Friday, October 22nd, 2010 at 9:00 am  |  92 responses

NBA to Explore Contraction?

by Marcel Mutoni / @marcel_mutoni

David Stern went on the offensive yesterday, telling the media that he and the 30 NBA team owners are hell-bent on making the League profitable.

Stern’s goals include the slicing of player salaries and benefits by one-third (the NBA says it spends somewhere in the neighborhood of $2 billion annually on pay for its players), and to make the finances work, the League may consider getting rid of some teams.

CBS Sports reports:

A person with knowledge of the owners’ discussions said the league “will continue to be open to contraction” as a possible mechanism for restoring the league to profitability. The owners’ ongoing talks about competitive balance, profitability and revenue sharing have included the notion of whether teams are operating in “the best available markets,” the person said, and whether reducing the number of teams from the current 30 would help improve the product and the bottom line.

Stern and deputy commissioner Adam Silver spoke after completing two days of meetings with league owners, who are seeking major changes to the current CBA that expires June 30. Silver said the league has told the union that owners are in a “diseconomic situation,” with projected losses of about $340 million to $350 million this season. Even though season ticket sales are up, both insisted that no matter how well the league does at the box office, it won’t change the fact that an overhaul is necessary. “There’s no chance we can change the fundamental economics regardless of our success because it just costs us too much money to generate those sales,” Silver said.

One recurring complaint from fans and media is that the NBA isn’t as competitive today as it used to be, and its rapid expansion over the years is often blamed for this. Perhaps a contraction wouldn’t just be a good thing for its economic health.

And if getting rid of struggling franchises can help avoid a lockout next summer, it’s an option definitely worthy of serious consideration.

  • Add a Comment
  • Share
  • RSS

Tags: , , , ,

Newer Comments →
  • floe

    a contraction would result in more money in the pockets of these fat cat owners. i refuse to believe these spinoff numbers that the NBA presents. because what we don’t see are the multiple companies that are setup behind the teams to siphon out revenue and take profits off the book. anybody who doesn’t believe this theory is a billionaire’s whore.

  • Ganchan

    The best thing for basketball would be to have two divisions, top 15 teams play in the NBA and the bottom 15 play in the NBA B-League. Whoever wins the B-League gets to play in the NBA and whoever comes 15th gets relegated to the B-league.

  • Morgan

    @Ganchan – they already have a B-League…its called the D League and I doubt that would draw any more revenue for any clubs than what the teams are already making. It also wouldn’t draw that much more attention from fans and leads to the NBA having less games + shorter seasons. There are a lot of options they can try before having to resort to dropping teams and all this is simply posturing before the CBA. After the CBA has been signed we’ll probably see a report that “Stern says league has never been healthier”

  • BBaller

    @ Ganchan,don’t you think the bottom 10 teams are/would be more relevant in the current system?The more decent teams the merrier.Whatever works that avoids a lockout, anything but a lockout.

  • EJ

    If they are gonna cut 1/3 of the players salaries, then they shouldn’t give that money to the team owners, they should give it to charity. And Stern’s salary should be cut by 1/3 and ticket prices should be cut by 1/3. The owners are ridiculously rich, and the players are too, but not nearly as rich as the team owners, so if they are gonna cut their salaries, use it to help people, and Stern’s salary should go down 1/3 and so should the ticket prices. Actually they should just get rid of Stern.

  • Groves

    @morgan… the D-League isn’t a B-League… it’s a D-League, thats why its called a D-League!!!… Do Not Contract the NBA 30 teams are fine!.. develop better players around the world

  • kev

    lets cut toronto, charlotte, New orleans, Memphis, okc, and the clippers!

  • IAMORANGE4EVER

    Trim the fat.

  • kev

    lets cut toronto, charlotte, New orleans, Memphis, okc, and the clippers! its true that their isn’t enough talent to have any sort of competitive balance in the nba and, the gap just continues to grow as nba teams trade their best pieces to contenders a la gasol to the lakers. Oh and while we are at it lets cut the cavaliers too. These teams play in less than desirable locations and aren’t able to sign top free agents. The clippers will always be the red headed step child of LA and not many people line up to see their games. It would really be sad for true fans of these teams but I would prefer to see an NBA where there’s more than 4 teams that actually have a shot at the title. Thats why the NFL is so captivating to fans because you never know who might win. I know this will never happen but while we are at it, lets cut the number of games in a season down to 50 or 60. This will make each game mean more and the regular season would be much more competitive.

  • Groves

    don’t cut any team!… move the Clippers?.. and move the Cavaliers.. to Seattle, San Diego, Kansas City, St Louis, Pittsburgh or Louisville?

  • Groves

    okay, i’ll concede that if contraction is to happen the clips and cavs should be two to go.. 28 team league isn’t too bad… 24 teams would suck

  • JD

    The players association would still be upset by contraction seeing as it would see many of them out of work, so they’d still want a lockout probably move them if neccesary but dont cut them. They’d could always explore David Sterns ambition of moving teams to big cities in Europe or other big cities in the world, that may prove a way to do it

  • JD

    Agree with limiting number of games

  • http://slamonline.com YKnot

    I can’t keep up with mortgage and gas prices and look to entertainment to take my mind off it for a couple hours. Do I really care if millionaire players and billionaire owners lose some money? Lockout next season and see if we watch again. Ask NHL how that worked out for them.

  • KB8toSG8

    Hmmm.I wouldn’t want Clippers to go defunct since they’ve just started showing signs of improvement. Vast improvement. Cleveland, Toronto and hmmm…..new orleans?

  • EJ

    Limiting the number of games? If they do that, they need to figure out something else for the NBA players to do. They are getting ridiculously overpaid, and they don’t have work days as often, and their work is something they love. So why the hell should they have less work days? Make them do community work instead of those games if they are cut down to 58 or something. Or cut their salaries, but I don’t like the ownershaving that money either.

  • http://www.davidsparks.me David Sparks

    horse shit.
    i dont buy it, no way this happens. I live in memphis and have grizzlies season tickets. i’m not delusional about the team but i’ll never watch an nba game again if they just up and took my team away from me. I’ll be all Tigers and all college ball.

    and this bullshit about the league not being profitable seems to be only coming from the owners. outside reports state that the nba is in good health. these ass hats have lost their minds.

  • Jumper

    Cut teams that you know good and well do not have a serious shot at the playoffs. In fact, you know what would really spark ratings and money. After the playoffs start, have the teams that didnt make the playoffs play to stay in the nba. Losing team gets dissolved.

    Send that check to Jumper!

    Thanks

  • http://www.slamonline.com Migs

    I get why you’d want to cut certain teams, but Toronto? What’s that based on? The Raptors are actually in the upper half in the league in terms of team value and profit… Seriously, some of y’all gotta stop being so ignorant.

  • Brian

    It seems to me that most of the NBA’s problems stem from the decisions made by the NBA and its’ owners over the years.

  • http://brimartin13@gmail.com Brion

    Take it from a Seattle native it stings to have your team cut.

  • BBaller

    With the USA having won Gold at every age level, the NBA should be expanding not contracting. How many good players are there seriously? 400, 500!

  • http://slamonline.com Allenp

    Even though I support contraction, I know this is just a scare tactic to get he union worried about 15-30 jobs disappearing. So they’ll capitulate.
    What owner is just going to abandon their NBA revenue stream when they could sell their team for hunderds of millions of dollars?
    Too bad people are gullible enough to believe this.

  • BBaller

    @ Brion, are the WNBA side the storm a viable sports organisation in Seattle?, if so, why can’t the Supersonics come back! I miss the team Logo

  • Ganchan

    Ya I suppose you would need 16 teams so that playoffs would be possible. Add a couple of more bottom dwellers to make it work, hell form a C-league too while we are at it!! How have I not been hired as the commish yet?

  • MikeC.

    Just because the Raptors routinely trot out bad teams doesn’t mean they’re not profitable. The Raptors have a very devoted fanbase, play in one of the best arenas in the league and don’t lose money. Why would they need to be contracted? Contract the teams that play in half-empty arenas. New Jersey and Cleveland come to mind. If Seattle can get a new arena, move the Nets to Seattle and we can have the Sonics again. I’d give the Kings a two-year window to see if they can crack the playoffs in the West. A good Kings team brings out a wild fanbase in Sacramento. If they’re still struggling financially, move them to a city where they can be successful. It’s time Stern took the shackles off and let a team move to Vegas.

  • SWIFTboy

    Are people just saying Toronto because it’s in Canada? You guys realize it’s the fourth largest city in North America behind NY, LA and Chicago right?

  • http://staticseth.blogspot.com Seth

    I’m not sure which teams would get the axe, but the L could prob do without the Clippers and Raptors. The Raps just hopeless.

  • burnt_chicken

    no SWIFTboy, they have no idea. In fact, I bet most of the posters calling for Toronto to get cut have never been out of their county, let alone state. Ignorance is bliss!

  • http://itsahardwoodlife.blogspot.com omphalos

    No, please don’t lose teams… if you are going to do that, at least combine a couple of teams and bring the Supersonics back.

  • Exile

    Co-Sign SWIFT boy. Contraction would be about economic feasability. Toronto would remain as they are the 4th largest market (city wise) in the L. Toronto would also keep more Canadians interested, keeping the L “global.” Doesn’t matter how good the team is… the determining factor will be location.

  • MikeC.

    People need to stop acting like Toronto is a small-market team that’s losing money. Toronto is one of the biggest cities in North America. The Raptors make money. They’re not one of the unprofitable teams. The struggling teams are the ones playing in half-empty arenas like the Nets, Pacers and Kings. However, it is true that the Raptors stink and don’t seem to have the ability to attract and retain talent. This could lead to a dwindling fanbase in the future. The Spurs could be in trouble after Duncan retires too. They have great fans and great management, but things could change when they don’t have the robot to build around.

  • PapaBearATL

    OKC could be considered small market but they were packing them in last year and seem to have a loyal fanbase. I persnally think small market teams like Cleveland and Minnesota could go away and not cause much stir. I am embarrassed personally by the Hawks fans enthusiasm and attendance. I would move teams before I shut them down. Move Cavs to Vegas, Clippers to Orange County, Nets to Seattle, put a team in Hawii!

  • PapaBearATL

    Major market cities without a pro team:San Jose, San Diego, Jacksonville, El Paso, Las Vegas, Albuquerque, Louisville! Just some suggestions! Expand don’t Contract.

  • Noel

    Goodbye Celtics!

  • Love4Humanity

    Las Vega is the only one that makes any since on that list. The Jaguars are on the verge of moving in the NFL why would the city need another pro team

  • bakers’-dozen

    Contraction is a stupid idea.
    Not only do you lose several market regions (whether large, medium, or small it doesn’t matter), you lose fan base, filtered down revenue from apparel sales, etc. The players salaries are what is causing the NBA to lose money. Sure the owners make a ton of $$$, but why do you think ticket prices and food are so high at games? Somebody has to pay the salaries of the team, and it comes directly from the fans. They need to reorganize how salaries are done. Back in the 80′s, it was insane to think that rookies and guys who had potential not proven would be making more than the all-stars and champions. Players are getting paid based on potential instead of output. They need to go back to the basics and have rookie contracts maxed out at x$ per year for x years. From that point on, have salary tiers for players with 3-6 years of experience, 7-10, and so on. Have a league mandated formula to have bonuses for different milestones reached. It would be league set (not individual team set) so it would create equal markets for all teams instead of giving larger markets the cornerstone of all players who want to make the most money. Think about it this way, if Melo wants to go to the Knicks, he would be making the same amount there as he could with the Nuggets. All salary structures would make it super easy for trades and subsequently get rid of the luxury tax for teams. It makes it easier, and all teams benefit from this, not just the elite few.

  • bigmatto1

    get rid of the heat

  • http://futureprobe.blogspot.com Future Guy

    Contraction is a good idea. There are far too many teams that have never been good because they have cheap owners who don’t want to pay for good talent, or stupid owners that wouldn’t know good talent if it walked up to them and and punched them in the face. I say those owners deserve to have their teams liquidated.

  • http://www.youtube.com/user/officerbarbrady what

    The NBA is fundamentally different from other sports in that you can’t just assemble a team of several good players and expect to win a title, like you can in football and baseball. If you don’t have a superstar, you are pretty much out of luck, and there simply are not enough superstars to fill the needs of 30 teams. For this reason alone the NBA needs contraction. The talent pool is spread too thin as it is.

  • http://www.youtube.com/user/officerbarbrady what

    And it’s not so much a small market vs. big market issue. It’s just an overall talent issue.

  • http://www.youtube.com/user/officerbarbrady what

    @Swiftboy — where the hell are you getting that from? Greater Toronto has 5.5 million people. Atlanta, the 9th largest metro area in the USA, has 6 million people. How exactly is Toronto the continent’s 4th largest city? Not only are at least 10 metros in the USA bigger, but so is at least one Latin American city (Mexico City).

  • http://www.need4sheed.com Tarzan Cooper

    Not gonna happen

  • bakers’-dozen

    How can taking teams away help the situation? You need to make your product stronger, and taking teams away places the league in a weaker position altogther.

  • http://theurbangriot.com The Nupe

    Contraction makes sense, but which team(s) get contracted (and how the owners get paid out) would be the difficult question. A team can go from profitable to un-profitable, and the inverse, relatively easily. Cleveland would be a good example of that, just by the acquisition and loss of one player. Over the last 10 years the Cavs have been one of the more profitable teams, even over the last 25 years, so it’s hard to justify giving them the axe. OKC is an unlikely place to see a team really thrive, but they are likely going to be pretty darn good the next several years because of KD, what happens when he leaves? It’s hard for me to consider OKC a great location or any better than Indi, Det, Cle, Mil, or many other ‘small’ markets. Cities like Jacksonville or Las Vegas seem to be logical places for teams because they are ‘large’ markets and many would say desirable locations. But like contraction, not sure who you move or how to base the decision. The only teams that makes sense to move or contract the Clippers and Nets. Both are in great locations, but the NBA already have a strong presence witht the Lakers and Knicks. Profitability, and location/new markets where they can expand have to be part of the equation. But, contration is unlikely to happen anyway, I see some significant salary cuts coming instead (but not 30%).

  • dave19

    @bakers

    Okay I don’t want teams gone any more than you, but that would help financially for sure. It’s just like a franchise closing failing locations. It’s what it is. It would help the league as a whole if a team like the Timberwolves disappeared I’d say. Would most fans really even notice? And most franchises could get restarted later, in a healthier economy.

    That said, I think the numbers Stern is showing are garbage. I’m sure there is plenty going on for these teams.

    The only thing I’m in favor of (at least considering) contraction is to help get more Talent onto teams so they’ll be stronger.

    You guys should really look into which teams turn a profit. Youd be surprised. I believe the Grizzlies and Clippers, along with the Cavaliers are some of the most financially consistent franchises out there. Cavs have lost LeBron James of course, so well see how it goes. But none the less, it’ll be the teams that can’t make money that will disappear.

  • Sparty’s Law

    Cut Toronto? A city of 5 million people with a TV audience of more than 30 million? Not to mention a fanbase that pays some of the highest ticket prices in the league and a wealthy, stable ownership group. Not happening.

  • Brian

    Why do people look at NBA players like victims and the owners as a-holes? Look at the CEO or owner of your company… isn’t he making a hell of a lot more money than you? In any business the front line workers make the company profitable. But, why does the CEO of Home Depot make more money than the cashiers, truck drivers, stock guys, etc… The CEO couldn’t do their job, just like Jerry Reisdorf couldn’t suit up and fill the void that Jordan left. The lowest paid NBA player still makes as much money as a cardiologist… which is plenty. If salaries were cut by 1/3 a max deal would be 80 million instead of 120. If you say that’s not enough money… you need your head examined.

  • Sparty’s Law
  • onlyclipsfanonslam

    Clippers always make money every year. Our owner may be dumb, but he is a better business man than 95% of the owners in the L.

Newer Comments →
Advertisement