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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.

Report: Celtics agree to guaranteed contract with Demetrius Jackson, partially guaranteed deal with Ben Bentil

PHILADELPHIA, PA - MARCH 25:  Demetrius Jackson #11 of the Notre Dame Fighting Irish celebrates after defeating the Wisconsin Badgers with a score of 56 to 61 during the 2016 NCAA Men's Basketball Tournament East Regional at Wells Fargo Center on March 25, 2016 in Philadelphia, Pennsylvania.  (Photo by Streeter Lecka/Getty Images)
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The Celtics are slowly but surely taking care of their eight (!) 2016 draft picks.

They’ll sign No. 3 pick Jaylen Brown. No. 16 pick Guerschon Yabusele and No. 23 pick Ante Zizic will remain overseas. The Nos. 31 and 35 picks were traded for a future first-rounder on draft night.

And Boston has reached terms with No. 45 pick Demetrius Jackson and No. 51 pick Ben Bentil.

Adam Himmelsbach of The Boston Globe:

As second-rounders, neither Jackson nor Bentil count against the cap until signed. So, the Celtics — with a little cap space plus the room exception and minimum-salary exceptions available — might wait a while to officially sign either player.

Jackson would give Boston 16 players — one more than the regular-season roster limit — with guaranteed salaries. Obviously, the Celtics will have to make a move — a big one, they surely hope.

Any deal could avoid a point guard, because Jackson makes four with Isaiah Thomas, Marcus Smart, Terry Rozier. Most teams carry just three.

With this roster crunch, Bentil will probably head to the D-League after training camp. The partial guarantee is likely just designed to entice him to stick in Boston’s system rather than sign overseas.

This leaves just No. 58 pick Abdel Nader unaccounted for among the Celtics eight (!) 2016 draft picks.

Spurs sign 2013 first-rounder Livio Jean-Charles

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With the 76ers signing Dario Saric, that left just five players drafted in the first round before this year who are still active but haven’t played in the NBA:

  • Nikola Milutinov (No. 26 by Spurs in 2015)
  • Bogdan Bogdanovic (No. 27 by Suns in 2014)
  • Livio Jean-Charles (No. 28 in 2013 by Spurs)
  • Petteri Koponen (No. 30 in 2007 by 76ers)
  • Fran Vazquez (No. 11 in 2005 by Magic)

San Antonio trimmed the list by one.

Spurs release:

The San Antonio Spurs today announced that they have signed forward Livio Jean-Charles.

Because Jean-Charles was drafted more than three years ago, he’s not bound by the rookie scale. San Antonio could have signed him to a scale or standard contract.

The Spurs could use more length and athleticism on the frontline behind LaMarcus Aldridge and Pau Gasol, and Jean-Charles fit the bill when drafted. But he tore his ACL and missed the following season. It’s less clear the 22-year-old is still on track to help.

 

Count on Dewayne Dedmon as a far safer bet to provide San Antonio with that dimension. If Jean-Charles helps, that’d just be a bonus.

DeMarcus Cousins: All-NBA voting ‘absurd,’ ‘joke,’ ‘popularity contest’

LOS ANGELES, CA - FEBRUARY 21:  DeMarcus Cousins #15 of the Sacramento Kings and DeAndre Jordan #6 of the Los Angeles Clippers battle for rebounding position at Staples Center on February 21, 2015 in Los Angeles, California.  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 Stephen Dunn/Getty Images)
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DeMarcus Cousins was the only All-NBA player on a lottery team this year.

The Kings center made the second team behind DeAndre Jordan.

Credit voters for seeing past Sacramento’s dismal record and recognizing Cousins’ individual excellence. He has only so much power, and it would’ve been unfair to disqualify him due to his subpar teammates and coaching.

Cousins’ voting breakdown:

  • First team: 32
  • Second team: 28
  • Third team: 33
  • Not on ballot: 33

I wouldn’t have picked Cousins for an All-NBA team, but this struck me as voters being open-minded about an unconventional candidate — one from a losing team.

Cousins sees it differently.

Cousins, via Michael Lee of Yahoo Sports:

“I don’t even know what an expert is any more,” Cousins told The Vertical about the all-NBA votes. “I mean, I had some guys, didn’t even vote for me, and that’s absurd. It’s a joke. It really is. It’s a popularity contest. It’s the guys who like them, it’s the guys they like, the guys they get to see on a nightly basis. I still don’t feel I get the respect I deserve. But I’m going to keep grinding. I’m going to stick with it.”

I wouldn’t have voted for Cousins. I put Draymond Green, Jordan and Al Horford at center for the PBT Awards. So, I obviously didn’t find omitting Cousins absurd.

Likewise, I wouldn’t have found including Cousins absurd. He wasn’t far behind in a deep crop of center candidates that also included Andre Drummond, Anthony Davis, Hassan Whiteside and Karl-Anthony Towns.

Though Cousins posted monster numbers — 26.9 points, 11.5 rebounds, 3.3 assists, 1.6 steals and 1.4 blocks per game — he contributed to the toxic environment that derailed Sacramento’s season. That counts, too. So does Cousins missing 17 games.

But before we get too far down the rabbit hole of sober analysis, remember this: Cousins, for better or worse, always has a huge chip on his shoulder. Of course he thinks he was slighted.

In fact, many voters find that stubbornness endearing. That’s why a popularity contest didn’t keep Cousins off some All-NBA ballots.

His season, while very impressive, just wasn’t overwhelmingly dominant enough to demand inclusion on every single ballot.

DeMar DeRozan didn’t meet with Lakers because he wanted “legacy of my own in Toronto”

LAS VEGAS, NV - JULY 18:  DeMar DeRozan #9 of the 2016 USA Basketball Men's National Team stands on the court during a practice session at the Mendenhall Center on July 18, 2016 in Las Vegas, Nevada.  (Photo by Ethan Miller/Getty Images)
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DeMar DeRozan was going to be one of the Lakers’ free agent targets last summer — an All-Star wing who could come home to Los Angeles and slide right into Kobe Bryant‘s now vacant spot in the rotation. But like the Lakers’ other top targets — Kevin Durant, Hassam Whiteside, etc. — the Lakers didn’t even get a meeting.

Durant’s reasoning was expected: “I really respect their team. I just thought they were a couple years away from where I wanted to be.”

DeRozan went another path — he loves Toronto and wants to carve out a legacy there, as he told Mark Medina of the Los Angeles Daily recently:

“When you have an opportunity to go home, that’s something that certainly would cross your mind. But it wasn’t anything,” DeRozan told Southern California News Group. “After I finish playing, I’m pretty sure I’ll live in L.A. But I just wanted to do something special and leave a legacy of my own in Toronto.”

DeRozan is big on loyalty — he has the word tattooed on his hands. If he says he’s in for something, he’s all the way in. And he is in for Toronto — he and Kyle Lowry have built what that team has become. The Lowry/DeRozan backcourt fueled the Raptors to the best season in franchise history last campaign — 56 wins and reaching the Eastern Conference finals. Nobody who knew DeRozan thought he would walk away from that, not even for the chance to play for the team he grew up idolizing.

The Daily News story does a fantastic job of showing DeRozan is still loyal to Los Angeles, too — he is a regular at the Drew League to this day. He loves L.A.

But that’s different from leaving an impressive Raptors team for the Lakers.