10% drop in BRI, profits down to “only” $8.3 billion (down, one would assume based on the math, from $90+billion). But that’s not the bad news. Negotiations are going to heat up because, let’s face it, there won’t be much (if any) gate revenue next season. Might want to hold off on the whole ‘how do we improve the team’ speculation and switch over to ‘will we even have a season?’ speculation…
Big BRI drop…
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October 28, 2020 4 Comments
If the league and NBPA had used the old formula the cap would probably be in the $90 million range, a $19 million drop. So how the 2 sides agree to float, ease or eliminate the cost is at the crux of how the NBA can move forward.
Furthermore, a lockout is NOT out of the question. Owners might be looking at the idea of a season with zero fans as bad economic idea. While I find that option to be extreme…I am not an NBA team owner. The league projects to lose 40% of it’s projected revenue next season if there are no fans, another $4billion. Buckle up, we’re not even close to getting this thing off the ground but the doing will assuredly be bumpy.
NBA and NBPA will come to some arrangement to use artificial numbers. May raise the tax line and apron to encourage more free agency action. You don’t throw away a rosy future because of two years of pandemic distress. Nor will you see anybody selling their franchises.
Uh…the Jazz literally just got sold.
If the owners decide to move forward (and they likely will if the NBPA agrees to the 12-22 start time my concern stems from the possibility that the NBPA digs in on a 2021 start date) then there will almost certainly be a flattened cap. The how may take some time.
One thing I don’t believe has been given a lot of air time or head space is, if they choose not to flatten the cap and it drops they could include an amnesty provision for teams to be able to amnesty a single deal (potentially) and get below the cap. Feels like the NBPA would probably fight that, but I’m not sure to what degree.
The biggest obstacle I honestly see to the 12-22 start date is hammering out the changes to the CBA. Likely they need to announce it by early November (like the first Friday in November at the latest) to at least announce a plausible framework.