New TV deal announced. Expected to have big impact on salary cap.

[Azlen]

http://espn.go.com/nba/story/_/id/11652297/nba-extends-television-deals-espn-tnt

Silver also said Monday the new television deal would lead to a "substantial increase" in team salary caps. It is unclear at this point specifically how the increase will be implemented. Silver suggested the league and the NBA Players Association would look into "smoothing" the increase -- or spreading it over several seasons.


Curious as to how exactly they will smooth it. The players aren't going to take less than what the CBA calls for.

 

[Phrazbit]

http://espn.go.com/nba/story/_/id/11652297/nba-extends-television-deals-espn-tnt

Silver also said Monday the new television deal would lead to a "substantial increase" in team salary caps. It is unclear at this point specifically how the increase will be implemented. Silver suggested the league and the NBA Players Association would look into "smoothing" the increase -- or spreading it over several seasons.


Curious as to how exactly they will smooth it. The players aren't going to take less than what the CBA calls for.

The TV deal does not start for 2 years, so I suspect they'd start increasing the cap early, pay the players a little more than what the revenue demands the next couple years but then a little less the first year of the new TV deal as they ease into it.

 

[Covert Rain]

Usually they increase the cap incrementally correct?

 

[JCSunsfan]

That's $88.6 million per year per team. I wonder how much of that goes to the team and how much goes to the league. Does anyone know what the last deal was and how much of an increase this is?

Edit: Ok I found it. The previous deal was $930 million per, this one is $2.6 billion per. Triple.

Um. $88.6 million per year per team just from TV. Does not include attendance revenue, merchandising, radio, and I assume local TV deals(if they do that anymore).

No wonder the Clips sold for $2 billion.

 

[Covert Rain]

That's $88.6 million per year per team. I wonder how much of that goes to the team and how much goes to the league. Does anyone know what the last deal was and how much of an increase this is?

Edit: Ok I found it. The previous deal was $930 million per, this one is $2.6 billion per. Triple.

Um. $88.6 million per year per team just from TV. Does not include attendance revenue, merchandising, radio, and I assume local TV deals(if they do that anymore).

No wonder the Clips sold for $2 billion.

I have to find this article I read. It had the trajectory of sports franchises. It had this graph that showed what values teams would be in 30 years or something. Based on FORBES it would only be a handful of people who could afford a sports franchise. It basically said having owners like a Mark Cuban or Jerry Jones would be a thing of the past and only owned by huge investment groups.

 

[JCSunsfan]

Usually they increase the cap incrementally correct?

I believe it is based upon total league revenues the previous year. So, no. It only seems incremental because revenues tend to move that way.

 

[BillsCarnage]

Wow, can't wait for the nba to hit the $100mil cap. We might finally see a $500mil contract. And, wait til ticket prices increase along the same curve.

 

[Phrazbit]

That's $88.6 million per year per team. I wonder how much of that goes to the team and how much goes to the league. Does anyone know what the last deal was and how much of an increase this is?

Edit: Ok I found it. The previous deal was $930 million per, this one is $2.6 billion per. Triple.

Um. $88.6 million per year per team just from TV. Does not include attendance revenue, merchandising, radio, and I assume local TV deals(if they do that anymore).

No wonder the Clips sold for $2 billion.

And that figure is just from national TV. The Suns and most other franchises have their own deal with the local affiliate.

 

[Azlen]

In the last lockout the percentage that was going to the players changed from 57% to like 50% because the owners said they were losing too much money. With this TV deal, I expect the players to want some of that back. The CBA can be opted out by either side after the 2016-2017 season. Hopefully there won't be another labor stoppage then but I'm not counting on it.

 

[BillsCarnage]

In the last lockout the percentage that was going to the players changed from 57% to like 50% because the owners said they were losing too much money. With this TV deal, I expect the players to want some of that back. The CBA can be opted out by either side after the 2016-2017 season. Hopefully there won't be another labor stoppage then but I'm not counting on it.

It's already starting.
http://espn.go.com/nba/story/_/id/1...-nba-players-taken-care-now-new-tv-deal-place

"I am kind of the guy that has the power, I guess, without even having to put a name on it," James said Monday after the league announced a nine-year extension of its TV deal with ESPN and TNT that begins in 2016-17. "I'm very educated and I will use what I have to make sure our players are taken care of."

One of those changes could be the NBPA pursuing the abolition of max contracts. James would not comment on his stance on the subject; however, reporters including ESPN's Brian Windhorst have intimated that the increase or removal of max contracts is indeed on James' agenda for the next CBA

 

[JCSunsfan]

"I am the kind of guy who has the power" "I am very educated"

Wow. LeBron is so full of himself. I hate how human beings seem to be able to handle hardship much more graciously that prosperity.

 

[Azlen]

I'm curious to see if LeBron's desire to do away with the max is going to fly. There are only really a handful of players that would be worth more than whatever the new max would be. With the salary cap not going away, with more money going to the top guys it means that less would be going to everyone else. Would the rank and file support doing away with the max if it means they would be getting less than they would get if it were there? Should make for an interesting topic for discussion in the player's association.

 

[BillsCarnage]

Can't get rid of max contracts without nixing the cap too. If that happens the NBA will end up like mlb. Once owners lose a cap they never get it back, so I don't see max contracts going away; just being increased along with the cap.

 

[AzStevenCal]

Can't get rid of max contracts without nixing the cap too. If that happens the NBA will end up like mlb. Once owners lose a cap they never get it back, so I don't see max contracts going away; just being increased along with the cap.

I don't think the NBA will give in to the max contract demand but if so, the concessions will be much harder for the players to adjust to IMO. I'm pretty sure the league would demand a hard cap and an end to guaranteed contracts in return for no limits on a player's salary.

Steve

 

[JCSunsfan]

I don't think the NBA will give in to the max contract demand but if so, the concessions will be much harder for the players to adjust to IMO. I'm pretty sure the league would demand a hard cap and an end to guaranteed contracts in return for no limits on a player's salary.

Steve

Ending guaranteed contracts and a getting hard cap in exchange for no individual salary limits would be a good deal for the owners.

Just follow the NFL model. Do a franchise player tag too. It would be great. It might end this "super team" player collusion stuff too. Teams could decide how they want to build. Give all your money to a super star and put scrubs around him, or build a balanced team.

All we need then would be some "on the court" rules than encourage team play over individual play, and we are set. The NBA is saved.

 

[Phrazbit]

Ending guaranteed contracts and a getting hard cap in exchange for no individual salary limits would be a good deal for the owners.

Just follow the NFL model. Do a franchise player tag too. It would be great. It might end this "super team" player collusion stuff too. Teams could decide how they want to build. Give all your money to a super star and put scrubs around him, or build a balanced team.

All we need then would be some "on the court" rules than encourage team play over individual play, and we are set. The NBA is saved.

Nah, I think if NBA contracts were not guaranteed but there was a cap, it would just make the super-team stuff worse. The big teams would just eat bad contracts, cutting them to make cap space and sign the next big thing. Right now the rich, but stupid teams, are reasonably punished for their mistakes.

 

[Azlen]

Can't get rid of max contracts without nixing the cap too. If that happens the NBA will end up like mlb. Once owners lose a cap they never get it back, so I don't see max contracts going away; just being increased along with the cap.

The NBA is the only league with max contracts but not the only league with a salary cap. You can have salary caps without the max contract.

 

[JCSunsfan]

Nah, I think if NBA contracts were not guaranteed but there was a cap, it would just make the super-team stuff worse. The big teams would just eat bad contracts, cutting them to make cap space and sign the next big thing. Right now the rich, but stupid teams, are reasonably punished for their mistakes.

But teams who sign players for long term deals still control those players. It works in the NFL. I cannot see why it wouldn't work in the NBA.

 

[Phrazbit]

But teams who sign players for long term deals still control those players. It works in the NFL. I cannot see why it wouldn't work in the NBA.

Because NFL rosters are enormous, you can make a 3 star roster in the NBA and fill the rest with scrubs and dominate, in the NFL you cant pull that crap.

 

[BC867]

I still feel the sports leagues should pay their top players $100,000 in paychecks and the rest in Monopoly money for bragging rights.

Millions and millions of dollars to entertain while teachers, for example, contribute a lot more to society, then have to get menial summer jobs to pay their bills.

 

[Covert Rain]

Boy..... contracts with the majority of salary based on pay for performance would be nice.

 

[Phrazbit]

I still feel the sports leagues should pay their top players $100,000 in paychecks and the rest in Monopoly money for bragging rights.

Millions and millions of dollars to entertain while teachers, for example, contribute a lot more to society, then have to get menial summer jobs to pay their bills.

All that would do is make a bunch of billionaires even more disgustingly rich.

Teachers should get paid more, but thats up to the public to push that agenda. NBA players could work for free and it would not make a bit of difference to teacher salaries. Hell, they'd arguably have less of an income pool to work with because no one is better at dodging taxes than your American billionaire.

 

[Azlen]

All that would do is make a bunch of billionaires even more disgustingly rich.

Teachers should get paid more, but thats up to the public to push that agenda. NBA players could work for free and it would not make a bit of difference to teacher salaries. Hell, they'd arguably have less of an income pool to work with because no one is better at dodging taxes than your American billionaire.

If you took all the NBA salaries and divided it equally amongst all the teachers (elementary school through high school) in the US, you would be giving each teacher less than $1000.
Teachers should be paid more but considering how many of them there are it takes a lot more than what NBA players are making to make much of a difference.

 

[Hoop Head]

Thought I'd add this here instead of a new thread since it's part of the new TV deal but I didn't read about it until this morning. Part of the new TV deal involves selling ads on jerseys and some sort of shared revenue plan with ESPN/ABC over the ad space that is sold on them. This is something that isn’t groundbreaking and really was a matter of a time but it being included in the new TV deal means it’s something that will most likely be implemented when that kicks in, they should have the revenue split worked out by then. I believe everyone saw coming sooner rather than later due to the NBA moving it's logo on the jersey from the chest to the back so there is more free space on the front. That was revealed and announced kind of quietly when the Charlotte revealed their new Hornets logo and jerseys. I know it’s been talked about before also by David Stern and a few other NBA executives. I wouldn’t be surprised to find out that is part of the reason that so many teams have alternate jerseys with sleeves also, thinking long term that gives them more ad space to sell.

The only way I could see this as a positive if they go the soccer route and air games without commercials or TV timeouts. Initially at least I believe replica sales will go down as a result of this unless you can get them without the ads on them. Over time I'm sure the jersey's will end up looking like some of the Euroleague teams and replica's without the advertisements will look very odd, if they'd even be available without the ads, it’s just a matter of how long it takes for it to go from one small patch for ads to selling the sleeves and other spots. Watching the Flamengo game about a week ago one of the first things I thought when I turned it on was how bad their jerseys looked.

I'm sure the NFL & MLB will be watching how the NBA works with implementing the ads because once the NBA does it then other leagues will follow since it's a new line of revenue. I know there is already the Nike, Reebok, Adidas logos on jerseys and that's fine to me since they are the ones producing the gear for the teams, it makes sense and it’s not much space at all that is taken by that. When there is a big McDonalds or Pepsi logo on the uniforms though it will take away from the look of the game, IMO.


http://deadspin.com/the-nbas-new-tv-deal-includes-plans-for-ads-on-jerseys-1645725263

There are a few sources cited in the Deadspin article, including a link to a story about moving the NBA logo from the front to the back. Here is a Sports Illustrated story about it also, although it’s just a video not a written article.

http://www.si.com/nba/video/2014/10/13/nbas-new-tv-deal-includes-plan-ads-jerseys

 

[Superbone]

<sigh>