About the owners losing money, it’s really complicated

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There are NBA owners who have wondered if player endorsements should not be money in the basketball related income pool — those players wouldn’t make their money if not for the teams.

But what about the other side of that coin — money the owners make on other businesses because they own and NBA franchise as well. Owners have complex finances and there are other projects they have that directly or indirectly feed off the NBA teams. For example, Cavaliers’ owner Dan Gilbert has casinos he got a sweetheart deal to build based on his NBA team’s popularity during the LeBron era, for example. That’s not money the Cavs make, but it’s money the owner would not have gotten without also owning the Cavs.

Which brings us to the Brooklyn Nets, the name they will take on next season. Bruce Ratner owned the team until he sold last year to Mikhail Prokhorov and it is one of David Stern and the owners talking points about how Ratner sold the team at a loss.

But Malcolm Gladwell tells a different, more complex story at Grantland. One that involves Ratner making a lot of money on his Atlantic Yards real estate deal — where the new arena will be central to new housing and retail — and needing the Nets to make sure the city and many residents were behind him taking over an existing neighborhood to get this built.

Ratner has been vilified — both fairly and unfairly — by opponents of the Atlantic Yards project (where the Nets new home is going up). But let’s be clear: What he did has nothing whatsoever to do with basketball. Ratner didn’t buy the Nets as a stand-alone commercial enterprise in the hopes that ticket sales and television revenue would exceed players’ salaries and administration costs. Ratner was buying eminent domain insurance. Basketball also had very little to do with Ratner’s sale of the Nets. Ratner got hit by the recession. Fighting the court challenges to his project took longer than he thought. He became dangerously overextended. His shareholders got restless. He realized had to dump the fancy Frank Gehry design for something more along the lines of a Kleenex box. Prokhorov helped Ratner out by buying a controlling interest in the Nets. But he also paid off some of Ratner’s debts, lent him $75 million, picked up some of his debt service, acquired a small stake in the arena, and bought an option on 20 percent of the entire Atlantic Yards project. This wasn’t a fire sale of a distressed basketball franchise. It was a general-purpose real estate bailout.

Did Ratner even care that he lost the Nets? Once he won his eminent domain case, the team had served its purpose. He’s not a basketball fan. He’s a real estate developer. The asset he wanted to hang on to was the arena, and with good reason.

This is essentially what AEG did with Staples Center (minus the eminent domain) — they got a piece of the Lakers and were able to build a new, modern arena around which they have now built the L.A. Live complex — home to shops, restaurants, condos, the Nokia Theater, hotels and the West Coast headquarters of ESPN. AEG made a lot of money off all that, something that would not have been possible without the energy of Staples and particularly the Lakers. Frankly, Kobe Bryant should be getting a check from L.A. Live.

Which all comes back to how complex figuring out whether a team made or lost money can be. Did Ratner lose money on the Nets in the real sense of the word? If an NBA owner has control of both the arena and the team, there is a lot of ways money can be moved around. Remember, only 40 percent of in-arena sponsorship money is counted by the league as “basketball related income,” but if the owner also owns the building he gets the other 60 percent, too.

NBA finances are a complex web. No doubt the recession has hit the owners and NBA franchises, but be careful about believing everything the league tells you about money lost.

Draymond Green’s civil suit accuser speaks, Green’s attorney issues statement

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The civil suit against Draymond Green starts off this way: “Draymond Green is a bully.”

As we noted was coming, on Tuesday former Michigan State University football player Jermaine Edmondson and his girlfriend Bianca Williams filed a lawsuit against Green stemming from an incident a year ago in East Lansing, Mich., bar. Green was back in the town of his alma mater and ran into Edmondson at a bar, and some kind of altercation followed.

Green allegedly slapped him during this, although the plaintiffs say the men with Green shoved first Edmondson against a wall, then when Williams came over to intervene another man did the same to her, putting his hand around his throat. Green was arrested, but the prosecutors didn’t see it the same way and Green’s charges were reduced to a noise violation, where Green had to pay a $500 fine and $60 restitution fee. Because it was a civil infraction, there is no “guilty” or “not guilty” plea entered.

Here is Edmondson speaking.

Green’s attorney Katherine Grubaugh, issued the following statement:

“This lawsuit relates to an incident that occurred in East Lansing, Michigan over a year ago, for which Draymond paid a noise violation fine. Draymond looks forward to defending himself and clearing up the misinformation put forth today.”

As I said previously, I’m not about to speculate about the motives for the suit or what actually happened in the bar that night. I don’t know those things. What I do know, as someone who spent years as a young reporter covering courts and police, it is challenging for the plaintiff to prove their case and get paid in these kinds of lawsuits (if this actually gets to trial). While in a civil case the standard to reach drops to “a preponderance of the evidence,” the plaintiff has to prove damages. That is not easy, especially in a disputed bar fight (where the clarity of memory of any witness can be called into question) a year later.

Report: Suns inform Josh Jackson he will not be part of any Kyrie Irving trade

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The Cleveland Cavaliers want an elite young player back in any trade of Kyrie Irving.

The Phoenix Suns have come up as a trade partner, because of Eric Bledsoe‘s salary, fit with Cleveland if Irving is gone, and the fact he and LeBron James share an agent.

And those suns have an elite young player — Josh Jackson. Taken fourth in the last draft, Jackson showed fantastic athleticism at Summer League, disruptive defense, the ability to make plays around the rim, and while his jumper needs some work there is genuine promise.

Which is why the Suns are not going to include Jackson in any Irving trade.

If the Suns are involved in an Irving trade, it’s likely as part of a three-team deal. Bledsoe would still go out, and Phoenix might be willing to throw in young players such as Marquese Chriss or Dragan Bender, depending on what they got back.

That is the key — the return. Phoenix is rebuilding, Bledsoe is their best trade chip, and if he is going out the door, they are going to want real quality back in return. They are not in this to be a salary dump location, the Suns are going to want young players who can make a difference and picks. Most of the trade scenarios floating around in public forums use Phoenix as the dumping ground in the three- or four-team deals, just know that is not going to happen. The Suns want value for their best trade asset.

Rumor: Are these the new Cleveland Cavaliers Nike uniforms? (PHOTOS)

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Nike will be taking over the NBA uniforms for the 2017-18 season, and now it looks like we have some leaked photos of the Cleveland Cavaliers’ new look.

A photo posted to Twitter on Tuesday showed a mannequin dressed in what appears to be Cleveland’s new wine-colored uniforms.

Nike released some information about their new uniforms recently, including the naming conventions which will be associated with certain editions of team uniforms. Those editions are called The Association, The Icon, The Athlete’s Mindset, and The Community.

The wine edition of the Cleveland uniform would fall under the category of the Icon.

Via Twitter:

Those certainly seem to go along with some of the uniforms that were released during Nikes original release. It’s also hard understand why someone would have a full dress mock up on a mannequin with the Nike logo on it, especially as it is so close to what we have seen from Nike.

Conrad over at Sports Logos has been kind enough to mock up what the Cavaliers uniforms should look like for both the icon and association additions.

Via Sports Logos:

What do you think? I am liking them so far.

Mike Muscala signs 2-year, $10 million deal to remain with Hawks

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ATLANTA (AP) The Atlanta Hawks have re-signed power forward Mike Muscala to a two-year, $10 million deal.

The 6-foot-11 Muscala, who was an unrestricted free agent, could play a bigger role as he returns for his fifth season following the departures of Paul Millsap and Dwight Howard.

Muscala set career highs by averaging 6.2 points and 3.4 rebounds in 70 games, including three starts, last season. He scored in double figures in 20 games and ranked second on the team by making 50.4 percent of his shots from the field.

The team announced the signing Tuesday.

More AP NBA: https://www.apnews.com/tag/NBAbasketball