Spurs Brazil
07-14-2009, 03:31 PM
http://ken-berger.blogs.cbssports.com/mcc/blogs/view/11838893
NBA owners prepare for CBA showdown
LAS VEGAS -- NBA owners gathered Tuesday at the Palms Hotel & Casino for a critical Board of Governors meeting to prepare for collective bargaining negotiations that will begin next month.
There were no crucial votes on the agenda, no pressing matters requiring immediate attention. But given raging uncertainty about how their basketball and other businesses will bounce back for the rest of 2009 and 2010, plus the potentially sweeping changes in the league's salary structure and revenue sharing model that owners will seek in the new CBA, this was no play-cation at the Palms. This was serious.
"I just sense that it’s wise of us to look at how this economy’s going to affect our economy, because we’re going to lose some sponsors," said Minnesota Timberwolves owner Glen Taylor, one of the executives appointed to the league's negotiating committee. "So to me, what we’re working on is some what-ifs. If (revenue) is down 2 percent, 5 percent, what are we going to do? That’s what we’re going to work on and just be prepared if those scenarios happen. That’s what we’re going to work on (Tuesday)."
In preparation for what is expected to be a spirited debate among large- and small-market owners over how to improve the league's revenue-sharing model, the negotiating committee represents a cross-section of franchises. According to sources, the following owners and executives have been named to represent the league in negotiations with the NBA Players Association: Peter Holt (San Antonio), who is chairman of the committee; Clay Bennett (Oklahoma City); Jeanie Buss (Lakers); James Dolan (New York); Dan Gilbert (Cleveland); Wyc Grousbeck (Boston); Stan Kroenke (Denver); Larry Miller (Portland); Robert Sarver (Phoenix); George Shinn (New Orleans); Taylor (Minnesota); and Bob Vander Weide (Orlando).
The negotiating committee representing the players, according to sources, will be as follows: Derek Fisher (Lakers), who was re-elected president; Adonal Foyle (Orlando); James Jones (Miami); Keyon Dooling (New Jersey); Maurice Evans (Atlanta); Roger Mason (San Antonio); Chris Paul (New Orleans); Theo Ratliff (Philadelphia); and Etan Thomas (Washington).
Among the key issues on the agenda, according to Taylor, will be taking stock of where teams are in terms of season-ticket and sponsorship renewals compared to this point last year. During the NBA Finals, commissioner David Stern said those renewals were on pace with last summer, but the majority of commitments from sponsors and season-ticket owners come later in the summer months.
"I'm meeting with sponsors right now and a lot of them are putting us off because they’re not so sure where they’re at," said Taylor, who has been in Las Vegas to watch Minnesota's summer league team and meet with Dan Fegan, the agent for No. 5 overall pick Ricky Rubio. "So they’re just delaying, and that’s frustrating. Normally, we would have a better feel right now."
As CBSSports.com reported July 8, league-wide ticket revenues declined $2.66 million in 2008-09, with the data revealing a widening gap among large- and small-market teams. Nine teams experienced at least a $4 million decline in gate receipts last season, led by the Nets -- a large-market team that saw ticket revenues decline $11.4 million in its lame-duck arena in New Jersey.
"When the economy goes bad like this, it’s probably going to affect the small markets even more," said Taylor, whose team saw a $2.6 million decline in ticket revenues last season, according to the NBA data obtained by CBSSports.com. Minnesota also shared a dubious honor with Atlanta and New Jersey as the three teams giving away an average of more than 5,000 free tickets per game.
Given that trend, the owners also will begin formulating their strategy for negotiating changes to the salary structure and revenue-sharing models. Under the current agreement ratified in 2005, NBA teams share national broadcast revenue and non-luxury tax paying teams share payments from teams whose payrolls exceed the tax threshold. Small-market teams will push for a more aggressive revenue sharing model, while the healthier franchises are expected to resist. The owners need to emerge from their Las Vegas meeting with some semblance of consensus before labor negotiations begin in earnest sometime next month.
"We’re going to have a private meeting to talk about that," Taylor said. "It is a big issue. I just think to keep up the small markets, to keep them competitive, is in the league’s interest and in the big markets’ interest. ... I’d rather have something in place and be preventive than wait until it’s after the fact."
The current CBA is set to expire on June 30, 2011, and owners are widely expected not to exercise their option to extend it for another season.
berger.blogs.cbssports.com/mcc/blogs/view/11838893
NBA owners prepare for CBA showdown
LAS VEGAS -- NBA owners gathered Tuesday at the Palms Hotel & Casino for a critical Board of Governors meeting to prepare for collective bargaining negotiations that will begin next month.
There were no crucial votes on the agenda, no pressing matters requiring immediate attention. But given raging uncertainty about how their basketball and other businesses will bounce back for the rest of 2009 and 2010, plus the potentially sweeping changes in the league's salary structure and revenue sharing model that owners will seek in the new CBA, this was no play-cation at the Palms. This was serious.
"I just sense that it’s wise of us to look at how this economy’s going to affect our economy, because we’re going to lose some sponsors," said Minnesota Timberwolves owner Glen Taylor, one of the executives appointed to the league's negotiating committee. "So to me, what we’re working on is some what-ifs. If (revenue) is down 2 percent, 5 percent, what are we going to do? That’s what we’re going to work on and just be prepared if those scenarios happen. That’s what we’re going to work on (Tuesday)."
In preparation for what is expected to be a spirited debate among large- and small-market owners over how to improve the league's revenue-sharing model, the negotiating committee represents a cross-section of franchises. According to sources, the following owners and executives have been named to represent the league in negotiations with the NBA Players Association: Peter Holt (San Antonio), who is chairman of the committee; Clay Bennett (Oklahoma City); Jeanie Buss (Lakers); James Dolan (New York); Dan Gilbert (Cleveland); Wyc Grousbeck (Boston); Stan Kroenke (Denver); Larry Miller (Portland); Robert Sarver (Phoenix); George Shinn (New Orleans); Taylor (Minnesota); and Bob Vander Weide (Orlando).
The negotiating committee representing the players, according to sources, will be as follows: Derek Fisher (Lakers), who was re-elected president; Adonal Foyle (Orlando); James Jones (Miami); Keyon Dooling (New Jersey); Maurice Evans (Atlanta); Roger Mason (San Antonio); Chris Paul (New Orleans); Theo Ratliff (Philadelphia); and Etan Thomas (Washington).
Among the key issues on the agenda, according to Taylor, will be taking stock of where teams are in terms of season-ticket and sponsorship renewals compared to this point last year. During the NBA Finals, commissioner David Stern said those renewals were on pace with last summer, but the majority of commitments from sponsors and season-ticket owners come later in the summer months.
"I'm meeting with sponsors right now and a lot of them are putting us off because they’re not so sure where they’re at," said Taylor, who has been in Las Vegas to watch Minnesota's summer league team and meet with Dan Fegan, the agent for No. 5 overall pick Ricky Rubio. "So they’re just delaying, and that’s frustrating. Normally, we would have a better feel right now."
As CBSSports.com reported July 8, league-wide ticket revenues declined $2.66 million in 2008-09, with the data revealing a widening gap among large- and small-market teams. Nine teams experienced at least a $4 million decline in gate receipts last season, led by the Nets -- a large-market team that saw ticket revenues decline $11.4 million in its lame-duck arena in New Jersey.
"When the economy goes bad like this, it’s probably going to affect the small markets even more," said Taylor, whose team saw a $2.6 million decline in ticket revenues last season, according to the NBA data obtained by CBSSports.com. Minnesota also shared a dubious honor with Atlanta and New Jersey as the three teams giving away an average of more than 5,000 free tickets per game.
Given that trend, the owners also will begin formulating their strategy for negotiating changes to the salary structure and revenue-sharing models. Under the current agreement ratified in 2005, NBA teams share national broadcast revenue and non-luxury tax paying teams share payments from teams whose payrolls exceed the tax threshold. Small-market teams will push for a more aggressive revenue sharing model, while the healthier franchises are expected to resist. The owners need to emerge from their Las Vegas meeting with some semblance of consensus before labor negotiations begin in earnest sometime next month.
"We’re going to have a private meeting to talk about that," Taylor said. "It is a big issue. I just think to keep up the small markets, to keep them competitive, is in the league’s interest and in the big markets’ interest. ... I’d rather have something in place and be preventive than wait until it’s after the fact."
The current CBA is set to expire on June 30, 2011, and owners are widely expected not to exercise their option to extend it for another season.
berger.blogs.cbssports.com/mcc/blogs/view/11838893