Connect with us

NBA

NBA Daily: It Still Isn’t Time To Expand The NBA

As much as we talk about expanding the NBA, has anything really changed to suggest it’s any more viable now? Basketball Insiders’ Publisher Steve Kyler digs into the barriers that have to be overcome.

Steve Kyler

Published

on

Expanding The NBA?

In what has become an annual off-season obsession, the topic of expanding the NBA beyond its current 30 teams has surfaced, again.

There is little doubt that the top-level concept of more NBA teams is fun to contemplate, mainly because there are major cities without teams. There is almost no one that wouldn’t want to see the Seattle market get their Sonics back, or Las Vegas complete their pro sports team trifecta by adding an NBA team to their exploding local sports market. Kansas City has long been talked about as an appealing basketball market, along with Louisville. There is a growing swell of renewed support in Vancouver for another run through the NBA, and Mexico City continues to host massive crowds during the now annual regular season NBA games held there.

So why not pull the trigger on one or two of them if local ownership groups can pony up the expected $1 billion or more expansion fees?

There are a number of issues with expanding the NBA. Here are a few of them:

Revenue Sharing

The biggest hurdle facing NBA expansion is revenue sharing. Currently, the biggest NBA cash markets are contributing serious dollars to the lesser markets to create a more balanced playing field for the league as a whole. While that’s evened out some things economically, there are still more than a handful of NBA teams that would be money losers if revenue sharing were backed out of the equation.

Equally, the NBA salary cap system is based on total revenue generated by the league, which does not take into account local market inequities. For example, the teams in LA have local television deals worth almost three times that of say Milwaukee or New Orleans. Those teams still have to pay out salaries and compete in a salary and expense landscape of teams sometimes generating twice their local revenue. Revenue sharing helps make that work, but adding new teams, that may or may not compete economically is a tough sell, especially to ownership groups that are already sharing dollars with other teams.

Proponents of expansion point to an easy fix, by not allowing new teams to participate in Revenue Sharing for a fixed amount of time but is that really a reasonable long-term answer? Adding a new team or teams and then immediately handicapping them economically for the first years of their existence?

Some would say that problem would simply have to be factored into an expansion agreement, and new owners would have to shoulder that risk as part of gaining entry into such an exclusive ownership club, but is that really good for competitive balance and solidarity of the business?

The TV Deal Isn’t Forever

Currently, the NBA is swimming in a record-setting media rights deal that has ballooned franchise valuations and NBA payrolls dramatically.

The problem with the current rights deal is the shifting and changing landscape of broadcasting. With traditional cable services dying out, and new “Over The Top” media players coming into the sports rights market, there is a sense that maybe the next round of rights negotiations could see the NBA eclipsing the current deal, and that would be a second windfall of dollars current NBA owners would have to share with new owners.

There is also the risk that with subscribers defecting the NBA current partners in droves, that broadcast rights could become less valuable by the end of the current agreements or far more complicated than the current two-partner model that’s in place now.

There was talk the last time around that Google and Facebook, the titans of the digital world, wanted in on NBA rights. That could be a good thing for preserving the value of rights related revenue streams, but its far from a given that NBA games will be consumed the same way they are being consumed today inside the next five years. That is a variable that has a huge impact on the appeal of expansion.

Is There Enough High-Level Talent?

The biggest on-court hurdle for expansion is the lack of star talent. Ask any NBA fan to name the top 20 NBA players, and you’ll find the talent pool flattens out pretty fast outside the top ten or 15 players.

Current NBA teams are struggling to find franchise cornerstones now. Would adding more teams really help competitive balance, especially with current stars opting to play together when they reach unrestricted free agency?

There is little doubt new expansion teams could field rosters, there are plenty of talented players that could populate a team. But the last time the NBA allowed expansion, the new teams were restricted from landing the top overall picks in the draft. How do those new teams compete?

Pay Once Eat Forever

The idea of a $1 billion expansion fee on the surface seems enticing. Especially given that the bulk of that fee would go to existing owners. Let’s assume that the NBA allowed two new teams, that’s $2 billion in expansion fees, divided by at least 30 teams (the NBA historically has taken a piece of those fees to cover operating costs), but for the sake of discussion, let’s say $2 billion paid out to 30 ownership groups, or roughly $66.66 million per owner.

Is a $66.6 million per team worth a slice of the NBA pie in perpetuity?

Let’s take the current $24 billion TV deal that breaks out to roughly $800 million per team over the life of the deal. Let’s say the next deal is $28 billion, that’s $933.3 million per team. If two more mouths are added to the table, that reduces the per team share down to $875 million, or $58 million less per team.

So, is getting paid a one-time team fee of $66.6 million now worth $58 million less in a new rights deal later?

Sure, there are caps and limitations that could be imposed on new ownership groups as part of expansion agreement, which lessens that impact on the current individual teams, but the biggest argument against expansion is that new teams don’t raise the revenue waterline enough to justify the slice of the revenue pie they get forever.

From a fan perspective, more teams sound like a great idea, especially in markets with rabid fan interest, but the reason expansion hasn’t been actively explored is because of many of the items listed above. That’s not to say those obstacles can’t be overcome, but when you hear NBA commissioner Adam Silver really downplay expansion, there are a lot of reasons for that, and most of them are simply that the current owners don’t want to see their golden goose diluted any more than necessary.

Expanding the NBA isn’t a dead issue, it’s simply not one the NBA seems overly eager to start chasing.

More Twitter: Make sure you are following all of our guys on Twitter to ensure you are getting the very latest from our team: @stevekylerNBA, @LangGreene, @EricPincus, @TommyBeer, @jblancartenba, @Ben_Dowsett, @SpinDavies, @JamesB_NBA, @MattJohnNBA, and @Ben__Nadeau .

Steve Kyler is the Editor and Publisher of Basketball Insiders and has covered the NBA and basketball for the last 17 seasons.

Advertisement




Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

NBA

NBA Daily: Lee Awaiting Opportunity, Staying Positive With Knicks

Drew Maresca has a chat with Courtney Lee about his situation with the New York Knicks and staying ready for when an opportunity comes his way.

Drew Maresca

Published

on

Drew Maresca caught up with Knicks guard Courtney Lee about the team's rotation and how he approaches his work despite not receiving playing time.

Basketball if a fun sport that’s grown into a multi-billion-dollar industry. It brings people of all ages great joy, employs thousands and allows millions of fans to remove themselves from their daily lives and immerse themselves in the sport of their choice.

But there is a colder side to the sport, one in which ability is overlooked in favor of intangibles. The NBA is, after all, a business. And like any business, office politics play a role. This is a side that we’re all at least marginally familiar with. We’ve all seen players traded or cut because they do not fit the team’s timeline or because they were brought in or drafted by the previous management team.

This is not to infer that there’s anything insidious about the business of basketball, but players are people with families and bills and routines just like the rest of us. Of course, teams have the right to operate as they see fit – after all, we’re talking about individual contracts worth between $385,000 and $37.5 million per year that add up to payrolls exceeding $100 million annually.

But often times, players are reduced to their contracts and cap holds rather than being valued for their contributions on – and off – the court. Players understand the business they’re in, but there’s something that feels wrong about the league’s politics when it supersedes the natural order – when effective players sit in favor of less qualified ones. This is probably most prevalent when a team fast tracks a rebuild.

And for the first time in what feels like forever, this issue is front and center in New York. To the delight of Knicks fans, the team has finally embraced the concept of bottoming out. Tanking is a notion the Knicks have toyed with and ultimately either balked at or botched nearly every season since 2001. They’ve instead chosen to side with short-term fixes over long-term solutions.

With Scott Perry at the helm this season as general manager, the Knicks are making smart, calculated decisions. They are playing their young guys, which allows for them to develop valuable experience that can’t be learned from the bench or in practice. It also has the residual payoff of more losses, which means better odds come the 2019 NBA Draft Lottery.

But losing is tough. It can cause fatigue within a fanbase, a roster and an organization. Dennis Schroder, backup point guard for the Thunder, recently spoke about his experience with the Hawks regarding this very topic with The Oklahoman.

“I wanted to be in a winning organization,” Schroder said. “You just can’t go out there and try to lose.”

Back in New York, no one on the Knicks sympathizes more strongly with what Schroder went through than Courtney Lee. Lee is in an unusual position. He is too good to get on the court for his team because playing him would result in more wins and less playing time for younger guys. But he’s relatively expensive for his age, counting for $12 million against the salary cap this season and he’s owed nearly $13 million for 2019-20.

Lee is 33 years old, but has played some of his best basketball in recent seasons. In fact, he averaged a career high 12 points per game just last season. Furthermore, he is a career 38.9 percent shooter from deep, and he is viewed as a capable defender, a good teammate and someone who doesn’t need touches to impact the game. And yet, he’s received nine consecutive DNP-Coach’s Decisions (including Thursday’s game against the Wizards in London).

Theoretically, the Knicks can point to the neck injury Lee suffered in training camp. There’s an element of plausible deniability there – he was hurt so he could still be hurt.

But Lee upended any such excuse following the 76ers game on January 13.

“I feel good,” Lee told Basketball Insiders. “It happened back in training camp. I feel 100% now.”

Lee understands the business side of the NBA. He has played for seven NBA franchises in his 11 professional seasons.

“It’s not the first one,” Lee said with a chuckle regarding the DNPs. “I’ve been dealing with it, man. At this point you just understand what’s going on – the thought process behind it. The best thing I can do is just stay positive, keep cheering my teammates on and be ready for whatever happens.

“If it’s here getting in the game or getting traded somewhere, just making sure I’m staying in shape and ready to contribute. I just have to live in the moment. Have to tell myself to stay ready, stay prepared, stay in shape because there’s always light at the end of the tunnel – that’s my mindset.”

And fortunately for Lee, he could reach the end of the tunnel sooner than later. The NBA Trade Deadline is less than a month away, and the Knicks would like to double down on their youth movement. Moving Lee, Enes Kanter and/or Tim Hardaway Jr. would help the team open up the requisite cap space to offer a free agent a max deal this coming offseason.

Lee could easily find himself on a team competing for a playoff spot in the very near future. He would almost certainly help the Rockets, the Nuggets and the 76ers, as well as a number of other teams. But in the NBA, it’s never that straight forward. Teams must not only see the benefit of adding the player in question, but also feel compelled to deal with the other team’s front office. And teams know the Knicks want to go shopping this summer, so nothing is guaranteed for Lee.

One thing Lee has going for him that is far from guaranteed is transparency, which he receives from New York’s coaching staff daily.

“Coach Fizdale communicates a lot,” Lee said. “He’ll talk to me before the game (about the potential for DNPs) or he’ll touch base during the game. He does a good job with that.”

Fizdale has been open about his feelings toward Lee and the position he’s in.

“Courtney has been an incredible pro,” Fizdale said in an interview with NorthJersey.com. “I mean, he’s been like a big brother to all of these guys. They love him. They love being around him. He doesn’t do things like, you see times when veterans aren’t playing, they take young guys down in certain ways. Courtney’s been the guy that’s like no, go play. And like he tells me every day ‘Coach you need me, I’m here. I’m ready.’”

Lee has echoed those same sentiments all season long.

He’s just waiting to be given an opportunity to prove it.

Continue Reading

G-League

NBA Daily: G League Guards Showing They Belong

Jordan Hicks spoke with NBA hopefuls Trey Lewis and Isaiah Cousins about their current games, playing in the G League and more.

Jordan Hicks

Published

on

The Utah Jazz currently have three players out due to injury – all three point guards, coincidentally – so one might say they are a little shorthanded. Because of this, both of their two-way players – Tyler Cavanaugh and Naz Mitrou-Long – have been called up to travel with the team. Unfortunately for Utah’s G League affiliate, the Salt Lake City Stars, they are left short-handed.

Add this to the fact that their first overall draft pick – and arguably their most important player, Willie Reed – is done for the season.

Things like this aren’t uncommon for the G League. In essence, that is primarily why it is there. As a developmental league for the NBA, it is used to both groom young talent, as well as have players readily available when needed (for teams lucky enough to have a program in their area).

In recent years, the SLC Stars have helped groom current Jazz rotation players Georges Niang and Royce O’Neale.

In a league that is growing more and more competitive with every game, every advantage a team can get is clearly a plus. Therefore, having the Stars so close has definitely been a huge positive for the Jazz.

Because a couple of heavy contributors are missing games, guys who are typically important role-players need to step up and be the key guys for the team.

Basketball Insiders had the chance to catch up with two of their young guards – Isaiah Cousins and Trey Lewis – after a recent home loss to fellow G League team the Stockton Kings (affiliate to the Sacramento Kings). In a close game where the Stars were slightly outmatched, these players stepped up in a big way and almost led the Stars to an unlikely come-from-behind victory.

Isaiah Cousins is having a career year with the Stars. His third year in the G League – and second with the Stars – Cousins is averaging 12.7 points, 6.4 assists and 4.6 rebounds a night. He’s currently second in the league in assist to turnover ratio at 3.27.

“Making the right reads and [not trying] to force anything,” Cousins told Basketball Insiders. “Whatever the scouting report is, each team has a different defensive scheme each game, so I look at the scouting report and see what they are going to do.”

Isaiah alluded to the fact that preparation is what helps him take care of the ball so well. In a league where taking care of the ball is essential to winning games, solid point guard play is a must. Cousins’ development in that area goes hand-in-hand with his ability to someday make an NBA roster.

“This is my third year in the G League so I’m experiencing and understanding the game now,” Cousins said.

When asked what position Cousins sees himself playing in the NBA, he noted his versatility.

“I think I’m a point guard, but I can play multiple positions and I can guard multiple positions,” Cousins said. “I do a little bit on-ball and off-ball. Basically, wherever a job is open, I’ll take it.”

Trey Lewis has been instrumental to the Stars’ winning record coming off the bench. Averaging 11.6 points and 2.3 assists, the team relies on his scoring and playmaking abilities to pull-ahead.

Although he isn’t in the starting lineup, Lewis finds himself closing out many games, thanks in part to his clutch shotmaking. Just over two weeks ago Lewis hit a big, go-ahead three-pointer with just seconds left to seal a home win. On the season – in which Lewis has only participated in 13 games due to an early-season ankle injury – Trey has already dropped 20+ points on four occasions.

Lewis played for a handful of teams during his collegiate years, ultimately ending up on Louisville with current Jazz star Donovan Mitchell. Lewis and Mitchell are now playing basketball for the same organization and living in the same city. “[Mitchell] is somebody who I talk to on a daily basis. We push each other, we motivate each other, and we support each other so it’s been great.”

Lewis garnered the essential skill of shooting the deep ball in college. While playing for Cleveland State in the Horizon League, he led the conference in threes made, knocking them in at a 42.3 percent rate.

After playing overseas in Germany for two seasons where he was a two-time All-Star in the BBL, Germany’s top basketball league, Lewis came back to the states.

“My goal since a little child has always been to play in the NBA,” said Lewis when asked why he came to the G League. “I feel like I had two great seasons overseas and felt like this was the next step to get to where I want to go.”

As the NBA continues its move to a heavy three-point shooting league, players are finding they need to adapt in this sink-or-swim situation. Players that can’t shoot the deep-ball – at least at a respectable mark – need to hold elite skills in other areas.

Luckily for Lewis, three-point shooting has always been a strength for him.

Basketball Insiders asked him where he gets his confidence from behind the arc.

“Just hard work; my regimen every day, sticking to my routine, getting my reps, and that builds confidence,” Lewis said. “I know I can hit those shots in needed situations.”

The window has opened for NBA teams to sign 10-day contracts. Whether they eventually end up with the Utah Jazz or with an entirely different franchise, it doesn’t matter. Cousins and Lewis will continue to grind so they can have their shot at a spot in the league. But for now, they will continue to work for their current team and help the Stars try and lift the G League championship trophy at the end of the season.

Continue Reading

NBA

NBA Daily: Potential 10-Day Contract Players

Basketball Insiders takes a look at a few players who could be prime candidates for 10-day contracts.

David Yapkowitz

Published

on

January 5 was an important deadline in the NBA in that it marked the first day teams can begin signing players to 10-day contracts.

Usually reserved for younger, unproven talent looking to get their first shot in the NBA, recently NBA veterans have started going the 10-day route to refresh their careers and get back in the league. For example, Corey Brewer just recently signed a 10-day contract with the Philadelphia 76ers.

These contracts are very beneficial for teams in that there’s essentially no risk, and the potential for a high reward. It’s a relatively cheap tryout for teams to get a quick look at players who can potentially be helpful. Best case scenario, they end up finding a solid contributor. If not, then the player is no longer with them after 10 days.

Here’s a look at a few players who could be candidates for a 10-day contract.

1. Willie Reed

The veteran big man has had his taste of the NBA. He began last season as the Los Angeles Clippers’ primary backup to DeAndre Jordan. With the emergence of other players, however, his playing time decreased and he was ultimately traded to Detroit in the Blake Griffin trade.

The Pistons then shipped him off to the Chicago Bulls for Jameer Nelson, and the Bulls proceeded to cut him. He ended up being the first overall pick of the Salt Lake City Stars of the G League.

This season with the Stars, he’s been one of the best big men in the G League. Reed has put up 20.1 points per game on 66.5 percent shooting from the field, 11.3 rebounds and 1.8 blocks. He’s still a quality rotation player and could help a playoff team in need of some size off the bench.

2. John Jenkins

Another NBA veteran, Jenkins developed a reputation as a sharpshooter during his early years in the league, but didn’t do much else. His last appearance in the NBA was last season when he was brought to training camp by the Atlanta Hawks.

He ended up being one of the Hawks’ final cuts before the end of camp, and he subsequently chose to play overseas. He returned stateside this season, where he joined the Westchester Knicks, the New York Knicks’ G League affiliate.

Jenkins has had a very strong season thus far, putting up 24.8 points per game on 47.2 percent shooting, 42.8 percent from the three-point line, 3.8 rebounds and 3.8 assists. Perhaps the biggest changes in his game have been his playmaking ability and his development into a more versatile scorer. Any team in need of some bench scoring should give him a look.

3. Anthony Bennett

Keeping with the trend of NBA veterans using 10-day contracts to get back to the league, the former No.1 overall pick in the 2013 draft has begun to put people on notice this season.

Bennett last saw NBA minutes two season ago with the Brooklyn Nets. He wasn’t that bad during his stint in Brooklyn, but the Nets cut him almost halfway through the 2016-17 season. Aside from a brief stop overseas, Bennett has been playing in the G League.

This season with the Agua Caliente Clippers, Bennett has looked like he’s ready for another shot in the NBA. He’s been averaging a modest 13.0 points per game on 54 percent shooting from the field. One of the biggest additions to his game though has been his expanded shooting range. He’s knocking down 43.6 percent of this 5.1 three-point attempts. He’s worth another look for a team in need of a stretch big man.

4. Bruno Caboclo

Another player with NBA experience, it’s probably not fair to call Caboclo a veteran seeing that he rarely saw playing time in the league. When he was drafted by the Toronto Raptors, his selection caused quite a bit of confusion, leading to Fran Fraschilla’s now famous quote of him being, “two years away from being two years away.”

Caboclo toiled on the Raptors’ bench for about four years before being traded to the Sacramento Kings. He finally was able to see some minutes with the Kings, but still didn’t show much. The Houston Rockets invited him to training camp but ultimately cut him.

Caboclo joined the Rio Grande Valley Vipers, the Rockets G League affiliate, and has since been showing that he may very well be worth a 10-day contract. He’s averaging 16 points per game on 51 percent shooting from the field, 42.5 percent from downtown, 7.2 rebounds and 2.9 blocks. When he was drafted, the expectation was he’d develop into a 3&D wing but that didn’t happen. He’s looking much closer to that now. For a team in need of a wing defender who can shoot from distance, he’s worth a look.

Again, 10-day contracts have become a very valuable and inexpensive way for NBA teams to try out potential contributors. If the player pans out, then you have a relatively cheap guy in the rotation. If they don’t, you cut your losses after 10 days. It should be interesting to see if these vets are able to parlay their G League success into a path back to the NBA.

Continue Reading
Advertisement

NBA Team Salaries

Advertisement

Insiders On Twitter

NBA On Twitter

Trending Now