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NBA's Problem Is Not Player Salaries

via @BISportsPage

The NBA claims that 22 teams lost money last season, with a total loss of $370 million. And to fix the problem, the league wants to rein in player salaries. But a closer look at the numbers suggest the problem does not lie with the players' paychecks.

On the surface, this should be obvious. Since the NBA and the players ratified the most recent Collective Bargaining Agreement prior to the 2005-06 season, player salaries have been fixed at 57 percent of league revenue.

And if we adjust player salaries for inflation (via Nate Silver), salaries are only up 5.4 percent since the beginning of the previous CBA that the NBA owners happily agreed to. In that same time period, revenue was up 5.3 percent.

However, league income in the last five years is down 31.1 percent. Why? Because spending by the owners on everything else besides player salaries is up 12.7 percent, outpacing league revenue growth.

Still, in the end, according to the data from Forbes.com, the league is still making money. It is making less money, and certainly the owners want to make more. But the idea that the league is losing money may not be accurate. And even if they are losing money, they only have their own spending habits to blame.

NBA revenues and expenses

Interview With The Agent: Tony Dutt (NBA)

via Sports Agent Blog

Tony Dutt is the President of Dutt Sports Services, Inc. (DSSI), a basketball agency based in The Woodlands, Texas.  DSSI’s website’s catchy phrase states, “With Dutt, it’s a done deal.”  Dutt has negotiated deals for many NBA players, including Marcus Camby, Rashard Lewis, Raymond Felton, and Brandon Bass.  Throughout his career, Dutt has secured hundreds of millions of dollars in contracts on behalf of his clients.  Dutt represents three players selected in the 2011 NBA Draft – Markieff Morris, Marcus Morris, and Tyler Honeycutt.  Interestingly, he represents them in conjunction with a new company named Rival Sports Group.  I recently interviewed Dutt about his relationship with Rival Sports Group, his start in the industry, and many more topics.  The result of that interview is below.

Darren Heitner: What enticed you to become a basketball agent, and where did you originally get your start?

Tony Dutt: I started in 1985.  I worked with Bill Blakley in Dallas.  We signed Karl Malone, Joe Dumars, and Spud Webb.

Darren Heitner: At what point in time did you create your own agency, Dutt Sports Services?  What has been the most rewarding and toughest part of running your own company?

Tony Dutt: I started Dutt Sports Services, Inc. (DSSI) in 1990.  A really good friend of mine and one of the founders of DHL, Bill Robinson, was discussing what I did and he asked me how much money I would need to start my own company. We agreed upon an amount and he loaned me the money to start DSSI, and I’m proud to say I was able to pay him back. Bill Robinson is still a very close friend and is the Godfather to my two kids.

The most rewarding part of building a company for me is the relationships with the clients and their families, and watching the clients grow not only as professional athletes but as good citizens.  I tell every client that you may be a great athlete and make a lot of money, but you can’t buy respect of your teammates, family, etc. – you have to earn it.  The hardest part of running a business is finding people who you can truly trust.

Darren Heitner: Have you ever represented any professional athletes in anything other than basketball?  Do you have any future plans to expand your agency to include other divisions?

Tony Dutt: Yes, with the first firm I worked with I was able to do football and baseball as well.  Mark Adicks was an offensive tackle from Baylor who we worked with.  He told us he wanted to be a surgeon.  Fast forward to about a year ago and I was talking to a doctor friend of mine, and he told me about an orthopedic surgeon that was working in the medical center.  Well it was Mark Adicks, who is now the person I use for myself and my clients.

I am working on expanding DSSI.

Darren Heitner: I noted that you are working in conjunction with a start-up agency titled, Rival Sports Group, to represent the Morris twins from Kansas and Tyler Honeycutt from UCLA.  How did you form a relationship with Rival Sports Group?  What does the relationship entail?

Tony Dutt: I am working with Rival Sports Group as a Consultant.  I handle all basketball contracts for the company.  I must say that so many people try to get into this business and spend alot of money and usually do not succeed for one reason or another, as it is extreamly competitive.  I have spent 25 plus years building relationships with owners, general managers, coaches, etc., and I go back to TRUST – it’s developed over time. Rival Sports Group has a lot of business success along with really good people working with them, and I’m really excited about the relationship going forward.

Darren Heitner: Marcus Spears of Yahoo! Sports first reported that the Morris twins were close with a man named Jason Martin.  Who is Jason Martin, and how are the two of you connected, if at all?

Tony Dutt: Jason Martin works for Rival Sports Group and has been involved in basketball his whole life.  He truly cares for the clients he works with, and has been successful in business outside of working with players.  Jason and I are getting to know each other better as we spend more time together.

Darren Heitner: Let’s talk about another one of your clients – Rashard Lewis.  A lot of people are talking about how he has the worst NBA contract (which means that you actually did a great job in the negotiation).  What do you say to anyone who is calling Lewis’ contract atrocious?

Tony Dutt: First let me say that I really feel Rashard is worth every penny.  In doing any deal, the one thing that I try to do find is a “fit,” meaning, where can a player have the biggest impact if a free agent is considering leaving his current team, and I do a really in-depth calculation as to where a client will fit.  Rashard was a perfect fit in Orlando.  If you look back, when you have someone like Dwight in the middle, they needed someone to spread the floor and someone who could shoot the three and drive to the basket and create his own shot.  Orlando had given up two first round picks to Detroit for a big man, so I knew I had to be well prepared to give them an option in Rashard.  And don’t forget, they did get to the finals.  I think sometimes teams forget the importance of keeping a team together, but it’s also hard for GMs under the cap to keep players together. And I personally would rather be overpaid than underpaid.

Darren Heitner: Other than Lewis and the 2011 Draft class, you have a lot of big name players with very large contracts.  Do you also handle your clients’ marketing in-house or do you work with particular marketing agencies out of house?  What are some of the more creative deals you have negotiated?

Tony Dutt: I would like to think that all my deals are creative.  We do a lot of marketing in-house, but we also use outside marketing groups as long as it benefits the player.

Darren Heitner: Are any of your clients considering playing overseas based on the presence of an NBA Lockout?  If so, which players and where are they thinking about playing?

Tony Dutt: We are always looking for jobs overseas, again by having years of experience, we know the market, but there are so many issues overseas that have to be considered because of players having problems getting payed, the city, etc.  You have to look at it as a case-by-case situation.

Darren Heitner: What piece(s) of advice would you give to someone who is looking to break in as a basketball agent or break into another part of the basketball industry.

Tony Dutt: It has always been a tough business to break into.  Getting an internship or working in a certain area like local marketing deals – anything to get your foot in the door – is important.  And it’s important to know that it’s a lot harder than people think, but if you have the right game plan and are willing to work long hours and do it the honest way, you can succeed.  There are no shortcuts.

A lot of new agents might have one or two clients, and I know are afraid to give up any possible income.  But I will say I have spoken to a lot of agents when I hear a certain player might be looking for a new agent.  I would go to the agent to try and help, but they always say, “my guy is not leaving me.”  Then, prior to a kid’s free agent year, he leaves and the small agent/friend of the player does all the work for nothing.  So young agents should remember that in the end, players want to get paid.  Rival Sports Group is an example of doing it the right way and everyone wins.

Read more posts on Sports Agent Blog »

NBA Seeks Hard Salary Cap Of $45 Million

All but two teams (Minnesota dn Sacramento) in this current NBA season have payrolls above the proposed $45M number.  The highest is the Lakers (although it didn't seem to help them!) have the higest at $95M.  The salary cap this past seaon was $58M and so a 22% cut is dramatic.  My sense is that the league and the union are miles apart...
 

NBA Seeks Hard Salary Cap Of $45 Million

Some Owners Want Lower Team Cap To Avoid Having To Pay Luxury Tax

 

Washington Wizards new Uniforms...

I have to say I like the Washington Wizards new unis, very throwback... but where are the short-shorts?

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WASHINGTON -- Red, white and blue. Horizontal stripes. Elvin Hayes in the house. No sign anywhere of the misshaped magician with the bizarre beard.

The Washington Wizards are again the Washington Bullets -- in everything but name.

 

Washington Wizardsnew uniforms
AP Photo/Evan VucciWizards guards Jordan Crawford, left, and John Wall model the team's new-look uniforms.

 

The NBA team unveiled its new red, white and blue color scheme and uniforms Tuesday, a blast from the past that was overwhelmingly welcomed as long overdue. The modern colors worn since the team changed its name in 1997 always seemed a bit out of place in the nation's capital.

"When I looked at the Wizards when they played in the teal, I did not really recognize them as part of the Bullet organization," said Hayes, the Hall of Fame forward whose No. 11 is retired in the rafters. "It was like another team had began to represent them because they changed their name and they changed their colors and I think it was so drastic. As a player who played here, when I watched it on television, I think you had a disconnect. I think that all of a sudden, it's a great reconnect."

The makeover was spurred by Ted Leonsis, who took over the franchise after the death of longtime owner Abe Pollin in November 2009. Fans and former players bent Leonsis' ear and inundated his inbox, telling him they preferred the old look of the team. Plus, he had already gone through this routine once, having changed his NHL's Capitals back to red, white and blue a few years ago, also to positive reviews.

"It's just part of a set of overall things that we're trying to accomplish," Leonsis said. "I'm not naive enough to think that changing the colors [by itself] will improve anything, but I saw the power of the change and newness with the Capitals."

Leonsis said it was intentional that the new designs and logos make no reference to the theme of Wizards other than the actual name written across the home jersey. The next step, it would seem, would be to go ahead and change the nickname back to Bullets.

Leonsis has looked into a name change and didn't rule it out, but he described it as a laborious process that can take up to three years because of intricate intellectual property issues.

"This is what we've done. It took a year to do," Leonsis said. "We can't change the name -- changing the name changes the IP. That's a really, really big process. I think this was a very dramatic pivot for the franchise."

Of course, new uniforms are also a way to make quick money. The master of ceremonies at the televised news conference wasted no time telling fans how they can purchase the new digs. The team even encouraged fans to turn in their old uniforms to be donated to charity, while receiving a discount on the new stuff.

One person who had no problem turning in his old outfit was point guard John Wall, who modeled the new version on the stage.

"It's better than the other one," Wall said. "I'm a bright-color person. It'll give the fans something to be more excited about."


Copyright 2011 by The Associated Press

Tim Duncan's "I can't believe I was just called for a foul" faces

Tim Duncan is an awesome player.  But his post basketabll career (which, sadly, may be pretty soon after last night!) may include acting!  
 

File this under, "I can't believe I was just called for a foul" faces...

"You talkin' to me?"

"Aw dang!"

"Surely you can't be serious!"

"What you talkin' about Willis?"

" I didn't even touch him, Joey!"

Not to be left out,
here's Tony Parker's "deer in the headlights" look...

Credit MTV.com See all >>>

 

 

LeBron James wants you to meet the "Heatles"

The Miami Heat trio of LeBron James(notes), Dwyane Wade(notes), and Chris Bosh(notes) has been known by many names over the past few months, some clever, some not. There's The Big Three, and Miami Thrice, and even the SuperFriends.

All these nicknames have been cooked up by fans and media members, not the members of the team itself ... you know, because giving yourself a nickname is usually frowned upon. But no one told that to LeBron, who informed everyone of a new one after last night's 96-82 victory in Charlotte. From Ira Winderman for the Sun-Sentinel:

James, on the Heat's ability to pack the house even in Charlotte, "We call ourselves the ‘Heatles' like the Beatles."

Cool name, guys, especially because "Rolling Heatones" doesn't really flow off the tongue. I can't wait to hear new singles like "I Want to Hold Your Early Termination Option" and "Sgt. Spoelstra's Lonely Hearts Club Band." Oh wait, I have another: "Riley Raccoon."

Matt Moore of NBA Facts & Rumors has already done an excellent job matching the Heat to their Beatles counterparts, and it's both easy and difficult. James is a decent John Lennon and Wade is a solid Paul McCartney, but Chris Bosh is a reasonably awful fit for George Harrison and no role player is quite as goofily consistent (yet still not entirely useful) as Ringo Starr. In other words, this nickname is best because it uses the name "Heat" pretty well, not because it fits the team perfectly well.

Then again, Miami could make it better by winning several championships and changing the face of basketball for all future generations. At that point, they'll come close to matching the Beatles' influence, if not their popularity. And then LeBron can finally admit that he thinks he's bigger than Jesus.

(Image via Tauntr)


 

Seriously?? "LeBron James Nominated For Time's Person Of The Year Award"

Ronald Reagan, Andy Grove, Martin Luther King, Jeff Bezos and LeBron James?  

Seriously, how could Time Magazine consider LeBron for Person of the Year?  Over the past 100 years there has never been a sports figure (Peter Ueberroth was closest).

My vote goes to lady Gaga :-/

Lebron James Person Of The Year

MIAMI — If the Miami Heat locker room was polled, LeBron James would not have unanimous support in the race for Time's Person of the Year.

James wouldn't even vote for himself. (Cuthbert commentary: although he would probably hold a press conference to announce his decision)

Calling it "crazy" just to be on the list of finalists for the award, the NBA's reigning two-time MVP seemed almost a bit embarrassed on Monday when he learned that he was one of the final 25 names under consideration. The winner of the award, bestowed since 1927 on a person or group who "has done the most to influence the events of the year," is expected to be revealed next month.

"I am who I am and I think I'm in a position of my life where I'm going to get better every day," James said after Miami wrapped up its practice Monday. "But it's too much."

Other finalists this year include President Barack Obama (the 2008 winner), Lady Gaga, Sarah Palin, Jon Stewart and Stephen Colbert, conservative commentator Glenn Beck, Afghan President Hamid Karzai and Turkish Prime Minister Recep Tayyip Erdogan.

Also on the list: The trapped Chilean miners who spent more than two months underground before finally being reached and rescued in a gripping story that was covered worldwide.

"That's just crazy," James said. "What those guys did, the courage and what they stood for, I should be nowhere near that list. Nowhere near it."

Charles Lindbergh was the first winner of the award. President Franklin D. Roosevelt is the only three-time winner, and most recent winners include Vladimir Putin in 2007, Obama in 2008 and Federal Reserve Chairman Ben Bernanke in 2009.

http://www.huffingtonpost.com/2010/11/15/lebron-james-person-of-year_n_783894... 

Allen Iverson: Officially Bound for Turkey

Seems strangely appropriate...

Allen Iverson To Turkish Media: 'Uygulama? Uygulama? Biz Uygulama Bahsediyoruz!'

The word from the A.I. camp is out, and they’ve officially declared that they’re on their way to Istanbul. Larry Brown expresses the sadness that all Iverson feel today. From the Philly Daily News: “A media advisory sent last night said the former 76ers star agreed in principle to a 2-year, $4 million contract with Besiktas, a professional team in Turkey. He is expected to sign his contract this weekend and begin his overseas career the week of Nov. 8. Iverson is expected to attend a news conference at 2 p.m. today at the St. Regis Hotel in New York … ‘It’s sad, having him have to go to Turkey to finish his career,’ Larry Brown, his former Sixers coach, said the other day. ‘I wish there were some way I was in a position to help. You don’t want to see him end his career this way.’”