David Stern Drops Bombshell On OKC
I had an interesting five-minute chat with NBA commissioner David Stern last night.
With just minutes to spare before tip-off between the Thunder and Magic following his 25-minute pre-game press conference with reporters, Stern stuck around after I snagged him off to the side for a couple of quick follow-ups. There were two topics I wanted to inquire about: the so-called Derrick Rose rule and the more punitive luxury tax. More specifically, I wanted to know from the commissioner how he felt the presence of those two issues in the new collective bargaining agreement would impact Oklahoma City and markets like it.
It doesn’t take a salary cap expert to figure out that rising salaries (the Derrick Rose rule) coupled with stiffer penalties (a more punitive tax) is a mix that ultimately will put pressure on teams and perhaps might soon limit their ability to retain their stars and remain competitive. But Stern stood behind both rules and others, leading to my story today in which Stern admitted the Thunder would eventually have to be a taxpayer if it had any intentions on winning big with its current talented core. In my humble opinion, it was by far the most interesting thing that came out of opening night in Oklahoma City.
For years we’ve wondered how will the Thunder keep its core intact. And on opening night, Christmas night, the commissioner came to town and confirmed it can’t.
“People are saying to Miami, ‘Well, you’re going to have a decision to make with respect to one of your big three,’” Stern said. “And they may say the same thing to Oklahoma City, and that’s a good thing. That means you’ve arrived and you’re out there being competitive.”
Translation: you can have two stars, but you can’t have three. Not in the new NBA. Not unless you want to pay big bucks.
In other words, bye, bye James Harden. So long, Serge Ibaka. (more…)
The New CBA: Limits For Taxpaying Teams
Today’s topic in the NBA’s new collective bargaining agreement:
LIMITS FOR TAXPAYING TEAMS
2005: No additional limits for taxpaying teams.
2011: Taxpaying teams have a smaller mid-level exception, can acquire less salary in trade and cannot use the biannual exception. Starting in 2013-14, teams more than $4 million above the tax level cannot receive a player in a sign-and-trade transaction.
Winners: Players. This is all the owners could get after seeking a hard cap and later a “flex” cap. Taxpaying teams now have less access to exceptions. This will give small-market teams a competitive advantage. For example, instead of weighing equal $5 million offers in Los Angeles and Minnesota, a free agent might have to choose between a $3 million offer in Los Angeles and a $5 million offer in Minnesota.
The New CBA: Luxury Tax
Today’s topic in the NBA’s new collective bargaining agreement:
LUXURY TAX
2005: Teams paid $1 for every $1 their salary was above the luxury-tax threshold.
2011: Teams will pay $1 for every $1 their salary is above the luxury-tax threshold in 2011-12 and 2012-13. Starting in 2012-13, teams pay an incremental tax that increases with every $5 million above the tax threshold ($1.50, $1.75, $2.50, $3.25, etc.). Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is even higher at $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).
Definition: The luxury tax is a mechanism that helps control team spending. Commonly referred to as a “luxury tax,” the CBA simply calls it a “tax” or a “team payment.” It is paid by high spending teams — teams whose payroll exceeds a predetermined tax level. The tax level is determined prior to the season, and is computed by taking 61% of projected BRI, subtracting projected benefits ($112 million in 2005-06), and adjusting for whether the previous season’s BRI was above or below projections. They then divide by the number of teams (except expansion teams in their first two seasons) to arrive at the tax level. Here are the tax levels in each season, and the teams that paid the tax:
Winners: Non-taxpayers. Tax-bracket teams like the Lakers, Mavericks, Celtics, Heat will think twice about obliterating the salary cap because a more punitive tax penalty – presumably. The Lakers’ tax bill last season when the tax was dollar-for-dollar was about $19.9 million. Under the new system, being that far over the tax line would cost them $44.68 million. If they were a repeat offender, they would owe $64.58 million.
The New CBA: Minimum Team Salary
Today’s topic in the NBA’s new collective bargaining agreement:
MINIMUM TEAM SALARY
2005: Teams had to spend at least 75 percent of the salary cap.
2011: Teams must spend at least 85 percent of the cap in 2011-12 and 2012-13, and at least 90 percent of the cap in later years of the agreement.
Winners: The players. Raising the salary floor means spending more money on players. The shallow end of the salary pool just got a little deeper. The higher salary minimum also could affect teams’ amnesty decisions. Teams might decide to hang on to high-salaried players rather than amnesty them in order to meet the new minimum team salary requirements.
Note: Players lost 16 games (roughly 20 percent of their 2011-12 salaries) because of the lockout.
The New CBA: Amnesty
Today’s topic in the NBA’s new collective bargaining agreement:
AMNESTY
2005 CBA: One player could be waived prior to the 2005-06 season. Salary of waived player did not count toward luxury tax.
2011 CBA: One player can be waived prior to the start of any season, throughout the length of the new CBA agreement. Only one player can be amnestied and it must be from a previously existing contract. Contracts signed under the 2011 CBA are not eligible. The salary of the waived player will not count toward the salary cap or luxury tax. Teams with cap room can submit competing offers to acquire an amnestied player at a reduced rate before free agency and that player can sign with any team.
Definition: Amnesty is defined as “a general pardon granted by a government, especially for political offenses.” The NBA definition could be something along the lines of “a delete button for organizations that feel they’re paying a player too darn much.” In the NBA version of Monopoly, this is the equivalent of a “Get Out Of Jail Free” card. It’s also an opportunity for a player to get out of a bad situation at full salary. Teams with cap room can benefit greatly from amnesty by being able to submit a competing offer to claim an amnestied player at a reduced rate. Example: If Cleveland uses its amnesty provision on guard Baron Davis ($28.8 million for two years), a team that is $5 million below the salary cap can submit a $5 million offer to acquire Davis’ contract. If that offer is the highest, the team acquires Davis and is responsible for $5 million of his salary, with Cleveland responsible for the balance ($23.8 million).
Winners: Tough-luck owners, dumb owners. Sadly, amnesty penalizes teams that have chosen wisely, invested well and don’t need to be bailed out (see Thunder). Immediate executors of the amnesty clause figure to include Portland (Brandon Roy), Orlando (Gilbert Arenas), Cleveland (Davis), Detroit (Richard Hamilton), New Jersey (Travis Outlaw) and Charlotte (DeSagana Diop). Washington is so out of whack, the Wizards might choose to keep Rashard Lewis just to reach the increased league minimum. The benefits of amnesty are greater now than in 2005 because 100 percent of the player’s salary is removed for both cap and tax purposes. Also, rather than having to use amnesty this season, teams can save it for later use throughout the length of this new CBA. Teams like the Thunder will have an amnesty hole card, but likely will never reap the same financial break of tough-luck owners and dumb owners.
The New CBA: BRI Revenue Sharing
The NBA lockout lasted 149 days, robbed us of 16 regular-season games and wiped out the entire preseason schedule. After nearly two years of bickering, players and owners grudgingly agreed to disagree, a new collective bargaining agreement is about to be ratified (hopefully), training camps are set to begin Dec. 9 and opening day appropriately lands on Christmas Day.
Though we are headed for happy holidays, what took so long negotiating the new CBA? Truth be told, I’d love to fully understand all this myself.
The 2011 CBA should help stabilize the monetary strain for ownership. The league claims losses of roughly $1 billion the last three seasons and 22 teams are losing money. The players’ union disputes these figures.
The 2005 CBA allowed players to prosper financially like never before, thanks to lengthy guaranteed contracts and 57-percent BRI revenue sharing, both of which have been reduced in the new deal.
The new CBA is still not complete. Negotiations for so-called “B-List” issues began Friday. The final version still must be written, proofed and re-proofed. The details we will share are based on the last proposals made public.
From now until the Thunder’s first preseason game on Dec. 18 at Dallas, we will share one aspect every day of the new CBA and together we will do our best to better understand the issues that put us through withdrawals for 149 days. This is an attempt to educate us all. Your remarks are welcome. If you’re a lawyer or economist, your insight would be greatly appreciated.
We begin with one of the heavyweight issues:
BRI REVENUE SPLIT
2005 CBA: Players received 57 percent of Basketball Related Income (BRI).
2011 CBA: Players receive 51.15 percent of BRI this season. It then fluctuates from 49 to 51 percent thereafter – 50 percent, plus or minus 60.5 percent of the amount by which BRI exceeds or falls short of projections; 1 percent of BRI from the players’ share is used to fund a new pool for post-career benefits.
Definition: BRI generally is the income received by the NBA, NBA Properties or NBA Media Ventures as a result of basketball operations. This includes: regular-season gate receipts; broadcast rights; exhibition game proceeds; playoff gate receipts; novelty, program and concession sales (at the arena and in team-identified stores within proximity of an NBA arena); parking; proceeds from team sponsorships; proceeds from team promotions; arena club revenues; proceeds from summer camps; proceeds from non-NBA basketball tournaments; proceeds from mascot and dance team appearances; proceeds from beverage sale rights; 40 percent of proceeds from arena signage; 40 percent of proceeds from luxury suites; 45-50 percent of proceeds from arena naming rights; proceeds from other premium seat licenses; proceeds received by NBA Properties, including international television, sponsorships, revenues from NBA Entertainment, the All-Star Game, the McDonald’s Championship and other NBA special events. Specifically not included in BRI are proceeds from the grant of expansion teams, fines, and revenue sharing (e.g. luxury tax).
Winners: Big win for the owners, given the $370 million, $340 million and $300 million losses claimed the previous three years because of the 2005 BRI agreement that was ridiculously tilted in the players’ favor. Each percentage point equates to roughly $40 million, which means at least $240 million in additional revenue each year for the owners compared to the previous deal.
Kendrick Perkins: Boston revisited
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One of the most intriguing aspects of the 2011-12 Thunder season was center Kendrick Perkins. People wondered about his health and happiness with the Thunder.
Perk loved playing for the Boston Celtics, who drafted him at age 18 coming out of high school. It’s where he won a world championship in 2008. Though Oklahoma City is closer to his native home of Beaumont, Texas, last February’s trade came at a trying time for Perkins. He probably should have sat out the end of last season with two ailing knees, but instead insisted on playing during the Thunder’s march to the Western Conference finals.
Perkins was a shadow of himself in 2010-11 and vowed to lose 20 pounds during the off-season and return in the best shape of his life. A YouTube video shows him looking sharp, but the NBA lockout has Thunder fans and the NBA still waiting to see a healthy Perkins this season.
Perkins and several Celtics played in a charity game at Harvard on Saturday night. Perk received the loudest ovation of any player, including Paul Pierce and host Rajon Rondo.
Here is a blog from Gary Dzen on what Perkins had to say.
Here is another blog from the Boston Herald.
OKC Thunder’s flag football roster
Kevin Durant plays flag football at Oklahoma State on Halloween night. (Photo courtesy KT King)
Evidently, Kevin Durant has accepted LeBron James’ challenge to a flag football game. It was on Twitter, so it must be true:
@KDTrey5: Set it up! My team ready RT @KingJames:@KDTrey5 Team KD35 vs Team King James do I hear? Flag football.(Done deal! Date soon)
On Day 123 of the NBA lockout, Durant was at bored at his OKC home on Halloween night and asked via Twitter if anyone locally was playing flag football. What transpired was one of the coolest impromptu events ever to hit Stillwater.
The play-by-play of Durant’s escapade is detailed here and here.
OKC Thunder coach Scott Brooks and general manager Sam Presti no doubt cringe at the thought of their franchise player (due to start a five-year extension whenever next season starts) challenging the 6-foot-8, 260-poundish James on a football field. Doing so on a basketball court is crazy enough. The dude could start next Sunday for the Cleveland Browns … um, the Miami Dolphins.
Durant claims he has his flag football team ready to go. Thunder players organized four-day workout sessions this summer in Austin, Texas, and Lexington, Ky., so it’s not outlandish to think they would gladly huddle up as a flag football team to pass the time.
Here is a breakdown of the OKC Thunder flag football roster, with positions:
Kevin Durant — WR/FS: With Durant’s 7-foot-5 wingspan, every pass attempt should be a fade route, even from the Thunder’s own 10-yard line. If there’s a jump ball, offensively or defensively, it’s his. Boring, but effective.
Russell Westbrook — QB/CB: Best athlete on the field, including LeBron. A Michael Vick type. (Did you know Westbrook writes left-handed?) No matter how many completions he has, national media will complain Westbrook should have passed the ball more to Durant.
Kendrick Perkins — DL: Only non-platoon player on roster because of fragile knees. Ndamukong Suh’s attitude. Most penalized player in flag football.
Nick Collison FB/MLB: Instead of taking charges, Collison finally gets to knock some people down. He excels playing two physical positions. When you least expect it, Collison erupts (think Trey Millard 61-yard TD run vs. Kansas State).
Thabo Sefolosha WR/SS: A physical presence on both sides of the ball. Covers a lot of territory. Always helping out teammates. Good blocker. Outstanding receiver on underneath routes. Unsung player, but vitally important.
James Harden FL/OLB: Effective playmaker with the ability to take over a game. Streaky. Sneaky quick. And here’s some good news for him: he gets to start.
Serge Ibaka TE/DE: Remarkable athlete, but language barrier creates problems with on-field communication, which is why he plays the same position on both sides of the ball. He stands in the exact same spot going each direction.
Eric Maynor QB/CB: Westbrook’s backup at both positions. One of the most underappreciated backups in all of flag football. Rarely makes mistakes. Subtle in his effectiveness. A valuable commodity.
Nazr Mohammed TE/DL: Pretty much keeps his hands raised throughout the entire game, kind of like “Chief” in One Flew Over the Cuckoo’s Nest. Stands at the line of scrimmage, to either catch a pass or knock one down.
Daequan Cook WR/BANDIT: A specialist on both sides of the ball, as a receiver and as a fifth defensive back. Either way, he’s going deep. Restricted free agent, but hopes to have contract signed before coin toss.
Royal Ivey PLAYER/COACH: There in a pinch when you need him. Wise and dependable. Think George Blanda at age 29. Out to prove people from Austin still know how to play football.
Cole Aldrich C/NT: Just like in basketball, Aldrich is asked to have a presence in the middle. Is permitted three developmental assignments in the Canadian Flag Football League, which is handy because he can visit his parents in Minnesota.
Byron Mullens C/NT: Just like in basketball, is battling for the exact same positions(s) as Aldrich. Also is allowed three CFFL assignments. Mullens is better offensively than defensively, and vice versa for Aldrich.
Nate Robinson RB/CB/KR: An explosive weapon, when he’s focused. Played cornerback for one season at University of Washington before concentrating on basketball. Potential hero or goat and a crowd favorite.
Reggie Jackson: No assigned position as of yet. Durant and teammates have him busy doing rookie chores — laundry, washing cars, carrying luggage, Sonic runs.
Are you ready for some (flag) football?
‘Only in Lawrence’ could Nick Collison and Cole Aldrich play to a draw
Boston's Paul Pierce, right, playfully chokes Miami's Mario Chalmers after Chalmers converted a 3-pointer with 0.1 seconds left, which forced the "Legends of the Phog" exhibition game to end in a 111-111 tie Saturday inside KU's Allen Fieldhouse. (Photo by Richard Gwin, Lawrence Journal-World)
John Rohde: 475-3099. John Rohde can be heard Monday-Friday from 6-7 p.m. on The Sports Animal Network, including AM-640 and FM-98.1. Follow him on Twitter @RohdeOK.
A Case For Greg Oden In Oklahoma City
Allow me to steal a phrase from Russell Westbrook for this one.
“Why not?”
If you’re Thunder GM Sam Presti, why not go after Greg Oden in free agency next summer? Why not take a chance on the one-time center sensation whose promise has faded because of faulty knees?
It would only be the greatest low-risk, high-reward maneuver we’ve ever seen Presti pull. And there have been plenty, most of them beyond question of the high-reward variety. We saw it with the near signing of C.J. Miles and the eventually rescinded trade for Tyson Chandler. We saw it with the successful signing of Nenad Krstic and the completed trade for Thabo Sefolosha. And, most similarly, we saw it with the flyer Presti took on Shaun Livingston, who nearly four years after a near career-ending knee injury still is navigating his full-time comeback.
Oden, the Blazers announced Wednesday, will soon undergo his second microfracture surgery, this time on his left knee. He missed the entire 2007-08 season following the same procedure on his right knee. And suddenly, with this latest news, Oden’s days in Portland seem to be done.
The Blazers decided against offering Oden a contract extension prior to the Nov. 1 deadline, making him the first No. 1 overall pick since Kwame Brown who failed to receive a new deal following his rookie contract. Although Oden is scheduled to be a restricted free agent next summer, giving Portland the right to match any offer a team throws his way, there are already reports that the Blazers might decline to retain those rights. Which of course makes perfect sense. Former Thunder assistant general manager Rich Cho, the new GM of the Blazers, has no reason to keep Oden. His selection was on former Blazers GM Kevin Pritchard’s watch. Now, it seems the sooner Cho can wipe his hands of what’s become a sad, if not embarrassing, set of setbacks the better.
Oden will forever be known as the bust who was taken ahead of Thunder star Kevin Durant in the 2007 draft. But the longer Oden stays with the Blazers, the more that troublesome truth will define his career, while also hanging over the Portland franchise. It’s time both parties parted ways.
And what better place is there for Oden to escape Durant’s shadow than Oklahoma City? Rather than toil through life as the answer to a trivia question, Oden could redefine his career by joining forces with Durant and perhaps someday compete for championships alongside him.
