBC's Darren Rovell got ahold of the New Jersey Nets' books from last season and according to the report, the Nets suffered substantial losses over the past few years. (Click here to read the entire document.)
For the 2008-09 season, the documents reflect that the Nets lost $77,227,184. The team earned $78,783,677 in operating income, including $26 million in ticket sales and $32.5 million in total broadcast revenues. Operating expenses were $147 million, off mainly $66 million in salaries and $33.3 million in "amortization of intangible assets." When the team's $13.3 million interest expense is added, the Nets loss for the 08-09 season hits $77.2 million.

So there's that. According to the audited books, the Nets lost almost $80 million for the 2008-09 season. That's a lot of money. But there's still some skepticism over it all because sometimes bookkeepers are creative with their accounting. Rovell explains:

Now let's break it down for you. Assuming the operating income is accurate, there are three questionable line items within the operating expenses that are worth exploring. The most important is the $33.3 million amortization, since it's the largest number and often the number that the players union says is creative accounting.

So let's explain it first and then how it's reported. When a person buys a team, the price paid is distributed throughout various expense lines, the amortization line is one of those places. It's not voodoo accounting, it's actually part of generally accepted accounting practices. But the point is, that the NBA doesn't include that line item when it breaks out the losses to the union. So subtracting that number, the Nets loss that season, as the owners reported to the union, is probably closer to $44 million.

Rovell also notes that two other numbers could be disputed. That includes the $2 mllion in depreciation and the $13.4 million in interest. The union claims neither of those should be included in losses. But while the players dispute those being included, reality is, those are real losses. The value of the franchise is part of it all because it reflects the cost of expenses related to growing revenue. In terms of interest, that's actual money out of the owner's pocket so of course it should be included. It might not be a "real" loss in the same terms of expenses being more than revenue but as part of the whole pie, it counts.

One more note by Rovell to wrap it up though:

Finally, let's explore the bigger number. For the 2008-09 season, NBA owners told the players they lost a single-year record $370 million. Not only that, a record 24 teams lost that amount of money. Consider that amount of money an aggregate loss. Sources have told me that those 24 teams lost approximately $485 million, which leaves the six profiting teams with a net gain of $115 million.

So now take the Nets loss of $44 million that year. That means that the Nets share of the losses were nine percent of the total losses. If all teams used generally accepted accounting practices, is it possible that 23 other teams lost an average of $19.1 million that year? Of course it is.

What we have is another team where the financial picture is becoming clear. But that doesn't mean it's still not blurry. This is one of 30. There's a reason the league is locked out and it's because the players aren't buying everything the owners are selling. Like I've said before, the system has issues. No one would deny that. The players accept that as they've flexed on being willing to roll back their percentage of Basketball Related Income.

The matter is how deep the problem goes and how much give there has to be to fix it all. But the more information there is, the better things will get. Better PR for the league, better information for the public to digest, more pressure to make something happen.

Posted on: July 7, 2011 5:08 pm
Edited on: July 7, 2011 6:05 pm
 

Report: Nets books show major losses

Posted by Royce Young

The NBA hasn't just been fighting the Players Association over a new Collective Bargaining Agreement. It has also been fighting a pretty major PR battle against the media and public over how truthful all these claimed losses are.

The league says 22 of 30 its 30 teams lost money last season. The league says in total, it lost about $370 millon, give or take. The league says owners are currently operating in a broken system that makes it extremely difficult to turn a profit, especially if you're not in a major market.

Some are having a hard time believing that. After a NY Times piece earlier in the week questioned how true some of the league's claims were, things only ratcheted up another notch. The league responded with a rebuttal, providing more facts and numbers in an attmept to quell some of the skepticism. The league claims $1.8 billion in losses over the past six years, but as many have noted, it's kind of hard to just take the league's word for it. We need to see stuff. Like open books.

Well, CNBC's Darren Rovell got ahold of the New Jersey Nets' books from last season and according to the report, the Nets suffered substantial losses over the past few years. (Click here to read the entire document.)
For the 2008-09 season, the documents reflect that the Nets lost $77,227,184. The team earned $78,783,677 in operating income, including $26 million in ticket sales and $32.5 million in total broadcast revenues. Operating expenses were $147 million, off mainly $66 million in salaries and $33.3 million in "amortization of intangible assets." When the team's $13.3 million interest expense is added, the Nets loss for the 08-09 season hits $77.2 million.

So there's that. According to the audited books, the Nets lost almost $80 million for the 2008-09 season. That's a lot of money. But there's still some skepticism over it all because sometimes bookkeepers are creative with their accounting. Rovell explains:

Now let's break it down for you. Assuming the operating income is accurate, there are three questionable line items within the operating expenses that are worth exploring. The most important is the $33.3 million amortization, since it's the largest number and often the number that the players union says is creative accounting.

So let's explain it first and then how it's reported. When a person buys a team, the price paid is distributed throughout various expense lines, the amortization line is one of those places. It's not voodoo accounting, it's actually part of generally accepted accounting practices. But the point is, that the NBA doesn't include that line item when it breaks out the losses to the union. So subtracting that number, the Nets loss that season, as the owners reported to the union, is probably closer to $44 million.

Rovell also notes that two other numbers could be disputed. That includes the $2 mllion in depreciation and the $13.4 million in interest. The union claims neither of those should be included in losses. But while the players dispute those being included, reality is, those are real losses. The value of the franchise is part of it all because it reflects the cost of expenses related to growing revenue. In terms of interest, that's actual money out of the owner's pocket so of course it should be included. It might not be a "real" loss in the same terms of expenses being more than revenue but as part of the whole pie, it counts.

One more note by Rovell to wrap it up though:

Finally, let's explore the bigger number. For the 2008-09 season, NBA owners told the players they lost a single-year record $370 million. Not only that, a record 24 teams lost that amount of money. Consider that amount of money an aggregate loss. Sources have told me that those 24 teams lost approximately $485 million, which leaves the six profiting teams with a net gain of $115 million.

So now take the Nets loss of $44 million that year. That means that the Nets share of the losses were nine percent of the total losses. If all teams used generally accepted accounting practices, is it possible that 23 other teams lost an average of $19.1 million that year? Of course it is.

What we have is another team where the financial picture is becoming clear. But that doesn't mean it's still not blurry. This is one of 30. There's a reason the league is locked out and it's because the players aren't buying everything the owners are selling. Like I've said before, the system has issues. No one would deny that. The players accept that as they've flexed on being willing to roll back their percentage of Basketball Related Income.

The matter is how deep the problem goes and how much give there has to be to fix it all. But the more information there is, the better things will get. Better PR for the league, better information for the public to digest, more pressure to make something happen.

Posted on: July 7, 2011 4:03 pm
Edited on: July 7, 2011 6:09 pm
 

What teams risk in a lockout: Southeast Division

Posted by Royce Young



Talk of losing an entire season is a bit ridiculous to me. There's just way too much at stake. Money, momentum, fan support, money, loyalty, money -- it's just hard to imagine losing any games much less a whole season.

But it's a possibility. And with all this hardline talk going on, it seems like neither the players nor the owners are wanting to budge. There's incentive for teams to get a deal done and not just for the money, but because a year without basketball and more importantly, basketball operations, could greatly affect each and every NBA franchise. Let's start with the Southeast Division.

ORLANDO Magic
The biggest question hovering over the Magic isn't about wins and losses or if Gilbert Arenas should stop tweeting. It's all about Dwight Howard's future and July 1, 2012. That's when Howard will become an unrestricted free agent. General manager Otis Smith has already said he won't trade Howard, but that could just be talk. Howard has said he wants to be in Orlando, but hasn't committed, turning down a three-year extension.

But if NBA offices are shut down and all transactions are halted, Howard might be forced to stay with the Magic all season -- except he won't play a game. Meaning Orlando could lose out on A) having a team good enough to convince Howard he wants to stay because he can win there; B) the Magic won't have an opportunity to trade Howard and get a Carmelo-like deal where they can restock the roster instead of letting him walk with nothing in return; or C) the Magic miss out on at least one more year with Howard meaning they miss out on a chance of having a good team that can compete. That's a lot to think about if this lockout starts stretching into 2012.

MIAMI Heat
It's simple and very obvious for owner Micky Arison and the Heat: Lose the 2011-12 season and that's one less year you have of Chris Bosh, Dwyane Wade and LeBron James. That's one less year of the spotlight, the attention and all that money funneling right into South Beach. That's one less shot at a title. That's one less season of constant sellouts, through-the-roof merchandise sales and huge TV ratings.

Basically, it's one less season of $$$$$. And one big reason for Arison to be an owner willing to bargain.

ATLANTA Hawks
The Hawks are in pretty solid shape right now. After the 2011-12 season, they only have six players under contract, including all their big names (Joe Johnson, Josh Smith, Al Horford and uh, Marvin Williams I guess).

But a prolonged lockout could simmer the momentum built from last season's deep playoff run. The roster still isn't quite there and a resolution on what to do with Smith has to be figured out. The earlier he's traded means the more he's worth. Losing that opportunity is bad news for the Hawks, even if they choose to keep Smith.

But on the bright side, it is one less season of overpaying Joe Johnson.

CHARLOTTE Bobcats
The Bobcats aren't really going anywhere this year, or even next year. The roster needs work. It needs more talent, more ability and better structure.

But the Bobcats used two lottery picks on Bismack Biyombo and Kemba Walker, meaning there's a little jolt of young talent on the roster, which is exactly the direction Rich Cho is looking to take them. Younger, faster and a path to building, not just hanging on with marginal veteran talent.

A year without basketball for the Bobcats means a year of stunted growth. These guys need to play together every second they can and I don't just mean on a blacktop in Greensboro. Even if they lose 60 games, that's progress. But they need to be on the court to even have the chance to learn through losing.

Michael Jordan was a player (if you didn't know). I don't know if that means he's on the players' side because I'm sure he also wants a system that helps his franchise competitively and one that helps him make money, but at the same time, I think he cares more about winning and playing than all the rest.

WASHINGTON Wizards
It's the same story for the Wizards too. John Wall, new pick Jan Vesely, Nick Young and JaVale McGee are all young guys that just get better every night they play.

The bright side though is that Rashard Lewis is owed $21.1 million next season and that could be money well not spent. Which is why Ted Leonsis, an NHL owner who has been through an extremely painful lockout, probably isn't all that worried about things like stunted growth when there's money to be saved and made. The Wizards aren't on the path to prosperity right now and are likely one of the teams hemorrhaging a little dough. The Wizards risk setting back their development, but I think that's a price Leonsis would be willing to pay.
 
 
 
 
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