About the owners losing money, it’s really complicated

3 Comments

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.

Fergie says she “tried my best” after national anthem blowback

Getty Images
Leave a comment

LOS ANGELES (AP) — Fergie is apologizing after trying something different with the national anthem at the NBA All-Star Game.

“I’ve always been honored and proud to perform the national anthem and last night I wanted to try something special for the NBA,” the Grammy-winning singer said in a statement Monday. “I’m a risk taker artistically, but clearly this rendition didn’t strike the intended tone. I love this country and honestly tried my best.”

Fergie’s slow, bluesy rendition of “The Star-Spangled Banner” on Sunday night wasn’t particularly well received at Staples Center or on social media before the 67th edition of the NBA’s annual showcase.

A low chuckle rumbled through the sold-out arena after she finished the first line of the song with a throaty growl on “the dawn’s early light.”

Fans throughout the star-studded crowd reacted with varying levels of bemusement and enthusiasm while her languid, 2 +-minute version of the song continued. Although Fergie was on pitch, her tempo, musical accompaniment and sexy delivery were not exactly typical for a sporting event or a patriotic song.

Golden State All-Star Draymond Green captured Sunday’s mood – and became an instant GIF – when he was shown open-mouthed on the scoreboard and the television broadcast in apparent confusion over the unique vocal stylings. Green then chuckled to himself after realizing he was on TV.

After a forceful finish, Fergie finally got big cheers when she shouted, “Let’s play some basketball!”

The Black Eyed Peas singer, born Stacy Ann Ferguson, is from nearby Hacienda Heights, California.

Famed basketball commentator Charles Barkley joked that he “needed a cigarette” after Fergie’s performance during the TNT halftime show.

Former Lakers star Shaquille O’Neal leaped to Fergie’s defense, saying: “Fergie, I love you. It was different. It was sexy. I liked it. Leave her alone.”

Others on social media weren’t as kind, with criticism of the performance outpacing the positive reviews.

 

Did Lakers help keep LeBron James in Cleveland with trade?

Associated Press
9 Comments

When the trade went down between the Lakers and Cavaliers before the deadline — sending Jordan Clarkson and Larry Nance Jr. to Cleveland in exchange for Isaiah Thomas and Channing Frye plus Cleveland’s 2018 first-round draft pick (top-five protected) — it caught the NBA by surprise.

The first reaction for a lot of people to the deal? This opens up as much as $70 million in cap space for the Lakers this summer (depending on other moves with players such as Julius Randle). Los Angeles could sign two max players — LeBron James and Paul George. Why would Cleveland help Los Angeles open up room to steal LeBron.

The Cavaliers didn’t see it that way — they knew they had to make a major shakeup or LeBron was gone. At that point, does it matter where? So in a series of moves, Cleveland GM Koby Altman radically remade the roster around LeBron. The goal was to energize them back into being the team to beat in the East, and from there make it hard for him to leave as a free agent. Since the trades, the Cavaliers are 2-0 and LeBron has clearly been reinvigorated, plus they will add Kevin Love back in a few weeks.

Altman’s plan seems to be working, one executive told Mark Spears of ESPN’s The Undefeated.

“I wouldn’t be surprised if he stays in Cleveland now,” one high-ranking Eastern Conference team executive said. “The Cavaliers put a really good team around him. The Cavaliers have made it really tough for him to decide to leave Cleveland again. The Lakers might have helped them keep LeBron.”

I had heard from sources for a while LeBron to the Lakers was not likely (Paul George is another story, that door remains open). As Spears notes, the Lakers did not have an All-Star in Sunday’s game. Even if LeBron and PG13 went to Los Angeles, that team was third or fourth best in the West next season. LeBron is in full on legacy mode and wants to win rings. Los Angeles is not the place to do it.

Houston is interesting (and it’s still a team I hear some execs think has a real shot), but the gutting or role players on that roster to make it work would be a concern. Maybe a dark horse such as Philadelphia can emerge. However, if LeBron can lead this newly-energized Cavaliers team to the Finals again (his eighth consecutive trip there), they get a high draft pick with the Brooklyn pick, then LeBron gets a commitment from Altman and owner Dan Gilbert to keep spending and being aggressive, where is he going to be closer to a title than at home?

Lou Williams trolls Jimmy Butler for resting during All-Star Game

Getty Images
7 Comments

Jimmy Butler was in Los Angeles and enjoying his well-earned All-Star slot on Team Stephen.

Well, except for the actual playing basketball part. Butler did not set foot on the court during the All-Star Game at his own request.

“Rest,” Butler said when asked why he didn’t play. “I have to rest. I have to rest my body up. This Timberwolves season is very, very important to me. I’ve got to make sure I’m ready to roll when I get back there.”

Lou Williams, the Clippers’ guard who likely would have been near the front of the line for an open All-Star roster spot in the West (likely second in the queue behind Chris Paul), but instead took part in the Saturday Skills Competition then had Sunday off, trolled Butler for it on Twitter.

This seems more good natured than genuinely bitter.

Williams will roll with it, but his point’s a valid one — if you’re an All-Star, at least play a little and give the people what they want. Get out there for five minutes or whatever. LaMarcus Aldridge only played four minutes, no big deal.

If you’re not going to use the roster spot, give it up to someone who will.

Report: Raptors won’t sign Vince Carter if he gets bought out

Dave Sandford/Getty Images
2 Comments

Of returning to the Raptors, Vince Carter said, “It’ll happen one day.” It sounds as if the Kings would buy him out if he wants.

Will he end the season with Toronto?

Josh Lewenberg of TSN 1050:

After speaking with a few team sources, I can confirm that they’ve had internal dialogue and debate about the idea of bringing Vince Carter back. It’s something that they wanted to do over the summer. That’s why they made him an offer, something that I’ve reported in the past. And it’s also something that they’d be open to in the future, perhaps next year in some capacity. But they’ve decided now is not the right time. And I think the consensus seems to be there’s so much going on right now, and they want this season to be about this team, their accomplishments and their playoff push and not the sideshow that I think would come with a Vince Carter return.

The Raptors (41-16) are on pace for their best record ever. They’re excelling offensively and defensively. Kyle Lowry and DeMar DeRozan are spearheading a more dynamic offense that spurs hope for more playoff success.

Toronto is probably correct to save the Carter reunion for another year – though it depends who else is available. That 15th roster spot could be useful. If Carter is the best player who’d sign, the Raptors should sign him and deal with the hoopla.

But it’s not clear whom they could get or whether they could even get Carter. He hasn’t sounded like someone who’d forgo guaranteed salary to play for the minimum.