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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.

Former Magic player Keith Appling arrested for third time in four months

Orlando Magic's Keith Appling (15) makes a shot in front of Philadelphia 76ers' Jerami Grant (39) and Nerlens Noel (4) during the first half of an NBA basketball game, Wednesday, Jan. 20, 2016, in Orlando, Fla. (AP Photo/John Raoux)
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Former Magic player Keith Appling was arrested in May.

Former Magic player Keith Appling was arrested in June.

Former Magic player Keith Appling was arrested in August.

Robert Allen of the Detroit Free Press:

Former Michigan State basketball player Keith Appling was arrested after a traffic stop Sunday, his third arrest since May, Detroit police said.

Appling, 24, was pulled over at about 9 p.m. on the city’s east side after driving away from a traffic stop, and a gun was found in a bag on the side of the road, according to an Associated Press report.

Kyle Lowry wishes Bismack Biyombo a happy 48th birthday

TORONTO, ON - MAY 27:  Bismack Biyombo #8 talks to Kyle Lowry #7 of the Toronto Raptors in the first quarter against the Cleveland Cavaliers in game six of the Eastern Conference Finals during the 2016 NBA Playoffs at Air Canada Centre on May 27, 2016 in Toronto, Canada. 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 Vaughn Ridley/Getty Images)
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Bismack Biyombo might have left Toronto, but he didn’t escape jokes about his age from the Raptors.

Biyombo – according to official records, which have been disputed – turned 24 yesterday.

Unofficially? Kyle Lowry:

Hakeem Olajuwon, David Stern enshrined in FIBA Hall of Fame

NEW YORK, NY - JUNE 27:  Hakeem Olajuwon (L) greets NBA Commissoner David Stern looks on during the 2013 NBA Draft at Barclays Center on June 27, 2013 in in the Brooklyn Bourough of New York City.  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 Mike Stobe/Getty Images)
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The FIBA Hall of Fame (not to be confused with the Basketball Hall of Fame, which is not to be confused with the NBA Hall of Fame, which doesn’t exist) enshrined Hakeem Olajuwon and David Stern in its 2016 class.

Olajuwon won a gold medal with Team USA in the 1996 Olympics. A Nigeria native, he has helped promote basketball in Africa.

After growing the sport’s popularity stateside, Stern pushed to globalize basketball as NBA commissioner.

The full list of 2016 inductees:

PLAYERS
Panagiotis Fasoulas (Greece)
Hakeem Olajuwon (Nigeria/USA)
Manuel Raga (Mexico)
Juan Antonio San Epifanio (Spain)
Michele Timms (Australia)
COACH
Jorge Canavesi (Argentina)

CONTRIBUTOR
David J. Stern (USA)

The criteria:

The over-riding objective of the Hall of Fame is to reflect the history of the sport.
The honour may be awarded posthumously.
The key conditions for induction to the FIBA Hall of Fame are:
•    Outstanding achievement at the international level from a personal effort or initiative
•    Having contributed to the performances of players, technical officials, coaches, and administrators or to the global development of basketball.

Olajuwon and Stern seem to fit the bill.

Now, if only there were a Hall of Fame that appropriately recognized NBA achievements.

Blake Griffin went back to Oklahoma for alumni weekend, heard Thunder recruiting pitch

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Blake Griffin reportedly doesn’t want to leave Los Angeles when his contract is up next summer. This is a guy who has done stand up, is executive producer of a television show, and is generally loving the perks of living in Los Angeles.

Still, the dream lives on in Oklahoma City that he will come in and be the next star there and pair with Russell Westbrook.

Griffin was back in his native Oklahoma for alumni weekend with the OU basketball team, and he heard the sales pitch.

Griffin blows this off, just like he is going to try to blow off the dozens and dozens of reporters who will ask him about his summer plans during the season.

But he has to know the recruiting pitches are coming all season, especially when he visits OKC.