Jordan takes big gamble on Bobcats

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Michael Jordan’s gambling penchant is almost as legendary as his game. But his move last Friday is the biggest financial gamble of his life — he bought an NBA franchise.

Like a lot of small market teams, the Charlotte Bobcats are losing money, with ticket sales and sponsorship revenue down in this economy. The Bobcats have been racking up debt under former owner Bob Johnson, and according to a great story by Henry Abbott at TrueHoop, Jordan now has the responsibility for those problems.

One source close to the process says that two things changed late in the game (to make Jordan’s deal come together). One is that some of the minority owners under Johnson agreed to stay on with Jordan in the lead role (which is reflected in David Stern announcing that a majority of the team had been transferred). And, most importantly, Jordan finally decided to put himself forward as the person who would pay the many bills as they arose. It’s unknown if he brought in any new owners at all. But what sources agree on is that Jordan vastly increased his own stake in the company, to the point that Stern is now calling him the “principal owner.”

Joel Litvin, NBA President, League and Basketball Operations says “we expect that this transaction will value the Charlotte Bobcats between $275-290 million.” The Wall Street Journal explains that much of the purchase involves Jordan taking on debt.

As Abbott points out, for the last few years Jordan has had a fun toy to play with. He got to make decisions — he was the final say on all things on all things basketball — without having to pay the price. That fell to Johnson. When a minority owner decided not to chip in for his share of the losses, Johnson had to cover it. Jordan is estimated to be worth roughly $400 million — that’s a lot of money, but you burn through it fast if the team is losing $40 million a year.

Jordan is gambling again. Gambling that he can make good basketball decisions that will put a winner on the court and draw more fans. So far his record as a front office executive is spotty — he’s been fired once, but this year the team is playoff bound and exceeding expectations. Building this team cheaply will not be easy as it has traded away a lot of draft picks for upcoming years.

Jordan also is gambling he can find more investors. Some people to sit by, get to bask in the Jordan aura, and fork over big checks to do it. Checks to cover the operating losses and debt that are going to take a few years to get rid of (at best). Making that sale is going to be a lot tougher than selling Hanes T-shirts.

But, do you really want to bet against Jordan pulling it off?

Markelle Fultz says last season was about injury, he’s back now with confidence

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Philadelphia went big game hunting in free agency and came up empty. If they are going to seriously challenge Boston this season for the top of the East, it’s going to be because of internal improvement — Joel Embiid needs to get better, Ben Simmons needs to get better…

And Markelle Fultz needs to be on the court and look like a No. 1 pick.

We’ve seen glimpses that his shot looks better after spending the summer with the shot guru Drew Hanlen, and at Sixers media day he sounded confident. Courtesy Matt Haughton at NBC Sports Philadelphia:

“I think it was a mis-term in words, but me and Drew have talked (after Hanlen said Fults had the yips),” he said. “What happened last year was an injury. Let me get that straight. It was an injury that happened that didn’t allow me to go through the certain paths that I needed to, to shoot the ball.

“Just like any normal person, when you’re used to doing something the same way each and every day and something happens, of course, you’re going to start thinking about it. It’s just normal….

“Everybody knows what happened last year, so this summer was really just me working to get my mechanics back, my confidence back, my swagger back. It was a very productive summer,” Fultz said. “I’m happy with the work I put in with Drew (Hanlen). We put up a lot of shots, a lot of hours in the gym. I’m happy with where I’m at right now going into training camp.”

Fultz is saying all the right things. That and $4 will get you a pumpkin spice latte at Starbucks (although why you’d want it is beyond me).

 

The proof starts Saturday in training camp and runs through the season. It’s about results now. Expectations for Fultz are high, but welcome to the life of a No. 1 pick. His bolstered swagger will be tested, we’ll see how he handles it.

Joel Embiid on DeAndre Ayton: ‘He’s about to get his ass kicked this year’

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At some point in the future — maybe not as far in the future as he thinks — a lot of NBA fans are going to turn on Joel Embiid and his unfiltered trash talk and social media presence. (Which, oddly, is very different from how teammates describe him, this seems to be more of a public persona.) It’s the nature of fame, we love the rogues and rebels until we don’t.

For now, Embiid is a lot of fun.

He went on the set of ESPN’s “The Jump” with Rachel Nichols on Friday (at Sixers media day) and when the picture of Deandre Ayton came up, well…

“He’s about to get his ass kicked this year.”

Embiid isn’t wrong.

Ayton is going to have a good rookie year, maybe very good (although the lack of a quality point guard to feed him the rock in spots he can do damage will hurt him), and at Summer League Ayton was a bit of a man-child against other rookies and young players. However, he showed flaws — his hands, for one, need to get better — and nightly in the NBA teams will roll out men who can match him and push back on him. It’s going to be harder than he realizes, and not just with Embiid or Rudy Gobert or DeAndre Jordan or Andre Drummond or Marcin Gortat and the other guys who can match up physically with him, but with the skill guys as well. Ayton isn’t going to push around Draymond Green easily. Al Horford is going to school him with skills.

Ayton is going to be on a learning curve this season, a steep one at times. All rookies get that. What matters is how he responds and how he develops. Expectations are rightfully high, but he’s got some learning to do.

Report: Jimmy Butler may not report to camp; Minnesota owner handling trade talks

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Hot mess doesn’t do the Minnesota Timberwolves situation justice. Trainwreck? Epic fail? Cluster%*#$?

Personally, I am going to go with:

Call it what you want, within the span of a week the Timberwolves have devolved into a situation where the team’s best player is demanding a trade and now, reportedly, may just skip training camp if he’s not moved. Meanwhile, the GM is adamant in saying he will not trade said player — one Jimmy Butler — so the owner is reportedly taking this over directly and telling teams to contact him.

Here is where things stand heading into Friday night.

Butler and coach/GM Tom Thibodeau met Tuesday in Los Angeles (a meeting that was initially in Minneapolis but that got moved in Los Angeles and pushed back a day), where Thibodeau laid out his plans for the season, but before he left Butler asked for a tradespecifically to the Clippers/Nets/Knicks. This set off all sorts of social media drama with Andrew Wiggins and rumors about Towns’ girlfriend that we’re not going to dive into now, but is giving the Timberwolves organization headaches. Towns has a $158 million contract extension sitting on the table, but told management he can’t coexist with Butler and reportedly will not sign the new deal until the Butler situation is resolved.

Thibodeau has adamantly rejected teams that have called and even tried to start a trade discussion, and would rather quit than move him for a rebuilding package of picks. The offers for a Butler trade and possible rental, even from teams that could re-sign him as a free agent next summer, are not going to be that good.

Since Thibodeau wants no part of trading Butler, owner Glen Taylor — who has a rocky relationship with Thibodeau — is telling the other owners he will make the trade and to reach out to him, reports Adrian Wojnarowski of ESPN.

As the Minnesota Timberwolves front office tells inquiring rivals that the franchise has no plans to trade All-Star forward Jimmy Butler, owner Glen Taylor had a different message for owners and executives at the NBA’s Board of Governors meetings: Butler is available, and prospective suitors should contact Taylor himself should they struggle to make progress with GM Scott Layden, sources told ESPN….

“The owner’s trading him,” one Board of Governors attendee told ESPN on Friday. “That was made clear. It’s just a matter of when.”

“He basically said, ‘If you don’t get anywhere with [Layden], and you’ve got something good, bring it to me,” another high-ranking league official told ESPN.

This points to a showdown between Thibodeau and Taylor potentially looming. Want to guess who wins showdowns between owners and GMs? Every time?

Meanwhile, a frustrated Butler — who left the Timberwolves in a terrible spot with the timing of his request a week before training camp, rather than earlier in the summer — could decide to sit out training camp, reports Jon Krawczynski in a must-read breakdown of how everything went wrong over at The Athletic.

This is Jimmy Butler. Thibs’ hand-picked pride and joy. The one who pledged to have his back through thick and thin and drag this woebegone franchise out of the dank cellar and into the spotlight.

Now he wants out. And there remains a real possibility that he will not report to training camp next week if a trade has not been consummated, sources said.

There is a whole lot to sort out here. If Taylor makes a trade, is he thinking more win-now guys, or younger players more on the Towns/Wiggins timeline? Will Thibodeau still be the coach/GM come opening night? How will Minnesota fans react to the inevitable step back that would come with a Butler trade (they are not getting equal value, and he was key to their playoff push last season)? And all of that is just the tip of the iceberg.

Dumpster fire seems just about right.

In wake of Mavericks’ scandal, Adam Silver warns other teams to eliminate harassment

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The sexual harassment and workplace environment scandal that engulfed the Dallas Mavericks shook other NBA teams and forced some internal reassessment long before the league and an independent investigator released their report on Dallas this week. As part of the deal, Mark Cuban is donating $10 million to “organizations that are committed to supporting the leadership and development of women in the sports industry and combating domestic violence,” and the team must subscribe to a number of new reporting procedures.

Just to hammer the importance of the issue home, NBA Commissioner Adam Silver sent a memo to all 30 teams saying they need to think about diversity in management and have a focus on preventing workplace harassment.

While the money from the $10 million goes to good causes and is four times what the NBA could have fined Cuban itself under the current league bylaws, it is not going to hurt a man worth an estimated $3.9 billion. Cuban appeared both repentant and bothered by what was happening under his roof, but the punishment handed down came off as light, even though Cuban did quickly make changes within the organization — long before the report came out, starting at the top with the hiring of Cynthia Marshall as CEO — and was not personally involved nor did he have knowledge of the situation, according to the investigation. There is no right answer here. What would have really sent a message to teams was taking away draft picks, however, Dallas’ basketball side of the operations — players, coaches, etc. — were not implicated in the investigation, and it was instead the opposite, the basketball side was seen as a safe haven. Taking away draft picks felt like punishing the wrong people for the crimes, sort of like the NCAA. There were other options, but all seemed flawed.

Having it happen once can be spun as an outlier by the league, a one-off situation. If it happens again, the conversation changes. Silver does not want that to happen, hence the memo and reminder.