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Owners Will Push For $45 Million Hard Cap Once Lockout Begins...?
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Andrew
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6/29/2011  9:16 PM
franco12 wrote:Would anything stop the players from organizing their own league? Partner up with agents & a couple apparel manufacturers and the owners are quickly left with nothing.

You may initially have an issue with a few arenas - like MSG- but there are plenty that aren't owned by owners and their leases to me would seem to quickly be voidable if they never had hope of having another team play there.

Seriously? You think it's that easy?

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CrushAlot
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6/29/2011  9:26 PM
Andrew wrote:
franco12 wrote:Would anything stop the players from organizing their own league? Partner up with agents & a couple apparel manufacturers and the owners are quickly left with nothing.

You may initially have an issue with a few arenas - like MSG- but there are plenty that aren't owned by owners and their leases to me would seem to quickly be voidable if they never had hope of having another team play there.

Seriously? You think it's that easy?

I think the only thing that might happen is guys that are unrestricted free agents might choose to sign in Europe for a year if it looks like it will be a prolonged lockout.
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
nixluva
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6/29/2011  9:45 PM
Anyone arguing for the side of the owners has my sympathy, cuz you've been duped. This is a high risk luxury to own an NBA team. Very few owners actually LIVE off the money they make from the team solely. It's an investment they made after making tons of money in some other endeavor. Just like Dolan knew exactly how much money he was signing off on during the Layden and Isiah era, all these owners willingly accept the cost of doing business. An owner could simply say NO to a big contract that would bankrupt his franchise. Besides the NBA did way better than they anticipated. Remember before the season Stern warned that the Cap would go down significantly? Only to find that the league did much better than they expected and the major drop in Cap didn't happen!!!

You can imagine that about a 1/2 of the franchises made money, another 1/4 probably were borderline break even and no more than a 1/4 lost money. I don't think it's even that many, but i'd give them that. Now how much of that was due to poor management? I'd say 100% of the teams losing money was self inflicted. The players don't control the purse strings, only the Owners and GM's do. This season was exciting, attendance was up and the playoffs were great. Just look at the team attendance and % of capacity. Some teams like the Kings have an awful and small stadium which is part of the reason for poor turnout in addition to a losing team. If you did some simple math just going with the avg ticket price for an NBA game of $48.00 a team like the Mavs made no less than about 40 mil from home game ticket sale alone. Now we know there are other revenue streams for NBA teams, but the idea that all the NBA teams are losing money is nuts. Only certain teams did really bad. Half the teams were at or near capacity. Viewership was good this year. The owners want to make it nearly impossible for them to lose money no matter how badly they run their teams.


2011 Attendance Home
RK TEAM GMS TOTAL AVG PCT
1 Mavericks 41 824,162 20,101 104.7
2 Bulls 41 893,462 21,791 104.2
3 Trail Blazers 41 840,924 20,510 102.7
4 Magic 41 777,852 18,972 102.6
5 Heat 41 810,930 19,778 100.9
6 Celtics 41 763,584 18,624 100.0
7 NY Knicks 41 808,879 19,728 99.8
8 Lakers 41 778,877 18,997 99.7
9 Thunder 41 744,068 18,148 99.7
10 Spurs 41 750,879 18,314 98.6
11 Jazz 41 799,982 19,511 98.0
12 Cavaliers 41 824,595 20,112 97.8
13 Warriors 41 766,398 18,692 95.4
14 Suns 41 720,249 17,567 95.4
15 Clippers 41 727,462 17,742 93.1
16 Rockets 41 663,839 16,191 89.7
17 Nuggets 41 692,968 16,901 88.2
18 Hornets 41 603,088 14,709 86.1
19 Raptors 41 679,208 16,566 83.7
20 Hawks 41 641,596 15,648 83.6
21 Wizards 41 688,466 16,791 83.2
22 Bobcats 41 649,694 15,846 83.1
23 Bucks 41 631,910 15,412 82.3
24 Grizzlies 41 600,687 14,650 80.9
25 Nets 41 581,378 14,179 80.6
26 Kings 41 569,496 13,890 80.2
27 Timberwolves 41 624,960 15,242 78.8
28 Pistons 41 683,080 16,660 75.5
29 Pacers 41 555,077 13,538 74.5
30 76ers 41 604,823 14,751 72.6
franco12
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6/30/2011  12:14 AM
Andrew wrote:
franco12 wrote:Would anything stop the players from organizing their own league? Partner up with agents & a couple apparel manufacturers and the owners are quickly left with nothing.

You may initially have an issue with a few arenas - like MSG- but there are plenty that aren't owned by owners and their leases to me would seem to quickly be voidable if they never had hope of having another team play there.

Seriously? You think it's that easy?

no. But I think if the owners look to push too hard, this is the potential outcome, or could be.

Markji
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6/30/2011  11:00 AM
nixluva wrote:Anyone arguing for the side of the owners has my sympathy, cuz you've been duped. This is a high risk luxury to own an NBA team. Very few owners actually LIVE off the money they make from the team solely. It's an investment they made after making tons of money in some other endeavor. Just like Dolan knew exactly how much money he was signing off on during the Layden and Isiah era, all these owners willingly accept the cost of doing business. An owner could simply say NO to a big contract that would bankrupt his franchise. Besides the NBA did way better than they anticipated. Remember before the season Stern warned that the Cap would go down significantly? Only to find that the league did much better than they expected and the major drop in Cap didn't happen!!!

You can imagine that about a 1/2 of the franchises made money, another 1/4 probably were borderline break even and no more than a 1/4 lost money. I don't think it's even that many, but i'd give them that. Now how much of that was due to poor management? I'd say 100% of the teams losing money was self inflicted. The players don't control the purse strings, only the Owners and GM's do. This season was exciting, attendance was up and the playoffs were great. Just look at the team attendance and % of capacity. Some teams like the Kings have an awful and small stadium which is part of the reason for poor turnout in addition to a losing team. If you did some simple math just going with the avg ticket price for an NBA game of $48.00 a team like the Mavs made no less than about 40 mil from home game ticket sale alone. Now we know there are other revenue streams for NBA teams, but the idea that all the NBA teams are losing money is nuts. Only certain teams did really bad. Half the teams were at or near capacity. Viewership was good this year. The owners want to make it nearly impossible for them to lose money no matter how badly they run their teams.


2011 Attendance Home
RK TEAM GMS TOTAL AVG PCT
1 Mavericks 41 824,162 20,101 104.7
2 Bulls 41 893,462 21,791 104.2
3 Trail Blazers 41 840,924 20,510 102.7
4 Magic 41 777,852 18,972 102.6
5 Heat 41 810,930 19,778 100.9
6 Celtics 41 763,584 18,624 100.0
7 NY Knicks 41 808,879 19,728 99.8
8 Lakers 41 778,877 18,997 99.7
9 Thunder 41 744,068 18,148 99.7
10 Spurs 41 750,879 18,314 98.6
11 Jazz 41 799,982 19,511 98.0
12 Cavaliers 41 824,595 20,112 97.8
13 Warriors 41 766,398 18,692 95.4
14 Suns 41 720,249 17,567 95.4
15 Clippers 41 727,462 17,742 93.1
16 Rockets 41 663,839 16,191 89.7
17 Nuggets 41 692,968 16,901 88.2
18 Hornets 41 603,088 14,709 86.1
19 Raptors 41 679,208 16,566 83.7
20 Hawks 41 641,596 15,648 83.6
21 Wizards 41 688,466 16,791 83.2
22 Bobcats 41 649,694 15,846 83.1
23 Bucks 41 631,910 15,412 82.3
24 Grizzlies 41 600,687 14,650 80.9
25 Nets 41 581,378 14,179 80.6
26 Kings 41 569,496 13,890 80.2
27 Timberwolves 41 624,960 15,242 78.8
28 Pistons 41 683,080 16,660 75.5
29 Pacers 41 555,077 13,538 74.5
30 76ers 41 604,823 14,751 72.6

It is a very good point. The owners are all worth 100's of millions of dollars, some are billionaires. They want to make even more money. The value of NBA franchises keep going up. That should be part of the equation when concidering if a franchise is making or losing money.

I think there needs to be some concessions by the players - lowering the max players' salary; shortening the length of contracts, etc, but for the most part, it is the owners that are screwing everyone with the lockout. They are screwing the players, especially the rookies and lower salaried players who need the income, and they are screwing the fans. i.e. us!

I wonder if the owners get a $45 mil cap, will they lower ticket prices? The Knicks used to have a salary of almost $100 million and they still made money. Now it may be half of that...and Dolan is raising ticket prices.

The difference between fiction and reality? Fiction has to make sense. Tom Clancy - author
matt
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6/30/2011  11:43 AM
I haven't payed too much attention to the fine details of this, but it seems like the owners want to make it impossible for them to lose money, when really, if they just ran their teams better, they wouldn't have to worry about it
CrushAlot
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6/30/2011  12:00 PM
Moonangie wrote:
According to NBA executives familiar with the league’s strategies, once the lockout is in place, the owners will push for a hard salary cap of $45 million, the elimination of guaranteed contracts and ask that the players swallow a 33 percent salary cut.

The concessions made in recent weeks, including the “flex cap” of $62 million and a guarantee of $2 billion in annual player payroll, will be off the table.

If this seems certain to guarantee the loss of the entire 2011-12 season, it is because there are owners who think it is necessary for the long-term viability of the league.

Read more: http://basketball.realgm.com/wiretap/214454/Source_Owners_Will_Push_For_$45_Million_Hard_Cap_Once_Lockout_Begins#ixzz1QgYizyIM

If this has any truth to it and the season is lost, does that mean CP3 will be a FA or does he have to actually play the final year of his contract, regardless of which calendar year it is?


I think there is truth to this. David Aldridge said Mike Monroe has reliable sources and wouldn't put it out there if he didn't believe it was accurate.
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
grillco
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6/30/2011  12:26 PM
This stuff from the owners is like the music industry. The owners merely profit off the skills of the players, like the RIAA guys profits off the talent of the artists on their labels. Unlike the music industry, however, you can't replicate the product and distribute it for free or pirate it. In both cases the notion of lost profits are fuzzy math at best. Often the idea of loss of revenue in big business is "last year we made a 10% profit on this investment, and this year we only made 7% profit...that's a 3% loss...see, we're losing money." And then you have owners like Sterling who are just cheap. He's had opportunities over the years to make the Clippers competitive and has opted not to. A certain amount of mismanagement is a part of the reality as well. I'm also sketchy on revenue sharing. The idea is good, but baseball has been running into issues with the smaller market and cheap teams just trying to squirrel away the revenue they receive. If it's going to happen that revenue needs to be put directly back in your team to improve it and make it more competitive. If your team gets $5M, you better either sign a player for that five or combine it with whatever other revenue you have and get a better player. And a hard with revenue sharing seems odd too. While it's unlikely a team could get enough revenue from the sharing pool to put them over the cap, and therefore not be able spend it. Will it go back in the pool or can they use to upgrade luxury boxes, management, concessions, and the like?

I have a hard time feeling for the owners and that with full knowledge and understanding that players are getting INSANELY overpaid to play the game. It's absolutely ridiculous hear the wealthy and the rich complain about how much money they are making and want to make.

The last point is classically illustrated in the first 30 seconds of this clip:

Owners Will Push For $45 Million Hard Cap Once Lockout Begins...?

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