HoopsHype Business rumors

October 7, 2014 Updates

The league right now projects a jump to $66.5 million for 2015-16, a modest rise pegged to the final year of that modest $930 million TV deal. If the new TV deal kicks in for the 2016-17 season just shy of $2 billion, the cap could exceed that same $14 million leap, all the way to around $80-plus million, in a single year. If for some reason the new TV deal starts north of $2 billion in the first year — meaning it would include smaller year-over-year jumps — the cap for 2016-17 could leap even higher. If it started at that exact $2.68 billion figure, it would break $90 million, according to my own math and some bleary-eyed late-Sunday projections from cap gurus around the league. The plans as of now are to start at $2.1 billion in 2016-17, the first year of the deal, and escalate in even year-over-year increments to a peak of $3.1 billion in the final year, per sources who have reviewed a memo the league sent to teams today. Grantland

Other smoothing mechanisms would need to involve the union, and the league is open to that. Some team executives have floated the idea of retroactively bumping up existing contracts that carry into the new TV deal, to make sure those players get their share. That would draw opposition from teams who signed those contracts specifically with an eye on how their value would evolve. Grantland

Paul was hands-on in making sure the events leading up to "Decision 2.0" were done tastefully and respectfully. James had meetings with only two teams - the Heat and Cavaliers - during the summer. Paul was considerate of not stringing teams along. "I wanted to be respectful of all organizations involved and you can only pick one, but I think it was important for him not to have a play-by-play of what he was doing," he said. Cleveland Plain Dealer

October 6, 2014 Updates

With TV and digital revenue more than tripling over the eight-year, $7.4 billion agreements that expire after the 2015-16 season, the financial landscape of the sport will be forever transformed. According to team executives who have crunched the numbers, the windfall could result in a $91.2 million salary cap in 2016-17 -- when LeBron James and Kevin Durant are due to be free agents. That's up from $63.065 million for this coming season and $58.679 million in 2013-14. That's right, the cap jumped 7.5 percent for 2014-15, indicating that the league has been making more money that expected under the 2011 CBA even before the lucrative new TV deals were finalized. CBSSports.com

Basketball-related income -- the revenue pie that determines player salaries -- could jump to $6.7 billion in '16-'17, league sources said. That's up from an estimated $4.5 billion this past season and a $4.7 billion projection for 2014-15. Individual max contracts for players with 10 or more years of service would start at $28.2 million in 2016-17 based on these projections and calculations negotiated in the 2011 CBA. This explains why James signed a two-year deal with a player option for 2015-16 when he returned to the Cleveland Cavaliers as a free agent this past summer. James' current max deal pays him $20.64 million this season. Other prospective free agents such as Kevin Love, LaMarcus Aldridge and Marc Gasol are expected to take the same approach to maximize their earnings under the new TV deals. "Our game has never been better," commissioner Adam Silver said in announcing the new agreements. CBSSports.com

October 5, 2014 Updates

Richard Sandomir: NBA to announce $24 billion/9 year deal w/ ESPN and TNT on Monday. Annual average value nearly 3x current deal. Twitter

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