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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.

Kings’ Rudy Gay suffers apparent torn left Achilles tendon, would be done for season

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This not only changes the Kings dreams of making the playoffs in the West, it also alters the trade deadline and free agency.

Rudy Gay, the Kings wing and second-leading scorer, has been diagnosed with a torn left Achilles tendon, according to the team. During the third quarter of Wednesday night’s game against the Pacers, Gay drove out of the right corner and, untouched, fell to the floor hard. He had to be helped off the court by teammates.

Team doctors made the initial torn Achilles diagnosis, which will need to be confirmed by an MRI scheduled for Thursday. He would be out not only for this season but likely the start of the next one as well.

Without Gay, a lot more will fall on Matt Barnes and, once he returns from his calf injury in a couple of weeks, Omri Casspi. Those two are a drop off from what Gay brought to the Kings,  and with that team’s playoff chances have taken a hit (they are 1.5 games out of the eight seed after Wednesday’s loss to the Pacers). Don’t be surprised if the Kings look to add a scorer at the trade deadline.

Gay was not happy in Sacramento and said he planned to opt out of the $14.3 million final year of his contract to be a free agent next summer, which made him someone potentially traded before the deadline (although the Kings being in the playoff hunt impacted that). Gay averaged 18.7 points and 6.4 rebounds a game for the Kings, and while his game was a little old school — more isolation and midrange shots than teams prefer — he put up points. Enough that he was drawing trade interest heading toward the deadline from Oklahoma City and other squads.

That is all off the table now. At age 30, if Gay does still opt out of his contract for next season this will impact what he would make on the free market.

Zaza Pachulia lays out Russell Westbrook, stands over him (video)

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Kevin Durant playing the Thunder invites extra emotions.

Russell Westbrook felt them – in the form of a flagrant foul by Warriors center Zaza Pachulia, who stood over Westbrook for emphasis.

Pachulia is really embracing his role doing the dirty work for star-studded Golden State.

Report: 76ers’ Ben Simmons sitting entire season still on table

TARRYTOWN, NEW YORK - AUGUST 07:  Ben Simmons of the Philadelphia 76ers poses for a portrait during the 2016 NBA Rookie Photoshoot at Madison Square Garden Training Center on August 7, 2016 in Tarrytown, New York. 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. Mandatory Copyright Notice: Copyright 2016 NBAE  (Photo by Nick Laham/Getty Images)
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That rumor No. 1 pick Ben Simmons won’t play this season?

It just won’t die.

Even after Simmons tried to quash it, even after the 76ers’ CEO outright denied it, even after Simmons returned to practice, even in an otherwise optimistic report.

Chris Haynes of ESPN:

76ers rookie forward Ben Simmons could make his much-anticipated NBA debut shortly after the All-Star break, league sources told ESPN.

Barring a setback in his recovery, sources say the No. 1 overall pick in the 2016 NBA draft has a chance to take the hardwood near March. There still remains the possibility Simmons sits the entire season, sources said, but his situation will continue to be thoroughly evaluated throughout his comeback quest.

76ers coach Brett Brown said there’s “no chance” Simmons plays in Philadelphia’s nationally televised game against the Rockets next week. Other than that, there isn’t much clarity.

It mostly sounds as if Simmons is still too far from returning to say something definitive.

Roy Hibbert passes ball into hoop, reacts with perfect facial expression (video)

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The Hornets did so much right in their 107-85 win over the Trail Blazers, even a bad pass went through the hoop.

Roy Hibbert reacted fantastically to blunder/basket (blasket?).