Jazz owner's debate on adding Al Jefferson highlights revenue sharing issue

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Jazz_logo.gifWe at PBT, along with most of the basketball world, have applauded what the Jazz did this offseason. They lost Carlos Boozer, but in Al Jefferson found a good replacement. They added Raja Bell. Next season, the Jazz may be a slightly better team than they were last year.

But it was not an easy decision, as owner Greg Miller told the Salt Lake Tribune.

Once they had discussed the favorable basketball implications of adding a low-post force in Jefferson, who averaged 20.1 points and 10.4 rebounds the past three seasons with the Timberwolves, (CFO Bob) Hyde went over the financial particulars with Miller.

Specifically, Hyde presented a worst-case scenario, according to Miller, of what would happen if the Jazz missed the playoffs given the payroll commitments they would have after acquiring Jefferson and positioning themselves as a luxury-tax paying team.

“Based on the economics, I felt like the risk was acceptable and decided to pull the trigger,” Miller said in an interview last week, adding, “It was a big decision, but I felt like … I had enough good information to make a good decision, and only time will tell.”

Applaud Miller for taking that risk, for keeping a good team in Utah.

But he will be at least $5 million over the tax threshold when the season starts (the tax threshold will be $70 million, the Jazz are at $73 million with some minor contracts to add to fill out the roster). Which means that he will pay about $5 million in the dollar-for-dollar tax. He also will not get the $3.5 to $4 million in payment that goes to teams under the tax.

That is a $9 million swing, which for a team in a small market like Salt Lake can be the difference between profit and loss. Utah needs those playoff games, when the teams don’t pay salary but they get more nights of revenue.

What it underscores is the disparity in revenue and how revenue sharing will be key. The Lakers payroll will likely be in the $93 million range. Spending money alone does not win titles (or the last decade would have been the Knicks and Mavericks decade) but Los Angeles can afford more good role-playing talent to go around its stars. It can afford more stars. It can afford more mistakes. The Lakers have back-to-back titles because they have not made a lot of mistakes, but the margin for error is there, as it is with the Yankees in baseball.

And how to bring competitive balance, so that a small step over the luxury tax is not so onerous on small markets, has to be part of the next CBA talks. David Stern wants revenue sharing and the union agreement to be dealt with separately, but they are tied together in the health of the sport.

Lawyer sentenced to 5 years for fraud, scamming Charles Barkley among others

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BIRMINGHAM, Ala. (AP) — A lawyer convicted of swindling NBA star Charles Barkley and using the name of former Secretary of State Condoleezza Rice to bolster an investment scam was sentenced to five years in prison Tuesday.

U.S. District Judge Karon O. Bowdre also ordered Donald Watkins to pay about $14 million in restitution.

Prosecutors had sought a prison sentence of 17+ years for Watkins and 6+ years for his son, Donald Watkins Jr. Both were convicted on fraud and conspiracy charges earlier this year. The two men stole more than $15 million from investors and a bank, prosecutors said.

Bowdre said she took the elder man’s age, 70, into consideration in imposing a lighter sentence, but the term was stiffer than the home confinement requested by Watkins. She then began a sentencing hearing for the son.

During the pair’s trial earlier this year, witnesses including Barkley testified about losing money in an investment scheme run by the elder Watkins.

Barkley, who grew up near Birmingham and now works as a television analyst, described himself as a friend of the elder Watkins, who has split time living in both Alabama and Atlanta.

Barkley lost more than $6 million in investments and loans, prosecutors said, and so did other professional athletes including former NFL players Takeo Spikes and Bryan Thomas and former NBA star Damon Stoudamire.

Stoudamire’s wife, Natasha Taylor-Stoudamire, spoke at the sentencing and said she couldn’t comprehend what Watkins had done.

“I can’t even comprehend how Donald Watkins Sr. and Jr. can take money from me or the rest the victims that were trying to have generational wealth for our children’s children,” she said, according to al.com .

Rice, a native of Birmingham, testified that Watkins wrongly used her name in promoting an energy business at the heart of the case. Prosecutors said Watkins included Rice’s name in an email to investors although she had declined to get involved.

Watkins once served as a city council member in Montgomery and helped successfully defend HealthSouth Corp. founder Richard Scrushy in a massive fraud that nearly bankrupted the company, now known as Encompass Health. He also has worked on civil rights cases.

More than 15 years ago, Watkins drew media attention when he attempted to purchase a major league baseball team. More recently he said he was attempting to purchase the NFL’s St. Louis Rams before the team moved to Los Angeles.

Although he portrayed himself as wealthy, prosecutors said Watkins had a net worth of only a few thousand dollars.

Writing in a blog post before the sentencing, Watkins Sr. said he would continue to appeal his conviction and claimed he was innocent.

“Jurors try to do the right thing, more often than not. However, my 46-years of active participation in the American judicial system has shown me (and the world) that well-meaning jurors often convict innocent defendants,” Watkins wrote.

Dion Waiters shows off slimmed down physique on Instagram

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Suddenly the annual “he lost/gained 15 points and is in the best shape of his life” portion of the NBA summer is upon us.

The Miami Heat are known around the league for having one of the best conditioning programs, guys who go there almost universally get in better shape. Dion Waiters last season seemed to be the exception to the rule. Waiters wasn’t 50-year-old-suburban-dad-with-a-beer-gut out of shape, but coming off an injury where he didn’t get to train like he wanted, Waiters didn’t look like a guy in NBA shape either. Critics lit Waiters up on social media.

Waiters posted his response — he’s been hitting the gym.

View this post on Instagram

Last year when I came off 1 of the most depressing & frustrating times of my life. Coming off injury & not feeling like myself nor looking like myself I was in a dark place mentally & physically , Because the game I love so much was taken away due to season ending surgery. Now a days with this social media ran world they laughed at me made jokes etc not knowing what I was battling or going through everyday. So instead of me joining the circus I told myself you from (Philly) you’ve been through worst shit in your life than this. So I promise myself I would work my ass off & get back to where I was before the injury. I’m not done yet but I kno somebody in the world prolli needed to hear this. Stay positive block out the outside noise & grind. #Philly🧀 #stayTune

A post shared by 🔥🔥🔥🔥 (@waiters3) on

Good for Waiters.

Let the flood of NBA workout videos and shots of guys with their new physiques begin.

Philly fans will be hoping to see one from Joel Embiid.

Russell Westbrook trade to Houston official, Thunder praise him on way out door

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Whatever their long-term intentions, after Paul George was traded the Oklahoma City Thunder changed focus. General Manager Sam Presti sat down with Russell Westbrook and his agent, talked about the future, what the former MVP wanted, then worked on trading him where he wanted to go.

That was Houston.

The Westbrook to the Rockets trade for Chris Paul — with Oklahoma City picking up two first-round picks and two pick swaps — is now official.

In announcing the trade, the Thunder praised the greatest player in their franchise history on his way out the door.

“Russell Westbrook is the most important player in the brief history of the Oklahoma City Thunder. He has left an indelible mark on this team, city and state,” Presti said in a statement. “None of us could have anticipated the player he has become, and we are all deeply proud of what he has contributed to the success of the franchise and to our community. Russell and his wife Nina, their three children, his brother and his parents will always remain part of the Thunder family. We wish them nothing but happiness and success in the future.”

“I have a great deal of respect for Russell and there is no way to adequately describe our appreciation for what he has meant to Oklahomans,” said Thunder Chairman Clayton I. Bennett. “His legacy here is immense, and he will be honored by the team for all he has done. We wish he and Nina and their family all the best. While this era of Thunder basketball now comes to an end, I’m confident our talented team of people will once again position the Thunder for success in the future.”

While Presti and the OKC front office are still working on a CP3 trade, they are entering a rebuilding phase.

The Rockets are banking on Westbrook and James Harden being able to work out any fit issues — and finding a way to defend with both of them on the court — to keep them as title contenders.

Anthony Davis dances around question about re-signing with Lakers

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After the drama around his push to get to Los Angeles, league executives and other sources around the NBA expect Anthony Davis to re-sign with the Lakers on a max contract next summer.

However, Davis has paired up with LeBron James, and rule one of the LeBron contract playbook (and agent Rich Paul’s, too) is to keep the pressure on a franchise. Make the team improve and keep itself in title contention.

So it’s not a surprise that when ESPN’s Rachel Nichols asked Davis about re-signing with the Lakers, he didn’t answer the question directly.

Nichols: You’re only signed through this season. Do you think you will be a pillar of the Lakers for years and years to come?

Davis: Honestly, Rachel, I’m just focused on this season. I don’t know what’s going to happen. I have one year here, so I’m going make the best of this year. And when that time comes around in the summer or, you know, whenever the season’s over — hopefully, around, you know, mid-June, after we just had a parade, and I need a couple days to think — then we can talk about that. But until then, I’m trying to do whatever I can to help this team win this year.”

That a well-handled scripted answer hitting all the talking points.

After the NBA summer we have just gone through (and continue to see with Chris Paul), nobody sane will say Davis would never leave the Lakers after one season. Cut to Kevin Garnett screaming “Anything Is Possible.”

However, he came to the Lakers to win rings (now and in the future), to take over as the face of the franchise when LeBron steps away in a few years, to get the kind of recognition and endorsements he felt were not coming his way in New Orleans, and ultimately to have his jersey up in the rafters with Wilt and Kareem and Shaq. That’s the plan. Which means AD will re-sign with the Lakers next summer.

He’s just not going to say that right now.