Report: Jordan emerging as hard-liner

[Tashah]

Report: Jordan emerging as hard-liner
Updated Nov 5, 2011

Michael Jordan, once the NBA's greatest player but now just another money-losing owner of a small-market team, is adamant about not giving any more concessions to players in their ongoing labor dispute, according to The New York Times. Jordan, the Charlotte Bobcats owner, has emerged as a leader of a faction of 10 to 14 hard-line owners who are determined to cap the players' share of basketball-related income at 50 percent, the Times reported Friday.

The Times notes that during the last labor crisis, in 1998, Jordan — then a superstar who made $33 million in his final season with the Chicago Bulls — famously challenged Abe Pollin, the Washington Wizards owner at the time, reportedly bellowing, “If you can’t make a profit, you should sell your team.” Jordan has been Charlotte’s majority owner for two years after buying a piece of the team five years ago. The Bobcats have reportedly been losing around $7 million per season.

Michael Jordan taking hard stance in fight against NBA players 110411 - NBA News | FOX Sports on MSN


The irony here is delicious :2razz:

 

[Kushinator]

Michael Jordan taking hard stance in fight against NBA players 110411 - NBA News | FOX Sports on MSN


The irony here is delicious :2razz:

Is it really? The majority of teams are losing money even though the league reported record revenues in 2010-2011. Contraction (get rid of Minnesota and Cleveland) would be the perfect solution; but the players union would never sign off. Moral of the story is not to purchase a team from a small market if you are unprepared to face the prospect of a loss.

 

[whysoserious]

Michael Jordan taking hard stance in fight against NBA players 110411 - NBA News | FOX Sports on MSN


The irony here is delicious :2razz:

I do see the irony but the situation is completely different. First of all, that stat is a bit misleading:

Jordan's Salary


As you can see, he only earned that much for two years - but his average salary was $6,941,153.85 over those years. He also earned the Bulls 6 championships while playing with them, and the two $30 million years were both championship years as well for the Bulls. The average NBA salary today is $5.15 million - just a shade under what Michael Jordan (easily the greatest player in recent history) earned over his career.

Both the NBA and MLB need to work on salary caps for teams because in both cases players are vastly overpaid and it hurts the fans.

 

[Kushinator]

Interesting:

And a nice article to go with it!

 

[Tashah]

Is it really? The majority of teams are losing money even though the league reported record revenues in 2010-2011.

From the numbers I've seen, team market values and player salaries are both roughly +24% over the past decade.

Contraction (get rid of Minnesota and Cleveland) would be the perfect solution; but the players union would never sign off. Moral of the story is not to purchase a team from a small market if you are unprepared to face the prospect of a loss.

The NBA is far too big for the fan base. 20 teams instead of the current 30 would suffice. Not sure how accurate the numbers are, but here is a 2010-2011 value ranking for each NBA team. More detailed info is available by clicking on any particular team.

The Business Of Basketball, 2011

 

[Kushinator]

From the numbers I've seen, team market values and player salaries are both roughly +24% over the past decade.


The NBA is far too big for the fan base. 20 teams instead of the current 30 would suffice. Not sure how accurate the numbers are, but here is a 2010-2011 value ranking for each NBA team. More detailed info is available by clicking on any particular team.

The Business Of Basketball, 2011

I understand that the market value of the average NBA team has been increasing since 1998, but from an operational standpoint the average NBA team is losing money. Take the extreme example of Orlando and NY (Knicks). The team has a market value of $383 million, but lost $23.1 million?!?! The team appreciated in value by 6%; or by $21.68 million! From the owners total return perspective (which internalizes both cash flow and operational costs), the Orlando Magic had a $1.42 million net loss of investment in 2011; when NBA revenues are at an all time high.

In comparison to the NY Knicks, whose market value increased by 12% in 2011 to $655 million (an increase of $70.18 million) had a net operating income of $64 million. From the owners total return perspective, the NY Knicks had a $134.5 million return on investment in 2011.

And there in lies the issue.

 

[Tashah]

And there in lies the issue.

Indeed. Charlotte will never be NY, nor will Milwaukee ever be Chicago.

Either the league needs to contract, or the owners must maximize revenue sharing to increase team profits.

 

[Cold Highway]

Indeed. Charlotte will never be NY, nor will Milwaukee ever be Chicago.

Either the league needs to contract, or the owners must maximize revenue sharing to increase team profits.

Contraction is more likely, people were saying that about the NHL as well but thankfully Canada is more than willing to take the lackluster teams.

 

[StillBallin75]

Michael Jordan taking hard stance in fight against NBA players 110411 - NBA News | FOX Sports on MSN


The irony here is delicious :2razz:

I thought at first this was going to be a Middle East thread but I was wrong lol.

I don't see this as particularly ironic. Charlotte, since it was added as an expansion team has always been a mediocre/worse-than-average team in a small market that wants more college ball than professional. If I were MJ, I'd probably take a hard line as well.

 

[StillBallin75]

Interesting:

And a nice article to go with it!

All those years of Isiah Thomas and still the Knicks are the most valuable team in the league. Go capitalism!

 

[StillBallin75]

Contraction is more likely, people were saying that about the NHL as well but thankfully Canada is more than willing to take the lackluster teams.

Doubt it. The owners will attempt to maximize profits. That's what the whole CBA lockout bull**** is about. And they definitely need to look at more revenue sharing. The NBA has the least amount of revenue-sharing among the big four leagues.

 

[Cold Highway]

All those years of Isiah Thomas and still the Knicks are the most valuable team in the league. Go capitalism!

Thomas and the constant jacking up of ticket prices thanks to James Dolan

 

[Tashah]

The latest buzz. Stern has given the players until Wednesday to accept 51% of revenue sharing. After Wednesday that figure will drop to 47% which would probably spell the end of the NBA season. The players will probably de-certify the union and initiate actions in federal court.

 

[StillBallin75]

The latest buzz. Stern has given the players until Wednesday to accept 51% of revenue sharing. After Wednesday that figure will drop to 47% which would probably spell the end of the NBA season. The players will probably de-certify the union and initiate actions in federal court.

I'm sure it's been said elsewhere, but David Stern is kind of a jackass. Here's what the sports media is reporting at the moment:

NBPA to have mandatory meeting with player representatives Tuesday, sources say - ESPN

The owners have offered a band ranging from 49 to 51 percent of annual revenue depending on the league's financial success over the course of a season. The players, meanwhile, have shown a willingness to drop from 52.5 percent to 51 percent of BRI if they receive certain system concessions, most notably the ability for luxury tax-paying teams to retain the right to participate in sign-and-trade transactions. The union has strongly protested a variety of system proposals from the league to date that impose expensive penalties on teams that stray into tax territory, which the NBPA maintains will sharply curtail player movement.