Jazz owner's debate on adding Al Jefferson highlights revenue sharing issue

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Jazz_logo.gifWe at PBT, along with most of the basketball world, have applauded what the Jazz did this offseason. They lost Carlos Boozer, but in Al Jefferson found a good replacement. They added Raja Bell. Next season, the Jazz may be a slightly better team than they were last year.

But it was not an easy decision, as owner Greg Miller told the Salt Lake Tribune.

Once they had discussed the favorable basketball implications of adding a low-post force in Jefferson, who averaged 20.1 points and 10.4 rebounds the past three seasons with the Timberwolves, (CFO Bob) Hyde went over the financial particulars with Miller.

Specifically, Hyde presented a worst-case scenario, according to Miller, of what would happen if the Jazz missed the playoffs given the payroll commitments they would have after acquiring Jefferson and positioning themselves as a luxury-tax paying team.

“Based on the economics, I felt like the risk was acceptable and decided to pull the trigger,” Miller said in an interview last week, adding, “It was a big decision, but I felt like … I had enough good information to make a good decision, and only time will tell.”

Applaud Miller for taking that risk, for keeping a good team in Utah.

But he will be at least $5 million over the tax threshold when the season starts (the tax threshold will be $70 million, the Jazz are at $73 million with some minor contracts to add to fill out the roster). Which means that he will pay about $5 million in the dollar-for-dollar tax. He also will not get the $3.5 to $4 million in payment that goes to teams under the tax.

That is a $9 million swing, which for a team in a small market like Salt Lake can be the difference between profit and loss. Utah needs those playoff games, when the teams don’t pay salary but they get more nights of revenue.

What it underscores is the disparity in revenue and how revenue sharing will be key. The Lakers payroll will likely be in the $93 million range. Spending money alone does not win titles (or the last decade would have been the Knicks and Mavericks decade) but Los Angeles can afford more good role-playing talent to go around its stars. It can afford more stars. It can afford more mistakes. The Lakers have back-to-back titles because they have not made a lot of mistakes, but the margin for error is there, as it is with the Yankees in baseball.

And how to bring competitive balance, so that a small step over the luxury tax is not so onerous on small markets, has to be part of the next CBA talks. David Stern wants revenue sharing and the union agreement to be dealt with separately, but they are tied together in the health of the sport.

Report: Thunder have planned Blake Griffin pursuit for months

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The Clippers sound confident about re-signing Blake Griffin in the wake Chris Paul going to the Rockets.

But L.A. will have competition for the star forward – from the Nuggets, Celtics (depending how their primary plan goes), Heat and Griffin’s home-state Thunder.

Royce Young of ESPN:

It’s a shame for the Thunder they backed off their plan to sign Griffin last summer, signing Steven Adams and Victor Oladipo to contract extensions, only to resume it a few months later.

Letting Adams and Oladipo hit unrestricted free agency would have given Oklahoma City an additional $22,514,699 in cap flexibility while maintaining Adams’ and Oladipo’s Bird Rights. That alone wouldn’t have been enough to offer Griffin a max salary, but dumping Enes Kanter, Kyle Singler and either Doug McDermott or Domantas Sabonis would’ve projected to get the Thunder there. In that scenario, Oklahoma City could have also exceeded the cap to re-sign Adams and Oladipo after inking Griffin.

Alas, the Thunder are now limited to dumping contributors that make the team appealing to someone like Griffin in the first place or executing a sign-and-trade. But a sign-and-trade gets complicated. Adams’ salary alone isn’t enough to return Griffin on a max, and it’s not even clear the Clippers – with DeAndre Jordan – would want Adams (though losing Griffin could initiate an even greater rebuild that includes trading Jordan). And again, the Clippers reportedly want to keep Griffin rather than go this route.

This was all foreseeable, though some surprising factors worsened the consequences of the extensions for Oklahoma City.

Griffin seemed more certain last summer to stay in L.A. The 2017-18 salary cap appeared on track to be higher. The new Collective Bargaining Agreement won’t raise cap holds for first-round picks until next year. So, Adams’ deal projects to save the Thunder just $6,425,000 over the next four years relative to a max offer sheet – a paltry sum in the face of the potential cap flexibility lost this year by extending him instead of waiting to re-sign him.

The Thunder making moves earlier than necessary and salary-cap developments turning those plans especially imprudent – where have I heard this one before?

Report: Gordon Hayward will meet first with Heat in free agency, then Jazz, then Celtics

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Gordon Hayward is arguably the biggest available prize in free agency, and his dance card for the first couple of days in July is filling up.

Miami and Pat Riley will bat lead off in a series of meetings, reports ESPN.

Gordon Hayward will take his first free-agent meeting with the Miami Heat on Saturday, a source told ESPN’s Jorge Sedano. Hayward will then be traveling Sunday to meet Utah on Monday, with Boston coming after that…

Sources previously told ESPN the Jazz regard the Heat as no less a threat to lure Hayward away than the Celtics, whose interest in the former Butler star has been anticipated for some time, largely thanks to the presence of Hayward’s college coach, Brad Stevens, on Boston’s bench.

For the record, there are rumors it’s Miami Saturday, Boston Sunday, Utah Monday, then he will take some time to make a decision. I’m not sure the order matters that much.

Hayward is an All-Star level player at a position of need for a lot of teams out on the wing. He averaged 21.9 points per game last season, shot 39.8 percent from three, can put the ball on the floor and be a playmaker for himself and others, plus can defend everything from stretch fours to point guards (he’s not a lock-down defender, but he is good). Hayward is the kind of versatile player teams need to compete in a modern NBA. He’s an elite wing player who is about to get paid like one.

The question is by whom? Around the league teams are convinced it will be one of those three, but which one depends on who you talk to. The Jazz seem confident they can retain him, where others seem confident he’s got one foot out the door. Only Hayward truly knows, and he’s wise to not speak on it and take the meetings. (If he takes his time deciding that could impact the chase for Blake Griffin, Miami and Boston reportedly have interest if they don’t land Gordon, but that can’t be Gordon’s concern. He has to do what’s right for him in his own time.)

Doc Rivers says Chris Paul left to be with James Harden not because of Clipper players

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Chris Paul essentially forcing a trade to the Houston Rockets was an earthquake that shook the Los Angeles Clippers and destroyed them as any kind of contender. (How much of a contender they really were is up for debate, they did win 50+ games five of the past six years, but a combination of injuries, mediocre chemistry and toughness questions never let them get past the second round.)

Then came the aftershocks — or spin. First, there was the report that Paul had it with Doc Rivers because he and the team felt Austin Rivers gets favorable treatment. That was followed by the Clippers spin saying they never formally offered Paul a five-year max deal because they were concerned about paying a 37-year-old CP3 more than $40 million.

Now Doc Rivers entered the fray, defending his players saying Paul left he wanted to play with James Harden, via Brad Turner of the Los Angeles Times (below is his comments from a series of Tweets combined).

“At the end of the day, when you lose a CP, it’s a big loss. I thank him for the years he was here. He left because he wanted to be with James Harden. Let’s not get that twisted. I wish him well. I have no problem with that. Do I disagree? Yeah, I think he would have been better served here. But that’s not for me. That’s CP to decide and he decided against that. We’ve heard all the stories about Blake and DJ and Austin. I can’t comment just on Austin because it’s just not right. We’ve heard he left because of all three today. He left because of DJ, he left because of Blake and now he left because of Austin. We know he didn’t leave because of that. There is a lot of speculation on why he left. The one thing I know is he didn’t leave because of any of those three guys. He left because he felt like he would have a better chance to win somewhere else.”

Doc is right. And wrong. Almost all spin is like a myth — there’s some truth in it, then everything around that gets blown up to put that truth in the light that best suits one side. All of the aftershocks in the wake of Paul’s exit from L.A. have some truth, what any one person believes to be “the truth” speaks more to their viewpoint.

Did Paul leave the Clippers because he wanted to play with Harden and saw that as his best chance to a ring? Absolutely. After six years of playoff frustration, it was clear what the Clippers were not: A team getting to the Finals past the Warriors. These Rockets have a better chance of that and CP3 is a very competitive person.

Were Paul, and many of his teammates, frustrated with what they saw as favoritism toward Austin Rivers? I can tell you that is also unequivocally true. Any reporter that has been around this team at all in recent years has heard that from a variety of sources, myself included.

Were the Clippers worried about the fifth year of CP3s deal? Of course they were, any sane executive would be. Now, if Paul had demanded a five-year max to stay with the Clippers I also have no doubt they would have given it to him, they just would have done it knowing the last year or so of that deal was an anchor. Teams do that all the time.

Life is rarely something black and white, it’s always shades of gray. Major decisions — like changing where you work and live — are not based on just one factor, but a variety of them. Did the chance to win weigh more on Paul than money or frustration with Doc Rivers? Only Paul can answer what the ratios were, but winning probably was the biggest factor. That doesn’t make the other factors less true.

It also doesn’t change the fact Doc Rivers and the Clippers have some hard choices — and some recruiting of Blake Griffin to do — coming up this summer.

Ex-financial adviser gets 4 years in federal prison for defrauding Tim Duncan

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SAN ANTONIO (AP) An ex-financial adviser to retired San Antonio Spurs player Tim Duncan has been sentenced to four years in federal prison for defrauding the former NBA star of millions of dollars.

Federal prosecutors say 49-year-old Charles Banks of Atlanta was sentenced during a court hearing Wednesday in San Antonio.

A judge also ordered Banks to pay $7.5 million in restitution.

Banks had pleaded guilty in April to one count of wire fraud.

Investigators say Banks manipulated Duncan -who retired last year after five NBA championships with the Spurs – into guaranteeing payment of a $6 million debt related to a merchandising business.

Prosecutors say Banks failed to disclose commissions and loans he received in the deal.

Banks is set to report to federal prison as early as Aug. 28.