About the owners losing money, it’s really complicated


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.

Watch Jonathan Simmons’ chasedown block on Stephen Curry


Jonathan Simmons did his best LeBron James impression on opening night.

While the Spurs were running the Warriors out of Oracle Arena — a 129-100 Spurs win — Simmons had a fantastic chasedown block on Stephen Curry. It was one of the plays of the game (most of the rest came from Kawhi Leonard).

Simmons had 20 points on 8-of-14 shooting off the bench for the Spurs in the win, which included a poster dunk on JaVale McGee late. Just to put some icing on the win.

Iman Shumpert in concussion protocol after collision with Porzingis

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Late in the third quarter of Cleveland’s blowout opening night win over New York, the Cavalier’s Iman Shumpert lowered his head and tried to drive the lane, where he collided with Knicks big man Kristaps Porzingis. It looked like Shumpert’s head hit Porzingis’ hip and elbow.

Shumpert instantly went to the ground, then needed help to come off the court. He was diagnosed with concussion-like symptoms, the team announced. Apparently, Porzingis is a rock.

That puts Shumpert in the league’s concussion protocol, and he’s going to miss time, notes Joe Vardon of the Cleveland Plain Dealer.

A source questioned whether Shumpert would be available for either of the Cavs’ next two games, Friday in Toronto and Saturday against Orlando at The Q. To play, Shumpert would need to be symptom free, pass a series of tests, and show no symptoms after each test.

There is no set timeline with a concussion. In the short term, this will mean more DeAndre Liggins on the court until Shumpert returns.

The Cavs are already without rookie backup point guard Kay Felder, who suffered a concussion during practice last Friday when he ran into Chris Andersen.

What championship hangover? Cavaliers rout Knicks on ring night in Cleveland.

CLEVELAND, OH - OCTOBER 25:  LeBron James #23 of the Cleveland Cavaliers finishes off a fast break with a dunk in the third quarter as Carmelo Anthony #7 of the New York Knicks watches on October 25, 2016 at Quicken Loans Arena in Cleveland, Ohio. Cleveland defeated New York 117-88. 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 Jamie Sabau/Getty Images)
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There’s a good reason LeBron James has been to six straight NBA Finals. It’s not all about his incredible physical gifts. It’s not about the quality of his teammates.

It’s about will.

On a night when a lot of teams play like their hungover — the night they get their championship rings and a banner is raised to the rafters — LeBron played harder than anyone and pulled his team along.

LeBron had a triple-double — 19 points, 14 assists, 11 rebounds — and led the Cavaliers to an easy win over the Knicks, 117-86. Kyrie Irving had 29 points — 19 in the third — and Kevin Love added 23 in the win.

But mostly it was the Cavaliers’ offense getting whatever shot it wanted and the Knicks watching dunks from up close.

Over the course of this season, these Knicks will evolve into something better than they showed opening night. No Derrick Rose (trial) and no Joakim Noah (injury) meant the Knicks starting five didn’t have a lot of cohesion and chemistry from the start.

After a sluggish first five minutes by both teams — they were a combined 6-of-22 shooting to open the game — the Cavaliers slowly started to create a little space behind 10 first quarter points from Love. That lead really started to grow as the Knicks bench came in and went 0-of-6 shooting to end the quarter, with Brandon Jennings making questionable decisions. Tack on seven Knick turnovers and the first and they were down 10 after 12 minutes.

The Cavs were in control through much of the second quarter until the Knicks went on a 10-0 run to make it a game again. It was Derrick Rose and Carmelo Anthony driving the team — they shot a combined 12-of-20 in the first half, the rest of the Knicks were 5-of-23. It was 48-45 Cavaliers at the break.

In the third quarter the Cavaliers starters cranked it up behind Kyrie Irving and tighter defense — the third quarter saw Kyrie Irving with 19 points and the entire Knicks team with 19. It was 82-64 Cavs after three and the celebration was on.

Kristaps Porzingis showed some moments but his 16 points came on 5-of-13 shooting. Anthony had 19 points on 18 shots. Rose had 17 points but four turnovers and one assist. Brandon Jennings came off the bench to shoot 1-of-7. It was not their best night.

For the Cavs, it was one to remember — the first banner in 52 years went up.

Did we mention LeBron James was dunking all over Knicks? Watch for yourself.


LeBron James isn’t the only story out of the NBA season opener — Kyrie Irving had 29 points, Kevin Love had 23, Carmelo Anthony and Derrick Rose were shotmaking.

But mostly, LeBron James was dunking. And racking up a triple-double (19 points, 14 assists, 11 rebounds). But mostly just dunking. Like you see above. Or there is this alley-oop.

Or, there was this putback throwdown.

And we can throw in a block on Courtney Lee just for fun.