Report: NBA players union paid $4.8 million to director’s family members, their firms

18 Comments

And now we see what is at the heart of the current NBA players union fight — nepotism concerns.

This is already a fight where union president Derek Fisher pushed for an audit and Executive Director Billy Hunter got the union executive committee to call off the audit and call for Fisher to resign. And now you get the feeling this is going to get worse.

The union has been spending millions of dollars to do business with companies and lawfirms tied to Hunter, reports Bloomberg in a well researched story.

The National Basketball Players Association, whose business practices are being questioned by President Derek Fisher, paid almost $4.8 million to Executive Director Billy Hunter’s family members and their professional firms since 2001, according to public records…

Hunter, a former U.S. attorney who led the players through two work stoppages, has a daughter and daughter-in-law on staff at the union. Another daughter is special counsel at a law firm used by the association, and Hunter’s son is a principal at a financial planning and investment firm that last fiscal year was paid $45,526 a month to run the union’s financial awareness program and advise on investments, according to filings with the U.S. Labor Department.

“It’s not a criminal act, but it’s not something I would do,” said Marvin Miller, who led baseball players through three strikes and two lockouts as their salaries rose 12-fold between 1966 and 1982.

Therein lies the issue — this is not illegal. But it raises a whole lot of ethical red flags. You can make the argument that so long as the union is getting the services it pays for — quality legal representation, quality work on investments — that this is legitimate.

But you can bet that this would not be allowed — or would at least be heavily scrutinized — at a public company or government agency. It reeks of nepotism.

For example, Hunter’s daughter Alexis works for Steptoe & Johnson LLP, the firm the union hired during the lockout to file unfair labor practice charge against the NBA with the National Labor Relations Board during the lockout. Before that the league did business with her pervious lawfirm.

The Bloombert report details the union’s connections to a number of Hunter’s relatives. It also notes he made a $2.39 million salary in 2011.

NBPA executive committee member Mo Evans told Bloomberg that nepotism has been discussed by the committee.

Evans told reporters on April 20 that Fisher declined an invitation from the executive committee to defend himself on a conference call with Hunter. Nepotism at the union was among the topics discussed on the call, Evans said.

“Billy answered those questions to our satisfaction, was very open and candid with us, and we were satisfied, and again, the players were disappointed because Derek has yet to address us,” he said.

The executive committee released a statement asking for Fisher to step down and that he is not acting in the best interest of the players. This is getting ugly, and it’s going to get worse before it gets better. And the thing is — and the reason it goes on — is that most of the players could not care less.

Report: Trail Blazers sign president Neil Olshey to contract extension

AP Photo/Greg Wahl-Stephens
Leave a comment

Just after a rumor emerged about the Wizards trying to hire Trail Blazers president Neil Olshey…

Adrian Wojnarowski of ESPN:

It’s nice to be wanted. It always adds leverage in contract negotiations.

Olshey has done well in Portland, building a winner around Damian Lillard and CJ McCollum after LaMarcus Aldridge left. But Olshey’s job will get harder now.

Evan Turner, Meyers Leonard and Maurice Harkless each have another season on the expensive contracts Olshey gave them in the wild summer of 2016. That’ll inhibit flexibility this offseason.

Then, Lillard is set to sign a super-max extension that will take effect in 2021. As great as Lillard is, it’ll be difficult building a contender around someone projected to earn $43 million, $46 million, $50 million and $53 million from ages 31-34. There’s so little margin for error, especially if ownership is less willing to pay the luxury tax than the late Paul Allen was.

But Olshey has earned a chance to handle these dilemmas.

Jazz center Rudy Gobert hits super-max criteria for extension projected to be worth $250 million over five years

Gene Sweeney Jr./Getty Images
2 Comments

Anthony Davis signed a max rookie-scale contract extension in 2015, between his third and fourth seasons. Based on the Collective Bargaining Agreement at the time, the extension called for him to earn a higher salary if he was twice voted an All-Star starter or made two All-NBA teams during his first four seasons. Davis was voted an All-Star starter and made the All-NBA first team in his third season.

Unfortunately for Davis, he missed both honors his fourth year. The All-NBA and All-Star-starter tracks ran independently. Davis couldn’t qualify for a higher max salary by earning one of each.

That cost him $19,683,908 over the four pre-player-option seasons of his extension, which will end next year.

The current CBA’s more significant adjustments to super-max eligibility – changing the years for qualification, using Defensive Player of the Year instead of All-Star starter – obscured a minor tweak. The tracks now run together. A player can qualify with one Defensive Player of the Year and one All-NBA selection. He needn’t achieve two of one category.

So, Jazz center Rudy Gobert – who won won Defensive Player of the Year in 2018 and made All-NBA this year – quietly became eligible to sign a super-max extension in the 2020 offseason. The extension’s highest-allowable value projects to be $250 million over five years. The first four years would follow the structure of the super-max Damian Lillard and the Trail Blazers are set to sign.

Newsflash: Gobert isn’t Lillard.

Gobert is elite defensively and underrated offensively. But paying him $50 million per year from ages 30-34 in a league overflowing with good centers? That’s a recipe for disaster for Utah.

But Gobert earned eligibility. That makes it harder for the Jazz to tell him they don’t deem him worthy. That tension is an unintended consequence of the super-max rules.

There is room for negotiation. In this case, Gobert’s designated-veteran-player extension must be for five seasons and have a starting salary between 30% and 35% of the 2021-22 salary cap. But his salary can increase or decrease annually by up to 8% of his first-year salary. The deal can be partially guaranteed.

Still, the lowest possible designated-veteran-player extension for Gobert projects to be $155 million over five years. If fully guaranteed, that’d be expensive for a player of his age. If not fully guaranteed, the Jazz would get savings only by waiving him, and that’d mean dropping the cheaper latter years.

Because he doesn’t have enough experience to qualify, Gobert can’t sign a super-max extension until the 2020 offseason. He met the award criteria, but a player must have seven or eight years of experience. Gobert just finished his sixth year. He’s also under contract for two more seasons – locked into salaries of $24,758,427 next season and $26,275,281 the following year.

So, there’s time to figure this out.

But this is the most uneasy super-max situation so far – unless Gobert just doesn’t insist on the money. Good luck with that.

Rumor: Wizards interested in Trail Blazers president Neil Olshey

AP Photo/Craig Mitchelldyer
Leave a comment

The Wizards struck out on luring Nuggets president Tim Connelly.

Washington’s next choice?

Ben Standig of NBC Washington:

As for the rumor mill, one name stands out: Neil Olshey.

Numerous sources told NBC Sports Washington of the Wizards’ interest in Blazers President of Basketball Operations

Olshey has done a good job in Portland. He drafted Damian Lillard and CJ McCollum then built a winner around those two after LaMarcus Aldridge left. Trading for and re-signing Jusuf Nurkic to a reasonable contract looks great. Olshey also overpaid Evan Turner, Meyers Leonard, Allen Crabbe and Festus Ezeli, but many teams spent wildly in 2016. It was a weird summer.

The Wizards would do well to hire such a proven executive.

Would Olshey leave the Trail Blazers? Their ownership situation remains uncertain following the death of Paul Allen in October. Wizards owner Ted Leonsis has demonstrated extreme loyalty to his executives.

Portland will also reportedly sign Damian Lillard to a super-max extension – a move that practically must be made, but one that carries massive downside risk. However, if he goes to Washington, Olshey would be trading uncertainty in Damian Lillard’s value on the super-max for certain negative value with John Wall on his super-max extension.

A couple years ago, Olshey signed his own extension through 2021. Maybe he’s ready to move on.

Or maybe he’s ready to use the Wizards as leverage for a raise.

Rumor: Lakers hired Jason Kidd to lure Giannis Antetokounmpo

Al Bello/Getty Images
5 Comments

New Lakers coach Frank Vogel said he wanted Jason Kidd because Kidd is a good coach.

Steve Popper of Newsday:

the person familiar with the Lakers process said something else: that Kidd was brought to Los Angeles to attract Giannis Antetokounmpo to the Lakers when he becomes a free agent in two years when the Bucks star could become an unrestricted free agent.

Things I believe:

1. This plan probably wouldn’t work. Not only does Antetokounmpo appear happy in Milwaukee, he has specifically said he could never see himself playing for Los Angeles. And though I believe Antetokounmpo respected Kidd while Kidd coached him, look at the Bucks now. They’re so much better under Mike Budenholzer. You think Antetokounmpo is itching to play for Kidd again after seeing the other side?

2. The Lakers might just try this wild plan anyway. Remember when they were waiting to hire a coach in 2014 so free agent LeBron James could pick? Aside from signing LeBron last year, who seemingly had his eye on Los Angeles for years and for reasons other than basketball, the Lakers have struck out on star free agents. The franchise is getting desperate.

3. People want to believe the Lakers would do something crazy like this, and that makes the rumor spread faster – whether or not it’s true. The Lakers, because of their stature, tactics and general manager have made many enemies around the league. Plenty of folks are enjoying piling on.