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.

For a couple grand, Warriors fans can have Larry O’Brien Trophy visit their suite

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There’s so much money floating around the Bay Area right now thanks to another tech boom, this price almost seems low.

If you have a suite for the Golden State Warriors home games this season — and those are pretty much sold out, the Warriors draw big from the Silicon Valley crowd — you can have the NBA championship Larry O’Brien Trophy visit your suite. All for just a couple grand. From Gilbert Lee, via ESPN’s Darren Rovell.

The best part is it includes champagne… do you get to spray each other with it as you hold up the trophy? Now that would be perfect (goggles included, of course).

Have an issue with this? Why? To the victor goes the spoils. The Warriors may be able to sell this package for years.

Sixers new “Spirit of 76” court is fire

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First, the Sixers nailed the Nike “statement” jersey.

Now, they have announced a new “Spirit of 76” promotion, with seven tribute nights this season honoring the history of the franchise and of the Philadelphia area (and there is plenty of history to honor).

The best part — the “Spirit of 76” court with the bell logo.

Here is the promo vid

I just hope the Sixers team can live up to all the hype.

Wizards’ Markieff Morris to have sports hernia surgery, miss start of camp

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When the Washington Wizards open training camp next Tuesday, starting forward Markieff Morris will not be on the court.

That’s because he will have surgery to repair a sports hernia, a story broken by Candice Buckner of the Washington Post and since confirmed by Chase Hughes at CSNMidAtlantic.com.

While we don’t have details on the surgery, often recovery time for this is just a few weeks, and Morris could well be ready for the start of the season.

Morris averaged 14 points and 6.5 rebounds a game last season, and the Wizards offense was 5.7 points per 100 possessions better when he was on the court last season. With him out, coach Scott Brooks can lean on Jason Smith or Mike Scott for traditional lineups, but don’t be shocked if he tries a little small ball with Otto Porter and/or Kelly Oubre at the three or four.

Morris also is in the midst of a felony assault trial in Arizona (one where he does not need to attend).

Sixers enter camp with Joel Embiid not cleared for 5-on-5, Jahlil Okafor on trade block

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This is the season the 76ers make the leap from team with potential to playoff team fast on the rise.

Maybe.

That’s the plan in Philly, but there are a lot of questions for this team to answer. While a couple of these issues are answered already — Ben Simmons and Markelle Fultz are cleared to play and practice with teammates — a couple big ones still hang around. At the top of the list is “how healthy is Joel Embiid?” Coach Brett Brown doesn’t even have that answer yet, reports Derek Bodner of The Athletic.

It’s this simple: The Sixers outscored opponents by 3.3 points per 100 possessions when Embiid was on the court last season, he was a dominant force defensively who scored 20.2 points a game. When he was off the court the Sixers were 11.5 points per 100 possessions worse. They need him to play and play consistently if the Sixers have playoff dreams. It’s unclear when Embiid will return, but know that the Sixers will be cautious with his minutes again when he does get cleared (he has played just 31 games in three seasons).

Does that mean more Jahlil Okafor? Maybe not, the Sixers are still willing to trade him.

The Sixers have shopped Okafor for most of a year and found no deal they like. Okafor battled knee issues last season and, after a summer working to get healthy, other teams will want to see him play a little before talking trade. If he comes to camp slimmed down and his knee looks right, it could revive trade talks. Using a back-to-the-basket game, he averaged 11.8 points a night shooting 51 percent last season, he’s efficient, and some teams could use what he does (off the bench).

It’s going to be an interesting season in Philly. Are they playoff bound?