NBA Lockout - NBA Reveals

[Johnnyblazzed]

$500 million shortfall; teams still losing money.

"The NBA's revenues have jumped from $3.8 billion in 10-11 to a projected $5 billion next season.

Adam Silver revealed Tuesday after meeting with league owners that the NBA is projecting that it will have to write a nearly $500 million shortfall check to the players after the 2016-17 season.

There was a shortfall in the players' guaranteed 50 percent of revenue for this past season, and there could be another one after '15-'16, as well.

"That's not, of course, the ideal outcome from our standpoint," Silver said. "It's not something we predicted when we went into this collective bargaining agreement."

Silver also said Tuesday that a "significant number" of teams are "continuing to lose money" despite "fairly robust revenue sharing when some teams are receiving $20 million checks from their partners."

Silver cited the cost of competing with high payrolls as well as arena costs, new practice facilities and other infrastructure costs that have gone up."

http://basketball.realgm.com/wiretap/23 ... sing-Money" onclick="window.open(this.href);return false;

Both parties preppin' for the big show down.

[vcsgrizzfan]

$500 million shortfall; teams still losing money.

"The NBA's revenues have jumped from $3.8 billion in 10-11 to a projected $5 billion next season.

Adam Silver revealed Tuesday after meeting with league owners that the NBA is projecting that it will have to write a nearly $500 million shortfall check to the players after the 2016-17 season.

There was a shortfall in the players' guaranteed 50 percent of revenue for this past season, and there could be another one after '15-'16, as well.

"That's not, of course, the ideal outcome from our standpoint," Silver said. "It's not something we predicted when we went into this collective bargaining agreement."

Silver also said Tuesday that a "significant number" of teams are "continuing to lose money" despite "fairly robust revenue sharing when some teams are receiving $20 million checks from their partners."

Silver cited the cost of competing with high payrolls as well as arena costs, new practice facilities and other infrastructure costs that have gone up."

http://basketball.realgm.com/wiretap/23 ... sing-Money" onclick="window.open(this.href);return false;

Both parties preppin' for the big show down.

There was a thread on this yesterday. I had sympathy for owners when the revenue split was 58/42 in favor of the players. You could work through the numbers and see where small market teams could have trouble breaking even.

At a 50/50 revenue split, unless you go into luxury tax mode, you have to be stupid to lose money. I have no sympathy for a small market team that chooses to go into luxury tax territory. Run your business better and you will make a nice profit.

[AbeVigodaLive]

So a lockout is inevitable. We all know that.

I think we lose a season. Whether it's 58/42 or 50/50 or 25/75... there are going to be screams of injustice and losses from somebody. Always. If there's a way to succeed in any system... there's a way to fail at it.

More importantly... at least a way to make it LOOK like you're failing.

[vcsgrizzfan]

So a lockout is inevitable. We all know that.

I think we lose a season. Whether it's 58/42 or 50/50 or 25/75... there are going to be screams of injustice and losses from somebody. Always. If there's a way to succeed in any system... there's a way to fail at it.

More importantly... at least a way to make it LOOK like you're failing.

I might be the proverbial "rube" that you allude to so often, but I am really holding out hope that there is no lockout this time. I certainly can't believe there would be one that would last an entire season. That would just be absolutely freaking retarded considering the prosperity of the league and its players right now. The owners won, and won big last time. Moving the revenue split to 50/50 was an incredible win. I'm hopeful that what we are seeing now is the inevitable posturing, but that the next CBA will be relatively similar to the current one with only minor changes on the edges.

[Johnnyblazzed]

So a lockout is inevitable. We all know that.

I think we lose a season. Whether it's 58/42 or 50/50 or 25/75... there are going to be screams of injustice and losses from somebody. Always. If there's a way to succeed in any system... there's a way to fail at it.

More importantly... at least a way to make it LOOK like you're failing.

That's precisely what I believe the owners are doing. As I suggested in a thread ages ago, I wouldn't be surprised if there are tax incentives for teams who show a loss.

[AbeVigodaLive]

So a lockout is inevitable. We all know that.

I think we lose a season. Whether it's 58/42 or 50/50 or 25/75... there are going to be screams of injustice and losses from somebody. Always. If there's a way to succeed in any system... there's a way to fail at it.

More importantly... at least a way to make it LOOK like you're failing.

I might be the proverbial "rube" that you allude to so often, but I am really holding out hope that there is no lockout this time. I certainly can't believe there would be one that would last an entire season. That would just be absolutely freaking retarded considering the prosperity of the league and its players right now. The owners won, and won big last time. Moving the revenue split to 50/50 was an incredible win. I'm hopeful that what we are seeing now is the inevitable posturing, but that the next CBA will be relatively similar to the current one with only minor changes on the edges.

Unless something significant happens to change how pro sports leagues handle new CBAs... I don't see how a lockout is avoided. Serious discussions don't even begin in earnest until the deadline for a lockout has passed. In the past, it hasn't hurt the sport at all. In fact, it only seems to be growing with leaps and bounds.

Add in the never-ending news cycle that the NBA has created and we'll be hanging on what L. James and A. Davis are wearing to the meetings more than we would an early November Sacramento vs. Milwaukee game anyway.

Then, we have the money. There's so much money. So so much money. And such an increase that we still haven't seen how it will play out yet. Now, the optimist could claim "there's just too much money out there for these guys to risk it. There's enough for everybody." But I'm more cynical. I wasn't born that way though. I've seen things, seen human nature. Followed sports for too long. A lockout is looming. Definitely.

The only thing I know with absolute certainty though... is that the fans will be dismissed casually despite a few perfunctory claims otherwise... because both sides know we're not going anywhere. In the end, the two sides will get what they want... even if it means the fans do not. After all, we're not sitting at that bargaining table. We're just the pawns that hold it up.

[vcsgrizzfan]

So a lockout is inevitable. We all know that.

I think we lose a season. Whether it's 58/42 or 50/50 or 25/75... there are going to be screams of injustice and losses from somebody. Always. If there's a way to succeed in any system... there's a way to fail at it.

More importantly... at least a way to make it LOOK like you're failing.

I might be the proverbial "rube" that you allude to so often, but I am really holding out hope that there is no lockout this time. I certainly can't believe there would be one that would last an entire season. That would just be absolutely freaking retarded considering the prosperity of the league and its players right now. The owners won, and won big last time. Moving the revenue split to 50/50 was an incredible win. I'm hopeful that what we are seeing now is the inevitable posturing, but that the next CBA will be relatively similar to the current one with only minor changes on the edges.

Unless something significant happens to change how pro sports leagues handle new CBAs... I don't see how a lockout is avoided. Serious discussions don't even begin in earnest until the deadline for a lockout has passed. In the past, it hasn't hurt the sport at all. In fact, it only seems to be growing with leaps and bounds.

Add in the never-ending news cycle that the NBA has created and we'll be hanging on what L. James and A. Davis are wearing to the meetings more than we would an early November Sacramento vs. Milwaukee game anyway.

Then, we have the money. There's so much money. So so much money. And such an increase that we still haven't seen how it will play out yet. Now, the optimist could claim "there's just too much money out there for these guys to risk it. There's enough for everybody." But I'm more cynical. I wasn't born that way though. I've seen things, seen human nature. Followed sports for too long. A lockout is looming. Definitely.

The only thing I know with absolute certainty though... is that the fans will be dismissed casually despite a few perfunctory claims otherwise... because both sides know we're not going anywhere. In the end, the two sides will get what they want... even if it means the fans do not. After all, we're not sitting at that bargaining table. We're just the pawns that hold it up.

One month avatar bet! I say no lockout!

[AbeVigodaLive]

ok.

You're my first. Be gentle.

[Johnnyblazzed]

Grizz, looks like Abe is on to something.

"...It's clear that Silver is pouring a foundation for a 2017 lockout here. Of course no one wants a lockout. We'll hear that a lot over the next two years. And hey, the players can avoid a lockout by giving the ownership a bigger slice of the growing pie. And Silver's squad is going to have one heck of an arrow in its quiver when it comes to public perception. Hell, he already unveiled it in this very press conference.

In terms of the announced new contract signings, again, we have a partnership with the players, so to the extent we're generating more revenue, the players are going to do better. It's roughly a 50-50 deal, and those contracts are ultimately a product of the 50 percent of the revenue that the players receive. So the better the league does, the better our players do.

And I think most fans recognize that to the extent that these guys have a special and unique talent that are being rewarded by the marketplace. It's very difficult to make value judgments. I'm like any other fan when I say, oh, my God, I can't believe that compared to a teacher or doctor or someone else. But we live in a market economy. So that's how values are set.

Emphasis mine. This is beautiful, disgusting rhetoric. A seven-figure career administrator has the temerity to compare artificially-capped entertainer salaries to those of teachers and doctors on behalf of the interests of a cartel of billionaire hedge fund hawks, tech boomers, real estate developers and man-child heirs. That's pretty damn rich, Commish.

Set the doomsday clock. Again. A lockout's coming."


http://www.sbnation.com/2015/7/15/89699 ... lock-again" onclick="window.open(this.href);return false;

[AbeVigodaLive]

It will be interesting to see if the owners dominate the PR game as much as they did during the last lockout. It looks like the table is being set...

There wasn't much uproar when IMMEDIATELY after the lockout all these franchises who were screaming that they were losing money started selling for 2x, 3x, 4x more than what their perceived values were. That information is less obvious. The owners are less noticeable. So the general public either didn't care... or forgot easily enough.

But pay Reggie Jackson $80M. As much as John Wall! SOMETHING NEEDS TO BE DONE HERE! THE PLAYERS ARE OUT OF CONTROL!!!

[Johnnyblazzed]

It will be interesting to see if the owners dominate the PR game as much as they did during the last lockout. It looks like the table is being set...

There wasn't much uproar when IMMEDIATELY after the lockout all these franchises who were screaming that they were losing money started selling for 2x, 3x, 4x more than what their perceived values were. That information is less obvious. The owners are less noticeable. So the general public either didn't care... or forgot easily enough.

But pay Reggie Jackson $80M. As much as John Wall! SOMETHING NEEDS TO BE DONE HERE! THE PLAYERS ARE OUT OF CONTROL!!!

I've considered that. The equity held in the value of the team isn't liquid, and most owners are likely still paying off loans they took out to purchase their team. In addition, a big reason for the increased team valuation is due to the newly negotiated TV deal.

Zeller really nails the owners with average revenue and breakdown of costs. As Grizz more or less said, you can't feel sorry for poorly ran organizations who put themselves in financial distress. The owners are mimicking government with their rhetoric towards the players. Demonize the "rich", compare them to how much the average worker makes and convince people they're making more than they should.

The owners pulled the wool over my eyes the last CBA negotiation, it won't happen this time.

[Johnnyblazzed]

Looks like the billionaire owners do well with the tax laws...

"NBA teams don’t have a right to earn money. If they rebuild through losing(76ers), move to a smaller market (Thunder), spend big to win now (Cavaliers) or just make foolish decisions (Kings), they should be at risk of losing money.

It’s not up to the players to take so little money that every NBA team is guaranteed to turn a profit.

Yet, that is often implied by the owners and a de facto demand during collective bargaining. This will be an issue in the impending 2017 work stoppage.

And that doesn’t even get into the ways NBA owners hide the income created by owning an NBA team – the tax breaks and side interests.

As the players are taking a lower share of revenue than under the previous CBA and new national TV money pours in, the already-shaky ground on which owners have cried poverty is falling out from under them.

Are nearly 10 NBA teams losing money? Maybe, though believing that would take some creative accounting. But even if they are, it’s hard to see how those owners deserve sympathy or a more-favorable deal with the players."

http://probasketballtalk.nbcsports.com/ ... ing-money/" onclick="window.open(this.href);return false;


"An FT analysis of US tax laws shows that Mr Ballmer could claim about half of the purchase price in current terms over the next 15 years against his taxable income. The credits can be claimed under a little-known feature of the tax code covering so-called active owners of sports franchises.

The exemption for sports teams was brought into law about a decade ago to resolve concerns over how media rights were accounted for, tax experts said. But they also create a powerful incentive for wealthy individuals to indulge in projects they are passionate about, in effect subsidised by the US government.

Under an exception in US law, buyers of sports franchises can use an accounting treatment known as goodwill against their other taxable income. This feature is commonly used by tax specialists to structure deals for sports teams. Goodwill is the difference between the purchase price of an asset and the actual cash and other fixed assets belonging to the team.

In this case, Mr Ballmer can spread the goodwill over 15 years and reduce his tax liability on his other income by a certain amount for each of those years.

Using a conservative model that assumes Mr Ballmer could account for $1.5bn in goodwill and a re-investment rate of 7 per cent, the potential tax credits equate to about $1bn in current terms."

http://probasketballtalk.nbcsports.com/ ... -clippers/" onclick="window.open(this.href);return false;


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