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.

Marc Gasol heads ball into basket after drawing foul (video)

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This was not Marc Gasol‘s first attempt to head in the ball after a whistle, but this time, he converted.

Here was his January try:


James Harden’s defense: Stop and point while opponent flies to rim (video)


As Rockets general manager Daryl Morey once noted, cherry-picking James Harden‘s worst defensive plays to create a video is unfair. Many players would look awful by that measure.

But Harden provides serious ammo for these worst-of videos.

This non-attempt to stop Lance Thomas is just brutal.

At least Houston buckled down to beat the Knicks, 116-111 in overtime. The Rockets have climbed to 26th in points allowed per possession.

Jerry Colangelo says Kobe Bryant could still make 2016 U.S. Olympic team

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So, Kobe Bryant‘s NBA career is officially going to come to an end after the 2015-16 season. That part he announced on Sunday.

What’s still up in the air is Bryant’s participation in one last Olympics. Bryant has been in consideration to make Team USA this summer at the games in Rio de Janeiro, and USA Basketball chairman Jerry Colangelo tells’s Marc Stein that he hasn’t ruled that out yet:

Kobe was asked about this at his post-game press conference Sunday and said it was not a goal, but if it was offered he’d consider it.

“I’d be honored if that was there, it would be fantastic to be around that group and spend kind of the last journey with them,” Bryant said. “That being said, it’s not something that I’m obsessing over.”

‘When Bryant made it known that he wanted to play in Rio, he made it clear to Colangelo and Team USA coach Mike Krzyzewski that he wanted to earn a spot, not be given one as a lifetime achievement award. Watching him so far this season, it’s almost impossible to imagine him making the roster on merit.

But nobody should begrudge him if he wanted to extend the farewell tour just a little bit longer.

Five Takeaways from NBA Sunday: Kobe Bryant makes it official, shows why it’s time

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It’s time. If you’ve watched Kobe play at all the past couple years, you could see it was time. But it took a while for Kobe to realize that. His announcement that he would step down after the season became the story of the night in the NBA Sunday. By far.

1) Kobe Bryant makes it official, he is going to walk away from the game after this season. Kobe Bryant’s body has been telling him for a while it was time to hang it up, but Kobe is as fierce and stubborn a competitor as the league has ever seen and he wasn’t going to listen. The man who willed himself to be one of the game’s greats was going to will away 37 years, 55,000 NBA minutes, and the effects of a torn Achilles and blown out knee.

Except he couldn’t. And now he has come to accept it is time to retire at the end of the season, as you could see from his postgame comments on Sunday night.

“I’ve known for a while. I’ve always said if anything changes, I’ll change my mind. The problem for me, you can’t make a decision like this based on outside circumstances. It has to be an internal decision. Finally, I just had to accept it, I don’t want to go through this anymore. And I’m okay with that….

“I honestly feel really good about it. I really do. I’m at peace with it… I’ve worked so hard and I continue to work really hard even though I played like s—, I’ve worked really, really hard not to play like crap and I do everything I possibly can. And I feel good about that.”

Laker GM Mitch Kupchak was honest about the Laker organization needing to rebuild and that being tough on Bryant.

“Well, we didn’t make it any easier on him with the team we have on the court — and that’s not to say that they’re not a talented group of players, but they’re certainly young and unaccomplished. And at an advanced age, I think we witnessed it’s difficult to play this game, and I think he’s struggled at a tempo and a pace that I think younger players (prefer).”

2) Then Sunday night Kobe shot 4-of-20 and showed why it was time for him to step down. His game against the Pacers Sunday summed up where Kobe is right now with his game. He was struggling from the field against a good Pacers’ defense, shooting 2-of-15, yet Byron Scott kept him out there, so Kobe kept gunning.

Then suddenly for a flash it was vintage Kobe — he hit two late three-pointers that made it a game and brought the Lakers within two points of the Pacers late.

Then vintage suddenly looked old. With the chance to tie the game and Staples Center on its feet willing the storybook ending, Kobe popped out off a down screen, caught the inbounded ball, curled around the top of the arc and…. air balled it. Pacers win. Kobe finished the night with 13 points on 4-of-20 shooting, bringing him to shooting 30.5 percent for the season.

3) Meanwhile, Paul George remains a beast, showed it against Lakers. The Pacers’ star was nothing short of brilliant wearing the Hickory High throwback uniform against the Lakers. He was pressuring on defense and had a couple steals (and disrupted more plays), plus poured in 39 points on 21 shots.

4) The Sixers lost, falling to 0-18, setting up a “showdown” with the Lakers on Tuesday. This has happened a few times lately: The Philadelphia 76ers hustle, scrap, play hard and are in a game, only to get crushed late in the game because when the other team cranks up the defensive pressure and gets serious the Sixers are overmatched. It happened again Sunday, the Sixers led by three going into the fourth quarter against the Grizzlies, but Memphis won the fourth 28-17 and the game 92-84.

That drops the Sixers to 0-18 on the season, tying the NBA record for the worst start ever. It also sets up a showdown on Tuesday night — the Lakers come to town. A “showdown” game. These are the two worst teams in the NBA, and the Lakers don’t have the talent (or comfort with their style of play) to crank it up and just out-talent the Sixers late, so this could be a real game — and a real shot for Philly.

5) Stan Van Gundy called out Andre Drummond’s effort after Nets beat Pistons. Andre Drummond put up another big line — 20 points and 18 rebounds — but after a loss to the lowly Nets, Pistons’ coach Stan Van Gundy was not impressed:

“I didn’t think he brought much energy to the Milwaukee game, and I didn’t think he brought much energy tonight. Why that is, I don’t know. But we need a lot more from him than we got tonight.”

I get the idea of calling out your star in the media to both motivate him and light a fire under the rest of the team. It’s a solid tactic. But I’ll add in some ways it seemed a more mature performance from Drummond. A couple of seasons ago, when he got frustrated as he did early in this one, he would have hung his head and mentally checked out of the game, he fought through it to put up numbers Sunday. That’s a start.