May 2023 Basketball Wiretap

Exec On New Luxury Tax Rules: 'All Of It Together Is Crippling'

Jul 24, 2023 10:48 AM

The NBA has created a system of increased parity with their successive collective bargaining agreements. The new second luxury tax apron will make building a sustainable title contender even more difficult. 

When viewed independently, each of the penalties aren't excessively punitive, but in the aggregate they make managing a front office particularly difficult.

"Each individual thing is manageable, but all of it together is crippling," an Eastern Conference executive told ESPN.

The Golden State Warriors, for example, traded Jordan Poole as he was beginning a four-year extension due to their luxury tax concerns, whereas in 2020 they took on the long-term contract of Andrew Wiggins while also receiving a protected future first round pick that became Jonathan Kuminga. 

The Boston Celtics allowed Grant Williams to leave in restricted free agency in a cost cutting move, while the Los Angeles Clippers also exercised some level of austerity in letting Eric Gordon become a free agent.

Tim Bontemps/ESPN

Tags: NBA, NBA CBA

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ESPN Holds Preliminary Equity Talks With NBA, MLB, NFL

Jul 24, 2023 10:37 AM

ESPN has held preliminary talks about bringing professional sports leagues on as minority investors. The NBA, MLB and NFL held talks with the media company.

Disney is considering a strategic partner for ESPN as the cable business undergoes transition.

In a statement, an NBA spokesperson said, “We have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership.”

The NBA and Disney have broached many potential structures around a renewal of media rights.

Disney owns 80 percent of ESPN. Hearst owns the other 20 percent.

Professional sports leagues could face conflicts of interest if they take a minority stake in ESPN. 

Alex Sherman/CNBC

Tags: NBA, NBA CBA

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Sixers Protected From James Harden Holding Out Due To Obscure Clause In CBA

Jul 21, 2023 6:21 PM

A report this week indicated James Harden plans to report to camp with the Philadelphia 76ers and additional information Zach Lowe gleaned from the NBA's collective bargaining agreement could explain why that is his position. Harden continues to want a trade from the Sixers with the Los Angeles Clippers his preferred team.

"There's an obscure clause in the collective bargaining agreement that says the following: 'A player who is in the last year of his contract.' Okay, so that's James Harden. He's on an expiring contract," said Zach Lowe on his podcast.

"'Who withholds his playing services for more than 30 days after the start of the last season covered by his contract shall be deemed', I'm paraphrasing now, 'should be deemed to have violated his contract. Accordingly, such a player shall not be a veteran free agent and shall not be entitled to negotiate or sign a contract with any other professional basketball team unless and until the team from which the player last played expressly agrees otherwise.'

"I was alerted to that clause by people who would know what it means. And then I checked with other people who would know what it means and I said 'Am I an idiot or does this say he doesn't actually show up, the Sixers, because he's on an expiring contract, can block him in perpetuity from signing in the NBA?'

"And I checked with legal people and cap people and team people and whatever people, and the answer every time was 'Yes. And not only the NBA, any other professional basketball teams means exactly what you think it is.

"So if you just read that, that's why I made the comment about James' quote showing his ass as you put it, because given that reality, if he's not traded, he kind of has to show up and we know what happens if he shows up and he's unhappy because we've seen it over and over again."

The clause Lowe references in the collective bargaining agreement is from Article XI, Section 3.

Players in the NBA have rarely held out while actively under contract and will typically agitate for a trade while ostensibly with the team. Ben Simmons reported to practice with the Sixers in 2021 before he stepped away from the team in their standoff. Lowe also reported this week that Simmons received credit for a year of service for the 21-22 season despite not appearing in any games.

Zach Lowe/ESPN

Tags: James Harden, Los Angeles Clippers, Philadelphia Sixers, NBA, NBA Signing Rumor, NBA Misc Rumor, NBA CBA

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NBA Plans 'Very Open Process' On Expansion After New Media Rights Deals

Jul 12, 2023 12:11 PM

Adam Silver has acknowledged the NBA plans on working on expansion once they finalize their next round of media rights deals.

“We will turn to expansion once those new media deals are done,” Silver said Monday at the annual APSE conference. “It’s not a sure thing but, as I’ve said before, I think it’s natural that organizations grow over time.”

The NBA had three major business items on their agenda this decade in its new Collective Bargaining Agreement, followed by media rights negotations, and then expansion.

Seattle and Las Vegas are the two cities that have been floated most heavily as possible expansion sites for the NBA.

Silver called Summer League “our 31st franchise.”

“We will look at this market,” he said. “There’s no doubt there’s enormous interest in Seattle. That’s not a secret. There are other markets that have indicated interest. For the people who hear or read about this interview, we are not engaged in that process now. We’re not taking meetings right now with any potential groups. What we’re saying to everyone, privately is the same thing I’m saying publicly that there’ll be a very open process at the time already to consider expansion. But that’s not yet. That’s not yet now.”

Mike Vorkunov/The Athletic

Tags: NBA, NBA CBA

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