Friday, February 27, 2009

NBA Stimulus?


Recently, we learned that the NBA has borrowed $200 million in order to distribute to teams in need of additional cash. Apparently, between $13 and $20 million will be available for each team that has expressed interest in the funds.
David Stern doesn't believe that this should be construed as a bailout, but rather, a strong investment towards a strong league.
Through ESPN.com, Mr. Stern states that, "It's exactly the opposite" of a bailout, "This was a show of strength in the creditworthiness of the NBA's teams."
Do you believe him? Certainly, this borrowing-act can't be a good sign for the NBA (and in particular, for the operations of its specific teams). With the changing times in our economy, the NBA will have to adjust just like any other business enterprise. The Sports Guy, Bill Simmons delves into this subject regarding the current realities of today's NBA... (or as he puts it... the No Benjamins Association) as it attempts to keep up with the economic landscape.
How will this affect the Utah Jazz moving forward? I believe we have a strong franchise here in Salt Lake. Our fans seem to support the team (I don't have attendance figures to back that up). And our management has been strong and secure for many years. With the passing of our loyal owner, where does our franchise go from here? I believe the Jazz will be situated in Utah for years to come... though in the not too distant future, I could see our teams' personnel changing drastically to meet the economic landscape of the NBA (meaning... possibly no extension for Boozer & Memo, trading AK's bloated contract, & only re-signing a few notable youngsters... which may not include Millsap). The fate of the franchise will fall on the shoulders of the "Big 3"... Jerry Sloan, Kevin O'Connor and Deron Williams.

4 comments:

meow mix said...

$176mil; equally 11.6 per undisclosed 15 teams only

The Golden Griff said...

It seems that the Jazz run a pretty tight ship, financially speaking. The Larry Miller Group is fairly diversified and internally controls areas of business that might negatively affect other franchises - like its own TV network (KJZZ), arena (Tox Box), ad agency and in-arena concessions.
As they stand now, the external bad economic forces will hurt the profitability of the Jazz, but not enough to make a dramatic difference in the way the organization is run. I think the greater financial question lies with whether Greg Miller can run things as well as Larry did.

Pasty Gangsta said...

Anyone want to guess which TCG member is in his second year of business school?

My prediction on Greg Miller, who I know nothing about: not going to run the Jazz as well as his dad. But let's give it a shot for awhile. The Huntsmans are always lurking in the background if things get dire. . .

The Crotty Kid said...

The Sons-of-LHM cloud does hang over the franchise right now. Who knows if they are as (A) loyal to SLC or (B) savvy financially as their beloved dad (RIP). Fortunately for the Jazz, there are teams in much worse financial straits, so I doubt that the bailout money is needed for the Jazz.

P.S. I love the "opposite of bailout" line by Stern. Such a great lawyer.