Malcolm Gladwell on the Nets, Bruce Ratner and the Lockout
Renowned writer Malcolm Gladwell has a tough time seeing the owners' side in the NBA lockout, believing that NBA teams should be seen as luxury items, not businesses for profit. In his second piece for Grantland.com, Gladwell takes a look at the Nets, and whether or not they're really making money.
David Stern says that Bruce Ratner "lost several hundred million dollars" on the Nets, but Gladwell notes how much Ratner has benefited from owning the team (and using them to purchase the Atlantic Yards development), and how much money he's bound to make in Brooklyn, with Mikhail Prokhorov taking over the project "with explosive profit potential."
As Gladwell puts it, the economics of basketball teams are about a lot more than basketball.
- The Nets and NBA Economics - Malcolm Gladwell - Grantland
- What kind of business are the Nets in? - Henry Abbott - TrueHoop
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Gladwell's article is excellent
we might lose a season over this nonsense
The idea that owners have no right to profit is RIDICULOUS
some of the owners have very significant portions of their wealth invested in the teams.
They could be making much more dough elsewhere… and if they did, who would pay the players millions of dollars, guaranteed no matter how injured or lazy they get?
Without owner profit, the system will completely fail.
I wouldn’t make the argument, but if he’s going to insist its enough for owners to have emotional benefits of ownership, one could argue its plenty for players to make a living playing a sport they are supposed to, and insist they do, love… and keeping a lot more excitement in their lives much later than the general population…and comraderie, and a healthy lifestyle.. and and…
JJ for 3!
The idea that owners should be assured profit is insane.
Failure comes with the territory of running a business.
yes. i agree owners cannot be assured profit
but right now they are trying to get a deal more likely to turn profit. In this guy’s article from August, he suggests they don’t need to make a profit. He seems to think that does not matter because they are rich and sports teams should be like toys.
Ideally, owners will profit and the aim of the league’s structure should be to make it likely for owners to profit.
No guarantee.
JJ for 3!
Gladwell only says...
that the risk of investment should stay with the capital holders, not those who are not in control of the capital. The argument is consistent with the idea that taxation is only fair when there is representation. In other words, if you’re going to take my money, I should have some say in how it is spent. The NBA owners want to take more of the money earned by the players while refusing to allow them a partner’s say in how that money is spent. Your argument, Paul, is the old Reaganomics supply side, trickle down theory. We now know that this current generation/iteration of capital holders are not interested in raising all boats, only their own.
T O' NY
by T of NY on Sep 26, 2011 1:18 PM EDT up reply actions 3 recs
Are you referring to the very end of the article ?
NetsDaily is really very good. Even better is the brilliantly obsessive coverage of the Atlantic Yards project at Norman Oder’s Atlantic Yards Report, in which every twist and turn in the entire story has been faithfully and astutely chronicled. I could not have written this without Oder’s help.
"brilliantly obsessive"
Obsessive is right.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 3:16 PM EDT up reply actions
Net Income, if you turn out to be Norman Oder
My head would explode scanners style. Seriously, that would be such a double life. I mean, if that’s the case how come YOUR head hasn’t exploded?
Also, I keeeed I keeeeeeeeeed.
Keep up the righteous Nets work, which is healthily obsessive and ultimately awesome.
Gladwell has done a solid job giving us another way to look at the economics of basketball.
One can’t help but compare the NBA lockout to the NFL lockout of this past summer and think that the NBA owners have been more successful in presenting their skewed version of poverty than the NFL owners were. Both groups were fighting a battle that centers on future profits. Whereas the NFL owners’ greed was naked and obvious, due to the unprecedented financial success of the sport, NBA owners were smart enough to make their argument during a relatively slack earnings period. Gladwell’s argument that a sports franchise is a luxury item is an apt comparison. However, another way to look at it is as an investment, such as real estate or the stock market. The only reason the owners have been able to get away with their argument is that not enough of the general public or even the sports fans are sophisticated enough to appreciate that ALL investments go up and down in terms of value. When one purchases an investment, there are two variables to be accounted for: 1) sunk costs and 2) the vagaries of changing conditions. In the case of sports franchises, sunk costs are represented by the capital needed to maintain payroll, the playing arena and other operating costs. Each investor well understands that changing conditions make the investment anything but a sure thing. In the instance of both the NFL and the NBA this year, though, the owners have taken a notion that they should not have to risk even the changing conditions portion of an investment. In other words, they want to guarantee their return on capital no matter what, even at the expense of their personnel. To clarify, now the players are forced to bear more of the risk of the investment than has traditionally been expected. This is a revolutionary, not evolutionary, change in investment thinking. This particular issue is why labor unions came into being in the first place. Unfortunately, two of the more prominent unions in the country have failed to live up to the defense of this onslaught on economic theory. One wonders if more traditional employers will be emboldened to start more systematic grab backs of hard won victories from the labor force of the regular work-a-day world.
T O' NY
by T of NY on Sep 26, 2011 1:11 PM EDT reply actions 1 recs
Gladwell is an idiot.
He has a wonderful knack for seeing (and telling) only part of the story.
I mean, is it really news that owners leverage their basketball teams for other purposes? Of course not. Gladwell seems not to realize that players do exactly the same thing. After all, Michael Jordan leveraged his NBA play into gigantic fees from Nike, Hanes, etc. to promote their products. And yet we are supposed to be buy Gladwell’s idiotic idea that the owners are being offensively greedy here?
The owners and the players are both to blame for the labor situation. Telling one one side of the story is idiotic when the other side is clear as day, not to mention bad journalism.
^Didn't know Dan Gilbert was a ND'er
Dr. J~Super Buck~Draz~JKidd~Deron
by NJ4Life on Sep 26, 2011 1:47 PM EDT up reply actions 3 recs
NBA owners make their income off of other business, and not every player has endorsement deals like MJ did. Don’t bound off into the land of hyperbole.
212sports.com/pros/nets
by danejh on Sep 26, 2011 1:48 PM EDT up reply actions 1 recs
You're right that both parties have a hand in this current situation...
but the owners have been in control of the capital and the decision making all along. If a regular working stiff spends beyond his or her means, creditors call in the chips and force that person to make payment or risk repossession of major purchases. In this instance, owners are sophisticated business people who have a great deal of experience with the issues of big business and making long range forecasts and long term financial decisions. If they put themselves in this hole, it is not the players’ fault.
T O' NY
by T of NY on Sep 26, 2011 1:51 PM EDT up reply actions 1 recs
It's the players problem and they do get some blame
A player like Danny Granger will demand top pay, leaving a owner to ask himself to take that loss and start over with little profit or resign him for some continuity ( marginal profit).
The league should join and give players grade on which they (players)should be paid.
by Zartan on Sep 26, 2011 5:09 PM EDT via mobile up reply actions
You think the front offices of the teams...
don’t do a comprehensive evaluation of the worth of a player and then decide how much money they want to spend on that player? How stupid do you think the owners are? Granger is a bad example for your point. He is not Kobe or LeBron and would not hold any franchise hostage. Your argument doesn’t make much sense to me.
T O' NY
If they put themselves in this hole, it is not the players’ fault.
Comments like this by many people on many sites just baffle me.
So since the owners F’ed up massively on the last CBA, they aren’t allowed to change it to correct the errors of the last one, maybe even win this one to make up for lost ground?
Ridiculous.
by vincecarter4pres on Sep 26, 2011 5:22 PM EDT up reply actions 1 recs
The CBA...
isn’t the point of Gladwell’s argument. Focus on the burden of risk going forward. That is the point of Gladwell’s argument.
T O' NY
As a fan, I want the owners to be saved from themselves.
I don’t want our team to be saddled with a contract like Outlaw’s and Petro’s and even Farmar’s while good free agents and lopsided trades fueled by monetary issues are there to be made and we’re handcuffed to uber scrubs.
I don’t work in the Nets FO, I am a fan on a website. I cannot make decisions for this team, I can only enjoy discussion of possible scenarios on sites like this with fans like yourself.
NBA FO’s are notoriously stupid a lot of the time and I want our team to have an out, a idiot proofing built in to eliminate the severity of mistakes.
I’m arrogant enough to think I know more about basketball and building a NBA team, along with knowing the CBA and understanding risk to reward and financial ramifications of moves for the long and short term and player and asset value along with player evaluation and if I actually talked to players an idea of psychological fit and drive and personal character to assume I can run an NBA team better then 75% of real life NBA general managers and team presidents.
But all that nonsense I just spewed doesn’t make it reality and I’m stuck with the John Hammonds of the world ruining my favorite sport and the product of professional basketball.
I’m stuck with the Avery Johnson’s of the world inking the Outlol’s of the world and publicly pining to sign even more mediocre players like Thad Young to cap crippling, championship aspiration soul crushing contracts and I can’t do anything but sigh and rant on a website and to my friends at the bar who aren’t Knix fans.
New CBA save these owners from their FO’s stupidity!
I don’t even care much about the profits and how they’re split.
I just want a better system and in turn superior entertainment with a touch more parity.
Exorcise the demons CBA!
by vincecarter4pres on Sep 26, 2011 6:01 PM EDT up reply actions
big guaranteed contracts are an obvious problem
but the general idea from Stern and the owners that a) the NBA is unprofitable and b) its unprofitable because the players make too much is ridiculous. if the NBA was truly a bad business model, these guys would and should be more creative in finding solutions. There’s no doubt they’re allowed to make a better deal for themselves, but they have to stop acting like they’re victimized by the players. especially when, as the Gladwell article points out, many of these guys get into ownership as part of a larger business plan.
Totally Agree, But you also forgot
that with the minimum salary where it was and some teams going over the regular max, some overpayment is somewhat required by teams not at the maximum…at least sometimes.
JJ for 3!
There's 30 some odd owners out there all of whom are billionaires
and set for life. Your point that the upper echelon of players will make enough money is fair, but what about the other 500 guys? There’s a reason why Derek Fisher and Roger Mason Jr. are the ones leading the player contingent and not Kobe or LeBron.
by RoBo5 on Sep 26, 2011 3:47 PM EDT up reply actions 1 recs
They are not all billionaires
I think it's fine.
by NetsMets4Life on Sep 26, 2011 4:06 PM EDT up reply actions
12 NBA owners made the recent Forbes list of most wealthy Americans...Of course Prokhorov didn't make the list because he's Russian...
A dozen NBA owners, including its newest one, are among the richest Americans on the Forbes 400 List.
No. 23 Paul Allen, Portland Trail Blazers, $13.2 billion
No. 60 Richard DeVos, Orlando Magic, $5 billion
No. 75 Mickey Arison, Miami Heat, $4.2 billion
No. 107 Stan Kroenke, Denver Nuggets, $3.2 billion
No. 159 Tom Gores, Detroit Pistons, $2.5 billion
N0. 171 Mark Cuban, Dallas Mavericks, $2.3 billion
No. 242 Glen Taylor, Minnesota Timberwolves, $1.8 billion
No. 273, Herb Simon, Indiana Pacers, $1.6 billion
No. 293, Dan Gilbert, Cleveland Cavaliers, $1.5 billion
No. 293, Michael Heisley, Memphis Grizzlies, $1.5 billion
No. 293, Donald Sterling, Los Angeles Clippers, $1.5 billion
No. 309, Joshua Harris., Philadelphia 76ers, $1.45 billion
There are minority owners that made the list, like Patrick Soon-Shiong of the Lakers ($7 billion).
by M I K E on Sep 26, 2011 4:27 PM EDT up reply actions 3 recs
He just said he got it from Forbes...
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:13 PM EDT up reply actions
Why would Forbes focus on NBA in their richest 400 Americans list?
I thought M I K E edited out the NBA owners, but then they would be listed by the companies they own, not their NBA hobby.
Thts in a quote box
soo… im guessing he copied from somewhere, which he said was Forbes
or were you being sarcastic? i feel like you might have been
Nets Mets Giants ALL DAY
kind of have to agree
he’s a great writer and makes great observations but tends to over-simplify things. crime decreased in NYC cause we painted over graffiti! sure
by sheepareevil on Sep 26, 2011 5:44 PM EDT up reply actions
owning an NBA team is not going to pring quick profits
This has to be a long term investment 10-20 years. The real revenue comes in the playoffs and winning championships. Proky will turn a profit because he bought in at the right time. Other new owners will not have the luxury of having a new area in the largest city in the world. Ratner really didn’t save money by dropping VC and RJ now that both opted out of their contracts before this summer. DH,VC,RJ,Brook would have been a good team for the last 3 yrs
66-win Cavs team lost money.
the structure was broken… even if winning.
JJ for 3!
They should have a new clause in the cba.
That makes it a rule that if someone is buying a team they must have a high net worth. This will enable owners to treat teams like a hobby rather than a main source of income. I’m not saying all must have prokys money but maybe a net worth of a billion ?
by no show net fan on Sep 26, 2011 2:38 PM EDT reply actions
The longer and longer nothing happens the more I am unhappy and worried.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 3:17 PM EDT up reply actions
If this lockout is going to be resolved in time for a full season...
it will get done at the last possible moment…
That is why I’m still optimistic about this year…
IDIOTS
The idiots here are the players and the owners. We have already lost half the pre-season, with the rest likely to go by the end of this week. What are these IDIOTS thinking? I am disgusted with the lack of progress in negotiating a settlement. Shame on both sides, they are screwing us fans.
Paul from Sunny Delray Beach, Florida
I hear you Paul...
It’s very difficult to pick a dog in this fight…
It’’s like going to lunch with Bill Gates and Warren Buffet and you end up picking up the tab…
by M I K E on Sep 26, 2011 3:32 PM EDT up reply actions 1 recs
In other news
Brooklyn Nets is trending on twitter. We’re getting so much buzz, damn you nba lockout
by djeterfan on Sep 26, 2011 3:55 PM EDT via mobile reply actions
There is a deal out there to be made, folks-
Via ESPN:
In negotiations, the players’ union had offered to reduce its percentage to as much as 54 percent, with the stipulation that a mechanism would be instituted to reward the players if future revenue increased, the source said.
The owners agreed to try to come up with a mechanism to solve their issues without adding a hard salary cap before the next meeting, according to the source. [emphasis mine] The owners, who have claimed they lost $300 million last season, have been seeking a hard cap — a condition the players have been unwilling to accept.
I’m %100 positive there will be a season. Everything you hear from owners and players is posturing. They don’t want to miss the season with NBA popularity at great levels, and a big influx of talent coming into the league in the coming years (there are more kids than ever playing ball).
The owners are going to come out of this with better conditions for themselves, and the players are going to get to pretend they got what they wanted by keeping a soft cap.
I believe we'll see a season too, but I doubt a full one, probably around 70 games.
by vincecarter4pres on Sep 26, 2011 5:27 PM EDT up reply actions
What reason would have you think we won't?
by vincecarter4pres on Sep 26, 2011 5:35 PM EDT up reply actions
First of all, I asked you a question so you ought to answer it before you turn it around on me.
Second, lost games = lost revenue, lost interest, etc. The owners may say that they are willing to shed blood to get what they want but that’s what everybody says until the deal gets done. It is simple posturing.
There's definitely posturing and I think they're getting close...
But by the time they fully, truly finalize every detail of the new CBA and give teams a week to go over it with a fine toothed comb and a decoder ring, then a free agent period, then a watered down version of training camp, I think you’re looking at most of November thrown out the window.
Probably right in time for the new Thanksgiving games.
I seriously hope I’m wrong, I love opening week and it’s been basically tradition for me for years now to watch the games on Halloween while answering the door for the local kids.
by vincecarter4pres on Sep 26, 2011 6:05 PM EDT up reply actions
OT- We are getting some respect over on the realgm.com forums with regards to where Howard will land
A good amount of people believe Nets (even some laker fans!). I feel like we are the frontrunner just like the Knicks were in the Mela situation. Three years ago we wouldn’t get a single vote in this thing.
http://forums.realgm.com/boards/viewtopic.php?f=6&t=1132573
by dwill8brooklynbound on Sep 26, 2011 5:14 PM EDT reply actions
Did they see the video of Dwight sating he wants to play with Deron and Morrow?
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:20 PM EDT up reply actions
Haha yeah. NyceEvo got all mad at me lol.
And my boy Trader Joe is regular poster on this site as well, he goes by a different handle here though.
by vincecarter4pres on Sep 26, 2011 5:37 PM EDT up reply actions
Chicago will run away with that poll within a day or two, book it.
RealGM has a huge populous of Bulls fans and they have become incredibly arrogant super homers after this season.
by vincecarter4pres on Sep 26, 2011 5:29 PM EDT up reply actions
The nets were featured on CNBC today about marketability and brand equity
I didnt see the whole thing so I cant offer much insight but the nets were featured on CNBC on live Daytime TV
The realist keepin it real amongst the surrealists
R.I.P. Big Homey Nate Dogg: "Cuz Iiiiiiiiii have ne-evv-ver met a giiiiiiiiiirrrrrrllllllllllllllllllll tha-at I loved in the whole wide wooorrrlllllddddddd"
by starbury_to_s-jaxci2000 on Sep 26, 2011 5:24 PM EDT reply actions
WTF...they are calling the whole announcement an "airball"
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:26 PM EDT up reply actions
Wow these guys are straight up trashing the Nets
saying we have zero brand equity and we missed a chance to start over.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:28 PM EDT up reply actions
Rovell tweet
darrenrovell darren rovell
Not getting rid of the name Nets is a major mistake. Chance to rebrand themselves, get attention.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:30 PM EDT up reply actions
NOPE
we’ve been branding this name for years now, and it’s just been starting to pick up steam. change the name now, and you lose all that.
by sheepareevil on Sep 26, 2011 5:46 PM EDT up reply actions 1 recs
I know Rovell is one of the best in the business but
a lot of these writers had no idea how obvious it was that they would still be the Nets. This was a surprise to most of them. But for guys like you and me, we knew this for a while.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:51 PM EDT up reply actions
yea exactly
I trust our opinions more! We follow this stuff obsessively
by sheepareevil on Sep 26, 2011 5:56 PM EDT up reply actions
Nets fans let their posts be heard all the way to Russia, via NetsDaily. And JayZ's voice apparently counted most.
Nearly all fans wanted to keep the name or else they threatened to lose interest in team in future.
How naive can a Business person be to ignore the desire of the people who provide the income for the team.!
Remember if CNBC business people were so good at predicting the future, they would be Billionaires now, via the Stock Market.
Basically they said the whole announcement lacked excitement
and they had a number of people outline reasons why they think not changing the name was a mistake.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:32 PM EDT up reply actions
This guy is an absolute clown. His first article was an agenda driven smear piece full of contradictions, lies and convenient ignorance.
I haven’t read this one yet, but I assume it’s much of the same tomfoolery.
I won’t hold him to that until I read this recent piece though.
by vincecarter4pres on Sep 26, 2011 5:25 PM EDT reply actions
Im not a fan of grantland
I think it's fine.
by NetsMets4Life on Sep 26, 2011 5:25 PM EDT up reply actions
Just watched the Darren Rovell video.
He is obviously pretty ignorant of the fact that teams with New Jersey branding do not get many (key word being many, since I am from NY) fans from New York and Connecticut, whereas teams with New York branding can easily pick up those fans.
Brooklyn is going to do wonders for this team. Changing the Nets name is useless. It already has history behind it (Dr. J, Jason Kidd, etc.), it is easy to remember, and it goes with the other NY teams (Mets and Jets).
The brand is going to be built on location and success on the court. If the Nets get Dwight Howard, no one’s going to care WHAT the name is.
I just saw Jay's interview with Rosanna Scotta
he looked like he was in a hurry. Actually got up when the interview wasnt really over.
I think it's fine.
I see plenty of hate though.
Whether its people saying they like the name or just think the Nets suck. Saw some good too, though. Even a few Knicks fans saying they have no problem dropping the Knicks for the Brooklyn Nets.
I think it's fine.
by NetsMets4Life on Sep 26, 2011 6:17 PM EDT up reply actions
Meant to say
“people saying they dislike the name.”
I think it's fine.
by NetsMets4Life on Sep 26, 2011 6:18 PM EDT up reply actions
very happy that there's one or TWO CBA meetings tomorrow
a little over two weeks to save the season starting on time…I really hope they are closer than what it appears to be.
Anybody else notice that Jay Z will NOT smile in pics with any other higher ups?
I don’t know if it’s a race thing, or if he doesn’t want those that got pushed out of the AY footprint to associate him with eminent domain. But it’s pretty obvious he does not want to smile in those pics.
Dr. J~Super Buck~Draz~JKidd~Deron
watching the fox 5 interview, Jay-Z sort of slips and implies there will/might be a color change
can’t wait for those
Jeffrey Sutton 2.0
It's passages like this that make Malcolm gladwell one of my favorte authors
When David Stern says that the “previous ownership” of the Nets lost “several million dollars” on the sale of the team, he is apparently not counting the profits on the arena, the eminent domain victory, the long-term value of that extra 14 acres, or the appreciation of Ratner’s adjoining properties. That is not a lie, exactly. It is an artful misrepresentation. It is like looking at a perfectly respectable kasha knish and pretending it is a ham sandwich.
by Chakroot on Sep 26, 2011 7:34 PM EDT reply actions 1 recs
Stern is clearly clueless
Ratner may have lost on the Nets but the total project will make Rat lots of cheese
by DJ HeavyDuty on Sep 26, 2011 7:56 PM EDT up reply actions
As will any sports franchise, once it's sold for about 90mill more than it's valued at
read Gladwell’s other article, i posted a link below
Business... Congrats to everyone at netsdaily, and thank you for making this the best sports blog on the interwebs
NetsDaily is really very good. Even better is the brilliantly obsessive coverage of the Atlantic Yards project at Norman Oder’s Atlantic Yards Report, in which every twist and turn in the entire story has been faithfully and astutely chronicled. I could not have written this without Oder’s help.
That's an awesome pic
This kid gets it.
Section 18, Row 7 at The Rock!
"Your 2010-2011 New Jersey Nets - It Is What It Is"
how long before they're told to take those jersey's off
by senior ranking members of their respective teams?
Marshon is more than swag
I think it's fine.
by NetsMets4Life on Sep 26, 2011 9:32 PM EDT up reply actions
Net income / nets daily...
I recommend including the link to Gladwell’s first Grantland.com article… Equally as inciteful and intriguing
http://www.grantland.com/story/_/id/6874079/psychic-benefits-nba-lockout
That article is clownshoe central.
There’s a lot of points I could make and errors I could point out, but there’s one main one I would like to say.
The difference between a Van Gogh and the New Jersey Nets is the Van Gogh doesn’t demand you pay it 20 to 30 million dollars a year.
The Van Gogh is bought for 100 million, with this arbitrary abstract number of 28 million psychic value created by some math nerd strange-o economists and then that painting will probably sell for tens of millions of dollars more a decade or so down the line if the owner decides to put it on auction and is not in a position of desperation to be taken advantage of by low balling uber wealthy art shark investors.
A NBA franchise winds up getting sold for 100’s of millions more then their estimated appraisal value per this “article” and then most lose 10’s of millions per year and if the owner decides to depart with it within the next decade or two during what is surely to be an economic collapse they are going to lose their shirt on the sale as well.
And to wrap it all up with another exceptionally important point, what about the psychic value of the players?
There are an enormous faction of everyday people in normal society who could have went to college for computers and made 120K+ within 3 years of graduating but decided to become oceanographers, or sports therapists, or helicopter pilots who make half of that by there 7th year in their industry because of their love and passion to do what they dreamed of, to get ultimate satisfaction out of their career.
For the NBA players to disgustedly scoff at taking a relatively minor pay cut when huge amounts by small percentages is broken down on scale by contract size on a player by player basis to aid the league to sustain success and competitiveness and to keep this small exclusive club afloat during a MAJOR recession so that these players can keep making these absurd sums of monies, you can become taken aback as a non-elite.
He says it exactly right. Basketball teams don’t operate in a free market the way regular businesses do. And he’s right. This is an exclusive club of a niche sector that is wildly popular throughout the world with an incredibly dedicated and faithful customer.
If anything, it’s the exact opposite of what he’s saying.
NBA teams should basically print money.
This isn’t some sort of rich guy investing 5 million in a small start up tech firm expecting to automatically become a billionaire.
This is one owner investing a half a billion dollars!
You invest that kind of money elsewhere into an actual business you damn well better believe that business is profitable.
And to wrap it up for real this time… A majority of the owner aren’t necessarily even looking to make money hand over fist, they would just like to break even or make a few million a year, maybe even just lose a few million a year, instead of straight taking a bath with 8 figure losses year after year!!!
Come on people, wake up!
by vincecarter4pres on Sep 26, 2011 11:49 PM EDT up reply actions
Post CBA the two week free agency frenzy in th nfl was exciting, although, my giants did not do anything. I can't wait for the NBA lockout to end and watch the short free agency window.
You know back office deals are already in the works as they were with the NbA. That 2-3 week barrage of signings and floating rumors will make up for the slow offseason. I can see Netsdaily living on 5 hour energy as he constantly updates the front page with news and rumors.
We'd probably be running on 2-3 hours of sleep for that lol
by dwill8brooklynbound on Sep 26, 2011 8:31 PM EDT up reply actions
Some minor problems with Michael Gladwell's piece.
First off, Kelo was argued and decided over a year after Ratner bought the team. No need to have even mentioned it.
http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London
Secondly, Ratner had been building in Downtown Brooklyn since the mid 1980s (mostly office space) and has been building in the Atlantic Yards vicinity (the first of two malls) since the mid 1990s. He had the land secured long before that and could have just as easily built the arena back then if he was so swayed by the Sandra Day O’Connor’s writings on stadiums. Not only did he not build not build an arena in Downtown or where his malls now stand, but he even spent most of the 1990s trying to build a smaller arena (called “Sportsplex”) on Coney Island.
Those plans were killed in 1998 when Giuliani replaced Sportsplex with plans for a minor league ballpark instead:
http://www.nytimes.com/1998/11/23/nyregion/back-to-the-drawing-board-in-coney-island.html?src=pm
Because of those facts, it is my opinion, that like the Nets themselves, Ratner sorta fell upon the whole Atlantic Yards arena and complex. It’s not like he was salivating at the site “ten years ago” with plans of using the Nets as a way to build condos over the area. Although that’s how it all went down, it all moved much-much-much quicker (between late 2002 and early 2004) than that. In fact, I’d bet Ratner didn’t even know who the Nets were 10 years ago.
To me, it all starts with Marty Markowitz. He first publicly pushed for a Brooklyn arena on January 1st, 2003 during his “State of the Borough” speech. While talking about revitalizing the entire Coney area, he mentions bringing an NBA team to Brooklyn. As late as then, the Atlantic Yards area (not nearly as gentrified as it is today) still didn’t gain a single mention.
http://www.brooklyn-usa.org/pages/state_of_the_borough/stateoftheborough03.htm
That speech came several months after Marty had privately recruited Ratner to ask around about buying an NBA franchise.
http://www.nytimes.com/2004/01/25/sports/pro-basketball-ratner-s-path-to-buy-nets-had-pitfalls-and-promise.html?scp=23&sq=Ray%20Chambers,%20Lewis%20Katz&st=cse
Once Ratner got in touch with Lewis Katz, everything changed. Katz made Ratner aware that the Yankees-Nets-Devils family was quickly crumbling. Suddenly, an arena for the Nets in Brooklyn became more than a Markowitz pipe dream. In my opinion THAT is when all parties involved began setting their eyes on Atlantic Yards.
The NY Times link above says that other Brooklyn locations (including Coney Island) were studied, but it has to be much more than a coincidence that the location chosen just happened to be across the street from Ratner’s money losing mall.
It was only then, in the spring of 2003, with one mall being bailed out by the DMV, and with an equally disparaged second mall being built that Ratner looked to make his land grab. It was only then, spring 2003, when all talk of Coney arena was replaced with talk of an Atlantic Yards arena.
Looking back, it’s amazing how quickly it all went down. From Marty’s speech, to the Katz/Ratner meetings, to a David Stern quote “clearly there is no shortage of boroughs in New York” (http://www.nytimes.com/2003/05/24/sports/pro-basketball-nets-bosses-mutter-amid-the-cheering.html?pagewanted=3&src=pm) where he kinda/sorta voices approval for a Brooklyn move in April 2003, to the Yankee-Nets breakup that summer, to Ratner officially buying the club in January 2004.
I fully understand Gladwell’s theme. I fully support his position that ALL of these owners are fudging numbers while crying poverty. I fully believe that in reality, these owners are only trying to save themselves from their own stupidity and are using the players (even players I detest like Outlol) as their scapegoat. That said, I can’t go along w/Ratner having his eyes on an Atlantic Yards land grab all along.
He wanted to add to his crappy pair of malls. Deep political support, the Yankee-Nets implosion, the failure to ever build Sportsplex put him in a situation where he could make a land grab over one of New York’s busiest transit centers. The arena was and is a way to build luxury condos down the road. But it took a bunch of happy accidents to put Ratner in position to make his land grab happen. This wasn’t some longstanding scheme and Ratner didn’t need Sandra Day O’Connor’s words to greenlight it all.
Who knows, if Katz/Chambers were a little more patient, maybe the Nets are permanently in Newark. Maybe the gentrified Prospect Heights area is building community gardens by the rail yards. Maybe Marty is still talking about an arena on Coney Island.
Opulence, I has it.
professional sports owners, for the most part
are billionaires before they own franchises, and will continue to be billionaires (or as wealthy) once they sell the franchise for a handsome profit.
no love for the guys who take something perfect, and think they can improve on it by putting dollar signs in front, adding a few zeroes at the end, and stuffing their pockets all along the way.
No love given...
But if Ratner is trying to build a small arena on Coney Island in 1998, and Marty is still talking about an arena there in 2003, it’s NOT like Ratner had been in love with the Atlantic Yards site for years. It’s amazing how in little over a year, it all fell into place.
Opulence, I has it.
LOL, from D-Will's Facebook
In Europe why do all the toilets look like they are for 12 years and under? #Tiny
Wonder what the jersey's will look like
Road jersey’s should say Brooklyn and Home should say Nets.
Both will say Brooklyn
They just can’t NOT have “BROOKLYN” on everything.
Section 18, Row 7 at The Rock!
"Your 2010-2011 New Jersey Nets - It Is What It Is"
Where will the Nets be then?
Might as well just call them Brooklyn. I’d rather it say Nets on home jersey’s because THAT IS THEIR TEAM name.
at some point
if the season is canceled, we will have to make a decision on whether they are the Brooklyn Nets or still the New Jersey Nets.
Then you have to be the Brooklyn Nets
Why not take advantage of the marketing opportunities? If you’re not going to have a season, then why be the NJ Nets?
probably a stupid question but,any chance of us being the
“NJ/BK NETS” this season?
Check out the funniest person on youtube Edbassmaster: http://www.youtube.com/user/edbassmaster
Yankees>Rest of MLB
They Finally called up Baby Jesus
by BrettGardnerLF on Sep 26, 2011 11:27 PM EDT up reply actions
I was in favor of that idea long ago, so as to retain more of the New Jersey fans - instead of just calling the team The NETS, without mention of NJ.
However, I suspect it is too late now to do anything official.
No surprise here
Another sportswriter takes a biased support here and defends Ratner while villifying the opposition. At least he acknowledges what they did unlike all others who tries to deny it. As usual, he rides the myths just like all others who have a biased stance do. Where he says it will create a tax revenue has been proven false numerous times and those comes from the book Field of Schemes by Neil de Mause and by the IBO Report that it has been found to be a net money loser especially if they are subsidized by taxpayers. However, I will not argue with where he says that owners should start giving back the money they borrow, and Proky/Ratner is no exception to that either. As for mentioning Oder, he doesn’t attack him, but actually praises him and called it better than NetsDaily if anyone actually read the footnotes on the side like I did. It shows that once again, Oder is not someone who can be ignored on this at all. In reality, he was complementing him, not condemning him.
well, Tal
what you dishonestly declined to mention is that 1) he noted that Ratner is sometimes wrongly vilified and 2) he said, “NetsDaily is really very good”.
by Net Income on Sep 26, 2011 10:54 PM EDT up reply actions 2 recs
Yes, let's ignore the fact that he called NetsDaily is really very good.
And lets focus on Oder, who he called obsessive.
I think it's fine.
by NetsMets4Life on Sep 27, 2011 7:33 AM EDT up reply actions
All these magic fans are thinking Dwight is hinting he wants to go to the Nets
http://forums.realgm.com/boards/viewtopic.php?f=25&t=1132135&sid=50ea42ab8ba7859968e7e0dc151bae9f
Dwight and Deron can easily beat Miami and everyone would cheer for us, I think Dwight and Deron open Barclays.
Lol I just read it and they are so scared he's coming here
I love it!
by dwill8brooklynbound on Sep 26, 2011 11:08 PM EDT up reply actions
none of them are denying it either haha
by RandyOreens on Sep 26, 2011 11:09 PM EDT up reply actions
Yeah and they were even giving predictions as to how far we'd make it in the playoffs
I think him saying Anthony morrow really threw them off
by dwill8brooklynbound on Sep 26, 2011 11:12 PM EDT up reply actions
a couple of factual misrepresentations
now that i have had a chance to read it through.
—Gladwell makes it seem that the corner of Atlantic and Flatbush was a sudden inspiration for Ratner. The area has been an urban renewal site since the 1950’s. Many people and institutions have tried and failed to develop the corner.
—And in a bit of real sleight of journalist hand, Gladwell makes it seem that Ratner decided to go for the Nets following the Kelo decision which permitted a greater use of eminent domain. The reverse is true. Ratner first expressed interest in the team in 2003, bought it in 2004. The Kelo decision was in 2005.
Overall, though, it’s a home run, particularly the end where he talks about how the US has become this economically inefficient and greedy place….two things that are not unrelated.
by Net Income on Sep 27, 2011 8:06 AM EDT reply actions 1 recs
but it was a sudden inspiration for Ratner!
I agree with the social commentary and pointed out the Kelo mistake last night. Gladwell’s other mistake however is that he made the Yards seem like a long running dream of Ratner’s. The opposite is true. It was a sudden inspiration and all the stars had to be aligned correctly for it to happen.
The land where Ratner’s dismal malls are had been the subject of urban renewal since the 1950s.
Those lots had been a meat market and Walter O’Malley (who wanted to build a Dodger Dome there) was the first to propose renewal. The train yards themselves however were never discussed. As late as January 1st, 2003 Marty Markowitz was still talking about Coney Island as an arena site. It was only after Ratner’s intentions of buying the Nets gained momentum, shortly later, that the Atlantic Yards was discussed as a new arena option. By the fall of 2003, he had Frank Gehry on board. By January 2004, he had the Nets too. It all happened in little over a year. True sudden inspiration!
Opulence, I has it.
What really went on
First off, I don’t know why many keep getting this wrong, but O’Malley didn’t want to have a stadium on the rail yards itself, but where Ratner now has his Atlantic Center Mall, and I don’t know why so many get this wrong. The reason why Moses didn’t want him to have a stadium and offered where the Mets play now was mainly because he knew the area was already in gridlock even then. Although there is transit available, there will always be a number of those that will drive to games despite that, and this is the very same reason to not have an arena there now. The location in Coney Island that was proposed was not where the Cyclones play now, but on the rail yards there, and no eminent domain would be needed, because all of it can be built there, plus the Stillwell Avenue station is a hub as well and the Belt Parkway wasn’t far either, but Ratner refused this, because he wanted it where he wanted and without compromise. As for his malls, they were never really that successfull and he once again had to have the government locate there to bail him out when he couldn’t get a lot of tenants for yet another of his white elephants. Despite his claim to be a crusader for small and local businesses, it was corporations that got the space in his malls instead, because he wanted businesses that really made the money hence he once again snubbed those who he was just using to be nothing but his forefront only be left behind later on. Since Kelo was brought up, if the ruling was in favor of the residents, then it would have been considered illegal for Ratner to even use eminent domain, because it would have ruled that it can only be used for a publicly owned project, and nothing that is privately owned as what eminent domain is defined as. However, 43 states have passed laws on defining what eminent domain can and cannot be used for, but NY is not one of those states, and that was probably because developers still have great relationships with the state government. Overall, nobody said that the rail yards shouldn’t be left undeveloped, not even DDDB. Keep in mind that Barnett offered triple the bid that Ratner gave, but wasn’t allowed to even talk with the MTA thanks to Pataki, who was a great collegue for Ratner. Seriously, why should the MTA have turnned down someone who offered way more than the other guy did? The reason was because if Barnett won that bid, the entire AY plan would have died right there, so a Haliburton-esque event had to go on there to make sure that Ratner would win no matter what. On a side note, the MTA is facing budget problems, so maybe if they took Barnett’s bid instead, they wouldn’t have been in this mess right now.
by Tal Barzilai on Sep 28, 2011 11:19 PM EDT up reply actions
Reading Is Fundamental! (...yet again!)
First off, I don’t know why one person keeps getting this wrong but reading BEFORE replying usually helps.
Let’s try this again:
Those lots had been a meat market and Walter O’Malley (who wanted to build a Dodger Dome there) was the first to propose renewal. The train yards themselves however were never discussed.
“Those lots” (as pointed out in an earlier post) refer to where the malls now stand and not the train yards. In case there was any confusion, “The train yards themselves however were never discussed” part should have been able to clear that up for those with reading comprehension skills.
Second off, Moses wanted to instead build a stadium in Flushing Meadows, near highway access to the suburbs, because he was a known RACIST! Not because of street traffic concerns (why would someone concerned w/traffic ever place a stadium near a busy airport?) but instead, because Moses was a RACIST! Guess 30 years after his death, many sadly still support that RACIST!
Third off, the proposed location for Sportsplex was exactly where the Cyclones play. After KeySpan, now MCU, was built, plans shifted to the parking lot. Not sure where you’re getting this Coney Island rail yards talk. As usual I’ve already provided my links. Where are yours?
Opulence, I has it.
Dude, I don't care if you write a Nobel Prize level post, until you learn to use paragraphs and breaks I won't read them.
It’s annoying and eye straining on my laptop and worse on my net book, but it’s ridiculous on my phone.
by vincecarter4pres on Sep 29, 2011 12:00 PM EDT up reply actions
Where do I start?
What makes you think race was involved when Moses wanted the new stadium for the Dodgers for where the Mets are now? Keep in mind that the area of Flushing Meadows-Corona Park has a large Hispanic and Asian population, so I am not getting how that is racist. Maybe he just thought that since more were driving it would be better to place a stadium where there easy highway access, and that traffic will remain residual. Either way, a good number of Mets fans came from LI, so it would make sense to put them there. Getting to the Nets, when I mentioned the Coney Island Rail Yards, I was talking about offering a place for Ratner to place the Nets, not where the Cyclones would be. Other alternate sites included Red Hook, the Brooklyn Navy Yards, and even Charles Barron, who opposed the project, offered land in his district with the Broadway Junction station nearby, which was another major hub in Brooklyn. However, Ratner refused all of those and wanted it only where he wanted. That is what I was talking talking about, J-Sal. For the record, if you want to know where this information comes from, I suggest you go look at the archives in the Atlantic Yards Report, because Oder states it all there, and you can even email him for it as he has it listed on his website. Again, Oder is credited for a lot for his works, and his research is well is hard to dispute against.
by Tal Barzilai on Sep 29, 2011 10:41 PM EDT up reply actions
Where you can start:
You can start by not lying! You know Flushing Meadows did not have large Hispanic or Asian populations in 1957. You know Moses built over 500 miles of roads, bridges and highways during his tenure while cutting mass transit service throughout the city and suburbs. You know he segregated they city through the creation of projects and you also know, as I’ve already linked many times that he wanted to build a massive parking garage where Ratner now has his malls:
http://www.clintonhillblog.com/2009/05/14/robert-moses-and-the-bqe/
How was that for cutting traffic???
He was a RACIST and you continue to echo his racist beliefs that others have ran from for decades. Pathetic!
Opulence, I has it.

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