'We're in a transformational period': Inside the NBA's ongoing fight to regain its financial footing

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As NBA revenues plummeted amid a time of largely empty arenas, New York Knicks owner Jim Dolan made a case for suspending the league's revenue-sharing requirements for the year. If the Knicks and Los Angeles Lakers weren't profitable in a pandemic year, why should they still be required to pay out of pocket to small markets?

The Knicks and Lakers -- mostly due to massive local television packages -- deliver the largest share of payments to small-market teams. As an ownership planning committee studied the questions of altering the revenue-sharing system for the year, Dolan pushed his case on board of governors conference calls and even cc'd a letter to his 29 peers ahead of Thursday's BOG vote on the issue -- which, sources tell ESPN, included some smaller-market owners siding with Dolan.

Never has Dolan been considered much of a consensus-builder within the league, but he did gather some voting support -- although not nearly enough to overturn the revenue-sharing plan, sources told ESPN.

The Knicks and Lakers are still paying full price on revenue sharing this year. For the first time in eight years, though, Dolan does have playoff gates to curb some of his pandemic losses. "Nobody is feeling sorry for [Dolan], but there was some sense of voting for principle over profit on this one," one team governor told ESPN.

On the cusp of these 2021 playoffs, this is a precarious, telltale time for the NBA. The league needs to rev itself back up, get fans in the stands and watching on TVs and mobile devices, and start steering a post-pandemic course of prosperity.

For all the grumbling over the play-in tournament, it has served its late-season purpose: teams jockeying for position, meaningful games and drama looming with big-name stars fighting to get out of one-and-done postseason games and into the playoffs. Three days left in the regular season, and no one outside of Boston and San Antonio is assured its seeding spot.

The NBA expended a great deal of time and resources this season to convince players to become vaccinated. The bubble protected players and staff, but some tests are still returning positive -- including with those vaccinated -- and that's a continuous reality of the virus. This is a star league, and the postseason is deemed a success or failure based upon the moments and performances and, ultimately, the availability of the biggest names and talents.

Around 75% of the NBA's players have been vaccinated, sources said, and commissioner Adam Silver continues to appeal to front-office executives to encourage further player participation ahead of the start of the playoffs next week. Beyond the broader health benefits of vaccinations, sources said, Silver outlined on a recent call with the league's GMs the concern that all playoff-bound teams share: Losing a key player for a week could decide a playoff series.

For now, though, this is a tired league, born of a condensed game schedule and isolating protocols that have left everyone fatigued -- especially in the aftermath of a shortened offseason. Emotions are frayed, relations among a younger crop of referees and players and coaches have become increasingly combustible. Privately, team executives are expressing concern to the league office about the relentless strife and volume of players and coaches complaining to refs. Even teams are worried it's turning off fans, and the league office knows it's an issue.

Part of the problem, most acknowledge: Newer referees with little to no rapport with the game participants, nor the ability in this pandemic year to have the league's officiating elders visit and talk with teams. Of course too: cantankerous and tired players, and coaches in lousy moods.

The NBA has issues to modify with the game itself as well. Most agree the product has shifted too far in the offense's favor, that the scoring is unnaturally inflated. In the offseason, the NBA plans to address the unnatural shooting motions of star players like James Harden and Trae Young that get foul calls under the rules in the NBA -- but would get eye rolls on the playground.

As it comes out of survival mode for two years, the NBA can start looking at bigger decisions for the game -- implementing the midseason tournament, keeping the play-in and so much else.

There were game cancellations and stars lost and empty arenas, but the NBA made it to the 2021 playoffs without a bubble. Silver delivered something of a pep talk and challenge to his top basketball executives recently, sources said, declaring ahead of the experimental play-in tournament: "We are in a transformational period," and reminding all, "We have to earn viewers."

The final stages of the pandemic are absolutely the backdrop of a transformational period for the NBA. The sharing of a shrinking financial pie is forever at the heart of the league's issues, and now the league needs to start growing it again. The playoffs loom, and the pressure's on.
 
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