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Steve Ballmer: Clippers will now lose at least $10 million this year

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Considering a $131 million payroll and focus on winning it all this season, we’ll never know if the Clippers projected to be a profitable team this season.

However, start a season with the NBA’s controversy with China and suspend it near the end with the coronavirus, and the Clippers are going to take a big hit.

At least $10 million this year, and maybe much more, is what Clippers owner Steve Ballmer told Bloomberg News (hat tip Sports Illustrated).

“It’ll be eight digits,” he said. “Now you’ve got to start with what we were either going to make or lose before the season started, but net, it’ll certainly be an eight-digit loss for us…

“We’re being diligent about continuing to pay our employees,” he said. “We’re trying to take care of our smaller vendors. We had a t-shirt vendor we had $100,000 committed to for playoff t-shirts. I think it’s important that we pay that money, put it down now, and see what can happen over time since we are in a better position.”

There should be a few notes of context here. First, Ballmer is worth an estimated $50 billion, he is not going to go hungry because of this.

Next (and this is the biggie), the year-over-year losses or profits for a team do not take into account the rising value of the franchise — which has spiked even after Ballmer bought the Clippers for a then-record $2 billion. Forbes estimates the Clippers are currently worth $2.6 billion, which means the Clippers have gained at least $600 million in value in the five years Ballmer has owned the team. Even if the Clippers lost $10 million every year that’s still a massive profit when he sells.

Still, losing $10 million or more is a lot of money.

What Ballmer is talking about is amplified across the NBA and a lot of teams — ones in smaller markets with owners whose pockets are not as deep — are taking big hits, too. It’s the same for the owners of a lot of businesses right now, the coronavirus has taken a real toll on the potential profits and hit the business model hard. It’s also taking a toll on people who work at arenas, and restaurants and bars near arenas, and many other businesses tied to the NBA as well.

Ballmer and his wife Connie have tried to help by donating $25 million to COVID-19 causes.

Report: NBA group stage could include 24 teams

Wizards guard Bradley Beal and Bulls guard Zach LaVine
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The initial report on the NBA resuming with a group stage presented a 20-team scenario. There’d be four groups with five teams each – one from each tier of the current standings:

  • Tier 1: Bucks, Lakers, Raptors, Clippers
  • Tier 2: Celtics, Nuggets, Jazz, Heat
  • Tier 3: Thunder, Rockets, Pacers, 76ers
  • Tier 4: Mavericks, Grizzlies, Nets, Magic
  • Tier 5: Trail Blazers, Pelicans, Kings, Spurs

Teams would play each other team in its group, and the top two finishers in each group would advance to an eight-team tournament (effectively the second round of the playoffs, though without conference splits).

But that format could apparently include four more teams.

Zach Lowe of ESPN:

In brief, per several sources who have seen the league’s proposal: The NBA could take 20 (or 24) teams and divide them into groups

The simplest way to expand to 24 teams would be adding a sixth tier then forming four groups of six. That’d mean adding:

  • Tier 6: Suns, Wizards, Hornets, Bulls

Bleh.

The more games the NBA holds, the more money the league will make. But the more people involved, the more risk of someone contracting and spreading coronavirus. It’s a fine line, and the league has sought a middle ground.

Phoenix, Washington, Charlotte and Chicago strike me as too lousy to include. Those teams are well outside the normal playoff race, and there’s no good reason to believe they would’ve made a late push.

In this environment, they might have shot, though. Coronavirus increases variability. Players have had differing access to resources and differing motivation to train during the hiatus. Once play resumes, positive tests could be scattered randomly. Would anyone view the Suns, Wizards, Hornets or Bulls as deserving of a berth in the eight-team tournament? If one of those four teams qualified, that’d probably just show the setup was flawed.

The fairest way to set the playoffs is with 20 teams, depending on structure. Resuming with just 16 teams wouldn’t be that far behind. The highest financial upside comes with all 30 teams, but that seems infeasible.

Setting the line at 24 teams seems like the worst of most worlds – including four bad teams that wouldn’t generate much interest but would threaten to disrupt everything else.

Michael Porter Jr.: Pray for both George Floyd’s family and police officers involved in ‘this evil’

Nuggets rookie Michael Porter Jr. and Knicks forward Maurice Harkless
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Several NBA players posted about George Floyd, a black man who died after being pinned to the ground by a Minneapolis police officer for about eight minutes.

Nuggets rookie Michael Porter Jr. struck a different tone than most.

Porter:

Knicks forward Maurice Harkless:

Harkless, whose dismay was shared by many, is a seasoned veteran. Porter has made made rookie gaffes.

But I’m uncomfortable criticizing someone for calling for prayer for anyone. For some, prayer can be effective way to cope amid tragedy. Many believe prayer can change the world.

Porter didn’t say prayer alone should be the solution. In fact, he called the situation “evil” and “murder,” seemingly suggesting the need for criminal justice, too.

Basketball Hall of Fame delays enshrining Kobe Bryant, Tim Duncan, Kevin Garnett

Lakers guard Kobe Bryant and Spurs forward Tim Duncan
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The Basketball Hall of Fame originally planned to induct Kobe Bryant, Tim Duncan and Kevin Garnett in August.

But coronavirus interfered.

Jackie MacMullan of ESPN:

Jerry Colangelo, the chairman of the board of the governors for the Hall, told ESPN Wednesday that enshrinement ceremonies for the Class of 2020, one of the most star-studded lineups ever which includes Tim Duncan, Kevin Garnett and the late Kobe Bryant, will be moved to spring of 2021.

Colangelo stressed there will be separate ceremonies for the Class of 2020 and the Class of 2021, even though both events will now be held in the calendar year 2021. “We won’t be combining them,” he said. “The Class of 2020 is a very special class and deserves its own celebration.”

I’m so glad each class will be honored separately. Bryant, Duncan, Garnett and the rest of this class – Tamika Catchings, Rudy Tomjanovich, Kim Mulkey, Barbara Stevens, Eddie Sutton and Patrick Baumann – deserve their own night.

So does Paul Pierce and whoever gets selected in the next class.

Life can end at any moment. Bryant’s death was a tragic reminder of that. But there’s no specific urgency here. The Hall of Fame should wait until it’s safe to hold a proper celebration of this class… then the next one.

NBA being sued for missed rent payments amid coronavirus shutdown

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The NBA has been sued by the owners of the building that houses the NBA Store, who say the league owes more than $1.2 million after not paying rent in April or May.

The league responded by saying it doesn’t believe the suit has merit, because it was forced to close the New York store due to the coronavirus pandemic.

NBA Media Ventures, LLC is required to pay $625,000 of its $7.5 million annual fee on the first day of each month under teams of its lease with 535-545 FEE LLC, according to the suit filed Tuesday in New York.

The NBA entered into the lease agreement for the property at 545 Fifth Ave. in November 2014.

Counting other fees such as water, the owners of the building are seeking more than $1.25 million.

“Like other retail stores on Fifth Avenue in New York City, the NBA Store was required to close as a result of the coronavirus pandemic. Under those circumstances, we don’t believe these claims have any merit,” NBA spokesman Mike Bass said. “We have attempted, and will continue to attempt, to work directly with our landlord to resolve this matter in a manner that is fair to all parties.”

The NBA suspended play on March 11 because of the coronavirus pandemic and faces hundreds of millions of dollars in losses this season, even as it works toward trying to resume play in July.