HoopsHype CBA rumors

July 20, 2014 Updates

“We have a system in place in which the players receive roughly 50 percent of the revenue, and we’ve been very transparent with you, the media, obviously our owners know what’s going on, but we’ve also included the Players Association directly in updates on those discussions.” It’s interesting that Silver would acknowledge the expected increase, an indication that the league is soaring in popularity. The desire of Fox Sports to pursue a Saturday national game of the week only confirms that. Boston Globe

While there has been criticism of the Celtics signing Avery Bradley to a four-year, $32 million deal, it is expected to devalue and become more of a bargain for the team once the new television agreement is reached. “The current deals expire in two years, so whether or not they were party to these discussions, the marketplace seems to be suggesting that we’re going to get a substantial increase in our next television deals, and of course the way the cap is set,” Silver said. “In essence it’s based off 30 teams — you take 50 percent of our total revenue and divide it by 30, and that’s roughly how our cap is completed. So the basic math is such that if we get a large increase in our television deals, the players are going to get half and the cap will go up.” Boston Globe

July 11, 2014 Updates

This year, however, the league sent out a second memo. Entitled "Consideration in Trades and Trade Structure", it is a reminder and/or clarifier to teams about some of the specifics of what they can and cannot do in trades. Seemingly, they felt this was necessary Considering the presence of this memo suggests that some teams do not entirely understand the rules (or, perhaps, have been intent on pushing them back a bit), it is self-evidently the case that those of us outside of the league will not fully know them either. So, here goes. Sham Sports

Essentially, the trade is both one big deal and three parallel smaller ones at the same time. The need to trade something for something is satisfied in the overall deal and thus does not need to be satisfied in each parallel smaller one. The relevant passage in the memo suggests that it is this practice that may be under threat. However, in the trade that the quoted passage above was in reference to (the MarShon Brooks/Steve Blake trade from the last deadline day), provisions were not circumvented. Provisions were not defeated. Things were worked around, yes, specifically Golden State's inability to aggregate Brooks's salary in trade. But the Warriors and Lakers (mainly the Warriors) did all their finagling within the rules set forth by the Collective Bargaining Agreement. They did not do anything here other than what they were permitted to do, and even if they had done, the league still approved the trade. Sham Sports

If the NBA feels that manoeuvring in the manner of the Warriors and Lakers above is contrary to the spirit of the Traded Player Exception and specifically to the use of non-simultaneous trades, then, fine. It pretty much is - on all but the most technical of levels, Brooks and Bazemore were traded for Blake in one deal, with only minutiae stating others. But it was also perfectly allowed by the very clauses the league signed up to in the Collective Bargaining Agreement. And if this is not the kind of matter that this passage of the memo refers to, then we will have to see what it is, because I have no other guesses. Nevertheless, whatever it is, this could be an interesting thing to watch develop. The NBA may be seeking to outlaw a practice it simultaneously permits. We shall see over time where the new boundaries lie. Sham Sports

July 2, 2014 Updates

An 18-month payment schedule would allow a player to continue receiving paychecks through the 2017-18 season, even if games aren’t played because of a work stoppage, according to an e-mail sent to players and agents by acting union Executive Director Ron Klempner, a copy of which was obtained by Bloomberg News. “As we have learned in the past, the owners have made provisions with the TV networks to continue to receive rights fees throughout a work stoppage, and there is no reason the players should not make every effort to take the same precaution,” the e-mail said. The e-mail suggests players use the 18-month provision in any multiyear contract, though it highlights the 2016-17 season. Bloomberg

June 24, 2014 Updates

There is some debate about whether players should wait until the NBA’s new TV deal kicks in to sign their mega-contracts, since the individual player max is tied to the cap — which goes up hand-in-hand with league revenue. But turning down guaranteed long-term money is a gamble, and no one is quite sure when exactly the cap will make a huge leap. Grantland

May 30, 2014 Updates
May 20, 2014 Updates
April 22, 2014 Updates

Coon notes that under the current CBA, players are guaranteed 50 percent of the league’s forecasted BRI and 60.5 percent of the difference between forecasted revenue and actual revenue, meaning players are set to receive a total of $2.384 billion next season. Given the favorable terms awarded to owners in the 2011 CBA and the improved financial health of the league and its teams, Coon predicts NBA players will activate their opt-out clause in 2017 from the CBA and re-negotiate to get a larger piece of the league’s revenue. A lock-out would result: I expect the players to opt-out in 2017, and for the league to impose a lockout on July 1, 2017 (because they can’t do business without an agreement in place), However, negotiations will be quick and smooth (similar to 2005), and there will be a new CBA in place in time for the 2017-18 season to begin on time. The Fields of Green

With the salary and luxury cap bars moving up an estimated $5 million next season, teams across the league will have added space to bid for big free-agent names such as Carmelo Anthony and Luol Deng. This will be a small boost to teams who have the funds to throw big-money contracts at players but perhaps did not have adequate space under the cap. Five million is not a large increase in space, but it is not insignificant. If the trend continues with BRI increasing at a 7.7 percent annual rate and team balance sheets becoming healthier, the salary cap would conceivably increase year after year and give large-market teams more room to spend, ironically a development the 2011 CBA intended to curb. The Fields of Green

April 16, 2014 Updates

One reason is that NBA teams have cost certainty until 2017 based on the most recent collective bargaining agreement (CBA). There is a slim chance the CBA could last until 2022. However, that is doubtful due to the NBA’s upcoming new media deal driving up the valuation of small-market teams, such as the Sacramento Kings and (drum roll) the Bucks. The Fields of Green

February 18, 2014 Updates

The same, Silver said, holds for the change to the NBA age limit he has repeatedly indicated he will pursue. "We raised it in the last bargaining session, which led to the compromise and us ending the lockout [in November 2011]," Silver said. " ... We'd like the opportunity to try to convince the players that it's in all of our interests to move to a 20-year-old age limit and move away from one-and-done. Improved college ball is better for the NBA, and it will also mean a better NBA with kids coming one year out of college. "When we finished the last collective bargaining agreement, we had a so-called list of 'B issues,' and we agreed we would address those issues once we got the season up and running. A collective bargaining agreement is like any contract. It can be amended at any time as long as both parties agree." ESPN.com

January 28, 2014 Updates

A distant third behind the NFL and baseball through the 1980s, the NBA is now a behemoth. With the owners slicing the players’ 58-42 share of revenue to 50-50 in the 2011 collective bargaining agreement, profits and franchise values are ramping up. In an eye-popping bequest to his successor, Adam Silver’s first major piece of business will be to negotiate new network TV deals amid projections that rights fees could double from the current $930 million a season. Forbes.com

The 2011 labor talks were a masterpiece for Stern, despite the fact he was no longer the absolute ruler he had been for 20 years, when Bulls/White Sox owner Jerry Reinsdorf, a force behind the scenes in baseball, didn’t attend NBA meetings, saying everything was already decided. Two sources in the room described an exchange between Stern and the Clippers' Donald Sterling at an owners meeting in Las Vegas in the run-up to the lockout. Pressed by Stern for his opinion, Sterling demurred, then blurted, “I would fire you. You're great at marketing but you're not tough enough with the union.” Forbes.com

...There was real pressure from new breed owners like Dallas’ Mark Cuban and an insurgent small market coalition. Stern adeptly made their draconian demands his and delivered, staying well away from a January drop-dead date by sheer sleight of hand. With the players looking at seven weeks of lost paychecks, counting start-up time, Stern offered to make three of them up if they settled in time to start on Christmas. They did. Forbes.com

With the economy struggling and ad budgets slashed in 2001, the NBA was in the wrong place at the wrong time when talks began for a post-MJ TV deal. NBC’s Bob Ebersol, who had walked away from the NFL four years before, offered a 33% cut from $1.8 billion to $1.2 billion--going that high only because Stern had invited the Walt Disney Co. into the process. Noting Disney's losses from televising NFL games at sky-high rates, media analyst Brian Schecter told the New York Times, “If David Stern pulls this out of his hat, he's a true magician of TV rights negotiations.” Stern pulled a six-year deal averaging $767 million out of his hat--with Disney paying $485 million of it, 50% more than NBC offered--taking the bulk of his package to (gasp) cable with ABC airing fewer games and only two rounds of the playoffs and the rest on ESPN and Turner. Daring as it seemed at the time ("Cable is said to muscle out NBC for NBA rights," said the New York Times headline), it carried the league to the brink of a better day. Forbes.com

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