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.