Cavaliers need to reach Eastern Conference finals to turn profit

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Thumbnail image for James_dunk.jpgLook at the top six payrolls in the NBA this season (in order): Lakers, Mavericks, Celtics, Knicks, Cavaliers, Magic.

Your NBA champion is going to come out of that group (and it’s not going to be the Knicks). For all the talk of parity, you have got to spend to win in this league.

But that makes it a tough business. Particularly if you are not in a massive media market like Los Angeles or New York. Say, like Cleveland.

Two league sources familiar with the Cavs’ finances said the Cavs have a chance to make money this season if they advance to the Eastern Conference finals. That is despite a payroll that will exceed $100 million, including luxury taxes, ranking them fifth in the NBA.

This season, the Cavs are expected to set a team record for revenue, with ticket sales and suite sales up from last season. They also have one of the top five highest-paying local television deals in the NBA, a product of a huge offer from Fox Sports Ohio four years ago after that network lost the Indians’ rights to SportsTime Ohio.

Most of that money flows in because of LeBron James, who is a major television and gate draw and is a bargain at his $16 million salary. But to surround James with talent in hopes of re-signing him this summer, the Cavs have made a series of investments, including a $25 million practice facility and more than $300 million in payroll over the past four seasons.

Brian Windhorst’s article in the Cleveland Plain Dealer shows the challenge the owners face amongst themselves heading into the Collective Bargaining Agreement. David Stern said there would be some form of revenue sharing. But the Lakers last year spent like mad and still turned a healthy profit. How willing will big market owners be to surrender some of that profit for the good of the league? Baseball does well with massive payroll disparities, while the NFL thrives with extensive revenue sharing and a hard cap. The NBA owners need to decide where they want to be on that scale.

For Cleveland this season, it likely will work out. But they are the exception for mid-market teams right now. All thanks to LeBron James.

Report: Kevin McHale also in mix for team president in Orlando

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Cavaliers GM David Griffin — who doesn’t have a contract with the team beyond this year, but who LeBron James has endorsed — is on their radar.

Larry Bird, who is stepping down in Indiana, is a potential target.

You can add Kevin McHale to the list of former NBA executives the Orlando Magic are taking a look at in their search for a new head of basketball operations, reports Sam Amick of the USA Today.

The Orlando Magic have serious interest in Hall of Famer and TNT analyst Kevin McHale for their team president position, according to two people with knowledge of the situation….But McHale, who served as Minnesota Timberwolves vice president of basketball operations from 1995 to 2008 while also serving as the team’s head coach on two occasions, is known to be on the Timberwolves’ short list as well. The Magic would strongly prefer someone who has previously been a general manager for the president position.

But McHale, who served as Minnesota Timberwolves vice president of basketball operations from 1995 to 2008 while also serving as the team’s head coach on two occasions, is known to be on the Timberwolves’ short list as well. The Magic would strongly prefer someone who has previously been a general manager for the president position.

McHale made some franchise-defining moves as the head man in Minnesota — he drafted Kevin Garnett and he brought Flip Saunders into the organization, he brought in Sam Cassell and Latrell Spreewell and that got the Timberwolves to the conference finals in 2004, to use a few examples.

He had his share of mistakes, too. Like drafting Ray Allen then trading him for Stephon Marbury, or drafting Brandon Roy and trading him for Randy Foye.

The Orlando roster has talent on it — Aaron Gordon, Evan Fournier, Nikola Vucevic, maybe Elfrid Payton — and a quality coach in place with Frank Vogel. That said the talent on the roster does not fit and Orlando desperately needed someone willing to shake things up, who wasn’t too invested in “their guys” to realize the roster’s serious shortcomings.

McHale could do that. It looks like we are a month or more from finding out, however, as Griffin isn’t going anywhere until after the Cavaliers season — which likely extends into June. If the Magic are serious about him, this process is going to drag out.

Joel Embiid was hanging out with Philly fans at the NFL Draft

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Joel Embiid is a man of the people.

And last night the people in Philadelphia were all Eagles fans, watching the NFL Draft unfold.

Embiid was out there with them. Literally.

Ben Simmons was there as well with Embiid, according to CSNPhilly.com.

Philadelphia fans can only hope the Eagles draft as well — and have WAY better injury luck — than the Sixers.

Moving to new arena, Detroit Pistons submit bids to host 2020 or 2021 All-Star Game

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DETROIT (AP) — The Detroit Pistons have put in bids to host a future NBA All-Star Game at Little Caesars Arena.

The team says in a release Friday that bids were submitted to the league for 2020 and 2021.

Little Caesars Arena is being built just north of downtown Detroit and is expected to open this year. It also will be home to the NHL’s Detroit Red Wings.

In November, the Pistons announced the team was moving back to Detroit from The Palace of Auburn Hills.

The city of Detroit last hosted the NBA’s All-Star Game in 1959. The 1979 game was played in Pontiac when the Pistons’ home court was the Silverdome.

NBA All-Star events include the All-Star Game, NBA Rising Stars Challenge, a celebrity game, skills competition and fan events.

PBT Extra: Does Larry Bird stepping down change Paul George question in Indiana?

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When the Woj bomb dropped that Larry Bird was stepping down as president of the Indiana Pacers, two questions came to mind. First was, “Is he healthy?” Reportedly he is, this was not a healthy-related decision. Which is great news.

Second, what does that mean for Paul George?

Is Indiana more likely to trade him now? Less?

George speculation has ramped up around the league and — while no doubt new GM Kevin Pritchard will say he would love to keep PG13 when he speaks to the media — there is a sense Bird walking away could be a sign that the Pacers are moving into rebuilding mode. That said, Pritchard is known for driving a hard bargain, he’s not going DeMarcus Cousins trade here.

I talk about all of that and more in this latest PBT Extra.