NBA Finals Mavericks Heat Basketball

Malcolm Gladwell says owners shouldn’t expect to make money

6 Comments

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.

Kristaps Porzingis injures ankle, leaves Cavaliers game in walking boot

porzingis
Getty
Leave a comment

New York Knicks star big man Kristaps Porzingis left Thursday night’s contest against the Cleveland Cavaliers with a sprained right ankle. He could be seen limping back to the locker room late in the second quarter, and reports after the game saw Porzingis in a walking boot.

That’s a major bummer for Knicks fans.

Porzingis, 21, dealt with a left Achilles issue earlier in the season and no doubt would like to remain on the court for the Knicks full-time to close the season.

Then again, it’s important to keep in mind that walking boots can be precautionary, especially as a team plays away from home. New York heads back home tonight and will play Philadelphia on Saturday, so there should be plenty of time for the Knicks to get their full medical staff working on assessing and treating Porzingis.

It’s not as though the Knicks were primed for a late-season run at just 23-35, but there will be less for New York fans to watch for with their best player off the floor.

After trading for DeMarcus Cousins, Pelicans release Terrence Jones

AUBURN HILLS, MI - FEBRUARY 01: Terrence Jones #9 of the New Orleans Pelicans gets off a shot next to Aron Baynes #12 of the Detroit Pistons during the first period at the Palace of Auburn Hills on February 1, 2017 in Auburn Hills, Michigan. 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 Gregory Shamus/Getty Images)
Getty
Leave a comment

Terrence Jones is no longer a member of the New Orleans Pelicans. The University of Kentucky product was removed from the team roster on Thursday after head coach Alvin Gentry said there just wasn’t enough minutes to go around after the team traded for DeMarcus Cousins.

The Pelicans roster now houses a frontcourt with most of the minutes going to Cousins, Anthony Davis, Donatas Motiejunas, Dante Cunningham, and Solomon Hill.

Gentry, via Nola.com:

“We released him because, obviously, if you look at the bigs situation we have now and there was not going to be a whole lot of minutes,” said Pelicans coach Alvin Gentry. “He wants to play. Obviously, he’s going to be a guy in a contract year and things like that, so we thought it was best to let him go.”

Jones, 25, was playing nearly 25 minutes per-game for New Orleans. While he was having a productive year, he wasn’t close to the kind of efficient numbers he put up early in his career with the Houston Rockets.

That said, Jones could be a potential candidate to bolster the frontline of a playoff team, so look for some action around him sooner rather than later.

Charles Barkley swears on live TV, says Spike Lee is “dying to get kicked out of the Garden”

barkley
2 Comments

Charles Barkley has a tendency to say some pretty wild stuff, but he’s typically guarded as a TV professional when it comes to swearing. Apparently the heat of the moment got the better of him on Thursday night as he was talking during the matchup between the Cleveland Cavaliers and the New York Knicks.

Speaking about New York, Barkley accidentally let fly with a not-for-primetime word on live television as he discussed Spike Lee and the overall mood around the team.

Via Twitter (NSFW obviously):

In case you can’t hear that, Barkley said (in part):

“I was talking to Spike Lee at All-Star Weekend, he’s dying to get kicked out of the Garden. He don’t wanna watch this s–t.”

The TNT crew then razzed on him for committing the cardinal sin of live TV.

Miami Heat F Chris Bosh to join TNT as TV analyst

Fast Money
CNBC
1 Comment

Chris Bosh will be a part of a new lineup featuring former NBA players on TNT in the coming weeks. The decision was announced on Thursday via Twitter and courtesy of NBA.com.

Bosh, 32, has been held out all season for the Miami Heat due to complications of a blood clot. The Heat want to make sure he is not only safe and healthy, but that they can shed his contract hit from their salary cap figure and ensure Bosh won’t be able to play in the postseason for another team.

Via NBA.com:

TNT’s ‘Players Only’ franchise will include appearances by 11-time NBA All-Star Chris Bosh as part of its studio coverage when the series debuts Monday, Feb. 27, at 7 p.m. ET. Bosh, an 11-time NBA All-Star and two-time NBA Champion with the Miami Heat, will contribute to ‘Players Only’ during its five consecutive weeks of Monday night doubleheader action on TNT. Bosh will appear alongside Chris Webber, Isiah Thomas and Baron Davis to provide studio commentary for ‘Players Only’ from Turner Studios in Atlanta.

The Heat were able to ask for relief from Bosh’s salary cap figure starting in February, but expect Miami to release Bosh after March 1. That is the date after which no player released can play in the playoffs. It would also make sure Bosh would not play enough games with another team to put any of his salary back on the Heat’s cap.

Meanwhile, it should be fun to see Bosh — one of the league’s most intelligent and TV-ready personalities — as a commentator on TNT.