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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.

Larry Bird: Kevin McHale won’t coach Pacers

Larry Bird
AP Photo/Michael Conroy
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1. Kevin McHale withdrew from the Kings’ coaching search.

2. The Pacers fired Frank Vogel.

Will McHale reunite with former Celtics teammate Larry Bird in Indiana?

“I would not do that to Kevin, have him to work for me,”Bird said at a press conference today. “That’s just not fair. I respect the man too much, and we’ve been through too many battles together to bring him in here and be my coach. I would love for him to be my coach, but it ain’t going to happen, because our relationship.”

It would have been compelling to watch Bird and McHale work together, but I’m not convinced McHale is the best coach available – though that’s not the only concern.

After all, Bird just ousted someone who might be a better coach than any replacement.

Frank Vogel out as Pacers coach

Larry Bird, Frank Vogel
AP Photo/Michael Conroy
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After leaving Frank Vogel hanging for a few days – something he explicitly said he hoped to avoid – Pacers president Larry Bird finally ousted the coach.

“It’s time for a new voice around here,” Bird said at a press conference today. “Sometimes my job really sucks, and this is one of the toughest things I’ve done.”

Bird clarified that Vogel wasn’t fired, that his contract had expired and wasn’t being renewed.

Will there be a search now to replace Vogel? Kevin McHale has already been mentioned as a candidate, and he’d make sense. He played on Bird’s Celtics and learned an up-tempo system with the Rockets.

Vogel is now free to interview with the Rockets, and I think he’d be a home-run hire. Vogel’s defensive skills are badly needed in Houston, and perhaps the the Rockets’ institutional knowledge could fine-tune his offense.

Report: Rockets talking to Jeff Hornacek, Sam Cassell, Stephen Silas, Chris Finch

Phoenix Suns coach Jeff Hornacek directs his players in the second half of an NBA exhibition basketball game against the Houston Rockets Monday, Oct. 13, 2014, in Houston. The Rockets won 95-92. (AP Photo/Pat Sullivan)
AP Photo/Pat Sullivan
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There are the big names: Jeff Van Gundy, David Blatt, Mike D’Antoni and Frank Vogel.

There’s the catchy name: Kenny Smith.

And there’s the eliminated name: J.B. Bickerstaff.

Expect many more names in the Rockets’ coaching search.

Adrian Wojnarowski of Yahoo Sports:

Houston owner Les Alexander and general manager Daryl Morey met with Bickerstaff on Monday, as well as Los Angeles Clippers assistant coach Sam Cassell and Houston assistant Chris Finch, league sources said.

Conversations with potential candidates are expected to include several prominent college coaches, sources said.

Among the NBA candidates with whom the Rockets are working to set up interviews are former Phoenix Suns coach Jeff Hornacek and Charlotte Hornets assistant Stephen Silas, league sources said. There could be 10-15 – perhaps even more – candidates interviewed in the process, league sources said.

Hornacek coached the Suns and looked pretty good doing so until this season, when he feuded with Markieff Morris, used too many strange lineups and saw the team quit on him. If he can explain this year’s troubles, he’d be a solid hire. But the Rockets have the best job available, so they can probably aim a little higher.

Cassell, like Smith, played for the Rockets. An intelligent player, Cassell has successfully transitioned to coaching, though I’m not sure he’s ready for a top job. He mentored John Wall with the Wizards before joining the Clippers. From afar, it’s just tough to judge his contributions to a loaded coaching staff in Los Angeles.

Stephen Silas broke into NBA coaching on his dad’s staffs with the Hornets (turned Pelicans) and Cavaliers. Paul Silas even let Stephen serve as head coach for games during the 2011-12 season. Between and after stints with his dad, Stephen has impressed at other stops around the league. Maybe someone who learned offense from Don Nelson and defense from Steve Clifford and gets along well with players would make a good head coach. The biggest question is how his rapport with players would translate to the head chair, but that’s a concern for any assistant.

Finch coached in Europe for more than a decade until the Rockets tabbed him to coach their D-League team. After a successful stint there, he moved to the bench in Houston. He’d be more of a daring hire at this point, but he could perhaps unite the Rockets’ front office and coaching staff better than anyone.

Reports: Kevin McHale withdraws from Kings coaching search, could join Pacers

Kevin McHale
AP Photo/Brandon Dill
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Chris Mannix of Yahoo Sports wrote a few weeks ago about the Kings coaching search:

Kevin McHale is steadily gaining internal support, league sources told The Vertical. If Cousins truly is the future, the Kings have to hire a coach he will buy into, and McHale, a respected voice and one of the game’s all-time great post players, certainly seems like a good fit.

They won’t get him, of course

McHale indeed emerged as a candidate, and though it took him a little longer than other prominent former head coaches, McHale also came to the conclusion Mannix foresaw,

Marc Stein of ESPN:

This is part of the reason Sacramento talking to everybody. The Kings don’t know whom they can get.

An owner who has changed course too often in Vivek Ranadive, a general manager with too little experience in Vlade Divac, a top player who repeatedly feuds with coaches in DeMarcus Cousins – who’d want this job? Probably not someone who could get one of the NBA’s other 29 head-coaching gigs, and that might apply to McHale.

Mitch Lawrence of Sporting News:

Frank Vogel is still twisting in the wind, but it seems unlikely the Pacers keep him.

There’d definitely be something intriguing about former Celtics teammates Larry Bird and Kevin McHale teaming up in Indiana. McHale’s experience with the Rockets could help him install an up-tempo offense, too.