About the owners losing money, it’s really complicated

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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.

Mike Budenholzer no fan of Drake’s free run on Toronto sideline

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Drake is the Mayor of Toronto.

Actually, he does fewer drugs than some former mayors of Toronto, and Drake was not elected, but he’s The Mayor in any meaningful way. The man can do whatever he wants.

Such as walk up and down the sidelines of a Raptors game with impunity, and give Nick Nurse a massage during the game.

Bucks coach Mike Budenholzer has much bigger things to worry about — such as were Eric Bledsoe misplaced his shot — but somehow during his conference call with the media on Wednesday, before a critical Game 5, Drake was the topic of discussion. Budenholzer is not a fan of Drake getting to patrol the sidelines. Via ESPN:

“I will say, again, I see [Drake talking to Raptors] in some timeouts, but I don’t know of any person that’s attending the game that isn’t a participant in the game a coach,  I’m sorry, a player or a coach, that has access to the court. I don’t know how much he’s on the court. It sounds like you guys are saying it’s more than I realize. There’s certainly no place for fans and, you know, whatever it is exactly that Drake is for the Toronto Raptors. You know, to be on the court, there’s boundaries and lines for a reason, and like I said, the league is usually pretty good at being on top of stuff like that.”

Drake responded on Instagram, first with a post that had a series of emojies, and then during an Instagram Live post where he liked a comment to his post where part of it was: “If you don’t want the opposing team to celebrate and dance, prevent them from scoring, winning, or achieving their objective.”

My guess is the league (and maybe the referees before Game 6 in Toronto) will reach out to Drake and tell him he can’t go Joe Biden on a coach during the game, and to stay near his seat. This is precisely the kind of distraction from the game that fans love to talk about and annoys the league office, which wants the focus on the court.

Personally, the more personality around the game, the better. It’s entertainment people, enjoy the show.

Knicks president Mills says Porzingis threatened to return to Europe if not traded in seven days

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If you thought the Knicks thrashing or Kristaps Porzingis on his way out the door was over, well, you haven’t been paying attention to the Knicks.

Team president Steve Mills was at a Knicks fan forum on Wednesday and was asked about the Kristaps Porzingis trade and dropped this bomb: Porzingis gave the Knicks the ultimatum of “trade me or I’m going back to Europe.”

“When he walked into our office, my office, and Scott [Perry, Knicks GM] was sitting there with me, and point blank said to us, ‘I don’t want to be here, I’m not going to re-sign with the Knicks, and I’ll give you seven days to try and trade me or I’m going back to Europe.'”

To be clear, Porzingis had to mean going back to Europe to work out and hang out, he could not have played professionally this season. European clubs honor commitments to NBA contracts — they will not sign and play a guy under an NBA contract — the same way the NBA does with European clubs (as well as China and all FIBA leagues).

Saying he wasn’t going to re-sign makes things clear for New York, it’s one of the reasons the NBA touted the “super-max” contract extensions because teams would find out earlier about player intentions. The Europe part, he could have signed there this summer, but the most a European team would pay him would still be more than $20 million less his likely next NBA contract (the top Europeans players make less than $3 million annually). But sure, go ahead and believe Porzingis would leave that money on the table.

For the Knicks brass, speaking in front of Knicks fans, this was the chance to make themselves look good — “see, we already had a good trade in place” — and thrash the guy they had been selling as the franchise savior a year before. It’s all about perception.

The Knicks have a lot of cap space this summer and their perception as a front office will hinge on what they do — or do not do — with it.

Porzingis landed in a good spot with Luka Doncic in Dallas, and the Mavericks will give Porzingis a max contract. Then it’s on him to earn it.

New Suns coach Monty Williams: ‘I’m here at the right time, and I’m here with the right people’

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PHOENIX (AP) The Phoenix Suns have gone through coaches like tear-away racing visors, the count up to five in five years.

The instability has hurt them on the court, the run of playoff-less appearances stretching to nine straight seasons with this year’s 19-63 finish.

Monty Williams, the man GM James Jones hired to coach the Suns, hopes to change the trend.

“Continuity, having a staff here for a while and putting in a system that the players can rely upon, but ultimately it will come down to James, myself and the players pushing this thing forward,” Williams said during his introductory news conference Tuesday. “The players are going to have to embrace a level of work and commitment that it takes to be a champion.”

Williams was hired on May 3 to replace Igor Kokoskov, who was fired after one season in the desert.

Williams’s arrival in Phoenix was delayed while he finished out the playoffs as an assistant to Philadelphia coach Brett Brown. The 76ers were eliminated from the playoffs last week by Toronto on Kawhi Leonard‘s hang-on-the-rim buzzer-beater in Game 7 of the Eastern Conference semifinals.

Williams’ name had been linked to numerous head coaching jobs, including the Lakers, but he wound up in the Valley of the Sun after multiple discussions with Suns owner Robert Sarver.

“In my conversations with Mr. Sarver, I saw someone who didn’t duck the tough questions,” Williams said. “We both had tough questions for each other and in this day and age where people throw each other under the bus, make excuses, blame, I didn’t see that. I saw a man who really wants to bring success to this city and I mean that with all of my heart or I wouldn’t have come here.”

Williams had a previous stint as an NBA head coach, leading New Orleans from 2010-15. A year after he was fired, Williams’ wife, Ingrid, was killed in a car crash.

He didn’t know if he wanted to get back into coaching after her death, but was pushed by his kids to return to coaching the sport he loves.

“When everything happened to my family, my focus was just take care of my children,” said Williams, who has remarried. “That led me to believe I might not ever be able to coach again, and I was cool with that. But they weren’t. And to have your children want you to go back to doing what you love to do gave me even more confidence, more strength. Hopefully that translates and the players can pick up on that.”

The Suns have been known as a dysfunctional franchise, but were lauded for landing Williams, a well-respected, well-rounded coach.

Williams played nine NBA seasons with New York, San Antonio, Denver, Orlando and Philadelphia. He’s been a head coach, an assistant and spent two years in San Antonio’s front office.

“His experience in all facets of basketball as a coach, player development on the offensive side of the ball and the defensive side of the ball, in the front office gives him a unique perspective that I think is well suited for our franchise,” Jones said.

In the Suns, Williams takes over a young team with two star-quality players at its core: Devin Booker and Deandre Ayton.

Booker has developed into one of the NBA’s best scorers, leading the Suns with 26.6 points per game. He had five 40-point games the final month of the season, including 50 and 59 in consecutive games.

Ayton was the No. 1 overall pick in last year’s NBA draft and didn’t disappoint, shooting 59% while averaging 16.3 points and 10.3 rebounds.

Phoenix should add to its talent base with the sixth overall pick in this year’s draft.

“There’s so much room to grow,” Williams said. “I think we have a young team that’s learning how to win and they will and I have to do my job. I have to enhance the strengths but be honest about our weaknesses and get the players to consider a new way of doing some things. I think I’m here at the right time and I’m here with the right people.”

Hornets’ Miles Bridges on All-Rookie: ‘I didn’t get snubbed. I played like a— all year’

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The NBA released its All-Rookie teams yesterday. Hornets forward Miles Bridges missed out, getting only one first-team vote and four second-team votes.

Bridges:

I love this attitude. Bridges didn’t deserve to make it. It’s silly to for anyone, including him, to pretend otherwise.

He’s obviously being too hard on himself. He had an OK rookie year. It just wasn’t one of the NBA’s 10 best this season.

Players often hold inflated opinions of themselves. That might help them succeed in a high-pressure job, and that’s obviously their priority. To be clear: I’m not criticizing them for adopting an approach that helped them reach this high level. But it leaves them as lousy analysts of their own performance.

Bridges doesn’t have that problem. It’s easy to see how this will drive him to improve.

His humility won’t work for everyone. But it works for him, and it’s a refreshing change of pace.