NBA Basketball Wiretap

The Portland Trail Blazers and the city of Portland remain significantly apart over public funding for renovations to the Moda Center, according to a team source. The disagreement centers on a term sheet the city sent Friday outlining a proposed 20-year lease agreement.

"I think we are very far apart," said the source, one of two Blazers officials granted anonymity to discuss the situation.

Under the proposed terms, the Blazers would receive $600 million in public funding in exchange for paying $3 million annually toward a property tax offset, an amount that would increase over time. The deal would also require the team to hire union workers and accept caps on cost overruns.

"The term sheet is a non-starter," said the source. "I don't know why they sent it to us, because they know very little of the stuff we would agree to. They are playing politics at this point."

The Blazers' board is scheduled to meet Monday to determine next steps. The city plans to vote on the funding package Aug. 12, with an agreement needing to be finalized by Dec. 31 to preserve $365 million in committed state funding.

The team's lease at the Moda Center runs through 2030, adding uncertainty about whether new owner Tom Dundon might eventually consider relocating the franchise. Two high-ranking Blazers sources said Dundon has never raised that possibility.

"No one with the Blazers has ever said we want to move," said a team source. "We don't want that. We want to stay in Portland."

Tensions have grown between the organization and city officials, with some council members accusing the Blazers of withholding renovation details. City councilor Mitch Green criticized the team's approach.

"I think the Blazers have been behaving poorly," said Green. "They thought because they passed the state legislature that the deal was done. But we have a set of councilors who are asking tough questions."

The Blazers maintain their reluctance to share detailed plans stems from the early-stage nature of their renovation concepts and lingering frustration over a June threat from councilor Steve Novick to sue the team over the arena's condition.

"We don't even want to respond to the term sheet until they remove that gun to our head," said a source.

Renovation concepts under consideration include a new north-side atrium entrance, additional kitchens across the arena's three levels, and updated club-level seating.

Green said the council needs greater clarity before moving forward.

"We need to see a scope and scale of what this money is paying for," said Green. "You've got a city council that is not a rubber-stamp council... those are the conditions (the Blazers) face."

The Blazers believed they had reached an agreement in March after securing the state's $365 million commitment, contingent on the city releasing $120 million and Multnomah County contributing $88 million. A second Blazers source expressed frustration with how the situation has evolved.

"They have made this a bit of a political football," said the source. "They're asking for things that change the deal dramatically."

City spokesman Elliott Kozuch confirmed momentum existed in March but said formal council approval was always required beyond an initial understanding, adding that the Blazers have shared only high-level concepts so far.

A Blazers source said the team has begun studying other recent NBA arena deals and may push for improved terms going forward.

"The city's delay has given us time to study what a market deal is," said the source. "The $600 million deal that was supposed to be done six months ago was a way-below-market deal."

Green said he remains unmoved by the possibility of relocation.

"If he moves the team, it's because he thinks he can get a better deal," said Green. "Right now, it's a matter of $120 million. If Dundon came out today and said 'I'm gonna pick up the tab on the $120 [million]'... that would probably get us to the finish line tomorrow."

NBA commissioner Adam Silver said Tuesday night he expects the league's planned streaming hub for local broadcasts to launch in time for the 2027-28 season. Sources told Sports Business Journal that YouTube is currently viewed as a leading candidate to house the platform.

Following the collapse of Main Street Sports Group, 13 teams, including the Hawks, Hornets, Cavaliers, Pistons, Pacers, Clippers, Grizzlies, Heat, Bucks, Timberwolves, Thunder, Magic and Spurs, will operate under one-year broadcast arrangements with various outlets this coming season. The Heat, Pistons and Bucks have already finalized deals with local over-the-air channels, while the remaining 10 teams will choose between free TV options or paywalled streaming services.

That structure is expected to evolve for 2027-28, when those 13 teams could be joined by NBC's regional sports network partners, the Celtics, Warriors, 76ers and Kings, along with over-the-air teams such as the Jazz, Suns, Trail Blazers, Pelicans and Mavericks. That expansion would push the hub past 20 participating teams. Whether additional franchises, including the Lakers, who are set to earn $199 million and $209 million in rights fees over the next two seasons, eventually join remains dependent on whether the league's streaming partner can match those figures.

A larger pool of participating teams would likely increase the rights fee a streaming partner pays for the hub. League Pass, which currently blacks out local broadcasts, is expected to remain intact through Amazon regardless of the hub's structure. The new platform is expected to be geofenced, meaning fans would need to access it specifically for local team broadcasts rather than league-wide game coverage.

Silver addressed the league's progress on the initiative during Tuesday's comments.

"In terms of local television, I feel we are making progress there, without being specific about some of the media companies who are demonstrating interest," said Silver. "If you look at this lifecycle of the streaming companies and their interest in live sports, it was only a few years ago when some of those same companies were saying that didn't make sense within their business models; that they didn't really see an opportunity to acquire these kinds of sports rights. And then just jump a little bit, a few years later, and you see almost all of them now are very much engaged.

"So again, it's a long way of saying that I think the communal aspect, the community aspect of local sports is critically important in this country. It's important for college sports. It's important for professional sports, and I think the media companies, you know, with streaming leading the way, are going to see that value in the marketplace. So I'm even more optimistic than last we spoke about this that we are going to see solutions for the league."

ESPN has also expressed interest in participating in the hub. Chairman Jimmy Pitaro addressed the network's ambitions Thursday during an event hosted by CNBC and Boardroom, according to The Athletic's Mike Vorkunov.

"We've made our intentions very clear with with every league, including the NBA, that we want to be part of the solution here," said Pitaro.

CNBC's Alex Sherman, who interviewed Pitaro at the event, said ESPN had no prior knowledge of YouTube's discussions with the NBA and indicated the network would be open to a non-exclusive arrangement shared with another partner.

The drop in revenue from local television deals has contributed to the NBA's slower than anticipated growth and believed to be contributing to the push for expansion.

New NBPA executive director David Kelly said the league's second apron system has gone too far and needs to be addressed, speaking in a July 10 interview with The Athletic. Kelly and union president Fred VanVleet made clear their opposition to the system during last weekend's events in Las Vegas.

"It's not good for fans. Not good for players," said Kelly. "I don't think the (general managers) love it, although they may not say it on the record. Coaches don't love it. The only people who really seem to really love it are the owners. Then, I think it's gone too far. So whether it's an unwinding of it, or a softening of the apron, or tweaking it, we can call it whatever we will. But … I do think it's gone too far."

The current collective bargaining agreement guarantees players between 49 and 51 percent of basketball-related income, which totaled $11.676 billion for the 2025-26 season. Players actually exceeded that share this past season by $317 million, according to a league memo sent to teams.

Kelly argued the second apron creates problems beyond cost control, pointing to its impact on roster stability and free agency. Only the Oklahoma City Thunder currently carry a payroll above the threshold, set at just under $222 million for next season, and they are expected to eventually drop below it.

"I think those teams would generate more revenue, would grow the game, would have more fan interest, if they could invest (in their rosters)," said Kelly. "So you're preventing teams from investing in an investment that would actually generate more revenue for the owners, for the league and for the players. … So 51 percent of what? I think the game would be growing more."

Kelly pushed back on the league's argument that the apron system has driven competitive parity, noting that five different teams won championships in the five years preceding the 2023 CBA.

"If you look at the points in time when the game really grew, you had some dynasties and then you had some competition," said Kelly. "New teams that that came up. It was all about competition. You did not have an artificial sort of, like, break or gate on spending. And the game grew."

The current CBA runs through the 2029-30 season but allows either side to opt out a year early. NBA commissioner Adam Silver said this week that the second apron's effects were not an unintended consequence of the agreement.

Kelly took over as executive director on July 1 after being appointed in February, following Andre Iguodala's tenure as interim leader. The union has adopted a more assertive public posture recently, criticizing the league's 65-game rule and the Milwaukee Bucks' handling of Giannis Antetokounmpo's trade request.

Kelly said the union will attempt to resolve issues privately first but will not hesitate to go public if necessary.

"I think you have to be willing to fight," said Kelly. "Will we look for ways to partner with the league? Yes. Do we need the league? Yes. Does the league need the players? Yes. Does sometimes the league maybe forget that they need the players? Yes. In those instances, we'll have to fight."

Kelly also identified player health investment as a priority, citing a wave of Achilles injuries during the 2024-25 season as an area requiring better data and prevention. He said the union would consider allowing in-game wearable technology, currently prohibited under the CBA, if used appropriately.

"Not wearables for the sake of gambling. Not wearables and data that's for the sake of exploiting it, monetizing it, necessarily," said Kelly. "But wearables for the sake of improving player health so we have better games and better players."

VanVleet indicated the union is already preparing for negotiations on the next CBA, regardless of the 2029 opt-out timeline.

"We're getting ready for the next CBA," said VanVleet. "Like today."

During a press conference on Tuesday, Adam Silver pushed back on the notion that the NBA's new collective bargaining agreement with a more punitive apron system is creating unintended consequences for the league.

NBPA executive director David Kelly said last week the system needs to be softened or eliminated and it is acting like a de factor hard salary cap that has forced teams into decisions unrelated to basketball.

"So it’s certainly not an unintended consequence," said Silver. "When you have a salary system in place as we do, every general manager is going to need to make mixed basketball and business decisions. Frankly, they make them regardless of whether you have a cap. You see that in other sports. People manage to budgets. People recognize that you can’t — at some point, you can’t have unlimited resources, whether it’s for a team or any business.

"In the case of a league, it’s in essence zero sum. So to the extent that [a team] doesn’t re-sign a player or chooses to trade a player, of course that player goes to another team.

"The purpose of the system is ultimately to create competition throughout the league, and from that standpoint, I think the system is working incredibly well. The goal isn’t necessarily to have a different champion every year, but we’ve had eight different champions over the last eight years.

"As I’ve said previously, one of the things we were hoping to accomplish in this latest collective bargaining agreement was to dispel this notion that only certain markets were in a position to truly compete. We just saw a Finals between, essentially, the largest market in the league in New York and one of the smallest markets in San Antonio.

"You all can tell me in terms of the media, but it seemed that there was not much of a storyline around market size, something I’ve been used to in all my years in the league. During the competition, it was focused on the composition of the teams, the particular players, the style of play.

"But to me, the storyline wasn’t big market versus small market. That’s one of the things that we set out to accomplish with the system, and from that standpoint, it’s working.

"In terms of collective bargaining and for David Kelly, of course, at the point we sit down to negotiate a new collective bargaining agreement, it’s their right, the players’ right to raise any issues they want. I’m sure there will be issues from our side of the table that we want to discuss as well.

"The problem is, when you look at any issue in the abstract, an issue that the players want or an issue that the teams want, that every collective bargaining agreement is a result of a series of compromises. That’s what this one is, as well. But certainly from my standpoint, from a competitive standpoint, the system is working very well."

Miami Heat Governor Micky Arison has been unanimously elected as the next Chairman of the NBA Board of Governors. Arison will assume the position following the league’s Board of Governors meeting in September 2026.

Arison, who has the second-longest tenure of any current NBA team governor at 31 years, will succeed Toronto Raptors Governor Larry Tanenbaum, who has served as Chairman of the NBA Board of Governors since September 2017.

“I am grateful for Larry’s nearly three decades of stewardship of the Raptors and his commitment to helping guide our league as NBA Board Chairman over the past nine years,” said Silver. “Micky’s long record of service on the Board, his strong relationships with his fellow team owners and his deep understanding of our game and business make him an exceptional choice to assume this important leadership role.”

“The opportunity to serve as Chairman of the NBA Board of Governors for nearly a decade has been a tremendous honour,” said Tanenbaum.  “I am thankful to all the team owners and the league office for their collaborative spirit in growing the game on a global basis and I wish Micky great success in his new role as Chairman.”

“I look forward to working closely in this new capacity with Adam, the league office and my fellow team governors to champion our teams and players, ensuring we continue to deliver exciting and unforgettable experiences for our fans,” said Arison.

Under Arison’s leadership, the Heat has won three NBA championships and made seven NBA Finals appearances. Arison was inducted into the Naismith Basketball Hall of Fame in 2025. Arison is also the long-time Chair of the Board of Directors of Carnival Corporation, the world’s largest global cruise company.

NBPA executive director David Kelly criticized the NBA's second apron system Friday, calling for it to be softened or eliminated. Kelly argued the salary cap mechanism has forced teams into decisions unrelated to basketball.

"We are not fans of the second apron," said Kelly. "We did not propose the second apron. We should have done a better job of fighting back against the second apron. In the future, we will have a much more unified union, and we will do a better job of fighting back. ... We're seeing [the apron system] decimate teams and force decisions to be made that are not basketball decisions."

Kelly, who took over as union head in February after succeeding Andre Iguodala, disputed commissioner Adam Silver's claim that the apron system promotes parity. Kelly argued the mechanism was implemented in 2023 primarily to control cost related to player salaries.

Under the league's current structure, teams face escalating luxury tax penalties and roster-building restrictions once they cross the $209 million first apron or the $221.7 million second apron. The Cleveland Cavaliers were the only team to exceed the second apron during the 2025-26 season.

The Boston Celtics cited second apron concerns in their decision to trade Jaylen Brown to the Philadelphia 76ers this month. New York Knicks owner James Dolan has similarly said his team will avoid second apron penalties, a stance that preceded backup center Mitchell Robinson's departure in free agency.

"I don't know that fans in Boston would say that everyone's making out fine [in the current system], or that fans in New York would say that everyone is making out fine," said Kelly. "You have a [Celtics] team that just came off of a championship [in 2024] that will not have those guys together. We see that as a problem for our members, but also for the fans and for the game."

Fred VanVleet, president of the NBPA, said concerns extend beyond players to executives and agents across the league.

"We've seen more teams, GMs, front offices, owners and agents have issues and concerns with the apron as well," said VanVleet. "It's almost a consensus that it's something that needs to be addressed."

The union also raised concerns about star players feeling pressured to sign below-market deals to preserve their rosters.

Victor Wembanyama agreed to a five-year, $252 million extension on Friday, well below the five-year $302.8 million maximum he could have signed and was offered by the San Antonio Spurs.

Kelly said any changes to the current system would need agreement between the league and union before the current collective bargaining agreement expires, with the next negotiation window opening after the 2028-29 season.

Falling local television revenue is shaping the NBA's long-term financial strategy, with league officials targeting 2027 to consolidate most local media rights under a single partner, according to sources that spoke with ESPN.

The league's salary cap increased just 6.7% this offseason, well below the 10% maximum allowed under terms negotiated with the players' union. A shorter postseason contributed to the shortfall, but declining local broadcast revenue remains the larger structural drag, sources said.

Two years ago, the NBA signed 11-year national media rights deals worth more than $77 billion with ESPN, NBC and Amazon, tripling the value of its previous agreement. To prevent a cap spike similar to 2016, when the figure jumped 35% in a single year, the league and union agreed to cap annual increases at 10% over three seasons.

New national television money has softened the impact of shrinking local deals, but the decrease remains significant. Even the New York Knicks, one of the league's marquee franchises, accepted a 28% reduction in annual payments from MSG Networks last year, cutting their local television income by $41 million.

Similar reductions are playing out across the league and are expected to last into next season. The NBA hopes to address the issue in 2027, when most local rights agreements expire, by bundling them under one national partner.

"It's one of the most significant financial things going on in the league right now," said one team president. "It's played at least some role in moving forward with expansion."

The Boston Celtics' decision to trade Jaylen Brown for Paul George and draft compensation has reignited a leaguewide argument over analytics-driven roster building, according to multiple executives and coaches who spoke to ESPN.

The debate traces back roughly six weeks, when Cleveland Cavaliers coach Kenny Atkinson suggested advanced metrics indicated his team should have led its Eastern Conference finals series against the New York Knicks. That comment became a defining moment of last postseason as the Cavaliers were on their way to be eliminated by the Knicks in a four-game sweep.

Yahoo Sports columnist Tom Haberstroh noted that Boston has gone 36-6 over the past three seasons in games Brown has missed, a figure often cited by those defending the trade.

Not everyone agrees with the approach.

"The league is overrun with strategy," said an Eastern Conference scout. "Honestly, I'm not sure how many people who work in the league are actually watching the games."

A Western Conference general manager pushed back on that framing.

"Yes, there are more graduate degrees in front offices now, but that's only part of the picture," said the general manager. "The aprons force you to analyze all of your spending more and put more attention to detail on getting the most out of each salary slot. The owners put that into the rules, and the players accepted it. This is all a choice."

Another Western Conference executive expressed concern about where the trend leads.

"We're going to turn into baseball if we're not careful where you have every defender between second base and right field, and no one can get a hit and it becomes boring," said the executive.

Boston's ownership group, led by Bill Chisholm, financed its record $6 billion purchase of the franchise through private equity backing, a structure some believe reinforces the club's analytical approach.

The trade also marks the first major transaction for new 76ers president of basketball operations Mike Gansey, who succeeded analytics pioneer Daryl Morey earlier this offseason. Gansey played high level collegiate basketball and internationally before working his way up the Cavaliers' front office after first beginning as a scout.

The NBA projects its salary cap will rise just 5.5 percent in 2027-28, reaching approximately $174 million, with the second apron projected at $234 million, according to a memo distributed to teams Tuesday. The slower growth follows a 6.669 percent increase for the upcoming 2026-27 season, which analysts attribute in part to the league's deteriorating local television revenue situation.

The 2026-27 cap has been set at $164.961 million, a gain of $10.314 million over the prior year. The first apron sits at $209.015 million and the second apron at $221.686 million for the new league year. The NBA recorded $11.676 billion in basketball-related income during the 2025-26 season.

Seven teams paid luxury tax during the 2025-26 season, combining for $223.11 million in total payments. Half of that figure entered revenue sharing, with each of the remaining 23 non-taxpaying teams receiving $4.85 million in distributions.

The Cleveland Cavaliers carried the largest individual tax burden at $68.671 million, finishing as the only team in the second apron. The Golden State Warriors will pay $67.91 million as a repeater taxpayer. The New York Knicks owe $44.44 million after finishing $19.5 million over the tax line.

The Los Angeles Lakers, Houston Rockets, Los Angeles Clippers and Minnesota Timberwolves also finished as luxury tax payers for the 2025-26 season.

The NBA has announced that the salary cap for the 2026-27 season at $164.961 million. The NBA had most recently projected the salary cap at $165 million, which was lowered by $1 million from $166 million.

The Tax Level for the 2026-27 season is $200.428 million.

The Salary Cap and Tax Level go into effect at 12:01 a.m. ET on Wednesday, July 1. The moratorium period ends at noon ET on Monday, July 6.

For the 2026-27 season:

• The Minimum Team Salary is $148.465 million;
• The First Apron Level is $209.015 million; and
• The Second Apron Level is $221.686 million.