Mikhail Prokhorov

Report: Nets lost $144 million this past season. Even Prokhorov seems to care.


Here’s what’s often left out when discussing the spending of Mikhail Prokhorov and the finances of the Brooklyn Nets: This is a much bigger play for him than just the team. This is a real estate deal.

In addition to the majority of the Nets Prokhorov owns 45 percent of the Barclay’s center and has the right to buy up to 20 percent of the surrounding Atlantic Yards development (worth an estimated $4 billion and increasing). This is why reading into the money lost by teams in a year-over year basis gets convoluted, owners have their hands in a lot of pockets.

But the Nets basketball operations are bathed in $144 million of red ink and are screwing with the NBA’s profit/loss curve, reports Zach Lowe at Grantland.

The basketball side of the Nets’ business is projected to have lost $144 million over the 2013-14 season, according to a confidential memo the league sent to all 30 teams in early June. (Grantland has reviewed and verified the memo with a half-dozen sources.) If that strikes you as out of whack, that’s because it is.

The NBA expects nine teams will end up having lost money once luxury-tax distribution and revenue-sharing payments are finalized. The Nets, with that monster $144 million figure, are the biggest losers. Next in line? The Wizards, with projected losses of about $13 million. That’s right: The Nets lost $131 million more than any other NBA team last season. This is what happens when you pay $90 million in luxury tax for an aging roster and play in a market so large you are ineligible to receive any revenue-sharing help.

Again, that is basketball operations, it does not include any money Prokhorov makes with his other hand on the Barclay’s Center. Still, that is a whopping amount of red ink.

Prokhorov reportedly has ordered a round of belt tightening, which is understandable (and tied to making minority owner Bruce Rattner’s minority share that is for sale look more attractive, Lowe reports). But all this red ink starts with the Russian oligarch himself — he ordered Billy King to put together a big roster that could “open” the Barclays Center and win games. Doing that means thrashing future assets and spending. Billy King has his flaws as a GM but here he was the good employee following company orders.

However the NBA is not the Barclays Premier League — a Russian billionaire cannot just come in and buy players and get his team a title. Not the way it works in a salary cap world.

The Nets may have upgraded their coach if they bring in Lionel Hollins as expected. But If they are really serious about winning it’s going to take some better roster management, not squandering of resources.

And that will help the bottom line, too.

Report: Some Hawks executives doubt Danny Ferry’s contrition

Danny Ferry, Mike Budenholzer
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Since his racist comments about Luol Deng, Danny Ferry has mostly avoided the public eye.

He apologized through a couple statements released around the beginning of his leave of absence. He met with black community leaders. He claimed “full responsibility.”

A cadre of NBA people vouched for him. A law firm the Hawks hired to investigate themselves essentially cleared of him of being motivated by racial bias.

But there’s another side.

Kevin Arnovitz and Brian Windhorst of ESPN:

Ferry’s efforts at contrition sometimes fell short to some inside the organization. Several Hawks executives were at times put off by Ferry’s behavior during a compulsory two-day sensitive training session, especially since they considered his actions triggered the assembly in the first place. He came across as inattentive and dismissive of the exercise, some said, and fiddled with his phone quite a bit. Ferry contends he was taking notes on the meeting.

“It was awkward for everyone because I had not seen or been around Hawks employees for three months,” Ferry told ESPN this summer about the sensitivity training. “I took the seminar seriously, participated in the role-play exercises and certainly learned from the two-day session.”

the Hawks satisfied Ferry on June 22 by releasing both the written Taylor report and a flowery press release in which Hawks CEO Koonin was quoted saying, among other things, that “Danny Ferry is not a racist.” Some Hawks executives grumbled that the team overreached in exonerating Ferry, but doing so — not to mention paying Ferry significantly more than the $9 million he was owed on his “golden ticket” deal — was the cost of moving on.

I don’t know whether Ferry has shown the proper level of contrition, whether he was playing on his phone or taking notes.

But I know what he said:

“He’s a good guy overall, but he’s got some African in him, and I don’t say that in a bad way other than he’s a guy that may be making side deals behind you, if that makes sense. He has a storefront out front that’s beautiful and great, but he may be selling some counterfeit stuff behind you.”

He was not reading directly from a scouting report. He did not stop when his paraphrasing repeated a racist trope.

That’s a problem.

I don’t think Ferry intended to say something racist – but he did.

It’s a fixable issue, though. Through introspection and a desire to change, he can learn from this mistake. Maybe he already has.

That some around him don’t think he took that process seriously is worth noting. They might be off base, and Ferry obviously disagrees with their perception. But this is a two-sided story despite the common narrative focusing on Ferry’s redemption.

It’ll be up to any potential future employers to sort through the discrepancies.

Gilbert Arenas: Caron Butler’s version of gun incident ‘false’

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Caron Butler recently detailed the Gilbert Arenas-Javaris Crittenton gun incident.

In a since-deleted – but screenshot-captured – Instagram post, Arenas gives his description:

The biggest differences between Butler’s and Arenas’ versions:

1. Arenas claims he wasn’t the one who owed Crittenton money, that the feud escalated over Arenas prematurely showing his hand during a card game.

2. Arenas says he told Crittenton to pick a gun to shoot Arenas with – not to pick a gun he’d get shot by Arenas with.