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Books show Nets with $44 million loss in 2008-09 season

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Did NBA teams lose money last year? And if so, really how much?

In the absence of the owners and players union sitting down and actually talking, the question of loss has become the talking point of the NBA lockout. There has been plenty of back-and-forth between the NBA and the players union — and we can throw in the New York Times — about this subject.

Darren Rovell at CNBC did something smart — when Bruce Ratner’s Nets Sports & Entertainment LLC owned the Nets, the books were public. Still are. So Rovell went and looked at them and broke down the year before the team was sold to Mikhail Prokhorov.

What he found is that while the reported loss by the team that year was $77 million, wipe out the amortization — which the league says it does not include in it’s loss numbers — and the loss falls to $44 million.

But that’s where the controversy starts on how the owners and players define losses and responsibility for those losses.

I said that there were two other numbers, which could be disputed. Let’s look at those. The first one is depreciation, which in this sense is the allocation of costs distributed over a certain period of time. In this case, the reported depreciation by Nets Sports & Entertainment is $2,041,611.

The players association says that depreciation shouldn’t be included in the losses. The owners say it absolutely should because it does reflect the cost of expenses that could be related to growing revenues. If the players get a certain percentage of revenues, the owners claim they should be responsible for some of the costs to get to those higher revenues.

The other disputed number is interest. The Nets for the 2008-09 season had $13,412,981 in interest. The players association again says that that shouldn’t be included in the losses. With depreciation, the actual loss might not be taken in the year it is credited to. With interest, the ownership is actually writing a check. The players can argue they shouldn’t share in this, but there’s no debate that that is a real loss.

I tend to side with the players on interest — it is not their responsibility if an owner took out loans to buy a team. But for fun, even if you wipe depreciation and interest off the books, the Nets still lose in the neighborhood of $28.5 million. That’s a chunk of change. You can see why an owner would be frustrated.

There needs to be some balance in the system. Should some of that kind of loss be covered by revenue sharing from larger market owners? Yes. Should a reduction in players’ salaries (via a reduced share of basketball related income) be part of it? Yes. But the Nets were bad and played in a bad building, and if an owner loses money because of that I have a hard time thinking the players should cover too much of the losses.

Report: Donatas Motiejunas not reporting to Rockets over $6 million

Donatas Motiejunas, Kenneth Faried
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Donatas Motiejunas — with his agent B.J. Armstrong — has backed himself into a bit of a corner.

The restricted free agent signed a four-year, $37 million offer sheet with the Nets, but it had a lot of favorable terms (the final two years are not fully guaranteed, for example) so as one would expect the Rockets matched it. However, under NBA rules the Rockets only had to match the base of the contract — $31 million worth — not the incentives. Which is what the Rockets did.

On Tuesday, Motiejunas did not report for his physical with Houston, and the $6 million is the reason, reports Calvin Watkins of ESPN.

Restricted free agent Donatas Motiejunas won’t report to the Houston Rockets because of a difference of nearly $6 million from the offer sheet he signed with the Brooklyn Nets, sources told ESPN on Wednesday.

Last week, Motiejunas signed a four-year, $37 million offer sheet with the Nets. The Rockets on Monday opted to match that offer. However, based on the CBA, the Rockets only had to match the principle terms of the offer sheet, which came to $31 million. The $6 million difference was to be paid to Motiejunas via incentive clauses if he played for the Nets.

Motiejunas may not like it, but the Rockets have almost all the power here. As of Thursday, the Rockets can pull the offer (even if they don’t, it will expire eventually on March 1), and at that point Motiejunas is a restricted free agent again. Right where he was before. The Nets can’t re-sign him to an offer now for another year. Other teams with the cap space aren’t interested (for example, Philadelphia has the room, but the last thing they need is another big man in the rotation). The Rockets would like him to play — as a big who can shoot the three he should fit well in the Mike D’Antoni system — but they are not going fail him on the physical and let him go for nothing (they can’t trade him until after the season, even if Motiejunas relents and signs the deal with the Rockets)

Motiejunas’ only play? Sit out. But at age 26, why is he wasting part of his short career window to make money playing basketball?

LeBron James: No statement by not staying at Trump-branded hotel

CLEVELAND, OH - OCTOBER 25: LeBron James #23 of the Cleveland Cavaliers looks on during the banner raising and ring ceremony before the game against the New York Knicks at Quicken Loans Arena on October 25, 2016 in Cleveland, Ohio.   NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ezra Shaw/Getty Images)
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NEW YORK (AP) — LeBron James said he wasn’t trying to make a statement by not staying at a Donald Trump-branded hotel with the Cleveland Cavaliers, calling it a personal preference.

“It would be the same if I went to a restaurant and decided to eat chicken and not steak,” James said.

James and some other players didn’t stay with the team at the Trump SoHo in lower Manhattan before the Cavs’ game against the New York Knicks on Wednesday night. James said it was the first time in his career he hasn’t stayed with his team, though he said he rode the bus to the morning shootaround as usual with the squad.

James endorsed Hillary Clinton and campaigned with her in Ohio. Several of his teammates, including Richard Jefferson, Iman Shumpert and others have expressed their disappointment about Trump’s win.

“At the end of the day I hope he’s one of the best presidents ever, for all of our sake,” James said. “For my family, for all us.”

A team spokesman didn’t say how many players opted not to stay in the team hotel and wasn’t sure how James met up with the bus.

Coach Tyronn Lue, who stayed with the team, was asked if it was odd to have the players split up on the road.

“It’s not normal, but considering the circumstances that’s what we have,” Lue said. “But that’s not my main objective. My main thing is to try to get this team to stay on track and play the right way and try to get back on track by playing Cleveland Cavalier basketball.”

James wouldn’t talk about Knicks President Phil Jackson, who angered the All-Star forward last month by referring to his friends and business partners in an ESPN interview as a “posse.”

Boston’s Marcus Smart gets flopping warning from NBA

BOSTON, MA - OCTOBER 17:  Marcus Smart #36 of the Boston Celtics looks on during the second quarter of the preseason game against the Brooklyn Nets at TD Garden on October 17, 2016 in Boston, Massachusetts. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Maddie Meyer/Getty Images)
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Boston’s Marcus Smart is one of the league’s more notorious floppers.

He was at it again Monday night against the Houston Rockets — and the league called him on it and gave him a warning.

It happened on the game’s final play — you were probably focused elsewhere, wondering how Al Horford could miss the game-winning layup. But watch Smart as he gets in position for the rebound on that shot.

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The referees didn’t buy it then.

This warning is barely a slap on the wrist. If — in his case, when — Smart gets caught a second time this season he will get a $5,000 fine from the league. Smart is making $3.6 million this season.

Happy birthday Larry Bird. We celebrate with some highlights.

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Larry Bird — the Celtics legend, three-time NBA champion, three-time MVP, 10-time All-NBA — turns 60 on Wednesday.

We celebrate by looking back at his 60-point game March 12, 1985, against the Hawks (video above, and yes that game was played in New Orleans).

Want more Larry the Legend highlights? We got you covered.