Pacers fighting two wars, praying for allies on either

May 10, 2010
Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Pacers are fighting a financial war on two fronts.

Today, consultant Rob Hunden will come in to tell the city’s Capital Improvement Board about the economic impact that Conseco Fieldhouse and the Indiana Pacers have on downtown.

I’m sure Pacers officials are hoping Hunden comes up with a report that details a massive positive impact generated by this team and this facility; and more importantly, generated by this team in this facility.

Hunden, who now works out of Chicago, formerly worked for the Indianapolis Bond Bank under then Mayor Stephen Goldsmith. He has wide ranging experience in the hotel, hospitality, tourism and convention industries.

That meeting is today at 3 p.m. at the Indiana Convention Center. Hopefully the findings will contain some meaningful analysis.

Meanwhile, the Pacers’ front office is watching closely as National Basketball Association executives begin to formulate their plan for negotiating a new collective bargaining agreement with the players.

Team owners looking to reduce costs in the next round of negotiations with the NBA Players Association are proposing serious reduction in rookies’ salaries. As much as a 30 percent reduction in rookies’ first-year pay is being proffered by owners, and even bigger cuts in years two through four.

The NBA’s collective bargaining agreement with players expires June 30, 2011. So the time to get something done is nearing fast. That can’t come soon enough for the Pacers and other NBA teams.

The Pacers have lost near $30 million each of the last two seasons, and they’re not alone. NBA Commissioner David Stern said the league’s teams have collectively lost $200 million each season from 2005 to 2009, and another $400 million during the most recently completed season.

During a public address at this year’s All-Star weekend in Dallas, Stern said players’ salaries must come down significantly.

Under the new collective bargaining agreement he is forwarding, they would. The first pick of the 2011 NBA draft will earn a first-year salary of $5.3 million—unlike the NFL, most of it guaranteed. Under the NBA’s proposal, that same player would earn $3.76 million. It’s still mostly guaranteed.

Stern is also recommending salary increases during a players’ first four years of only 2 percent. That’s far, far below what most players get now—about 7.5 percent during the first year and a whopping 26 percent to 80 percent during years three and four.

Rookies aren’t the only players likely to take a salary cut. Overall, Stern and team owners want to reduce players’ salaries by as much as 40 percent, and NBA consultant Marc Ganis said one of the league’s biggest problems is what is commonly referred to as “dead money.”

Dead money is earned by players who are past their prime but still taking in huge paychecks due to the natural progression of pay under the NBA’s guaranteed contract system—and a trade system which requires teams to exchange players of equal contracts.

Let's put that 40 percent salary reduction in context. The NBA has a salary cap, but it's a soft cap. Team's can and do exceed that cap regularly. The Pacers last year paid out $66.7 million in players' salaries. A 40 percent reduction would theoretically mean a $26.7 million annual savings for the Pacers. In case you've lost track, that savings corresponds very nicely to the amount the Pacers said they lost in each of the last two seasons.

Not surprisingly, NBA Players Association boss Billy Hunter has rejected the owners’ proposal like a weak shot in the lane. Hunter is supposed to come up with a proposal of his own, though no timeline has been given for that.

If the Pacers are going to remain in Indianapolis, they’re telling city officials they need $15 million annually to run Conseco Fieldhouse.

But even that won’t be enough. To erase that $30 million annual deficit, they’ll also need serious concessions from the players’ union.

Seeking taxpayers’ support for Fieldhouse operations on one front, and concessions from an unyielding union on the other.

In the end, you have to wonder where the Pacers’ allies in this war will come from.
 

ADVERTISEMENT
  • The need for some sort of change to the current agreement at Conseco seems obvious. If Indy tells the Pacers to leave, then we will have to pay for running Conseco without a major tennant.
    Anthony, from what you have heard, would the Pacers be willing to let the CIB take over running Conseco? I have heard that talk, but the Pacers wanting $15 million to run it and the City taking it over in lieu of the $15 million are two different things.
  • more attention needs to be given to salaries
    I'm not sure why more people aren't focusing on the need to reduce NBA players' salaries. This is the league and its teams' problem, and they're passing it onto the taxpayers. Thank goodness for another taxpayer bailout.
  • Pacers
    25% minimum accross the board salaary cuts for all personnel connected to the NBA - no exceptions. If not, the players should saddle up their greed ponies and can expect to ride the NBA down the trail of bankruptcy with no return.

    Then who funds their bling-bling, tattoo fetish, and their lavish whore-mongering life styles?

    Hmmmmmm..........
  • I don't think the public will buy it
    I don't think the public is going to buy a study paid for by the CIB. Especially one done by a former underling of Mayor Goldsmith.
  • I don't think the public will buy it
    I don't think the public is going to buy a study paid for by the CIB. Especially one done by a former underling of Mayor Goldsmith.
  • agreed and agreed
    I couldn't agree with NBA Guy any more. Hunden has many conflicts of interest in this thing. "Greed ponies," I like that one Berwick Guy.

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT