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what is bad the heat just signed 3 superstars
no team will be able to compete with that if they cut the payroll down 1/3
I am not sure how all owners would like that
Based on salary, Ginobili has always been a mid level player. Horry was never a top-tier guy. They both made quite a lot of impact. Or how about Bruce Bowen - how much impact did he have, without being a superstar?
What about guys like Okur, Paul Millsap, or Raja Bell? Grant Hill, the last several years in Phoenix? James Posey? David West, Trevor Ariza? Scola has a mid-level salary, and he's done okay. Or how about Mike Bibby, or Leandro Barbosa?
I agree that you can't have a great team without a couple of stars. But take the Lakers lineup and replace Lamar Odom, Ron Artest, Derek Fisher, and Sasha Vujacic with four league-minimum players, and there's no way they would have won the last couple of championships. Those mid-tier guys bring a lot to their teams. The salaries can't get so top-heavy that those guys are being offered near-minimum contracts, or they will be hopping to Europe.
what is bad the heat just signed 3 superstars
no team will be able to compete with that if they cut the payroll down 1/3
I am not sure how all owners would like that
This is ridiculous that players are going to be subsidizing owners' bad decisions. It's horse that Stern thinks every franchise should be profitable. If a franchise is stupid, they deserve to go under; not get a handout from the players who are the people that fill arenas. Why the is it so ingrained in this nation's psyche that rich business owners deserve welfare? Capping what a player can earn and how long he can earn it for wasn't enough?
Graduate from public school?
Stern would like to emulate the NFL where even dumbass owners make a profit because the the league rules virtually guarantee it. Also, the turnover in playoffs teams is substantial. How many recent Super Bowl participants had losing records the previous year? If that model is adopted then the Heat would be forced to move one of their stars...
You haven't seen this coming for like a year? Once the hard cap was on the table, without any other criteria, there was going to be a lockout.
Two graduate degrees, head. How about you?
First of all, Stern's comment cited projected earnings for the upcoming year. I said that the league is currently at break-even. See how that works, Short-Bus? But to know that, you would have to have read more than just the few articles posted on forums.
The fact is that there are a lot of numbers that get thrown around about how profitable the league is, by different groups of people. They all have an agenda, and they all use numbers that support their own position. Stern's assertion that the owners will lose $350 million is bull , and he knows it. But the players want to talk about the league having $250 million in operating profits, which is also misleading because it doesn't take financing costs (debt) into account. There are also factors like the owners who run their franchises like a hobby, and don't really care if they operate at a loss. The truth, which is somewhere in the middle, is that the league ran pretty close to break-even last season. But that's what I already said, isn't it Short-Bus?
There are a number of problems with the league's finances: Some of the owners are too highly leveraged. (That means too much debt, butts4rebounding.) Some of the markets are just too small. The players get 57% of all revenues, which is too damned high. The economy sucks right now, and the current salary and operating expenses are built around a boom economy. Some owners focus only on keeping payroll low, then make a profit from revenue sharing - which makes for some really crappy teams, and dissatisfied fans.
The owners want to lock in a deal, using the worst numbers, and in a bad economy. The players don't want to face facts that salaries totalling 57% of revenues are strangling the league, and the fans. They want the whole league to be run by owners like Cuban, who operated at a loss and don't give a damn. If they screw around, dig their heels in, and force a lockout, they are all going to be losers.
Here's one more thing for you to think about, Short-Bus:
Forbes reported that 12 of the league's 30 teams lost money last year. That must mean that 18 teams broke even or made money... right?
If you really believe that the league lost $350 million last year, because of Stern's comment, then you must think that those 12 teams lost over $30 million each. Probably more like $40 million, since some of the other 18 teams obviously made money. You don't really believe that those 12 teams had an average loss of $40 million each, do you?
The point is, all of this stuff depends on whose numbers you believe. And the thing you have to know is that they are all lying. They use the numbers that are most advantageous to them. They don't care about distortions or misrepresentations. They just want the biggest slice of that $3.6 Billion they can get.
I said that they operated at around break-even last season. I guarantee you that is closer than either what Stern is saying, or what the Player's Association is saying.
One way or another, it's fans that are paying that $3.6 Billion. And if they screw around and cause a lockout, a lot of fans aren't going to be willing to pay them that much in the future.
Unless there is significant movement towards common ground (from both sides), the NBA will not start the 2011-12 season. The league stands to lose approx. $1 billion if locked out the entire season.
No one in their right mind wants a shut-down. The NBA is going to be watched by the NFL, NHL & MLB to see how they handle things because they're all due for renegotiation's. It is very likely that there will be no professional sports next season.
not gonna happen
That is his job. He is the representative for a collection of businesses that work together to make a profit. He is not doing his job when just a few businesses are in the black. For these leagues to survive it must always be about the business.
I bought season tickets again this year. All the games. I want to see the teams I like and give away the rest. We probably give half our tickets away every year.
Its fun to go, you get decent perks, and if you game the system right its not that pricey.
Of course our seats are terrible, but we have fun. And our rep usually can get us into the superbox if we ask on ty team nights.
Yglesias is smelling the bull too:
The best way out of a recession is a combination of expansionary fiscal and monetary policy to bolster aggregate demand. Failing that, you need to have a grinding process of nominal wage cuts and unbalanced deflation that can take years to end and cause massive human suffering in the meantime. David Stern wants the National Basketball Association to do its part to make the dream a reality:
Stern said the league wants player costs to drop $750 million to $800 million. Deputy commissioner Adam Silver said the NBA spends about $2.1 billion annually in player salaries and benefits. [...]
Stern and [Deputy Commission] Silver spoke after completing two days of meetings with league owners, who are seeking major changes to the current CBA that expires June 30. Silver said the league has told the union that owners are in a “diseconomic situation,” with projected league-wide losses of about $340 million to $350 million this season.
Though season ticket sales are up, both insisted that no matter how well the league does at the box office, it won’t change the fact that an overhaul is necessary to a system in which the players receive 57 percent of basketball-related income.
“Even though we reported we have record season ticket sales over the summer and otherwise very robust revenue generation, because of the built-in cost of the system, it’s virtually impossible for us to move the needle in terms of our losses,” Silver said.
This kind of pleading always strikes me as unpersuasive on the merits. If I owned a business that was losing tens of millions of dollars a year, I’d be eager to sell the business for a relatively small amount of money. When the Washington Post Company put Newsweek up for same, for example, they were ultimately willing to part with the firm for $1 on the condition that the new owner assume Newsweek’s pension liabilities. Similarly, when General Motors and Chrysler were revealed to have an unsustainably high labor cost structure, nobody wanted to buy either firm at any price so the government had to step in.
By contrast, when Mikhail Prokhorov bought the New Jersey Nets—by no means the league’s most lucrative franchise—he paid $200 million for the privilege. Ted Leonsis bought the Wizards, a terrible team, from the Pollard family for over $500 million this past summer. The high price of NBA franchises strongly suggests that operating one is valuable even with 57 of basketball-related revenue going to player salaries. Part of the issue is that the teams themselves can be in some ways loss-leaders for businesses whose real profit center is an arena or a cable network. Accounting can be misleading, actual asset prices are telling you something.
Leonsis already was fined for talking hard cap and other ownership issues. You don't think he saw the lockout as a reason to pay more for the team?
The teams that lose money have something in common. They have too high payroll for their level of revenue. Some of them also have too high expenses on those revenues.
Another very important thing in common is that only 2 or 3 of the teams that lose money have good basketball performance. Those teams are owned by people that don't mind investing, as long there are good results.
However, the NBA should invite the owners incapable of putting good teams for too many years to sell their franchises. Most of them would make money in the process.
The NBA wants the players to financially support incompetent owners, reducing the salaries by 40%. That measures will only allow some owners to continue making additional bad decisions.
Pretty much this. If you are completely inept at running your team you should have it revoked and be forced to sell. The Clippers might not be terrible under a new owner that isn't a complete idiot.
nba team owners should get rid of the team benefits the team pays its players like meal allowances, hotel stay when on the road...pussy on the side...
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