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Malcolm Gladwell says owners shouldn’t expect to make money

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Is owning a sports franchise a business or a toy?

Right now, the NBA owners are telling you the NBA is a business, and a bad one at that. One that needs to be fixed. Even if it means costing an NBA season.

But you look at owners like Mark Cuban and you see him treat it like a toy — he has said the Mavericks have lost money every year. He has been sued over it. He can kind of erase that on the books because he also owns American Airlines Center and he has said he will cover the debt. But he treats this as a toy and bought himself a title. (Go ahead and say the Heat are trying to buy a title, but the Mavericks paid $20 million more last year in salary and in the last decade only the Knicks have paid more.) Of course, Cuban has made his money on franchise valuation, that has flattened out a lot for owners who bought recently.

In an interesting piece over at Grantland, social commentator Malcolm Gladwell — he of Blink and Outliers and TED — says that NBA owners shouldn’t expect to make financial profit off a team. He notes that owners get a “psychic benefit,” an emotional benefit from owning the team that is what makes owning a sports team different than owning a car repair shop.

The rationale for the NBA lockout, from the owner’s perspective, goes something like this. Basketball is a business. Businesses are supposed to make money. And when profits are falling, as they are now for basketball teams, a business is obliged to cut costs — which in this case means the amount of money paid to players. In response, the players’ association has said two things. First, basketball teams actually do make money. And second, if they don’t, it’s not the players’ fault. When the two sides get together, this is what they fight about. But both arguments miss the point. The issue isn’t how much money the business of basketball makes. The issue is that basketball isn’t a business in the first place — and for things that aren’t businesses how much money is, or isn’t, made is largely irrelevant….

The Financial Times recently interviewed Diego Della Valle, the chief executive of the Italian luxury goods manufacturer Tod’s. Della Valle owns the celebrated Italian football club Fiorentina. “I ask if the decision to buy the club was made from the heart, or for business reasons,” the Financial Times interviewer writes. Della Valle replies: “With football, business reasons don’t exist.” Exactly.

The question to me has become, “has that attitude changed among owners?” I would say Gladwell’s perspective was true 20 years ago, it has shifted some now. The guys who form a partnership and spend hundreds of millions to get a team — guys who are leveraged — get their psychic benefit but do not let that get in the way of the bottom line. They are the hardliners pushing for change.

But should they feel that way? Or should they enjoy the psychic benefits (and the profits they will make when the team is sold) and stop treating their toy like a business? Not sure there is one simple answer to those questions.

Report: With Joffrey Lauvergne trade, Mitch McGary likely done with Thunder

DALLAS, TX - MARCH 16:  Mitch McGary #33 of the Oklahoma City Thunder at American Airlines Center on March 16, 2015 in Dallas, Texas.  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 Ronald Martinez/Getty Images)
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The Oklahoma City frontcourt is crowded. Enes Kanter and Steven Adams will start, and they will have Nick Collison, Ersan Ilyasova, Domantas Sabonis, and now Joffrey Lauvergne behind them.

Which likely means Mitch McGary‘s done as a member of the Thunder, according to Royce Young of ESPN.

McGary has battled injuries his two seasons in the league and got on the court for only 72 minutes total last season for the Thunder (he played in more games and put up solid numbers in the D-LEague). He was not part of the future there regardless. He’s an undersized five trying to play the four and what he brought as a rookie — energy — was not enough as a sophomore.

McGary will make $1.5 million this season. He may be tough to move because he’s suspended for the first five games he’s eligible to play next season for failing the league’s drug policy (five games is the standard suspension for testing positive for marijuana three times). Maybe a team looking to develop players will give him a shot, but there is little trade value for him.

Dwight Howard is shooting 19-footers to improve his free throw stroke

Dwight Howard
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If you can knock down a 19-foot shot, then a 15-footer should be easier. Right?

Apparently that — and just basic muscle memory — is the latest attempt to improve Dwight Howard‘s free throw shooting. And, he seems to be knocking down those shots.

It’s not hard to see the logic in this approach.

The challenge is form and reps are not the problems for Howard — or DeAndre Jordan or Andre Drummond or others — when it comes to hitting free throws. Anyone who says “why don’t they just practice the shot” doesn’t pay attention, these guys put in a lot of work on the shot. Pregame and in practice (I’m Los Angeles based), Jordan probably hits 65 percent from the line. At least.

The problem is mental. That can be a tougher hurdle to clear. Maybe taking 19 footers and knocking them down will have Howard feeling more confident at the stripe this season.

But we’re going to need to see it to believe it. Just like we’re going to have to see a rejuvenated Howard in Atlanta before we believe this season will be different from the last few.

Report: Veteran big man Jason Thompson agrees to deal in China

BEIJING, CHINA - OCTOBER 15:  Jason Thompson # 34 of Sacramento Kings in action during the 2014 NBA Global Games match between the Brooklyn Nets and Sacramento Kings at MasterCard Center on October 15, 2014 in Beijing, China. 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 Lintao Zhang/Getty Images)
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Until this season, Jason Thompson had never been to the playoffs. He spent seven seasons in Sacramento before getting traded to the Warriors last offseason, and then signing with the Raptors midseason when Golden State waived him to make room on the roster for Anderson Varejao. His NBA days appear over, at least for now. International basketball reporter David Pick reports that Thompson has agreed to a deal to play in China.

Since the CBA’s season ends in March, Thompson could theoretically join an NBA team for the stretch run next year. But he didn’t appear to have much interest on the free-agent market this summer.

Report: Veteran big man Kevin Seraphin working out for Pacers, getting pursued by Barcelona

NEW YORK, NY - APRIL 01:  Kevin Seraphin #1 of the New York Knicks reacts after he is called for a foul in the second half against the Brooklyn Nets at Madison Square Garden on April 1, 2016 in New York City. 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 Elsa/Getty Images)
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After five years in Washington, French forward Kevin Seraphin signed a one-year deal in New York last offseason. He played 48 games for the Knicks, averaging 3.9 points and 2.6 rebounds in 11 minutes per game and wasn’t a big part of their rotation. Now, as a free agent, he’s looking for a new NBA home, and Yann Ohnona of L’Equipe reports that he’s worked out for the Indiana Pacers and has interest from the Spanish club FC Barcelona.

The translation of that tweet reads:

Kévin Seraphin, always courted by Barcelona, is in the United States for a trial with the Pacers of Indiana

With Barcelona in pursuit, Seraphin appears to have a solid fallback option if he can’t land a spot on an NBA team. He can be useful as a fourth or fifth big, it’s just a matter of a team having room.