NBA players and owners are about to get truly paid. After next season, the NBA will start a 9-year, $24-billion TV deal. Yes, St. Louis, people do watch the NBA, despite what local talk radio jocks will tell you. With that said, there is an issue that both players and owners need to decide on … Who gets what?
The new TV deal has immense ramifications on the collective bargaining agreement. Currently, the players are guaranteed between 50 and 51 percent of the league’s basketball-related income (BRI), and the salary cap is set at 44.74 percent of projected BRI (divided by the number of teams in the league). Since the national television deal makes up a huge portion of BRI – and will make up an even bigger portion under the new deal – this will drive up player salaries.
The salary cap for the 2014–15 season is currently set at $63.065 million, but if the newly signed deal were in place the salary cap would be $88 million or so. That means that when the new TV deal takes effect before the 2016–17 season, there will be a massive jump in the salary cap. Since many things are tied to the salary cap – such as maximum salaries, the luxury tax, and the value of the mid-level exception – this has huge ramifications for the value of player contracts.
That means next summer, the first time that players from the draft class of 2012 – including Anthony Davis, Bradley Beal, Damian Lillard and Andre Drummond – can sign an extension, the max they will be able to sign for is around $15.5 million annually. But the summer afterwards, when players from the draft class of 2013 – including Nerlens Noel and Giannis Antetokounmpo – can sign an extension, the max they will be able to sign for will be around $21.7 million annually.
The same drastic jump will apply to everybody signing a contract in 2016, which is why LeBron James only signed a two-year deal so he can opt out of his contract in 2016. He will be able to get back in line and truly get the payday we all would hope for.
Can a new labor agreement be put into place where the financial pie can be divided to everyone’s liking? This will be interesting, because there will be new players at the table. No longer will Commissioner David Stern or union leader Charles Grantham be at the table declaring war.
Instead, Adam Silver, who heads the NBA, will be exchanging pleasantries with Michele Roberts, who is the first woman to head a players association. Both are experienced and firm. They are both smart enough to make sure they do not kill the golden goose with foolish lockouts and strikes. There is time to get it fixed, as they will need the rest of the time to count all that money.
Bucket list weekend
With the 2015 NBA All-Star game in the rear-view window, there is not a sports league on this planet that has a better understanding of how to put on a show for the entire world to watch, and that does not even include the game itself.
There is not a better event in sports than NBA All-Star Weekend. That includes everything leading up to the game. The NBA gets it. They combine the stars of today with those of the past to make sure the ones of the future understand what a privilege it is to be part of the best league in sports.
Their diversity commitment and true community involvement reflect more than just lip service. This league included players and sponsors on the ground level where they can see where their time, effort and money are going. While the event was held in New York and everything there is magnified, the footprint left by the NBA and its players will be long lasting.
Now, for the events. Party, you ask? Everybody has one. The talk was the Kenny Smith party featured great swag and Michael Jordan’s party honored 30 years of the Air Jordan shoe line. With so many items on display, it was like going through a time machine to see where it started and where it is headed.
The who’s who of entertainment and sport celebrities were on hand, including Derek Jeter, Beyonce, Jay Z and a surprise performance by the one and only Prince. Yes, only in New York. In all, it was memorable to those who were able to slip through the security checks and wristbands. A bucket-list event, to say the least.
How about All-Star Saturday night, where the skill competition is still the best display athletes put on for their respective sports? The futures game garners great attention. It includes great players-to-be and creates an incentive to someday play in the big game on Sunday night.
Home Run Derby is just about all baseball can provide, and it may have run its course. The National Hockey League has done a fabulous job of displaying its talent. The NFL cannot find their way. In all, the skill competition started in the ABA and has evolved into a true event on the sports calendar.
