Tag: Adam Silver

Donald Sterling, V. Stiviano

What penalties might Adam Silver bring down on Donald Sterling?


NBA commissioner Adam Silver will step to a podium in Manhattan Tuesday to clean up a mess that David Stern and the NBA owners should have dealt with years ago — when there were more actionable items, more egregious actions that should have brought sanctions and pressure on Donald Sterling to sell, rather than having the situation swept under the rug and ignored.

It falls on Silver to deal with racist comments allegedly made by Donald Sterling, the owner of the Los Angeles Clippers.

But what might Silver do? What will he say when he steps to that podium?

The best guess of most around the league is an indefinite suspension — Sterling can’t be involved with running the team nor may he attend their games or be around the team and franchise — as well as a fine of $1 million (or $2.5 million, depending on what part of the NBA’s constitution you are reading). Honestly the suspension part, keeping Sterling away from basking in the celebrity of owning a team, will be a bigger blow to him than the money.

What most people want — and that group seems to now include the other owners as well as people in the league office — is to get Sterling out. To get him to sell.

But can the league sell a team out from under an owner against his will? ESPN’s legal analyst Lester Munson is one of the few non-owners to have seen the NBA constitution, and he says yes.

Under the terms of Paragraph 13 of the constitution, the owners can terminate another owner’s franchise with a vote of three-fourths of the NBA Board of Governors, which is composed of all 30 owners. The power to terminate is limited to things like gambling and fraud in the application for ownership, but it also includes a provision for termination when an owner “fails to fulfill” a “contractual obligation” in “such a way as to affect the [NBA] or its members adversely.” Silver and the owners could assert that Sterling’s statements violated the constitution’s requirements to conduct business on a “reasonable” and “ethical” level.

What you can be sure of is that Sterling’s lawyers would assert this situation — where he will not be charged with a crime, this is a private matter — does not meet the standard of failing to fulfill a contract. Sterling is litigious and someone that does not sell or give up his properties — don’t expect him to be embarrassed or think of the good of the game. This is a guy who has had multiple former coaches have to sue him to get all the money they were owed in their contract. He likes a good fight, even if he knows he is in the wrong.

Munson says that Sterling could try to sue but likely will not have luck because of how the constitution is worded.

Nonetheless, Silver would prefer to not to have a long, public, messy court battle. Which is why the idea of a suspension and fine, giving the league time to try and pressure Sterling into deciding to sell is the most logical.

We will see if a fine and a suspension is enough for the players, enough to turn the focus for the league back on the court and away from the circus surrounding one owner.

Bucks owner Herb Kohl seeking new investors to keep the team in Milwaukee

Terry Stotts Press Conference

Bucks fans will spend the next 2-3 years looking over their shoulders at Seattle, and that’s because they’re in jeopardy of losing their basketball team should owner Herb Kohl fail at securing a new NBA-approved arena.

For small and mid-markets, having a state-of-the-art arena to maximize revenues is a requirement and any city that isn’t willing to make that type of commitment to the NBA will be threatened by 5-10 other cities that are dying to get into the game. It’s simple supply and demand.

Kohl, the former Democratic senator who is 78, is reportedly looking for other investors to join him in his attempt to keep the team in Milwaukee.

With a net worth that’s better described with an ‘M’ for millions rather than a ‘B’ for the billionaire owners that the NBA is attracting these days, it’s understandable why Kohl needs to deepen the pockets and broaden the influence of his group.

First and foremost he needs to deliver on an arena, and having more investors will help that along in many ways. But just as important to Milwaukee will be the overall value proposition this ownership group will have to the NBA, whether Kohl wants to continue as owner of the Bucks or not. That’s because if there ever comes a time when their arena plans are in doubt, it will be this group that gets measured against Seattle and any other city that wants to get into the game.

The NBA, whether being led by Adam Silver or David Stern, does not like to relocate franchises. In this day and age of information, the damage that relocation can do their brand is much greater than it was when Seattle’s elected officials told the NBA to go kick rocks and thus Sonicsgate was born.

At the same time, the NBA has found a sweet spot in its public subsidy pitch, which has been the target of many economists’ ire over the last 30 years when suburban arenas were all the rage. Economists have maintained that arenas don’t increase local spending because of things like the substitution effect, which simply stated means that people spend money at the game but stop spending their limited funds everywhere else. In essence, they contend, there is no overall gain.

However, economists have recently found themselves at an impasse on the issue with even the most ardent oppositionists still researching newer findings, in an area of study that isn’t exactly brimming with ongoing research.

The new revelations highlight the difference between suburban arenas and what city planners call ‘high density civic attractions,’ which are more likely to be sought after in the small-to-mid market cities that are most susceptible to relocation.  Instead of driving to a suburban arena, watching the game, and then leaving – a downtown arena can attract people for longer visits, attract all-important out-of-town dollars, and encourage use of mass transit.

In terms of increasing land value, a properly developed downtown arena district can increase surrounding land value by “hundreds of millions of dollars” according to a recent study by lead opposition subsidy voice Brad Humphreys. Arguments move into the both the micro- and mundane-levels from there, but an increase in land value around these downtown arenas stands on its face – it’s valuable for a reason.

The NBA has the cachet as an anchor tenant to bring in the private investment needed to make these downtown revitalization projects pencil out, particularly as public redevelopment dollars have dried up around the country.

With the NBA being the winner of over $3 billion in public funds since 1990, they have a massive financial stake in making sure they both polish that pitch and protect their reputation on that front.

For starters they have to maintain that they can be a loyal partner to any city engaging in good faith efforts to maintain a state-of-the-art arena.  Long-term, by building a portfolio of downtown success stories like L.A. Live, downtown Indianapolis and the soon-to-be built arena in downtown Sacramento — the league can keep the public funding narrative from collapsing under a wave of antipathy toward millionaires and billionaires bouncing a leather ball for amusement.

So look for the NBA to work with Kohl and Milwaukee to find the political will (i.e. public dollars) to get an arena deal done. As expected, the league released a statement from David Stern moments ago expressing support for that process. “Senator Kohl bought the Bucks in 1985 in order to ensure the team would remain in Milwaukee. During his extraordinary stewardship his goal remained the same — to bring the fans of Wisconsin high-quality basketball from a team they would be proud to call their ‘home’ team. With this announcement, Senator Kohl continues his mission: to assure continuity of ownership by broadening its ownership base, and assuring that the fans of Wisconsin will enjoy NBA basketball and other events in a new state-of-the-art facility,” said Stern.

And while everything is going to sound fine for Bucks fans until it doesn’t, they’re not going to know that they are indeed keeping their team until much more has been revealed in this slow-moving story.

David Stern announces his final draft pick as commissioner (VIDEO)

Former NBA star Olajuwon greets outgoing NBA Commissioner Stern at the end of the first round of selections at the 2013 NBA Draft in Brooklyn

It was well played all around.

Of course the fans in Brooklyn welcomed David Stern to the podium with a chorus of boos to start the night — and over the course of the first round he played along and taunted them a little, saying he couldn’t hear them. But when it came time to make is final pick he got a respectful standing ovation from the crowd.

Then Stern introduced commissioner-in-waiting Adam Silver, and the crowd booed him.

Then Silver brought “The Dream” back out on the stage. Just well don all around.

New report suggests financial, ethical issues at NBA players union

NBPA Meet To Discuss Current CBA Offer

UPDATE 6:39 pm: Union Executive Director Billy Hunter released a statement. What you think of it pretty much describes what you think of Hunter. Here it is in its entirety:

“The NBPA is currently reviewing the full independent special report simultaneous with the public. While I strongly disagree with some of the findings contained in the report, I am pleased it recognized that I have not engaged in criminal acts nor was I involved in misappropriation of union funds. Regarding my contract — my third in a long tenure of the organization — it was ratified by the NBPA Executive Committee and signed by President Derek Fisher. I believe the contract and extensions are valid. I am pleased to discuss with the Player Representative board any concerns about my contract.

“In my work for the NBPA, my priority has always been to promote the interests of the players. Through the benefit of hindsight, as with any executive, there are always things that could have been done better. But on the major issue, I am pleased that this report has confirmed what I have always known and said, I did nothing illegal.

“During my tenure, the salaries of NBA players have more than doubled and they are the highest paid athletes in the world. When I arrived at the NBPA in 1996 the challenges were significant. The Union’s financial liabilities exceeded its assets. Today the Union is solvent and its financial future is secure. The Union and players endured two lengthy and costly lockouts. Our greatest accomplishment is the unity and solidarity that the players maintained throughout those very difficult rounds of bargaining.

“Prior to the report’s issuance, the NBPA began implementation of some of the recommendations suggested, including a revised hiring policy and a new anti-nepotism policy. I look forward to continuing my work with the NBPA, adopting additional recommendations from the report and opening a new chapter of NBPA governance. I believe through these steps the NBPA will emerge from this review a stronger organization and continue to meet the needs of its membership. I will be reaching out to the membership to discuss the report and address ways to pursue the best path forward for the NBPA.”

3:47 pm: During the NBA lockout there was clearly a divide within the National Basketball Players Association (the NBA players union) — it was sort of “are you with executive director Billy Hunter or not?”

The lockout ending didn’t end the dispute. On Thursday the results of an investigation into the union raised a lot of questions about how the union does business. That includes Hunter’s own $15 million contract not going through the proper approval process.

Adrian Wojnarowski of Yahoo Sports and the NBC Sports Network has the details on what the report by the firm of Paul, Weiss, Rifkind, Wharton & Garrison found. For the record they found no criminal issues with the union, but a whole lot of red flags on other issues saying Hunter put personal issues and interests ahead of the players and the union.

As previously reported by Yahoo! Sports, Hunter “never told the union’s executive committee or player representatives that his current employment contract, which was executed in 2010, was not properly approved under the union’s By-Laws, even though by at least November 2011 outside counsel to the Union had told Mr. Hunter that the necessary approval had not occurred and remained necessary.”

• As detailed in an April report by Y! Sports, Hunter “involved family and friends in union business as employees or vendors without full disclosure and the disinterested approval of the union’s officers and directors.”

• “Created an atmosphere at the NBPA that discouraged challenges to his authority, including by allowing the union’s former general counsel, Gary Hall, to stop former secretary-treasurer Pat Garrity from speaking freely about conflicts of interest to the executive committee.”

So, he acted like every other executive in a suit in New York.

Hunter, no doubt, will challenge all the claims made. I’m not going to guess who is right and who is wrong. In a lot of ways this is a power struggle so everything is spin.

The real question is what is next. The union as a whole is scheduled to meet All-Star Weekend in Houston, you can bet this comes up. Is it time for a change in leadership at the union? If so, what direction do they go? Or, is it better to let Hunter stay and try to clean up issues.

Why it matters to fans is this — in five years you can bet one side is going to opt out of the Collective Bargaining Agreement that was just formalized and signed more than a year ago. Who sits at the negotiating table when that happens matters. For the owners it will be Adam Silver, the current deputy commissioner tagged to take over the big chair when David Stern steps down in 2014.

Who sits in the chair for the players union (along with economic and other factors) will determine whether things get resolved or if the NBA goes the way of the NHL with its labor fights.

With Silver, NBA gets same business with softer face

NBA Commissioner David Stern Announces Retirement

Things are not going to change much. There will come a time, just a few years into his tenure as commissioner, when Adam Silver will walk out on the stage at the NBA Draft and be instantly booed by fans. Just as David Stern has been for years.

A lot of things will stay the same. In 15 months, when Adam Silver takes over for David Stern, there are not going to be big changes for the NBA. The league is going to still be pushing its brand internationally, it will still be trying to negotiate larger television deals, it will still be trying to figure out how to make the digital space work for them, it will still be about protecting the league’s image. Mostly, it will still be about making money for the owners, with the players getting a cut of the pie.

Yet there are plenty of people around the NBA happy to see the change coming because they see Silver bringing a softer side, a more inquisitive and open mind to the big desk.

David Stern is an old-school, alpha-male businessman. His trademark dry sense of humor has come off as both funny and harsh. Stern has a temper. He can be condescending. Stern likes things done just so and isn’t afraid to intimidate to get it. Stern can be charming, and he can put people off.

Silver, due to both age and temperament, just handles things differently. People feel like he listens to them, that you can have a conversation with him. This could bode well for things like player relations — after things such as the dress code and more Stern is not loved among players. Chris Paul’s first reaction (and he was involved in the CBA negotiations) was to say he feels he can talk to Silver. That’s a start.

During the lockout, Silver was often the league’s attack dog at press conferences, the bad cop taking the more strident owners’ side, which allowed Stern to sound softer. Silver had to do that to get Stern’s job someday — Silver had to show the owners he would fight for them and their pocketbooks. That he could get down and dirty if he needed to.

That was the show, but Silver is still seen as a guy teams can have a conversation with on issues, that he has an open mind. Stern is a “my way or the highway” kind of guy, a friendly ear in talks can go a long way.

But starting a year from February, Silver is going to have to be the guy that says no sometimes. He’s the decision maker, and not all his decisions will be popular. It is Silver that will have to deal with the Sacramento situation (although Stern is trying to get that resolved), and whatever city is the next Seattle or Sacramento. Silver is going to have to deal with flopping and whatever is the next big on-the-court issue after that.

Silver will at some future date have to make decisions that will anger fans or players or some other owners. He can’t just be the good cop anymore.

And he’s not going to dramatically change the course of the good ship NBA. Things will remain pretty much as they are.

Just with less ego at the top. And that can be a good thing.