NBA Capsules: Union says it has 'adequate basis' to question league financials
NEW YORK (AP) — The NBA players' association will keep doubting the league's financial losses, because it made inaccurate projections before.
Doesn't matter, the league says, because those projections have nothing to do with the final numbers it turns over to the union and insists can't be disputed.
Wednesday, Day 6 of the lockout, featured sparring by union and league officials over financial information, a day after a report questioned whether the NBA indeed lost money two seasons ago.
Though the NBA says it lost $340 million in 2009-10, a New York Times blog post Tuesday titled "Calling Foul on NBA's Claims of Financial Distress" called the league "fundamentally a healthy and profitable business" with an estimated operating income of $183 million that season.
Union spokesman Dan Wasserman said the NBA projected a decline in revenues that season but they actually rose, so the final losses should have been much less than the league said.
"In 2009-10, the NBA repeatedly offered projections that league revenues would decline as much as 5 percent, or $180 million, while also projecting losses of $370 million. Revenues were actually up in '09-10 and the revenue projections were off by as much as $200 million. Yet, the loss figures were only adjusted by $30 million. So yes, we feel there is more than adequate basis for questioning their projections and financials," Wasserman said.
Because of the projected losses, the league forecast a steep drop in the salary cap for the 2010-11 season, saying it could fall as low as $50.4 million. Instead, it was set at $58 million after the higher-than-expected revenues following a seven-game finals between the Lakers and Celtics allowed the league to finish slightly up.
But that didn't save the league from the overall losses it says are documented in the data it has handed over to the union.
"For Dan Wasserman to suggest that the league's future revenue projection, made before the start of the 2009-10 season during the worst economy in 80 years (which, by the way, turned out to be off by only 3 and a half percent) somehow relates to the veracity of our year-end audited financials is absurd," NBA spokesman Mike Bass said. "Mr. Wasserman's questioning of the league's audited financials based on this missed projection is a complete non-sequitur."
The Times story was based on estimates prepared by Forbes and Financial World magazines. Bass said Tuesday the information was inaccurate, saying Forbes "does not have the financial data for our teams and the magazine's estimates do not reflect reality." The league added it believed Financial World had gone out of business.
"Precisely to avoid this issue, the NBA and its teams shared their complete league and team audited financials as well as our state and federal tax returns with the players union," Bass said. "Those financials demonstrate the substantial and indisputable losses the league has incurred over the past several years."
The league projected losses of $300 million last season after losses of several hundred million dollars in each season of the CBA, which was ratified in 2005. Owners locked out the players last week after they could not agree on a new deal.
The union has frequently questioned the league's financials, acknowledging losses but not anywhere near what the NBA has stated. The players offered to give up $100 million in salary costs annually in a recent proposal for a new five-year deal, believing that was more in line with the true losses.
The story was also skeptical, saying perhaps about $250 million of the purported losses results "from an unusual accounting treatment related to depreciation and amortization when a team is sold." The NBA responded that it uses the conventional and generally accepted accounting (GAAP) approach and does not include purchase price amortization from when a team is sold, with Bass saying "put simply, none of the league losses are related to team purchase or sale accounting."
The league followed up with another response Wednesday, arguing that "the notion that $250 million of losses is due to 'accounting procedures' is patently false and so vague an assertion as to be meaningless as a matter of financial analysis."
Because the NBA had such a successful 2010-11 season, with growth in TV ratings, and merchandise and ticket sales, the league has struggled to convince fans it needs the massive financial changes owners are seeking from the players.
But Bass said the league never had a positive net or operating income in the last CBA, and that 11 teams had net losses of more than $20 million in the 2009-10 season. He added 23 of the 30 teams lost money that season. Forbes estimated there were 17.
"We do not know how they do their calculations," Bass said.
Hornets offer lockout options for ticket holders
NEW ORLEANS (AP) — The New Orleans Hornets are promising season ticket holders who are concerned about the NBA lockout that they can get their money back — with interest — if the work stoppage wipes out any games next season.
The lockout comes at an inopportune time for the franchise, which currently is owned by the league and is in the midst of a season ticket drive seen as a key step toward attracting new owners who would keep the Hornets in Louisiana.
So team officials hope they can assuage fans' concerns about tying up money this summer in season tickets with no way of knowing when the NBA might start playing games again.
"It is our goal to continue to reward season ticketholders for their dedication and loyalty to the team and our community," Hornets president Hugh Weber said Wednesday.
The NBA's owners began locking out players on July 1, the day after the league's collective bargaining agreement expired.
The new Hornets initiative essentially offers varying rates of interest on top of refunds for cancelled games, with fans who commit to keeping money in their Hornets accounts long-term getting a substantially higher return.
One option is for fans to get cash refunds, plus 1 percent, on tickets for any cancelled games.
However, if fans choose to take refunds in the form of credit toward purchases of tickets for the playoffs or future seasons, they can receive an additional 10 percent, plus another 5 percent toward the purchase of tickets for charities.
Weber stressed that those who choose refunds in the form of credit on their accounts "will also help send thousands of underprivileged children from throughout the region to Hornets games."
On June 8, the Hornets announced a drive to hold 100 social gatherings in 100 days in the homes of New Orleans-area business and community leaders, with the goal of increasing their season ticket base to 10,000 — a figure generally seen by the NBA as an indication of a financially healthy franchise. Jac Sperling, the NBA's appointed governor of the Hornets — and a New Orleans native— has said the hope is to provide confidence to prospective buyers that the NBA franchise can at the very least stay afloat, if not thrive, on the bayou.
As of Wednesday afternoon, the Hornets had sold 8,424 season tickets for 2011-12.
Meanwhile, because team officials are currently unable to have contact with players, they have started organizing a series of community service and charity events that will feature members of the coaching and front office staff.
Between the ticket drive and community relations events, it appeared unlikely the Hornets would consider furloughs or other types of staffing cuts during the early stages of the lockout. Weber said team policy forbids discussing publicly how the lockout would affect the team's operations or roster plans. However, speaking generally, Weber said that the Hornets are not diminishing any resources they've dedicated to meeting previously stated season ticket sales goals.
-- Brett Martel
Pacers make it official, Vogel new coach
INDIANAPOLIS (AP) — Frank Vogel played the waiting game to become head coach with the same confidence that made him a favorite of both fans and players during his half a season carrying the interim tag.
"They never told me I wasn't going to be the coach, so I just tried to carry myself like I was," the 38-year-old said Wednesday after the Pacers officially made him the head coach.
Vogel took over for Jim O'Brien at the middle of last season, went 20-18 to close the regular season and led the team to its first playoff berth since 2006. He didn't worry about the interim tag until after the season ended.
"Once I took over, I really didn't have time to think about big-picture stuff," he said. "I was just trying to win the next day and make sure I was prepared the next day. Once it all ended, and I realized how close I was, it was just exciting, and I was just hopeful and trying to carry myself the right way."
Vogel takes over a team that has plenty of young talent, playoff experience and significant salary cap space, should the labor situation get sorted out. Danny Granger, at 28, is the oldest starter. Roy Hibbert just finished his third year, point guard Darren Collison and forward Tyler Hansbrough were second-year players, and Paul George was a rookie. The team added local star George Hill in a draft-night trade.
Pacers president Larry Bird made Vogel the favorite to get the job from the beginning of the search, then took his time making the decision official.
"As I stated after the season, I was in no hurry regarding the coach, mainly because I knew I had a good candidate in Frank," Bird said. "But we wanted to get through the draft, and I wanted to have numerous conversations with Frank about a staff that will cover all areas. I feel strongly he is doing that and this coaching staff, as a whole, will help this franchise continue to move forward."
Early in his tenure as interim coach, Vogel said Eastern Conference powers Boston, Miami and Orlando wouldn't want to play the Pacers when — not if — they made the playoffs. He introduced "smashmouth" ball, an approach that focused on attacking the basket instead of O'Brien's perimeter-oriented game. He moved Hansbrough and George into the starting lineup and helped restore center Hibbert's confidence.
His team quickly bought into his approach and the changes.
"I really felt it build up right from the beginning," Vogel said. "I started implementing changes right away. I think there was a belief in what we were doing."
As the Pacers started winning, calls to remove Vogel's interim tag grew.
"I'm overwhelmed," he said. "Every person in this building has been supportive of me, and I'm very grateful for that. I'm grateful for the fan support, and I'm grateful for the relationships that I've built this year and continuing to grow them."
The Pacers played the Chicago Bulls in the first round of the playoffs, losing the series 4-1.
"You find out about people in tough times like that, high-stakes environments like that," Vogel said. "You never know what you're going to see. I was very excited about how this team performed in the playoffs."
Vogel said the playoff berth was an important part of setting up the team's future goals.
"Any team that's trying to reach an elite level just needs to feel it," he said. "You can hear all the stories in the world, but until you feel it, you can't really reap the rewards of taking that step. I think we did that this year."
-- Cliff Brunt
Timberwolves F Beasley ticketed for marijuana
MINNEAPOLIS (AP) — Michael Beasley's first season in Minnesota was quiet off the court, an encouraging sign for the Timberwolves as they hoped to see him mature and emerge as a go-to player for a franchise that desperately needs one.
His first full offseason here isn't off to a good start.
Beasley was ticketed for possessing marijuana and speeding in the Minneapolis suburb of Minnetonka last week, police said on Wednesday.
Capt. Scott Boerboom said that an officer stopped Beasley around 3 a.m. on June 26 on Interstate 394 after clocking him going 84 mph in a 65 mph zone. He said the officer smelled a strong odor of marijuana coming from the car.
The officer allegedly found 16.2 grams of the drug in a plastic bag under the front passenger seat of Beasley's car. Beasley told police the marijuana was not his, but belonged to a friend whom he had just dropped off. According to the report, Beasley cursed when an officer pulled out the bag.
The possession charge is a petty misdemeanor that carries a fine of $128.
The Timberwolves said they could not comment during the league's lockout, and The Associated Press left a message for Beasley's agent, Jeff Schwartz.
NBA spokesman Tim Frank said the league's anti-drug agreement, including testing and penalties, is not in effect during the lockout so it's unclear what will happen if and when owners and players reach agreement on a new labor deal. Under the previous collective bargaining agreement, Beasley would have faced a five-game suspension if found guilty of his third marijuana-related violation.
Whatever happens, the traffic stop was a discouraging sign for a player who appeared to be putting his troubles behind him. Beasley's NBA career started in Miami, where he acknowledges violating the drug policy twice. He entered a treatment facility in Houston in 2009. With two young children in Miami, Beasley spoke of settling his life down and staying away from the glitzy scene on South Beach.
He was traded to the Timberwolves last summer to help clear room for the Heat to land LeBron James and Chris Bosh.
Timberwolves President David Kahn was fined by the league after he said in a radio interview that Beasley was "a very young and immature kid who smoked too much marijuana" while he was playing in Miami, but Beasley stayed out of trouble in his first year up north, moving into a house on the outskirts of the Twin Cities suburbs becoming a regular on the golf course.
On the court, Beasley averaged a career-high 19.2 points per game, putting together stretches of dominance that showed why he was the No. 2 overall pick in 2008. He topped 25 points 10 times in a 13-game stretch to finish November, including scoring 42 against Sacramento and 35 against the Knicks on back-to-back games.
But he badly sprained his ankle in December, an injury that recurred several times throughout the rest of the year and stunted his development as a player.
Beasley has spent much of the summer working out in Los Angeles with teammates Wes Johnson and Derrick Williams. Kahn said Beasley also is working with former Lakers player Norm Nixon, who is serving as something of a mentor for him on and off the court.
"They're working on everything, basketball and even some things off the court," Kahn said in June.
Teammates spoke glowingly about Beasley's light-hearted demeanor in the locker room and scoring talents on the court, but some observers wondered if his days in Minnesota were numbered when the Wolves selected Williams with the No. 2 pick in the draft. The Arizona forward has a similar skill set, with the ability to play both the small forward and power forward, shoot from outside and break down defenders off the dribble.
Kahn laid that speculation to rest shortly after the pick, saying emphatically that he wasn't going to trade Beasley and was anxious to see how the two super-athletic scorers would play together.
But Kahn also made it clear in his season-ending press conference that he expected to see more growth from Beasley heading into next season, both as a person and as a player.
"Michael has been, in many ways, a positive force on this team," Kahn said. "Especially in the locker room. He's very well-liked by his teammates. He's a very boisterous, up-beat person. And people, they gravitate to that.
"And it's important to have people like that in the locker room. But ... we will see. I think Michael will understand that me saying we will see doesn't mean I doubt him. But, show us."
-- Jon Krawczynski
James increasing involvement in education causes
LeBron James is spending part of his summer thinking about school.
The Miami Heat star is changing the scope of his annual bike-a-thon in his hometown of Akron, Ohio, scrubbing its former "King for Kids" moniker to now call the event "Wheels for Education" and building it around a two-week camp featuring reading and technology classes for 360 children about to enter third grade.
This year's bike event, a 2.6-mile ride where James will be accompanied by 20 selected high-school students, is Aug. 8.
"We're looking to continue to create awareness for these young kids," James, who founded the bike event in 2005, told The Associated Press. "Not only in this community, but in the world. Me having an influence with my voice, I'm blessed. So the No. 1 thing is creating awareness and I think this gives us an opportunity to make sure these kids not only get educated but have fun and being around people that can have a positive influence in their life."
James has said several times that ensuring children get through school is one of his biggest away-from-basketball priorities. He did not attend college, jumping directly to the NBA after finishing high school in 2003. He has already partnered with State Farm on an initiative called "26 Seconds," a nod to the statistic that, on average, one child drops out of school within that timeframe.
In a telephone interview from Akron, where he's spending part of his summer, James cited research suggesting third-grade academic achievement can be an indicator of how students will fare through the remainder of their scholastic careers. The Wheels for Education program will be concentrated on kids who were like James — hailing from single-parent homes and sometimes simply needing a bit of extra help.
"What helped me in school was sports," James said. "When I was 8, 9, that was the first time I started playing organized sports and I had coaches around me that stressed education and not being allowed to play if we weren't doing our schoolwork or being at school on time, things like that."
As for the questions that kids ask — and they do — about why they need college if James didn't, he has a quick reply for them.
"I'm still learning," James said. "Every day. I'm learning business. I'm learning finance. I'm learning a lot of things that help me in everyday life. I'm doing a lot of reading and I'm still improving as a student, even though I am a professional athlete."
Once a child completes the two-week camp this summer, he or she will receive a laptop, school supplies and a bike, made possible by HP, Nike and the LeBron James Family Foundation, among others. Plans call for the kids involved to continue getting support through their high school graduations, through another partnership with the Akron Public Schools.
"I've had the pleasure of watching LeBron grow as a player, and mature as a philanthropist," Akron Mayor Donald Plusquellic said in a press release. "His new commitment to the Akron After School program is an investment that will pay dividends years to come because there is no investment more important than in the children whose circumstances he knows so well. ... He continues to be a role model for our youth for his accomplishments on and off the court."
James said one of the program's goals for this year is to have the third-graders all reading at what would be at least a fourth-grade level. He's also busy with a number of other initiatives with kids this summer, mainly revolving around basketball: The LeBron James Skills Academy, which brings the nation's top 80 high school players, opened in Akron on Tuesday.
"I let them ask me whatever they want to," James said. "Everything. Using my influence, using my experience, I can help them. And it's not always about basketball."
Also on James' docket this summer: His "King's Academy" for kids age 7-17 starts in San Diego later this month, and he'll be on a Nike trip to China in August.
It sounds busy, but after last summer's whirlwind, this summer is downright breezy for James.
The one-year anniversary of James' decision to leave the Cleveland Cavaliers and join the Heat is Friday. It seems so long ago now.
For one, the NBA just entered a lockout, meaning next season is officially in jeopardy. A deal between owners and players could not be reached before a June 30 expiration of the most recent labor deal, and the sides are billions apart in their financial proposals. And for the Heat, the first season of James, Dwyane Wade and Chris Bosh together as Miami teammates ended with a loss in the NBA finals.
James averaged 26.7 points, 7.5 rebounds and 7.0 assists for the Heat during the regular season, and had the league's hottest-selling jersey. When the NBA comes back, James said he will be rested and ready.
"If you compare this summer to last summer, it's night and day," James said. "I know I have a lot of work to do, on the court and off the court, this summer. I'm going on to another challenge, and I'm looking forward to it."
-- Tim Reynolds
WNBA
Brunson is first Lynx player to win player of month
MINNEAPOLIS (AP) — Rebekkah Brunson is the first Minnesota Lynx player to be named Western Conference player of the month.
Brunson led the WNBA with 11.7 rebounds per game in the month of June and also averaged 12.1 points to help the Lynx get off to a franchise-best 6-3 start.
Brunson tied a league mark with six straight double-doubles, highlighted by 22 points and 14 rebounds in a win over Seattle on June 9. She received the honor Wednesday.
Brunson says it is an honor to be recognized as the conference's top player for the month of June. She says the team success the Lynx are enjoying makes it even better.
Lynx offer state workers $5 tickets
MINNEAPOLIS (AP) — The Minnesota Lynx are making an effort to help state workers laid off during the government shutdown. The Lynx are offering displaced state employees $5 tickets to Saturday's game against the Connecticut Sun.
State employees interested in attending the game must bring a state I.D. badge or 2011 pay stub to the Target Center box office to purchase their tickets.
Lynx Chief Operating Officer Conrad Smith says the team wants to provide an affordable entertainment option to those who are struggling with lost income during the shutdown.
The Lynx will head into the game with a 6-3 record, the best nine-game start in franchise history. Last week they beat Tulsa by 30 points.
International
Croatia hands U.S. first loss in U19s
RIGA, Latvia (AP) — Toni Katic scored 21 points to lead Croatia to an 87-85 victory over the United States on Wednesday in the second round of FIBA's Under 19 World Championship, the defending champion's first loss in the tournament.
Jeremy Lamb of NCAA champ Connecticut had 25 points for the U.S. (5-1), which had already clinched a berth in the quarterfinals that start Friday.
The U.S. trailed 70-61 after three quarters but went on a 19-5 run over the first 7 minutes of the final period. Lamb hit a jumper with 24.9 seconds left to bring the U.S. within 86-85. Katic made one free throw with 20.4 seconds left to give Croatia (4-2) an 87-85 lead and Lamb missed a jumper in the final seconds.
Patric Young of Florida had 15 points and eight rebounds for the U.S.
Elsewhere
NBA, college basketball player Gilliam dies
PITTSBURGH (AP) — Armen Gilliam, who was part of the UNLV Runnin' Rebels basketball team that made a run to the Final Four in 1987 and played for several NBA teams, has died. He was 47.
The Allegheny County Medical Examiner's Office said Wednesday that Gilliam died Tuesday night at the LA Fitness gym in Bridgeville while he was playing basketball.
The office said the cause of death has not yet been determined pending an autopsy which is likely to be completed later Wednesday.
After college, the Phoenix Suns drafted Gilliam as the No. 2 overall pick in the first round of the draft. Besides the Suns, Gilliam also played with the then-Charlotte Hornets, Philadelphia 76ers, New Jersey Nets, Milwaukee Bucks and Utah Jazz. He retired in 2000.
"We are deeply saddened to learn about the loss of Armen Gilliam," said Rod Thorn, president of the 76ers. "He was a hard-working, physical player during his distinguished 13 years in the NBA and we are proud of the contributions he made to the Sixers from 1990 to 1993.
"On behalf of the entire Sixers organization, we send our deepest condolences to the Gilliam family during this very difficult time."
Nicknamed "The Hammer," Gilliam was the leading scorer on the 1987 UNLV team coached by Jerry Tarkanian.
In a statement released by UNLV, Tarkanian, who coached basketball there from 1973-1992, called him one of the best players the university ever had.
"In my ratings, I had Larry Johnson No. 1 and Armen No. 2. He was such a great person. Everybody loved him and he loved everybody," Tarkanian said. "He was such a gentle person and such a caring guy. I am all shook up over it. I think the world of him and am just really shocked."
Gilliam's No. 35 UNLV jersey was retired during a halftime ceremony at the Thomas & Mack Center in November 2007. He became the eighth player in the program's history to receive that honor.
He played at UNLV from 1984-87 and was a key member of UNLV's second NCAA Final Four team in 1987. That team finished the season with a 37-2 overall record and was 18-0 in Big West Conference play.
Gilliam coached and played for the Pittsburgh Xplosion in the American Basketball Association in 2005 and 2006. He also coached Division III Penn State-Altoona from 2002-05.
Born as Armon Louis Gilliam, he later changed the spelling of his first name to Armen to better suit the pronunciation of it.
"On behalf of the entire Phoenix Suns family, I'd like to express our sadness at the news of the passing of Armen Gilliam and offer our condolences to his family," Suns President Lon Babby said in a statement.
"Armen will always have a place in Suns history as only the second No. 2 overall pick for the franchise, but the rugged, tough enforcer known as 'The Hammer' on the court will be remembered by his former teammates and our fans for his easy-going nature off the court."
