Tag Archives: owners

Now It Feels Real

01 November 2011

Dear NBA (Players, Owners, David Stern, Billy Hunter, Derek Fisher, Adam Silver, et al.),

What the hell is going on? It’s November 1st and I am not watching NBA Basketball. I should be watching the on-going rivalry between the Oklahoma City Thunder and Los Angeles Lakers. I should be watching Dirk Nowitzki and the world champion Dallas Mavericks receive their well deserved championship rings during what was sure to be a raucous ring ceremony at home. Instead, I’ll probably go home and watch the new episodes of NCIS and NCIS:Los Angeles that I DVR’ed.

For the past 4 months we’ve been hearing about the lockout. BRI this. 50/50 split that. System issues. Hard caps. Soft caps. Flex caps. Decertification. Amnesty. Blah, blah, blah, blah, blah, blah. I feel that, in that time, I have actually become pretty proficient in labor law. I’ve explained the lockout to numerous people and have sounded more and more knowledgeable everytime I explain it. But its always felt like I was reading up on something that wasn’t real. Like I was reading a Hitchcock novel or something. You read it. You begin to gain some insight. But you never really process it as real. Well, I checked the future schedule for TNT, and it didn’t have any NBA basketball games on. It has officially become real.

So, there you go NBA. On a night where I, and most basketball fans (hardcore or fair-weather), should have been glued to our TV sets watching these 2 great games (plus one other game that we would’ve gotten on the free, beginning of the season preview of NBA League Pass), we are instead looking for alternatives. Tonight was the perfect night for an opener. No meaningful football games. The hype over LSU/Alabama still has not reached a frenzied state. The World Series is over. And I still can’t find a hockey game on cable or satellite TV to save my life. You had the slate all to yourselves……….and you blew it. You literally puked all over yourself in front of your hot prom date. Ben Stiller’s teenage character on ‘Something About Mary’ is literally laughing at how bad you blew it, and we know what he did to himself on prom night.

Let’s take a look at 10 storylines that would have dominated on Tuesday, November 1st 2011:

1. Dallas receiving their championship rings in their home/NBA opener with Mark Cuban hugging David Stern.

2. Will the Bulls continue their torrid run that began in the 2nd half of last season?

3. How will MVP Derrick Rose improve upon last season?

4. After years of epic playoff failure, how did Dirk Nowitzki spend this offseason. (He usually retreats back to Germany and engages in soul-searching.)

5. Will this be the year that age will finally begin to affect Kobe’s game, or will he find new ways to dominate? (On a related note, how will his new German-engineered plasma help his game?)

6. Can the Lakers get back on top for one final dynastic run?

7. Can the Thunder finally break-through and take the West?

8. Can Kevin Durant and Russell Westbrook play their games and succeed on the same team?

9. How has KD, through his streetball tour offseason, improved his game.

10. How will a completely healthy Kendrick Perkins help the Thunder?

11. How will the rebuilding Jazz look, with rookies Alec Burk and Enes Kanter being the new faces in town?

12. The awesomeness of seeing “World Peace” on the back of someone’s jersey…..especially when that someone is crazy Uncle Ron-Ron.

13. Bonus – How did Hasheem Thabeet perform?

That’s 13 story lines about 3 games on a Tuesday night. A TUESDAY NIGHT, for goodness sakes! What other awesome thing is there to do on a Tuesday night? I’m a basketball junkie, so I’ll come back whenever it does. But, those fringe fans (the ones that actually debate whether to watch the game or Dancing With The Stars), those are the fans that the NBA will continue to lose as we move forward in this lockout. I should have been watching my team play their rivals this evening. Instead, I’m reading an article about Kevin Durant and Lebron James planning an exhibition flag football game, while watching NCIS. This is not how I envisioned my Novemeber 1st evening when the schedule first came out in mid-July. Gentlemen, we have our first real casualty of this fight. Let’s end this and bring peace to the land.

Signed,

A fan (not that you care that much)

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The Future Economics of the Lockout

When the owners first started complaining, we were in the beginning of a recession. You started to hear the whispers from the owners that big changes were needed about 3 seasons ago. And the players actually played along with that and actually stated that, “Yes, in this economy, some concessions would need to be made on their parts.” But, I’m pretty sure, their thinking was that by the time the players and the owners actually had to start negotiating (basically 3 years later) that the economy would have been fixed (or at least recovering) by then.

Fast forward to where we are now, and there are actually rumblings that we are entering an even worser recession. So instead of things improving, economically, they will probably begin to get worse for us fans in terms of disposable income. As an owner, if I see that the same system is being kept in place, and I want to stay competitive and get into or stay in the black, I may have to increase ticket prices. And that’s where this starts to affect me, as a John Q. Public fanatic.

You can talk about smart spending (in terms of a team) all you want. But, if you are completely honest with your self, you’ll know that we (the Thunder) got extremely lucky. Portland and OKC basically had the same formula. Tank for a couple seasons. Trade away horrible contracts for draft picks. Try to get lucky in the draft. We picked KD and Russ. They picked Oden and Roy. A couple knee surgeries later, and we are on the brink of becoming dynastic and Portland is on the brink of becoming one of those middle of the road teams (good enough to lose in the first round, but not bad enough to get a significant draft pick).

My question is, should Portland fans have to pay for the bad luck that has been bestowed on their team. Fans eventually tire of middle of the road teams. Once that happens, then those season ticket numbers start to decrease. Once that happens, an owner may be forced to increase ticket prices to meet his/her bottom line. Remember, this could have been OKC’s fate in some alternate universe.

Are you willing to continue paying (paying more) for a system that is broken? Do you know how much quicker Portland could bounce back, if they could’ve either cut Roy/Oden or restructured their deals? And remember, I’m not asking this because I necessarily want to see Portland become elite. I’m asking this because it could easily happen to OKC. As a small market team, you need to ride the highs for as long as possible and stay out of the middle to the lows for as long as possible. In this current system, a tweak of a knee here or a tweak of a back there, and we may be in the same boat.

Oh, and here’s one more thing about this recession talk. Its affecting the whole world, especially Europe. And that’s where it becomes bad for the players. There’s no other league in the world that can offer what the NBA offers. There are rumors that Kobe is looking to sign in Italy for $6.5 million. Do you know how much Kobe made last season? $25 million. And if you sign in China, you have to stay there for the entire season. So, while the “we can play and get paid overseas” thing sounded like a game-changer for the players, its actually enhancing the owners’ position.

So while I may love the NBA and may miss the game if some of the season is missed, I want a deal that keeps ticket prices as low as possible. I haven’t gotten a raise in 3 years at my job. If, for any reason, the owners were forced to hike up ticket prices in the near future, I’m screwed. If the owners and players were really progressive thinkers, they would sign a deal that tilts in the owners’ favor for the first half of the deal, and then tilts back in favor of the players towards the back end of the deal, with the option to revisit the results in the middle of the deal.

Possibility of NBA players hooping overseas

The NBA players and owners currently find themselves in a labor dispute, in which the owners locked the players out on July 1st. This is your basic negotiating ploy by the owners to bleed the players until they finally succumb to “poverty” and come back to the negotiating table with less of a leg to stand on. It happens in every labor dispute where players are locked out. The players, especially mid-tier players and below (aka the majority), eventually run out of revenue streams and plead with the union head to try and strike a deal, regardless of how bad it is. But what happens if the revenue stream doesn’t stop for some of those players? What happens if a small contingent of those players happen to find an alternate source of income that can supplement them through the “tough” times? This is the owners’ worst nightmare and something that no ownership group in any of the 4 major US sports has ever faced.

One of the major differences in this lockout and the ’99 lockout is the availability of leagues that offers comparable salaries and unique fringe benefits. The only drawback to those perks is the fact that the leagues are located throughout Europe and Asia. In an effort to keep up with the popularity of the NBA, basketball leagues throughout Eurasia have flourished with an organized govererning body (FIBA) and leagues and owners that are awashed with money. David Stern’s masterplan as NBA commissioner (globalization of his product), may now become one of his biggest nightmares in this labor dispute.

Globalization of Basketball

Blame it on one of the owners at the negotiating table. Michael Jordan’s meteoric rise in popularity coincided with many world events that brought American culture to the forefront on many foreign lands. The end of the Cold War, the advent of the internet and affordable satellite TV, and global capitalism all came together at the right time to foster an environment where the star of someone could shine brightest. Michael Jordan became the right guy at the right time and the NBA piggy-backed off of that. Then the Dream Team happened.

David Stern made sure to capitalize on the popularity of the Dream Team, and capitalize he has. While baseball remains a popular sport around the world, it is still mainly focused in the US, Latin American, and Japan. Hockey doesn’t really appeal to anyone who lives below the 50º N line on the map. And football, while extremely popular here, has never really taken off anywhere outside of the US. With its visible players, cheap equipment (trash can and paper, if necessary), ability to be a team sport or an individual activity, and uptempo pace, Stern has taken advantage of a product that can, and has, appealed to many. On top of that, most teams now have at least one foreign born player, with some of those players being bonafied superstars. And, add to that the fact that the NBA has taken advantage of technology and social media, in a way that no other sport has, and you have the makings of a global sport.

The globalization of the sport has a trickle down effect on other industries as well. With more and more foreigners wanting to buy their favorite player’s products, it was only a matter of time before companies
starting sending their product pushers over for promotional tours. We’ve seen Kevin Durant start making annual pilgrimages to China to promote his products. We’ve seen Kobe Bryant, Dwight Howard, and Dwayne Wade all make trips abroad to promote their products. We’ve seen the NBA send players over as goodwill ambassadors to impoverished areas (Basketball Without Borders). We’ve seen preseason contests between NBA teams and Euroleague teams, and we’ve seen preseason and regular season games played abroad. While this has been good for the brand, it has also taken away the isolationist advantage that owners once held on American players.

The Boogeyman isn’t that scary anymore

While there have been some great American players that have played overseas (Bill Bradley, Mike D’Antoni), most American players are overseas for one of two reasons; either they weren’t good enough to play in the NBA, but good enough to play overseas, or the money overseas was too good to pass up. In the past, American players did not go overseas because they wanted to play overseas. They went because it was the best option.

Brandon Jennings completely changed the game with his decision to forgo his freshman year in college, and instead, play in the Euroleague with Italian club Lottomatica Roma. After that one season, he was
drafted in the top 10 and has gone on to have a successful NBA career. During his time in Italy, he was not taken to a back alley and beaten by punks who were speaking a language he did not understand. He was not taken advantage of by foreign swindlers looking to make a quick buck. Instead, he was treated like any other rookie player and had to earn his playing time. He earned $1.65 million (tax-free!!) in salary AND was given $2 million by UnderArmour to promote their product overseas. And he was all of 19 years old.

With the advent of social media, 24/7 news, the Travel Channel, and easier accessibility, the world that used to seem so big 10 years ago, has now gotten exponentially smaller. The veil of secrecy that covered some places has now been lifted by this basketball globalization. This generation of players was raised in a smaller world, technologically speaking. Those encyclopedia pictures of some obscure land from the past, are now live satellite feeds on YahooMaps. They haven’t been influenced by the Cold War to fear anything across the Atlantic and Pacific Oceans. Instead, they have been influenced by the Dream Team and their foreign teammates to explore the possibilities.

And look at what some of these teams are offering. Millions of dollars tax free. Free living quarters. Chauffeurs. Access to top chefs. Partial ownership in the team while there. It’s a plethora of abundance. Of course, players like Sonny Weems and Jannero Pargo aren’t being offered this entire deal, but players like Deron Williams, Dwight Howard, Kevin Durant, Kobe Bryant, etc, would definitely be offered this deal. And those players would take it. Players with little, to no, baggage (i.e. wife, kids, etc) would love this opportunity. Players with families would treat it as a regular season, but a little further away. Its already known that some players don’t live where they play, especially if they are year to year veterans.

You don’t think Deron Williams spoke to ex-teammate Mehmet Okur or to ex-NBA great Allen Iverson about Turkey before making his decision to sign with Turkish club Beşiktaş? You don’t think that Kevin Durant and his people have developed contacts in China with his annual trips down there? Can you imagine how big KD would be in China if he played a couple games there with one of their clubs? While he plays in the one of the NBA’s smaller markets, in OKC, that wouldn’t really matter if he had a billion supporters in China. He’d be guaranteed the starting small forward in the All Star Game for the next 15 years. There’s already been chatter about Dwight Howard playing overseas if the lockout starts taking games away. He would conquer a market that Shaq never did, and you know he’d enjoying rubbing that into the Diesel’s face. The possibilities are all there. The fear that used to permeate their view of the world is no longer there. Deron Williams was the first domino to fall. Who will be next?