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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.

Kobe Bryant basks in All-Star Spotlight one final time

Kobe Bryant All-Star
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TORONTO — Kobe Bryant is the center of attention one last time.

To get to his final All-Star Game in his final season in the NBA, Kobe received more fan votes than Stephen Curry or LeBron James. Now that he’s at the 2016 All-Star Game, more people want a piece of his time. More media were crowded around him on Friday than any other player at the NBA’s equivalent of media day. Even the other All-Stars could count on getting peppered with Kobe questions (to their annoyance at times).

Kobe is at peace with his decision to walk away from the game. This weekend he wants bask in the All-Star spotlight one last time.

“I’m happy,” Kobe said. “This is pretty cool. I’m looking around the room and seeing guys that I’m playing with that are tearing the league up that were like four during my first All-Star Game. It’s true. I mean, how many players can say they’ve played 20 years and actually have seen the game go through three, four generations, you know what I mean? It’s not sad at all. I mean, I’m really happy and honored to be here and see this.”

Does that mean Kobe has plans to chase the All-Star MVP one last time?

“Zero…” Kobe said. “But, no, I’m really just enjoying this whole thing, being around these players and talking to them one more time, going out and practicing and enjoying that moment in the game and enjoying that moment. So competitiveness in terms of me trying to establish something or prove something, that’s gone.”

What is Kobe’s best All-Star memory?

“My first one in Cleveland was pretty special because you had all the top 50 players,” Bryant said. “I think in ’98 (it was), it was pretty special too, being in my first All-Star Game and being in the locker room with greats, like [John] Stockton and [Clyde] Drexler and all those guys, that was pretty cool too.”

Kobe has a hectic schedule for his final weekend, but much as he has since he announced his retirement he is trying to soak in and fully enjoy this last go around in the NBA. He understands that the life he has known for two decades is about to change. He hasn’t given much thought to his first day of retirement.

“I’ll probably wake up and have some coffee and go back to sleep,” Bryant said.

I don’t think he understands why you drink coffee, but he’s got all of his retirement to figure that out. For now, he just wants to bask in the spotlight one last time.

Zach LaVine wins MVP, Kristaps Porzingis puts on show in Rising Stars Challenge

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TORONTO — Canada’s own Andrew Wiggins was the rock star of the night. “An-drew-Wi-gins” chants broke out in the Air Canada Center as Canada’s native son put on a show with 29 points (and a few dunks) leading a World Team comeback against the USA in the Rising Stars Challenge.

“An-drew-Wi-gins” chants broke out in the Air Canada Center as Canada’s native son put on a show with 29 points (and a few huge dunks), sparking a World Team comeback against the USA in the Rising Stars Challenge.

His Minnesota teammate Karl-Anthony Towns was going to have none of that.

“I gotta see Andrew Wiggins for a long time and I want to rub this in,” Towns said.

He got his wish, the USA beat the World Team 157-154.

It was a glorified pickup game for three quarters, and the level of defensive intensity will make Sunday’s All-Star game look like Tom Thibodeau teams are playing. That led to a lot of high scorers.

Zach LaVine — the other teammate of Wiggins and Towns — led the USA with 30 points and was named the game’s MVP, and said he wanted to steal Wiggins’ thunder at home.

“That’s what I was going for,” LaVine said.

Also from the USA, Jordan Clarkson (Lakers) had 25, Devon Booker (Suns) had 23 and was 5-of-8 from three, D'Angelo Russell (Lakers) had 22, and Towns chipped in 18 points and 7 boards.

Knicks sensation Kristaps Porzingis was the second most popular player in the building, and he had 30 for the World team.

“Not great defense, but it’s about having fun, I guess,” Porzingis said. “And I think we had fun out there. In the second half we got more competitive, as both teams wanted to get the win, and we fell a little short.”

Also for the World Emmanuel Mudiay (Nuggets) had 30 points, Wiggins had 29, and Mario Hezonja (Magic) had 19.

The intensity and defense did pick up in the end, although one wouldn’t call it a thing of beauty. What matters is the crowd in the Air Canada Centre enjoyed it, even if their team didn’t win. It’s an exhibition, and they got a show.

Report: Celtics, Cavaliers talking Kevin Love trade; could include Knicks, ‘Melo

Cleveland Cavaliers' Kevin Love holds the ball away from Boston Celtics' Amir Johnson during the second quarter of a NBA basketball game in Boston Tuesday, Dec. 15, 2015. (AP Photo/Winslow Townson)
Associated Press
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The Celtics are looking for an elite player to improve their deep cast of role players. The Cavaliers are looking for depth. And Carmelo Anthony may just be looking to win.

All of that has talks between the Cavaliers and Celtics on a potential Love deal progressing, with the possibility of the Knicks as a third team also in the mix, according to Frank Isola of the New York Daily News.

The Daily News has learned that the Boston Celtics and Cleveland Cavaliers have discussed a blockbuster trade centered around Kevin Love. There were very preliminary discussions about expanding the deal to include the Knicks and Anthony, who would have to waive his no-trade clause in order to facilitate a deal to the Cavs.

The Knicks would receive draft picks and players in return. One of those players is believed to be Timofey Mozgov, who five years ago was traded by the Knicks to Denver in the Anthony deal.

This is a longshot, but the report has some legs.

It’s not clear how far along these talks are. The trade deadline is Feb. 18 (next Thursday) and conversations tend to move past the theoretical/value judging phase and get real come All-Star Weekend, when many GMs and decision makers are in one place (and nobody can go outside because it is too cold in Toronto). This trade works for the Cavaliers if they get a quality stretch four in return — Kelly Olynyk? — plus some depth and a quality pick. The question for the Cavs is simply how much can they get back — this is a win-now team and Love helps that, so how does a trade make them better?

Would Danny Ainge move the unprotected Brooklyn Nets pick to get Love? Jae Crowder? How much would Boston surrender to get an elite star, especially one under a reasonable, long contract?

Carmelo Anthony wants a ring, if he could end up playing with LeBron and be much closer to it than he is now, he would waive his no-trade clause.

That said, this trade sounds like a longshot. At least at the deadline. Next Summer… who knows?

Watch Kevin Hart be Kevin Hart at the NBA All-Star Celebrity Game

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Kevin Hart has a movie to promote decided to come out of retirement to play in the NBA All-Star Friday Night Celebrity Game.

And, he did what Kevin Hart does.

Well, except win MVP of the game, that went to Win Butler (the Canadian lead singer of Arcade Fire). Butler led Canada to a 74-63 win over Hart and the USA.