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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.

Kyrie Irving feels validated after hitting game-winning shot to bring title to Cleveland

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Back in July during the pre-Olympics USA Camp in Las Vegas, I asked Kyrie Irving what had changed for him, what was different for him after winning an NBA title. His answer was about the doors it opened, the possibilities that suddenly felt available to him. A month after winning the title he still seemed a little overwhelmed by the experience, and he hadn’t fully processed it yet. Which is completely understandable.

Now, as training camp is set to open for the Cavaliers and their defense of that title, Irving clearly has gotten used to being a champion — and he feels validated. Look at what he told Joe Varden of the Cleveland Plain Dealer.

“Yes, my life’s changed drastically,” Irving told cleveland.com Saturday, during Irving’s friendship walk and basketball challenge downtown for Best Buddies, Ohio — an organization that gives social growth and employment opportunities to people with intellectual and developmental disabilities.

“It’s kind of, you’re waiting for that validation from everyone, I guess, to be considered one of the top players in the league at the highest stage,” Irving said. “That kind of changed. I was just trying to earn everyone’s respect as much as I could.”

It’s amazing to think of the impact one shot — Irving’s three over Stephen Curry with 53 seconds left in Game 7 — can have. If he misses, there is less pressure on the Warriors to answer with a three, maybe they come down and get a bucket inside for two (one could argue they should have done that anyway rather than hunt for the three), from there maybe the Warriors win. If so, that could change everything from Kevin Durant‘s summer plans to what the Cavaliers’ roster looks like today — there’s a good chance Cleveland’s lineup would have changed if they lost to the Warriors two Finals in a row.

One shot can have that kind of impact on a player, too.

Kyrie Irving was one of the top five point guards in the NBA for a while, a score first guy but one who had some floor general in him and got some steals. A lot of time seemed to be spent focusing on his flaws defensively and passing. But with that shot, he feels validated. If he carries that confidence into next season, the Cavaliers just got better.

Check out top 50 plays from Kevin Garnett’s Hall of Fame career (VIDEO)

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First Kobe Bryant. Then Tim Duncan.

Now Kevin Garnett. The Hall of Fame class in five years is going to be stacked.

But before we move on from Garnett’s announcement this week that he is retiring after 21 years in the NBA, let’s look back at his greatest plays (compiled by the folks at NBA.com). Enjoy this for 11 minutes rather than watching your NFL fantasy team flounder. Again.

D’Angelo Russell said he used to play as Luke Walton on NBA 2K; Stephen Jackson calls that crap

LOS ANGELES, CA - MARCH 30: D'Angelo Russell #1 of the Los Angeles Lakers speaks during a news conference to discuss the controversy with teammate Nick Young before the start of the NBA game against the Miami Heat at Staples Center March 30, 2016, in Los Angeles, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using the photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevork Djansezian/Getty Images)
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Did anyone ever fire up NBA 2K9 back in the day, decide to be the soon-to-be-champion Lakers, look at a roster with Kobe Bryant, Pau Gasol, and Lamar Odom then say “I’m going to be Luke Walton”?

D'Angelo Russell says he did.

The Lakers young point guard has praised the new Laker coach at every turn — Russell and Byron Scott did not get along, the point guard is much happier now — and that includes talking about Walton’s playing days to Kevin Ding of Bleacher Report.

“I told him I remember playing with him on (NBA) 2K; I used to always play as him. I’m a fan. I’m definitely a fan. Because he was a point forward. I can’t speak on Elgin Baylor and all those guys, but my era, I know he was a point forward.”

Really? NBA veteran and current analyst Stephen Jackson called Russell out on that.

Jackson has a point.

Report: No, J.R. Smith isn’t talking to Sixers

CLEVELAND, OH -  JUNE 22: J.R. Smith #5 of the Cleveland Cavaliers celebrates with the fans during the Cleveland Cavaliers 2016 championship victory parade and rally on June 22, 2016 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
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What is with the ridiculous, unrealistic Philadelphia 76ers rumors of late? Last I checked recreational use was not legal in Pennsylvania. Not that the law is stopping anyone.

The latest silliness follows this logic:

This summer the Sixers made runs at veteran guards such as Jamal Crawford and Manu Ginobili (and they forced the Spurs to pay up for the Argentinian to keep him).

The Cleveland Cavaliers and J.R. Smith are in a staring contest, and Smith remains a free agent.

The Sixers have more than $22 million in cap space still.

So…

No. Not happening.

Or, we could have just asked Smith who has said he is not talking to other teams and doesn’t want to play anywhere but Cleveland.

I can get why Sixers management would want to bring a veteran and beloved, hard-working pro such as Ginobili in to lead and mentor a young team. Does Smith bring that same demeanor? I get that Smith in Cleveland has developed his game, and that he has matured and backed off his hard-partying ways (he gets a hall pass for the days after winning a championship), but is Smith the veteran you bring into a young locker room?

Can we move on from the ridiculous in Pennslyvania? Well, probably not until after the election, that is a battleground state.