Jordan takes big gamble on Bobcats

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Michael Jordan’s gambling penchant is almost as legendary as his game. But his move last Friday is the biggest financial gamble of his life — he bought an NBA franchise.

Like a lot of small market teams, the Charlotte Bobcats are losing money, with ticket sales and sponsorship revenue down in this economy. The Bobcats have been racking up debt under former owner Bob Johnson, and according to a great story by Henry Abbott at TrueHoop, Jordan now has the responsibility for those problems.

One source close to the process says that two things changed late in the game (to make Jordan’s deal come together). One is that some of the minority owners under Johnson agreed to stay on with Jordan in the lead role (which is reflected in David Stern announcing that a majority of the team had been transferred). And, most importantly, Jordan finally decided to put himself forward as the person who would pay the many bills as they arose. It’s unknown if he brought in any new owners at all. But what sources agree on is that Jordan vastly increased his own stake in the company, to the point that Stern is now calling him the “principal owner.”

Joel Litvin, NBA President, League and Basketball Operations says “we expect that this transaction will value the Charlotte Bobcats between $275-290 million.” The Wall Street Journal explains that much of the purchase involves Jordan taking on debt.

As Abbott points out, for the last few years Jordan has had a fun toy to play with. He got to make decisions — he was the final say on all things on all things basketball — without having to pay the price. That fell to Johnson. When a minority owner decided not to chip in for his share of the losses, Johnson had to cover it. Jordan is estimated to be worth roughly $400 million — that’s a lot of money, but you burn through it fast if the team is losing $40 million a year.

Jordan is gambling again. Gambling that he can make good basketball decisions that will put a winner on the court and draw more fans. So far his record as a front office executive is spotty — he’s been fired once, but this year the team is playoff bound and exceeding expectations. Building this team cheaply will not be easy as it has traded away a lot of draft picks for upcoming years.

Jordan also is gambling he can find more investors. Some people to sit by, get to bask in the Jordan aura, and fork over big checks to do it. Checks to cover the operating losses and debt that are going to take a few years to get rid of (at best). Making that sale is going to be a lot tougher than selling Hanes T-shirts.

But, do you really want to bet against Jordan pulling it off?

Report: Celtics to pay second-round pick Demetrius Jackson more than 10 first-rounders next year

PHILADELPHIA, PA - MARCH 25:  Demetrius Jackson #11 of the Notre Dame Fighting Irish celebrates after defeating the Wisconsin Badgers with a score of 56 to 61 during the 2016 NCAA Men's Basketball Tournament East Regional at Wells Fargo Center on March 25, 2016 in Philadelphia, Pennsylvania.  (Photo by Streeter Lecka/Getty Images)
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The Celtics became the first team to pay a second-round pick more the season immediately following the draft than some first-rounders received. Last year, No. 37 pick Jordan Mickey had a higher salary than four 2015 first-rounders.

Now, Boston is pushing the envelope even further.

No. 45 pick Demetrius Jackson will make more than the last 10 (!) 2016 first-rounders can earn in the NBA next season.*

*At least two players picked in that range, No. 23 pick Ante Zizic and No. 26 pick Furkan Korkmaz, will play overseas next season. Their salaries with their foreign teams might be higher than they could’ve gotten in the NBA.

Jackson’s salary will be $1,450,000, according to Yahoo Sports. No. 21 pick DeAndre’ Bembry will get $1,499,760 from the Hawks next year, and following first-rounders will fall in line behind him.

The issue is the antiquated rookie scale, which was set well before new national TV contracts pushed the salary cap north of $94 million. With all this new money flooding the system, everyone can grab a share — except first-round picks, who are tied to the scale.

That leaves even more money for second-rounders, and Jackson is the second to cash in in this major way. No. 31 pick Deyonta Davis will get $1,275,917  next season — more than the last six first-rounders. But the Grizzlies also guaranteed Davis’ first three years.

Jackson’s contract becomes much more team-friendly after this season. His salary the following three years is slated to be lower than this year’s: $1,319,500, $1,384,750 and $1,319,500. Yahoo’s wording is ambiguous, but it appears none of those seasons have any guaranteed compensation.

So, the Celtics are getting something in exchange for paying Jackson more now — flexibility in later years. The bargain works for them, because with the salary cap suddenly so high, they had little other use for that 2016-17 money. They essentially bought a better deal later by spending more when they were overrun with cap room.

And Jackson gets a bigger payday as he enters the pros. If he plays well, he’s stuck with a lower salary — though, for the next couple years, it’s still higher than a few first-rounders. If he doesn’t play well, he can be waived at no more cost. This is the opposite of betting on yourself, but that’s totally fine. Jackson will earn a lot of money this year in exchange. He got something significant with his bargaining power.

Projected by some to be a first-round pick, Jackson fell to the middle of the second round. Predictably, that probably turned out better for him.

Watch the best plays of the 2016 Orlando Summer League

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Summer League is long in the rear view mirror — particularly the Orlando Summer League from the beginning of the month.

But with no NBA basketball on the horizon for three months (although we do have the Olympics, here on NBC), why not look back at the top plays from Orlando? So here you go.

Heat fans, Briante Weber is at the top of the board.

Former NBA player Von Wafer takes to Twitter to beg for one more NBA chance

Houston Rockets v Los Angeles Lakers, Game 7
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Von Wafer was the quintessential gunner without a conscious during his six NBA seasons. He never saw a shot he didn’t like.His propensity to shoot rather than make the right basketball play is why he bounced around the league for six seasons. Well, that and his locker room fights and throwing of chairs and the like.

Wafer looks back on that and winces.

And he went to Twitter to beg for another chance, despite not having been in the league since 2012. The message came after a tweet showing part of his last workout.

Wafer is now 31 and last set foot on an NBA court in 2012, having played in China, Russia, Puerto Rico, and the D-League since them. We’ll politely call his comeback attempt a longshot.

But a guy who can shoot the rock asking for one more chance? We know there will be worse and stranger camp invites.

(Hat tip Ball Don’t Lie).

 

Report: If Durant/Curry relationship goes south, teams will try to poach Stephen Curry. Well, duh.

OAKLAND, CA - JULY 07: Kevin Durant speaks to the media during the press conference where he was introduced as a member of the Golden State Warriors after they signed him as a free agent on July 7, 2016 in Oakland, California. (Photo by Thearon W. Henderson/Getty Images)
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There are a handful of true game-changing players in the NBA. Not max players, there are a chunk of those, we’re talking “you can build a contender around him” guys. Kevin Durant is one, and he is headed to Golden State.

Stephen Curry is another. And he is a free agent next summer. So many teams — including one contender — are ready if the Durant/Curry relationship goes south, reports Ric Bucher of Bleacher Report.

B/R EXCLUSIVE: A contender is planning to poach Steph Curry from Dubs if chemistry with Durant turns 'poisonous'

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Well, duh.

Again, there are not many Curry level players; teams should have a “what if” plan. Including contenders.

That is very different than saying Curry is going to leave the Warriors — nobody around the league sees that as likely. Nobody expects a “poisonous” Durant/Curry relationship. Everyone expects Curry to re-sign for the max with the Warriors. The man just recruited Durant, now he’s going to bolt?

But like a Boy Scout, a team is always prepared. So they should have that plan, just don’t count on it for a primary option.