Mikhail Prokhorov Acquires Full Ownership Of Nets
5:50pm: The Nets have officially announced the sale. In the team’s official press release, Prohkorov said, “Today’s deal brings the ownership structure of the Brooklyn Nets and their state-of-the-art home in line with NBA guidelines and comes at an opportune time for all involved. We have enjoyed a wonderful partnership with Forest City and Bruce Ratner and worked together to open one of the most successful arenas in the country and to bring professional sports back to Brooklyn. We will continue to support arena management to provide a high level of service to our fans and the best sports and entertainment experience in the world. We also remain fully committed to community programs that were created as part of the arena. We believe a successful arena must be a destination, but also be part of the communities that surround it and more broadly the collection of neighborhoods that represent Brooklyn.”
5:44pm: The NBA has officially approved the ownership transfer of 100% of the Nets and the Barclays Center to Mikhail Prokhorov, Scott Soshnick of Bloomberg.com reports (Twitter Links). The valuation of the the team and the Barclays Center are a combined $1.7 billion, with $875MM for the team and $825MM for the arena, Soshnick adds. This amount is lower than the $1.9 billion that was originally projected for the sale. The $1.7 billion valuation makes the sale of the Nets second in historical value to only the Clippers, which sold to Steve Ballmer for $2 billion.
“As we continue to focus our portfolio on core retail, office and apartment assets in strong urban markets, and transition to REIT status, this transaction is a significant milestone,” said David J. LaRue, Forest City president and chief executive officer in the official press release (h/t to NetsDaily). “I want to thank the NBA for their support and I salute our New York team, led by Bruce Ratner, MaryAnne Gilmartin and David Berliner, as well as our partner and our associates and advisors involved in making this deal a reality.”
Bruce Ratner, executive chairman of the company’s New York subsidiary, Forest City Ratner Companies, added, “The development of Barclays Center enabled the return of major league professional sports and world-class entertainment to Brooklyn, and in just over three years of operations, it has become one of the top-grossing arenas in the country. As an anchor for the continued development of Pacific Park Brooklyn, Barclays Center stands as an iconic landmark for the borough.”
Prokhorov bought his original 80% stake in the Nets and 45% of Barclays Center in May of 2010 for $223MM. This new arrangement will permit Prokhorov to sell a minority stake, as much as 49%, in the team and the arena if he so chooses, NetsDaily notes. The NBA had reportedly blocked Prokhorov’s plan to borrow money against his share of the Nets to purchase Ratner’s portion back in November because it would have given the team more than $250MM in debt.
Eric Moreland Breaks Foot, Out Eight Weeks
DECEMBER 21ST, 11:58am: Moreland had surgery today and is expected to resume basketball activities in eight weeks, tweets Jason Jones of The Sacramento Bee.
DECEMBER 16TH, 6:30pm: Power forward Eric Moreland will be out of action indefinitely after sustaining a fracture of the fifth metatarsal in his left foot during practice today, the Kings announced. Moreland will require surgery and Sacramento will announce the timetable for his return after the procedure has been performed, according to the team’s release.
Moreland’s minimum salary deal includes a partial guarantee of $200K and it will become fully guaranteed on January 10th. Sacramento would still be on the hook for the full amount of his contract if it were to waive Moreland prior to him being medically cleared to play, which isn’t likely going to occur before that deadline given the severity of his injury. The Kings currently possess the league maximum of 15 players on their roster, which means a corresponding move would be required if the team wished to add a replacement player.
The 23-year-old has appeared in five contests for the Kings this season, averaging 0.8 points and 1.2 rebounds on 66.7% shooting in just 4.8 minutes per game.
2016/17 Salary Cap Projection: Trail Blazers
The NBA’s salary cap for 2015/16 has been set at $70MM, which is an 11% increase from last season, and the luxury tax line is fixed at $84.74MM. The last cap projection from the league prior to the official numbers being announced had been $67.1MM, and the projection for the tax line had been $81.6MM. Many league executives and agents believe that the salary cap will escalate to a whopping $95MM for 2016/17, a higher figure than the league’s last projection of $89MM. This significant bump is a result of the league’s new $24 billion TV deal that kicks in just in time for next season.
The increase in the salary cap will almost assuredly set off a flurry of activity in the free agent market next summer, and it will also make it easier than ever for teams to deal away their higher-priced stars. Prudent executives are acutely aware of exactly how much cap room they have to play with, not just for the current campaign, but for next season and beyond as well. While the exact amount of 2016/17’s salary cap won’t be announced until next summer, it always pays to know just how much salary is on the books for each franchise. With this in mind, we at Hoops Rumors will be breaking down the projected 2016/17 financial commitments for each franchise, and we’ll continue onward with a look at the Portland Trail Blazers:
- Fully Guaranteed Salary Commitments: $44,468,987
- Partially Guaranteed Salary Commitments: $0
- Non Guaranteed Salary Commitments: $1,749,272
- Total Projected Salary Cap Commitments: $46,218,259
If the salary cap were to fall in line with the projection of $89MM, Portland would have approximately $42,781,741 in cap space, or $48,781,741 if the cap were to be set at the higher mark of $95MM. Again, these are merely predictions until the exact cap amounts are announced, and they are not meant to illustrate the exact amount that the team will have available to spend this coming offseason.
Portland will also need to make decisions regarding Meyers Leonard, Maurice Harkless, Allen Crabbe and Tim Frazier, all of whom are eligible to become restricted free agents next summer. If the Blazers wish to retain the right to match any offer sheets the players were to receive, the team would need to submit qualifying offers to each, with Leonard’s being worth $4,210,880, Harkless’ valued at $4,045,894, Crabbe’s set at $1,215,696, and Frazier’s at $1,180,431. These numbers would merely be placeholders until the players either inked new deals or signed their qualifying offers, which would then set them up for unrestricted free agency the following offseason.
Trades and long-term free agent signings made during the season will also have a significant impact on the figures above, and we’ll be updating these posts to reflect the new numbers after any signings and trades have been made official.
The Basketball Insiders salary pages were used in the creation of this post.
Southwest Notes: Howard, Leonard, McGee
Though he acknowledges that center Dwight Howard is unhappy with the current state of the Rockets, interim coach J.B. Bickerstaff refutes any notion that Howard is a disruptive influence in the locker room, Sam Amick of USA Today writes. “Since I’ve taken over [for fired coach Kevin McHale], I’ve tried to spend a lot of time with Dwight,” Bickerstaff told Amick. “And Dwight’s mind, his heart, are in the right place. He’s about the right things. Dwight wants to win. He wants to play the right way. He wants to contribute to winning, obviously at a high level. So for me, that’s all I can go on. I trust Dwight. He hasn’t misled me at any point since I’ve known him, since I’ve been working with him. So I can’t hang any value to what other people are saying.”
“I know he’s frustrated, I’m sure,” Bickerstaff continued. “[But] I don’t see him as a guy who’s looking to take the easy way out. … He has been there to perform through all of it. He’s been hurt. He’s been battling the knees, the back, all those things, and never once has he let on that he didn’t want to be a part of it or he was going to take the easy way out. I think he needs to have a bigger role, but I think it’s a combination of how we get him to that point. I’ve got to do a better job of getting him the ball in positions where he can score.”
Here’s more from the Southwest Division:
- Spurs small forward Kawhi Leonard isn’t surprised by his ascent to NBA stardom, because he knows just how hard he worked to get his game to its current level, Michael C. Wright of ESPN.com writes. “I worked hard,” Leonard said. “It’s my fifth year. It’s not just about what I did this summer, it’s about the experience I had under my belt for the past four years. It just comes with a mindset. There are a lot of guys that stay in the gym and don’t get any better. It’s about being smart, figuring out your weaknesses and not being scared to do it in the games.“
- Despite not seeing much action for the Mavericks as he makes his return from injury, center JaVale McGee remains an important piece for the team given its lack of rim protecting big men, Eddie Sefko of The Dallas Morning News writes. “He’s not 100% of the player he was before the injury just because he hasn’t had a training camp and he hasn’t had a significant amount of time since being cleared,” coach Rick Carlisle said. “Matchups are part of it with everybody playing smaller. It’s just a little trickier getting him minutes.“
Sixers Notes: D’Antoni, Porzingis, Saric
Sixers coach Brett Brown is excited about the team’s addition of Mike D’Antoni as associate head coach, saying of D’Antoni, “He’s a hell of a resource and a hell of a coach. I think we’re all going to benefit,” Ian Begley of ESPN.com relays. Brown noted that he had wanted to add an experienced coach to his staff for some time, and the suggestion about hiring D’Antoni came from newly hired team executive Jerry Colangelo, Begley writes. “We started sharing names, and he mentioned the name Mike D’Antoni. I said, ‘Do you think he would do it? That’s a hell of a name,‘” Brown said. “Less than 24 hours later, he came and said, ‘Mike is yours.’ And so the speed of it caught me way off guard.”
Brown also mentioned that the team spent several days recruiting D’Antoni, and the former head coach was asked why he would want to join a rebuilding team like Philadelphia, to which D’Antoni responded, “I’m bored, I miss the game,” Begley adds.
Here’s more from Philly:
- Knicks rookie Kristaps Porzingis has observed the early season difficulties Sixers center Jahlil Okafor has endured and feels fortunate that Philadelphia chose the Duke big man, allowing New York to swoop in and select him at No. 4 overall, writes Marc Berman of The New York Post. “That would be tough,’’ Porzingis said of playing for a losing squad like the Sixers. “That’s basketball sometimes. Losing like that is very tough. I’ve been on a losing team last season, the first part of the season. It’s really tough. The negativity is always there. It’s not a good feeling. You mentally grow as you go through those tough times.’’
- Porzingis appreciates the fact that the Knicks surrounded him with veteran leaders, a perk that Okafor doesn’t currently possess in Philadelphia, Berman adds. “I’m in a really good situation,’’ Porzingis said. “Having veterans around me to help me out on and off the court. He’s in a tough situation. I’m sure he’ll find a way to make his team win and get better as a player and how to be smarter off the court.’’ The Sixers are working toward correcting this deficiency, and are reportedly considering signing Elton Brand or Shane Battier.
- Draft-and-stash prospect Dario Saric, in an interview with SlamNRoll.com, re-iterated his intention to join the Sixers next season. “I’m always in touch with the people of Philadelphia, I always talk with GM Sam Hinkie and coach Brett Brown,” Saric said. “We talk about a lot of things that have to do with me and the 76ers. Before I was drafted, I promised to Efes that I will come here for two years and of course I promised to Philadelphia that after [this] period of time, I will go to them. It is a certain procedure that I feel I have to pass through.“
Hoops Rumors Originals 12/13/15-12/19/15
Here’s a look back at the original analysis generated by the Hoops Rumors staff this past week…
- If you missed the week’s live chat, you can view the transcript here.
- As a part of our continuing series, “The Beat,” Chuck Myron interviewed Jason Lieser of The Palm Beach Post.
- We released our latest 2016 Free Agent Power Rankings. Click here to see who came out on top.
- Zach Links highlighted some of the better basketball blogs around in his weekly installment of Hoops Links.
- Chuck looked at front office changes made since the 2013 offseason.
- Will Joseph answered reader questions in our Weekly Mailbag.
- Chuck took a look at the number of trades each team has executed since December 15th, 2014.
- If you missed any of our daily reader-driven discussions, be sure to check out the Community Shootaround archives.
- Here’s how you can follow Hoops Rumors on social media and RSS feeds.
- Chucked looked at how trades made in December of 2014 turned out for each of the teams involved.
- I looked at the 2016/17 projected salary cap numbers for the Knicks, Thunder, Sixers, Suns and Magic.
- We answered reader questions in our Weekly Mailbag.
- Chuck ran down the scenarios for future second round picks that have been traded.
- You can keep track of where your favorite team currently stands in relation to the 2016 NBA Draft lottery with our reverse standings tracker.
- We reviewed our commenting policy. Play nice everyone.
- Here’s how you can follow specific players on Hoops Rumors.
Eastern Notes: Yormark, Harrellson, D-League
Nets CEO Brett Yormark is excited about the coming offseason and the free agent possibilities it brings, NetsDaily relays. “This will be the first time we’ve been able to test free agency and really realize the power of Brooklyn, the power of our brand and the commitment that ownership continues to make,” Yormark said. “We’ve got a good story to tell — with the addition of our $50MM practice facility and the D-League franchise — and I think we’ll be in a position where we’ll be able to add to Brook Lopez, Thaddeus Young, Rondae Hollis-Jefferson, Bojan Bogdanovic and some of the other younger pieces, and bring in the necessary pieces to turn things around quickly. I’m excited about that opportunity, but obviously we have to make all the right decisions and we have to plan now. … I think there’s a chance here to really build something special.” Brooklyn is currently projected to have between $32MM and $38MM in free cap space next summer.
Here’s more from the East:
- Wizards camp cut Josh Harrellson has signed with the Latvian club VEF Riga, the team announced (translation courtesy of Emiliano Carchia of Sportando). The 26-year-old averaged 3.9 points in 7.3 minutes per game over seven preseason appearances for Washington this year.
- Brandon Jennings‘ decision to accept a rehab assignment in the D-League is a testament to the point guard’s commitment and love of the game, according to Pistons coach/executive Stan Van Gundy, Keith Langlois of NBA.com relays. It also demonstrates the value of the franchise having its own D-League affiliate, Langlois adds. “I think it shows how important the commitment [team owner] Tom [Gores] was able to make to have a D-League team and putting money into it,” Van Gundy said. “We’ve already gotten a value of last year sending Spencer Dinwiddie and Quincy Miller there and this year sending Spencer and Darrun [Hilliard] down. Now you’ve got a guy who can be a big part of what you do and you’ve got somewhere close by where you can send him and he can play. Those kinds of things seem minor when we’re talking about ownership commitment, but that’s a big one. We can send Brandon there to get significant minutes.”
- The Raptors assigned shooting guard Norman Powell to their D-League affiliate, Adam Johnson of D-League Digest reports (Twitter link). This will be Powell’s first jaunt to the Raptors 905 this season.
- The Pistons have assigned Darrun Hilliard and Reggie Bullock to their D-League affiliate in Grand Rapids, the team announced via press release. This will be Hilliard’s fourth stint with the Drive and Bullock’s first.
2016/17 Salary Cap Projection: Sacramento Kings
The NBA’s salary cap for 2015/16 has been set at $70MM, which is an 11% increase from last season, and the luxury tax line is fixed at $84.74MM. The last cap projection from the league prior to the official numbers being announced had been $67.1MM, and the projection for the tax line had been $81.6MM. Many league executives and agents believe that the salary cap will escalate to a whopping $95MM for 2016/17, a higher figure than the league’s last projection of $89MM. This significant bump is a result of the league’s new $24 billion TV deal that kicks in just in time for next season.
The increase in the salary cap will almost assuredly set off a flurry of activity in the free agent market next summer, and it will also make it easier than ever for teams to deal away their higher-priced stars. Prudent executives are acutely aware of exactly how much cap room they have to play with, not just for the current campaign, but for next season and beyond as well. While the exact amount of 2016/17’s salary cap won’t be announced until next summer, it always pays to know just how much salary is on the books for each franchise. With this in mind, we at Hoops Rumors will be breaking down the projected 2016/17 financial commitments for each franchise, and we’ll continue onward with a look at the Sacramento Kings:
- Fully Guaranteed Salary Commitments: $65,013,484*
- Partially Guaranteed Salary Commitments: $0
- Non Guaranteed Salary Commitments: $1,925,597
- Total Projected Salary Cap Commitments: $66,939,081
*Note: This amount includes the $882,630 due Wayne Ellington, who was waived via the stretch provision. It also includes the player options for Caron Butler ($1,551,659), James Anderson ($1,139,123) and Seth Curry ($1,015,696).
If the salary cap were to fall in line with the projection of $89MM, Sacramento would have approximately $22,060,919 in cap space, or $28,060,919 if the cap were to be set at the higher mark of $95MM. Again, these are merely predictions until the exact cap amounts are announced, and they are not meant to illustrate the exact amount that the team will have available to spend this coming offseason.
Sacramento will also need to make a decision regarding Eric Moreland, who is eligible to become a restricted free agent next summer. If the Kings wish to retain the right to match any offer sheet the player were to receive the team would need to submit a qualifying offer worth $1,180,431. That number would merely be a placeholder until Moreland either inked a new deal or signed his qualifying offer, which would then set him up for unrestricted free agency the following offseason.
Trades and long-term free agent signings made during the season will also have a significant impact on the figures above, and we’ll be updating these posts to reflect the new numbers after any signings and trades have been made official.
The Basketball Insiders salary pages were used in the creation of this post.
Week In Review 12/13/15-12/19/15
The NBA and the players union want to make significant progress toward a new collective bargaining agreement by December 15th, 2016, the deadline that either side has to inform the other that it wants to exercise its mutual option after the 2016/17 season, according to a report made by Ken Berger of CBSSports.com. The owners and players want to have a new deal that would replace the current agreement, which runs through 2020/21. The league and the union held preliminary talks earlier this month. Dissatisfaction exists with the current system among small-market teams that don’t like the imbalance of local broadcast revenue that funnels more money to large markets and helps them pay the tax, Berger relayed. Spending on mid-tier players is a potential source of friction on the players’ side, Berger noted, though the existing system would make the mid-level exception progressively less valuable.
Here’s more from the week that was…
Miscellaneous News
- The Rockets reportedly expect that Dwight Howard will turn down his more than $23.282MM player option for next season.
- Bucks management and Carlos Boozer have reportedly met about the possibility of a deal.
- The Sixers made Mike D’Antoni their associate head coach.
- Greivis Vasquez underwent surgery to remove a bone spur and loose bodies from his right ankle and may miss up to four months of action.
- The Cavs reportedly have made Joe Harris available for a trade, and they would like to obtain a second-round pick in exchange.
- Private equity investor and Grizzlies minority owner Steve Kaplan is reportedly progressing toward a deal with Timberwolves owner Glen Taylor that would see him purchase a 30% share of the Wolves and eventually take over a controlling interest.
- The Timberwolves have reportedly made Kevin Martin available in discussions about potential trades.
- Kings power forward Eric Moreland will be out of action indefinitely after sustaining a fracture of the fifth metatarsal in his left foot during practice.
- The Kings have reportedly promised small forward Caron Butler that they will trade him in the near future.
- The NBA has reportedly approved ownership transfer of 100% of the Nets and the Barclays Center to Mikhail Prokhorov.
- Al Horford fired agent Bill Duffy of BDA Sports and returned to the Wasserman Media Group.
Signings
- Tony Mitchell, whom the Warriors waived in October, signed with Venezuela’s Cocodrilos de Caracas.
- Free agent center Jerome Jordan signed with Jiangsu Tongxi of the Chinese Basketball Association.
- Bucks preseason cut Marcus Landry signed with San Sebastián Gipuzkoa of Spain.
- Former NBA center Samuel Dalembert and shooting guard Jamaal Franklin signed with Shanxi of the Chinese Basketball Association.
D-League News
You can stay up to date on all the D-League assignments and recalls for the season here.
Hoops Rumors Community Shootaround 12/18/15
The Bucks were predicted by many to be a force in the Eastern Conference this season after finishing 41-41 a season ago and signing Greg Monroe over the summer. But the franchise has regressed thus far this season, stumbling out of the gate to a record of 10-17 and not looking at all like the budding young powerhouse of a season ago.
When things are going bad for a team everything becomes magnified, and this week Monroe, Khris Middleton, O.J. Mayo and Miles Plumlee showed up in TMZ Sports videos depicting them in a Los Angeles strip club late at night before the team’s loss to the Lakers this week. Coach Jason Kidd said he didn’t think their partying was a contributing factor to the loss, but, coincidentally or otherwise, the Bucks are reportedly the likely trade destination for veteran leader Caron Butler. The team also reportedly met with free agent Carlos Boozer to discuss a potential contract, as the team looks to add veteran leadership to aid its young core.
This brings me to today’s topic: Should the Bucks add veterans to the roster this season, or stick with the younger players and allow them to develop and mature on their own?
Adding veteran leadership could certainly improve the locker room culture and provide the younger players on the team with role-models, provided they are willing to listen. But the addition of veterans like Boozer and Butler could also cut into the minutes of some members of the team, and that could serve to hinder their on-court development. With this season likely a bust for the Bucks, the argument could be made that the team would be better served to play its younger players as much as possible in an effort to not only develop them, but also to allow the franchise to assess who can be a building block for the future.
But what say you? Should Milwaukee augment its roster with veterans no matter the cost of valuable minutes for the younger players who will be counted on in the seasons ahead? Or do you believe adding veteran leadership can only serve to improve the team in the long-run? Take to the comments section below to share your thoughts and opinions on the matter. We look forward to what you have to say.