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Around SBN: Terry Collins, David Wright, And The Mets/Brewers Kerfuffle

Rumor of Robust Revenue Sharing Is Good News For Bucks Fans

While most of the journalistic focus during the lockout has been on the serious problems with the now expired CBA framework and the the perceived chasms between the NBPA and the owners on multiple negotiating points, one NBA insider has consistently bucked this trend. If you are looking for optimism amidst a sea of doomsday rhetoric, look no further than former ESPN and AP basketball writer Chris Sheridan (now writing for his terrific new site, sheridanhoops.com). He has made some of the best efforts in the industry to cut through the PR and politics of the lockout negotiation and provide a common sense argument as to why the season will start on time. 

Sheridan is a seriously connected man when it comes to the NBA, and now he is reporting that the owners have agreed on the framework for a robust revenue sharing plan:

NBA owners told nearly two dozen players Friday they plan to quadruple their revenue sharing by Year 4 of a new collective bargaining agreement, and commissioner David Stern went so far as to say that one of the three remaining items of contention has effectively been settled.

If true, this is undeniably great news for Bucks fans.  

Star-divide

Increased revenue sharing is something considered a win-win for the league and the players, so it makes sense that it would be the first of the three major issues (BRI split, Salary Cap structure, and Revenue Sharing) to be resolved. While owners in big markets (Donald Sterling and Jerry Buss in Los Angeles, James Dolan in New York, Jerry Resindorf in Chicago, etc.) can turn a profit whether their teams win or lose just by virtue of the sizable populations they can draw upon, small market owners (Herb Kohl in our beloved city of Milwaukee, the Maloofs in Sacramento, Paul Allen in Portland, etc.) have had trouble turning a profit even when their teams succeed.

David Stern has made the point that revenue sharing, no matter how robust, can't turn league-wide losses into profits, so the focus is certainly still on the BRI split first and how it affects the business model for owners in a broader perspective. However, if the big market owners are willing to share more generously then the windfall profits derived from the location of their franchises, small-market owners and fans are winners in that deal. The NBA has a vested interest in keeping all of its franchises solvent, because it helps to foster an equality of opportunity that can energize fanbases across the league on a yearly basis.

It might be less obvious, but players can benefit from revenue sharing among owners as well. The NBPA has encouraged increased revenue sharing for the simple fact that additional solvent franchises will lead to more serious bidders in the free agent markets. In theory, more bidders for talent will lead to higher bids, which ultimately will lead to more options in free agency. Again, it's a win-win. 

For more on Sheridan's take you should certainly check out his website. While you're still here, you can check out his excellent radio interview with Boers and Bernstein of Chicago Sports Radio 670AM The Score from Friday.

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Friday Bucks Notes

May 2008 by Frank Madden - 2 comments

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"However, ----IF----- the big market owners are willing to share...."

Suggesting it seems that the owners have a divided representation? This has been bantered about relative to the ‘older’ owners who bought their teams when the asking price was far less then advertised in say that last 5 to 10 years. The ‘new’ owners probably paid more then their predecessors? Hence, the financial calculations will differ when looking at the bottom line. Additionally, and doesn’t it seem obvious, sharing TV revenue behoves the league, and should be a given? (Bussiness is not exactly my forte so correct if I’m wrong).
It has been reported that after several days of negotiations both sides claim to be as far apart as the outset of discussions? Curious, what do you suppose takes up the seven hours of dialogue (reported length of Saturdays meeting) that at its end, one is no closer then its beginning? Just asking. Oh, and has anyone heard what the riff was with Wade and Stern. Each reports I’ve heard has failed to tell us “the rest of the story”.

by ks13and1 on Oct 2, 2011 10:15 AM CDT reply actions  

Good comment, I will try to address it point-by-point as I watch my Bears and check fantasy football.

(1) The “if” isn’t really the point of emphasis in what I was saying on revenue sharing. It seems like revenue sharing will undoubtedly increase, but now there is news that the real emphasis is on “how” the sharing will be structured. Small market owners are pushing for more sharing in the early years of the deal, while big market owners are hoping to keep the number low until the third and fourth years of the new agreement.

It seems like a good play by the small market owners to seize the opportunity to try and get help sooner…seeing as the owners are presenting concerns about operating losses to the players as a bargaining point, why not use the same argument for more money immediately in going to the big market owners too. There doesn’t seem to be much infighting between new and old owners that we know about, it’s more about small market owners trying to turn their books around in the near future by using the party line to their advantage.

(2) The league does share the league wide network TV revenue (ESPN, ABC, TNT), but it wouldn’t make much sense to share the individual local TV contracts equally. We all know that not all franchises are created equally, as it’s the reason revenue sharing is necessary at all, and the differences in value are reflected in the franchise valuations and buying prices generally. While it doesn’t make much sense to directly split the local TV contracts, revenue sharing is essentially an indirect way to get at the same problem anyways. The big markets will be giving back to the smaller markets based on their inherent advantages.

(3) You are right to say that the parties are currently still far apart, but it is really on the BRI split. The recent negotiations have apparently been more about cleaning up the more complicated peripheral issues like revenue sharing and salary cap structure, because if those issues are figured out then they can have an agreement in principle as soon as the BRI number is decided upon. While BRI is certainly the most important issue, ultimately it is just a simple number game in negotiating terms. Players are trying to push a 53-47 split in their favor, while the owners want a 54-46 split in their favor. The bargaining zone is clear, and most credible sources expect a 50-50, or a 51-49 split in favor of the owners in the end. So the seven hours were spent talking cap issues and revenue sharing, while the BRI split will be something left to lock in place with the meat of the other negotiated issues being handled this past week.

(4) Wade was apparently angry that Stern used his finger to point at him will giving a lecture on negotiating points. So it was one of those stupid “manhood” things that has almost nothing to do with the actual substance of the negotiation. As to why Stern began lecturing Wade? My guess would be that is was because the superstars finally showed up and suddenly attempted to push the union to dig in at 53% BRI figure.

The superstars like Wade and LeBron certainly have enough money in previously earned salary and lucrative endorsements to withstand a long holdout for the 53% figure, but what about their cohorts who make league minimum and might now have the same liquidity? The union represents a lot more players who are hurting for a paycheck than they do superstars flush with cash and armed with big egos. Stern likely not only brought that point to his attention, but also the fact that Wade hasn’t been around for the negotiations, has no business background, has no negotiating experience, and might not quite understand the finer points of where the talks have been headed and what points the owners have been clarifying and emphasizing. Stern has been known to be a lot more aggressive in private than he comes off in public, so maybe it was just a clash of egos…I suspect he didn’t much appreciate having to rewind the negotiation and cover things that top officials already understand for the sake of a few under-informed superstars who finally decided to show up to a meeting.

"Don't worry, I've got an idea. An idea so smart my head would explode if I even began to know what I was talking about..."

by Steve von Horn on Oct 2, 2011 1:29 PM CDT up reply actions  

The "W" Makes the 'first quarter' knotted at 2-2....

First off, Steve you win the award for longest retort to one of my posts since my blogging inception irregardless of site. Thank you for your time and consideration on this NFL Sunday. And, thanks for the Wade/Stern insight. Men, can’t live with them can’t live without them.
****************
The Bears did everything they could to help Young Cam win this game. Whats up with our secondary today?. Scared the be-jesus out of me. Thank the good gridiron for Mr. Forte, and Mr. Hester. Together victory was preserved. Tell me Steve, have you ever seen a quarterback shake his head in disgust more then Cutler. “Jay Cutler is not happy”, chirped Brenneman (todays play by play announcer). Useing Love-ies time consensus we barely finished the ‘first quarter’ 2-2. Worthy opponents to be sure, yet, scary Steve-O…very Scary beginning. (Buffone and O.B. letting em have it on the Score)>>>

by ks13and1 on Oct 2, 2011 3:56 PM CDT reply actions  

Thanks for the kind words, ks13.

As for the Bears game, it was good to see Hester get the return record today, but the game was a bit closer than I thought it would be…Cam Newton was much more accurate than I expected him to be, and of course he’s difficult to sack. Bears defenders still left some INTs on the field, but in the end it was enough.

Forte got on track, the line blocked pretty well (despite the very frequent personnel shuffling…where it looks like Lance Louis has beaten out Frank Omiyale as RT standby for Carimi), and the Bears earned the W. You take em any way you can get em in the NFL, I suppose.

"Don't worry, I've got an idea. An idea so smart my head would explode if I even began to know what I was talking about..."

by Steve von Horn on Oct 2, 2011 9:08 PM CDT up reply actions  

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