How New NBA TV Deal Affects The Utah Jazz

Nov 13, 2013; Salt Lake City, UT, USA; New Orleans Pelicans point guard

(11) dribbles between Utah Jazz point guard

(10) and center

(0) during the second half at EnergySolutions Arena. The Jazz won 111-105. Mandatory Credit: Russ Isabella-USA TODAY Sports

Remember when everyone flipped out about how the new Gordon Hayward “max deal” was going to hamstring the Utah Jazz for years to come? And how we tried to calm everyone down by pointing out that there was a new NBA TV deal looming that would alleviate those fears? Well, that day has come. Or will be soon enough, and it’s even bigger than most had hoped.

“Max deal” was in quotations for good reason, because before long that deal will become a steal, not to mention no longer a “max.”

"Hayward’s contract, in relative terms, won’t be hamstringing the Jazz’s ability to continue moving in the right direction. The length of the contract keeps the Jazz from having to sweat about retaining the cream of the next free agent crop waiting in the wings.Plus, the NBA salary cap is projected to rise significantly next season, then expected to explode with the new TV deal in 2016. Relatively speaking, by that time Hayward’s contract won’t even be a max anymore as that number will rise.–Clint Peterson, July 2014The Sports Business Journal previously reported that the expected new deal was estimated to be more than $2 billion per year on average, up from the current $900,000 annually."

The new deal, is in fact, $24 billion for nine years with ESPN and TNT, effectively tripling television revenue, and taking the salary cap with it.

"The NBA television deal has a major impact on how NBA teams operate. First and foremost it will raise the salary cap and, in effect, player salaries. Grantland reported in July that the cap could jump by as much as 30 percent over the next two years.–Wes Goldberg, FanSided NBA"

Here’s some more early calculations on the new salary cap and luxury tax numbers implications from ESPN’s Adam Reisinger:

*BRI is Basketball Related Income, what the NBA salary cap is tied to and based on by percentage

Those numbers make Hayward’s $16 mill per year seem paltry by comparison. And it will leave more than enough room for the Jazz to re-sign that next crop of up-and-comers. See, no need to panic after all.

There are some other implications for the Jazz, however. Such as, the looming October 31st deadline to re-sign Enes Kanter and/or Alec Burks, who will be coming off of their rookie deals at the end of this season, as Hayward just did his. There is little chance either of them take a deal from Utah brass now with the salary cap and luxury tax playing at Slamball over the next few seasons, leaving them free to taste test free agency waters.

The Jazz will still have first right or refusal on any incoming offers, provided a new Collective Bargaining Agreement doesn’t drastically change things with another potential lockout and negotiation coming a mere year after the new TV deal, in 2017. Hey, didn’t we just do all that?

The new CBA negotiations should be very interesting in light of the leap in NBA pay. Some players may feel like they were ripped off by signing deals that span the old and new salary caps. This is when you’ll really find out who’s for the dollar and who wants to win more.

Expect some sort of negotiation or proactive maneuvering by Adam Silver and the NBA to help smooth such a drastic transition, heading off any large scale revolts by veterans.

While the big money at the top of max deals is big, it won’t really rise all that much in relation to the mid-tier NBA player. It’s these middle-of-the-NBA-tax-bracket guys, potentially Kanter and Burks, that will see the biggest hike in green stuff coming in, maybe as much as double what they would have qualified to make under the current deal and cap.

In a few years time, just when all these lottery picks are ripening up, the Jazz could have as much as an additional $40 million in space to play around with in team building endeavors as compared to what they’re spending currently.

And if you thought that Derrick Favors deal was a steal before, well now it’s downright robbery.

It was reported this morning that part of the NBA TV deal will also allow for some flex scheduling, something fans have craved, meaning that national broadcast schedules are no longer set in stone for the season.

Such as possibly the Utah Jazz, if they’re as good as early roster confidence hopes to be.