Tag: Mikhail Prokhorov

Mikhail Prokhorov Introductory Press Conference

What luxury tax? Nets new payroll massive because owner not concerned.


Let’s run through the Nets starting five and their salaries for next season:

Point guard Deron Williams, $17.2 million; shooting guard Joe Johnson $19.8 million; Gerald Wallace $9 million; Kris Humphries $12 million; Brook Lopez $13.7 million.

That is $71.7 million, not counting incentives some players may hit. That is with a salary cap of $58 million and a luxury tax threshold of $70.3 million. That’s not counting Mirza Teletovic at $3 million, Reggie Evans at $1.6 million, MarShon Brooks at $1.2 million or any salary from the other six or so guys needed to fill out the roster.

And every one of those starters will make more next season.

There is a new luxury tax looming in a couple years, a punitive one that has teams scared. The more over the tax line you are, the higher the tax rate. If you’re over the tax line three years in a row, you pay fines on top of the tax. Look at it this way, the Lakers $16 million dollar-for-dollar tax this season would have cost them $52 million in 2015.

Nets owner Mikhail Prokhorov doesn’t care. The Russian billionaire made more money in interest since you started reading this article than you will all year. Plus for him, owning the Nets is part of a larger real estate deal around the arena — the Brooklyn Yards project — that will make him a lot more money. If the Nets are a draw but a loss-leader in that equation, so what?

Prokhorov knew he needed a better team to open the Barclay’s center and told GM Billy King to go out and buy one.

You can justify each an every one of these signings individually. Williams is one of the best point guards in the league and the team’s franchise player. Johnson is still an All-Star point guard and his level of talent was needed to make sure Williams didn’t bolt for Dallas. Gerald Wallace is pretty good at both ends of the floor. The Nets needed a big man and Lopez had other teams ready to step in and give him a max deal, so to keep him that was the price.

As for Humphries, yes he is overpaid at $12 million a year but with a short two-year deal he is still a trade chip the Nets can try to use to get Dwight Howard after Jan. 15 (the soonest they can move any of the players they re-signed this summer).

But man, together that is one healthy tax bill coming due. That new, harsher CBA and luxury tax really only matter if an owner is concerned about the bottom line of that team by itself. Prokhorov is in it for a bigger picture.

Kirilenko says 50/50 he returns to NBA; if so think Utah, Nets

Turkey Basketball Euroleague Final Four

Andrei Kirilenko had to watch from the sidelines with an ankle sprain the last couple games as his team — Russian powerhouse CSKA Moscow — wrapped up another Russian League title after being part of the EuroLeague final four.

So, now what for Kirilenko? Does he stay in Russia? Return to the NBA? If so, where?

He doesn’t really know, he told Russian site sovsports.ru (translation via Sportando).

“I haven’t decided my future yet. There are 50-50 chances for me to stay or to go. I just want to say that if I stay in Europe, it will be with CSKA Moscow. I won’t play for any other team. I am going to weigh my options. It is going to be a very busy summer” said Kirilenko,

Assuming he does leave for the NBA (and the interviewer thinks he will, if Google Translate did its job right) Kirilenko said that the Utah Jazz and Brooklyn Nets are the “priority.” Utah is where Kirilenko has played before (and they could use him) while Brooklyn is owned by Russian billionaire Mikhail Prokhorov (and they could use anybody).

At some point I expect Kirilenko will return to Russia to play a few more years and finish his career, but I expect him back in the NBA next season.

Nets owner Prokhorov said he spoke with Deron Williams, jokes about Cuban

Mikhail Prokhorov

The Nets did not get Dwight Howard to pair with Deron Williams as the team heads to Brooklyn. (Although, if the Magic knew then what they know now, don’t you think they pull the trigger on that deal?)

The Nets are not good. They likely will not be good when they move into the Barclay’s Center in Brooklyn next year Which means it’s going to be hard to keep Williams with the team. He can opt-out of his deal this summer and will, then he can re-sign with the Nets, head to his home town Dallas (where owner Mark Cuban has set it up so they can offer a max deal) or anywhere else he wants.

Nets owner Mikhail Prokhorov wants a start to market when the team moves into New York next year — that other team in the city has stars — and he said in a media session at the new building he spoke to Williams about staying. Here are his quotes, via the twitter of Ken Berger of CBSSports.com.

Prokhorov, asked again about D-Will, reveals that he met with the All-Star point guard yesterday… Prokhorov on D-Will: “He wants to win, and I want to win maybe even more

Prokhorov on Mark Cuban competing for D-Will: “Let the best man win. If he wins, I will crush him in kickboxing throwdown.”

Oh God, please let their be a Cuban vs. Prokhorov throwdown. I will pay whatever the pay-per-view fee is to see that. Do it for charity, guys — think of the children.

Prokhorov’s problem is that D-Will does want to win badly and it’s hard to see that future with the Nets short term, but it is pretty easy in Dallas or even somewhere like Indiana (which also has cap space). The Nets advantage is that Williams has enjoyed living in New York and the marketing opportunities that brings him (he has signed a deal with Red Bull, for example).

Magic may file tampering charges against Nets for talking to Dwight Howard

NBA: Orlando Magic at Los Angeles Clippers

And you thought the Chris Paul situation was messy….

The Orlando Magic are considering filing tampering charges against two NBA teams for reaching out to Dwight Howard (who is still under contract to Orlando), reports David Aldridge at NBA.com. This report has been confirmed by other sources.

Those two teams are the New Jersey Nets — where Howard was reportedly going to be asked to be traded — and the Houston Rockets, tweets Sam Amick of Sports Illustrated. He adds that Nets owner Mikhail Prokhorov and Howard allegedly met Thursday, which would be tampering if the meeting did take place. ESPN’s Chris Broussard confirms that there was a meeting in Miami and Nets GM Billy King was in attendance.

Future reports said the Rockets are now no longer on the Magic’s tampering radar or potential charges.

If the Magic can get proof of the meeting, it will file tampering charges. This is about the Magic trying to control the situation and how any deal goes down, NBA.com reports.

The Magic, the source said, will not let Howard dictate the terms of where he wants to go.

“This will not be another Shaq situation,” the source said. The Magic will “do what’s in the best interests of the organization” and will not be left with nothing.

It should be noted that Howard has dropped agent Dan Fegan and will now have his father represent him (a decision that became public in the last 48 hours). Howard left agent Aaron Goodwin last year after family members pressured him to (giving them a larger role). Howard clearly trusts his family, but usually when family and friends represent a player it turns out poorly.

If Howard and Prokhorov did meet, that is pretty clearly tampering. Especially since Howard then reportedly was going to be asked to be traded to New Jersey.

On the heels of the Chris Paul trade fiasco, this could slow down the process and keep Howard with the Magic for a while (although if Orlando thinks he will walk as a free agent they will deal him). We know the Lakers are interested, but would the league and owners allow that deal?

About the owners losing money, it’s really complicated


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.