Is NBA commissioner David Stern losing grip of the NBA?

[salsadancer7]

For a long time, David Stern has always been considered the best of all the commissioners because of how well the NBA has prospered over the last 15+ years. But NOW, after reportedly losing OVER $400 MILLION in loses the next couple of year and projected to possibly lose MORE...AND a already ugly situation with the CBA right around the corner...has he lost his grip on the league?


NBA Commissioner David Stern: Teams are in $400M hole

BY Mitch Lawrence

DAILY NEWS SPORTS WRITER

Sunday, February 14th 2010, 4:00 AM

NBA players need to face the harsh economic facts and prepare to take major pay cuts in the next collective bargaining agreement, commissioner David Stern said Saturday night.

During his annual state of the NBA speech at All-Star Weekend, Stern said the league will lose $400 million this season - roughly double its annual losses over the last four years - and has to come up with a new "sustainable" economic model.

"We've shown the players the facts," Stern said. "Our current level of revenue devoted to player salary is too high. I can run from that, but I can't hide from that. And I don't think the players can hide, either. We need to make significant changes to deal with the very substantial losses that are in the hundred of millions of dollars."

Owners presented a proposal Friday to the players that called for massive cutbacks in guaranteed salaries, and cutting the percentage given to players from basketball-related income, from its current level of 56%, to around 43%. In terms of salaries for superstar players, the days of those making in excess of $20 million in a season would be over, with those players likely making no more than $13 million. Maximum contracts would plummet from an average of $18 million per season to around $11 million per season.

The players' executive director, Billy Hunter, rejected the owners' proposal out of hand.

"You can denounce it, you can tear it up, you can burn it, you can jump up and down on it, as long as you understand that it reflects the financial realities of where we are," Stern said, while refusing to detail the specifics of the proposal.

Although the two sides have plenty of time to reach a deal - the CBA runs through next season - Stern gave no indication that the owners' demands will change over the next 18 months. League sources told the Daily News recently that about half the 30 teams are losing "tons of money."



Read more: NBA Commissioner David Stern: Teams are in $400M hole

 

[Lkr]

i still think he is better than selig. although goodell, even with getting rid of 'fun', has been pretty good

 

[anders5189]

Typical union reaction. I can't until there is a labor stoppage and and we get to see NBA players crying that they can't put food on the table for their posse and their 18 illegitimate kids on less that $15 million guaranteed.

 

[televisionarchives]

If the NBA was more popular this wouldn't be a issue. The NHL is dealing with about the same problem

 

[salsadancer7]

If the NBA was more popular this wouldn't be a issue. The NHL is dealing with about the same problem

The NHL issues is of a smaller scale because to be honest, no one cares that much about the NHL in the US the way they do the NBA....and in my opinion, no where near as global as the NBA.

 

[Paul Wozniak]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

 

[salsadancer7]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

Good point. I also think there was too much of a gap between a FACE. There was no gap in time between Magic, Bird and Jordan. After Jordan...there was too much of a gap between Jordan and Lebron....the FACE now. The other thing is....they are trying TOO MUCH to market Lebron when him and his team has done NOTHING. The Bulls, with Jordan, did not get NO WHERE near the air time Lebron gets until AFTER his 2nd championship.

 

[vurbano]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

:up:up

 

[Davedirectv]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

Right, at least in college they still have to give the illusion of caring.

This is the main reason why I do not watch any NBA games anymore, it has about as much appeal to me as any women's basketball game.

I grew up watching Jordan, Malone, Ewing, Hakeem, etc, etc. and all the Bad Boys. People hated the other guy and it showed on the court. They wanted to not only win, but kill the other guy in the process.

Passion and desire were everywhere on the court, not just made up dramas about "Who the real Superman is!". BS

 

[BlackHitachi]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

Just as long as they don't let kids from Europe or Asia or Africa come and play. Should not be OK for them to work and not our own kids.

 

[anders5189]

He can't help the fact that the league has a lack of talent. Too many underdeveloped kids in the league. They need to find a way to keep them in college. They are just not ready for prime time.

There are too many underdeveloped kids in college, like at UNC. Is there any way to keep them in HS longer?

 

[salsadancer7]

The kids come in FINE into college...they are not develope enough because all they see is dollar signs $$$$$$ in their eyes as soon as they smell double figures in rebounds and points more than 5 times in one season. Suddenly, they think they are NBA material.

 

[SandraC]

There are too many underdeveloped kids in college, like at UNC. Is there any way to keep them in HS longer?

:haha :haha :haha

Good stuff, Anders.


Sandra

 

[Greg Bimson]

If the NBA was more popular this wouldn't be a issue. The NHL is dealing with about the same problem

The NHL issues is of a smaller scale because to be honest, no one cares that much about the NHL in the US the way they do the NBA....and in my opinion, no where near as global as the NBA.

I don't know why the comparasion needs to be against the NHL...

The problem, according to the book of Stern, is, "Our current level of revenue devoted to player salary is too high. I can run from that, but I can't hide from that. And I don't think the players can hide, either. We need to make significant changes to deal with the very substantial losses that are in the hundred of millions of dollars."

The proposal is to slash "the percentage given to players from basketball-related income, from its current level of 56%, to around 43%."

So what determines the percentage? The TV contract. The merchandise. Attendance revenue.

So let's take a look at that attendance revenue:

Through 13 January 2010, the Eastern Conference has 10 of 15 teams that don't sell 90 percent of their capacity. Out in the West, that is flip-flopped so that 10 of 15 teams sell 90+ percent of their capacity.

That's 15 of 30 teams; half of the league cannot manage to sell 90 percent of tickets.

Meanwhile, 18 of 30 NHL teams average 90 percent capacity and the NHL has these cost controls where franchises won't lose much money.

I'm more inclined to believe that the NBA is finding its way out of the mainstream.

 

[anders5189]

I don't know why the comparasion needs to be against the NHL...

The problem, according to the book of Stern, is, "Our current level of revenue devoted to player salary is too high. I can run from that, but I can't hide from that. And I don't think the players can hide, either. We need to make significant changes to deal with the very substantial losses that are in the hundred of millions of dollars."

The proposal is to slash "the percentage given to players from basketball-related income, from its current level of 56%, to around 43%."

So what determines the percentage? The TV contract. The merchandise. Attendance revenue.

So let's take a look at that attendance revenue:

Through 13 January 2010, the Eastern Conference has 10 of 15 teams that don't sell 90 percent of their capacity. Out in the West, that is flip-flopped so that 10 of 15 teams sell 90+ percent of their capacity.

That's 15 of 30 teams; half of the league cannot manage to sell 90 percent of tickets.

Meanwhile, 18 of 30 NHL teams average 90 percent capacity and the NHL has these cost controls where franchises won't lose much money.

I'm more inclined to believe that the NBA is finding its way out of the mainstream.

Where'd you get the attendance figures? Even without looking at them, the NBA has huge advantages over the NHL. The NBA rakes in way more in TV money and merchandise than the NHL. And NBA teams can charge a lot more for tickets than NHL teams. Still the NBA does have to make changes, even the NFL is facing a showdown with its union.

 

[Greg Bimson]

Where'd you get the attendance figures? Even without looking at them, the NBA has huge advantages over the NHL.

When rolling in the values of TV contracts and the like, sure the NBA has huge advantages. However, at the gate, there truly isn't much of an advantage. The reality is that the further south and west one goes, the more likely basketball is king.

The big surprise to me is that only five of 15 teams in the NBA's Eastern Conference average over 90 percent. That should be a very quick cause for concern.

The NBA rakes in way more in TV money and merchandise than the NHL. And NBA teams can charge a lot more for tickets than NHL teams.

Sure. But notice some of the downward trending here in both ratings and in merchandise.

Still the NBA does have to make changes, even the NFL is facing a showdown with its union.

Yes. And neither of these showdowns will be very pretty.

 

[Paul Wozniak]

There are too many underdeveloped kids in college, like at UNC. Is there any way to keep them in HS longer?

Another good idea. Keep them there until they can at least read and write.

 

[anders5189]

Another good idea. Keep them there until they can at least read and write.

Or at least make a shot and box out.