The Bucks borrowed $55 million from the NBA… last year

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The Milwaukee Bucks are a pretty good example of the market struggles facing smaller-market owners in the NBA. It’s not like owner Herb Kohl hasn’t hired good people. John Hammond and Scott Skiles are both very good at their respective positions. And it’s not like Kohl hasn’t spent money on players. From Michael Redd to John Salmons to Drew Gooden to Andrew Bogut, the Bucks have kept the purse strings loose to try and build a winner. But the market simply hasn’t been great without the ability to convince fans they can compete for a championship (with good reason). And as a result, the Bucks have lost quite a bit of money. And it would appear the Bucks have tapped the league for quite a bit of help to cover themselves for the red line present and future.

From the Milwaukee Journal-Sentinel:

U.S. Sen. Herb Kohl, owner of the Milwaukee Bucks, borrowed at least $55 million last year from the NBA’s credit facility, according to his Senate financial disclosure form.

Disclosure rules in the Senate do not require senators to disclose the exact amount of their investments, assets and liabilities. But the records indicate that Kohl borrowed at least $55 million in three separate loans in behalf of the Bucks.

The records also indicate that Kohl used some of the proceeds for investments by two of his trusts. That is allowable under NBA rules for those borrowing from the $2 billion credit facility.

via Kohl borrowed from NBA – JSOnline.

The Journal notes that taking the loan doesn’t necessarily mean that the team lost money. But considering Kohl has openly said the Bucks have lost money and their status in Forbes’ franchise-value list, it’s a pretty good bet. That’s quite a bit of cash for one franchise, and with Kohl deciding not to run for re-election in 2012, you have to wonder if eventually Kohl won’t be the one writing checks, or applying for loans on behalf of the Bucks.

It’s probable that Kohl would look to sell the team to a local ownership group to keep the team in Milwaukee, but considering that kind of red ink on the books, it might be difficult. Meanwhile, expect ownership to use this kind of information to squeeze the players, using it as evidence of their enormous losses over the past several years while the players continue to respond in saying that revenue sharing and other venues will solve the problem and no one really having a conversation about it.

It’s hard to pinpoint anything Kohl’s done to put himself in this situation. The Bucks have made their fair share of poor moves, player-wise, management-wise, coaching-wise over the past few years, but they’ve been respectable. Everyone points to the Knicks’ failures to win a title as evidence the system doesn’t favor big market teams, but a look at the larger markets’ black ink compared to cases like this shows there’s enough there to support the idea of the system being broken.

Only question is how long it will take to fix it.

(HT: IamaGM.com)

Counter-report: Kyrie Irving has been ‘communicative and forthright’ with Celtics

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Kyrie Irving, according to a report, has ghosted the Celtics as free agency approaches.

Shams Charania of The Athletic:

Whoever leaked the initial information wanted to make Irving look bad. Whoever leaked this wanted to make Irving look good. Who’s telling the truth?

Who knows?

Maybe Irving’s and Boston staffers have differing definitions “communicative and forthright.” They could each be telling their own truths. But neither side is above spreading inaccurate rumors to sully someone else’s reputation.

Breakups get messy, and it appears this one is already there.

Beyond all the noise about how Irving is leaving, the most important detail: This is yet another report he’s leaving for the Nets.

Report: Hornets’ Michael Kidd-Gilchrist opting in for $13 million

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The Hornets’ last hope for super-maxing out Kemba Walker and avoiding the luxury tax without trading or stretching anyone has been extinguished.

With Michael Kidd-Gilchrist‘s $13 million salary locked in for next season, Charlotte faces hard choices.

Shams Charania of The Athletic:

If the Hornets re-sign Walker to the super-max, sign their draft picks (Nos. 12, 36 and 52) and add no other free agents, they’d project to be about $9 million over the tax line.

Would Walker take that large of a discount? That $9 million below the super-max would be for just next season. Over a five-year contract with max raises, he’d be leaving about $54 million on the table. And that’s all to maintain a lottery team that’s not really upgrading.

Would Michael Jordan pay the tax? He never has, and I doubt this mediocre team sways him.

The most likely outcome if Walker re-signs: Charlotte trades an undesirable contract – Kidd-Gilchrist’s, Nicolas Batum‘s, Marvin Williams‘, Cody Zeller‘s) – or stretches Bismack Biyombo. Trading those rotation players would probably require a sweetener. Stretching Biyombo would create a cap hit through 2022.

So, the Hornets get even more depleted in the long-term, maybe also the short-term.

That’s the cost of overpaying so many players – including Kidd-Gilchrist, who plays hard and defends well but hasn’t developed enough of an offensive game.

Report: After working out Darius Garland, Knicks set on R.J. Barrett with No. 3 pick

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R.J. Barrett is the consensus No. 3 prospect in this draft. The Knicks have the No. 3 pick.

A potential snag  – New York working out Vanderbilt point guard Darius Garland today – apparently won’t keep Barrett from his desired Knicks.

Adrian Wojnarowski of ESPN:

The top of the draft looks clear:

1. Pelicans: Zion Williamson

2. Grizzlies: Ja Morant

3. Knicks: R.J. Barrett

New Orleans has the No. 4 pick but is looking into trading it. I rate Garland as the top available prospect, but the Pelicans already have Lonzo Ball and Jrue Holiday in the backcourt. They could still take Garland, but the fit would be tricky.

Will New Orleans pick Garland? Take someone else? Trade the pick?

The draft will get interesting at No. 4.

Trade who? Wizards reportedly will offer Bradley Beal three-year, $111 million contract extension

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Predicting what the Wizards will do this off-season — from the No. 9 pick in the draft on Thursday through what to do with Jabari Parker‘s $20 million team option — is difficult because they do not have a permanent general manager. The Wizards have made a run at Toronto’s Masai Ujiri (something sources told me is true despite owner Ted Leonsis’ denials), but for now in-house candidate Tommy Sheppard is running the show (and will for a while longer).

The biggest question: What will the Wizards do with Bradley Beal?

While every team in the league has called to try and feel out trade possibilities, the Wizards are leaning toward offering him a three-year, $111 million extension to his current contract, something reported by Adrian Wojnarowski of ESPN.

“He’s eligible for a three-year, $111 million extension. I’m told it’s the team’s intention to offer that up to him and try and move forward.”

The Wizards should offer it up.

It would be a surprise if Beal accepted it.

In part because he will want to see who is in charge and what direction this person takes the franchise before he commits to it, but also in part because it doesn’t hurt him financially. Beal can get a larger-year four-year extension in the summer of 2020, or become a free agent and sign a max five-year contract in 2021 (or, he could bolt them to another team that summer). Beal is just 25 years old and has not had the kind of injury issues that would make him think he needs to take the security now (he has played 82 games the last two seasons).

This little dance will go on in our nation’s capital, but it signifies nothing. Meanwhile, Beal will gear up for next season, another without John Wall where Beal will once again be the focal point of the office.