Posted on 11/01/2020 4:59:04 PM PST by dynachrome
The NBA, however, fears that starting the season even in January could cost the league anywhere from $500 million to $1 billion in lost revenue, according to ESPN.
Now, a multibillion dollar entity like the NBA might normally be able to weather losses even that substantive, if only for a year.
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Things get a little hairier, however, when factoring in the great unknown of when fans will be allowed back en masse. Without that vital gate revenue, ESPN noted that projections have the NBA losing another $4 billion.
That’s a potential loss of up to $5 billion in revenue if the season starts in January and fans are not allowed to attend. That massive figure, even for a multibillion dollar entity, would be a very painful and bitter pill to swallow.
The Players Association’s reluctance to start the season early is particularly confounding given the very dire consequences those revenue losses could have on the NBA players.
As ESPN pointed out, the current collective bargaining agreement includes a 50-50 revenue split between the players and the league. A massive drop in revenue would mean a steep drop in player salaries.
While some players with exorbitant salaries, such as LeBron James, John Wall and Chris Paul, would still collect a hefty chunk of change, players on rookie-scale deals or making the league minimum might not be as amenable to those depressed salaries.
So it as simple as going woke and then going broke?
Much like with anything else in life, no, it’s not that simple.
But at the very least, the NBA might want to significantly rethink its strategy of engaging in hyper-partisan politics and alienating its fans.
(Excerpt) Read more at westernjournal.com ...
And opportunity to post Boo-Hoo Girl is fine with me.
That alone is reason not to vote for harris-pelousy ticket...
They win and the communists will have all of us making good on all the lost back pay for the Nasty Bitches Association...
The individual player contracts ARE fixed. What ISN'T fixed is the total salary cap for each team in the league.
So here's how this fiasco unfolds ... (note that everything here is based on hypothetical numbers and is not tied to real figures for the NBA. The underlying point is correct, however.
A. Let's suppose the salary cap for each team was $100 million last season. That means they can pay their total roster no more than $100 million.
B. Let's also suppose the salary MINIMUM was $80 million. That means they have to pay at least $80 million to all their players collectively.
C. Let's also suppose that each team has ten players on the roster (I know this is incorrect, but it's a nice round number).
D. Finally, let's suppose that the agreement between the NBA and the player's union ensures that the salary cap and salary minimums are tied to league revenues, and that these two numbers go up and down as revenues go up and down.
So here's a hypothetical team called the Los Angeles Galaliens -- also known as the L.A. Galalians (LOL). They have a roster comprised of the following players:
1. Lebron James, who gets paid $35 million on a contract that lasts another two years.
2. Dave Chappelle, who gets paid $25 million on a contract with the same term.
3. Eddie Murphy, who gets paid $20 million on a contract with the same term.
4. Richard Pryor, who gets paid $10 million for the same two-year term.
5. Fitty Cent, who gets paid $5 million for the same term.
6. Five nameless scrubs who get paid the minimum salary of $1 million each on a one-year contract.
That's $100 million in salaries right there. The team is right up against the salary cap.
Now suppose the NBA's revenue is down, and the salary cap is reduced to $90 million for next year.
So you see how these L.A. Galalians have a serious problem. They have $95 million in contracts committed for next year. So they have to shave $5 million from their payroll while still carrying 10 players on the roster.
So here's what happens:
1. They go to the five scrubs and say: "We know you're worth $2 million each next year, but we can't afford to pay you that much and still have 10 players on the roster. So your salary can't be any more than $1 million. Sorry, bros!"
2. They go to Lebron James and Dave Chappelle and say: "Will you each take a $5 million pay cut?" They both say, "Hell no, Mo'Fo!"
3. So they trade Chappelle and his $25 million contract to another team that has room even under the reduced salary cap, and in exchange they get two players back who will earn a combined $20 million. If I did the math right, that leaves them with 11 players on the roster and a total payroll of $95 million.
4. They still need to dump another $5 million of salary to get down to $90 million, so they trade Fitty Cent and his $5 million salary to another team and get NO players in return -- just three basketballs and a half-dozen pairs of dirty socks.
That's how this fiasco shakes out. The top players with the multi-year contracts will still get paid what they are owed, but everyone else takes less money because the team has to reduce its payroll while still putting 10 guys on the roster.
It's really no different than GM or Ford cutting a deal with the UAW where the senior union workers get $65/hour, but the company is allowed to lay off all the junior guys and outsource half the production out of the country where they can pay Mexicans and Chinese workers $5/hour to keep their cars affordable.
They crossed the bridge over the Rubicon and burned it down when they reached the other side
Check out mlb contract options this year. Every player, “I’m exercising my option and staying”, the teams, “see ya, pal”. I love it!
Best news I’ve heard all weekend.
Privileged ball bouncers for hire - washing cars...
LOL!
Take your BLM fellas. Way to go. Stand on your principles, screw the money.
I didn’t watch one pitch of mlb this year. I did happen upon a NAIA scrimmage game. Kids playing their asses off, pure baseball. I loved it. MLB will have to get on their knees and beg me to come back and renounce that blm crap for me to even consider it.
They don’t want Whitey watching their game anyway.
Well....bye.
Yes, they need to bring more Social Justice causes to the game for fan enlightenment. Absolutely. Money is not the important thing, after all.
bump
It’s time to say bye bye to these unpatriotic slobs (owners, management and players) . . . role models for youth . . . NOT.
A very small violin somewhere is producing no noise.
That and kneeling players are why I cut the cable and quit following the NFL.
Remember all of those patriotic things the NFL did after 9-11 and during the Iraq war ?
Do you know the military paid millions of dollars for those ?
Look it up.
GREAT analysis AC!
As usual. Major props and THANKS for your input!
But the NBA can count on the support of China.... for now.
China may pull their support and they watch the red ink flow like a big ass Chinese river.
“China may pull their support and they watch the red ink flow...”
And then buy the NBA for pennies on the dollar.
Yeah, that happens throughout the world. The CCP is a bad partner.
“...It’s human nature to take pleasure in seeing a big mouth forced to shut up and re-evaluate the game plan of shoving BLM down our throats.”
For me, the lock and seal on the door was shoving BLM down our throats while denying everyone including the fans, the right to stand up for Hong Kong.
That sealed their identities for all time as thieves, liars, and Damnable Communists.
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