Of Rockets and the confusing world of business. Or, and some DWTS

Some storm, no?

I don’t know where you all are, but in these parts, the light show and thunder production and torrents of rain were pretty shocking. Violent even.

As a guy who once, in a former life as a newshound, had to cover the aftermath of tornadoes that hit in the Barrie area way back in the day, the pictures in the paper and the video on the news were shocking.

Hope everyone’s safe.

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Wow.

This is how the news of the day played in the Houston paper?

What kind of way is that to treat a guy? Seriously, I hope Pops goes on and has a long, productive and financially lucrative career in the NBA.

It just was never going to be here. It was apparent from the day the season ended through conversations I had with people all over the organization that it was a longshot – a huge longshot – that he’d get more than cursory interest from Toronto and was, at the very best, a fallback position if a lot of other things failed.

That’s not to say he can’t play, it’s just to say that people in the organization I speak to regularly didn’t see a way for him to play here.

And if you look at what they’ve done with that position, doesn’t it make sense? Reggie Evans is tougher and they needed tough; Rasho’s a veteran who knows how to play and what his limitations are, Amir Johnson is younger, bigger and may hold more promise; Patrick O’Bryant is younger, longer and was the beneficiary of having a guaranteed contract for exactly the same money.

It just wasn’t going to work here. Never was. Glad there’s closure, glad he’s got a gig.

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If I knew anything about business, I’d know what this means, or at least I’d know a little bit more about what this means.

But from my quite limited knowledge, I’d suggest the empire’s doing quite well since the Teachers Pension Fund demands a certain return on its investments (someone correct me if I’m wrong but I think I read it’s somewhere around 20 per cent annually) and they wouldn’t be buying if they couldn’t get it.

The downside? Well, it seems to me that Maple Leaf Sports, because of that fiduciary demand of the Fund (you like that? Fiduciary? Pretty high falutin’, no?) pretty much exists just to make that money and if it means they ever have to cut corners to hit the number, they’ll cut corners.

I know anecdotally from people in basketball that the financial knife is being wielded – smaller, if any, raises for staff; budgets kind of frozen; corners cut where possible (Hi, RaptorsTV!). It’s not hugely serious, the basketball budget has allowed the president to spend right up to the tax level – which is exactly the same as it’s been for years and will put Toronto in the top 10 in NBA salaries once it’s all said and done.

And, I’m also told that the board would still consider – on a case-by-case basis – any thought of going over the tax threshold for the right piece, if it was available. I would guess, however, that it’d be a harder sell in these relatively tight economic times but the chance would still exist.

Okay, my head hurts from all this serious junk. On to other pursuits.

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Hey, here’s one, in response to a couple of comments yesterday. I mentioned it there but I imagine there are some who don’t look.

All this kerfuffle about Carroll being a waste at the end of the bench in 2011 may not take this into consideration:

There could be so many roster spots open by that time – the contracts of Wright, Douby, Belinelli, Evans, Rasho, O’Bryant all expire in before the 2011 season rolls around – there could very well be a need for a guy to play a ninth, 10th or 11th man role.

Me? I’d be okay with a guy making less than $4 million in that situation.

Here’s the thing: No one knows for sure what might happen in the next two seasons, you don’t and I don’t and even Bryan doesn’t know with certainty. But having a relatively low-cost asset under contract can’t be a bad thing given that one of the alternatives will be going out shopping for players with unknown price tags.

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Hey, you know I like Debi Mazar as the morning line DWTS favourite? Well, I’m told by someone more fanatical than I (Hi, Super Wife!) that she’ll be cutting the rug with that Maksim dude and that can't be a bad thing.

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All the pretend games are over for the Canadas now after they were drubbed by what looks like a very potent Brazil team down in Puerto Rico last night.

What they’ve got left is a weekend of hard work to iron out whatever kinks Leo’s seen over the past three nights.

I’m not saying this is the biggest tournament the Canadian group’s ever been in but I am saying this: Failing to qualify for next year’s world will be a setback of Biblical proportions for a program that seems to be going in the right direction.

With the under-17s headed to the worlds last year, the under-19s having had some success on the global stage, it’s imperative that the senior team get back to the worlds so that the good people in charge of finding money to support these programs have something to take to the market.

The Canadians seem to have drawn the better of the groups going against Mexico, U.S. Virgin Islands, Uruguay and Puerto Rico – the other group has Brazil, Dominican Republic and Argentina as its three powerhouses – and that has to be a boon for the first round of play to build some momentum. The schedule looks like a help, too. After a first-day bye, they get Mexico, Virgin Islands, Uruguay before Puerto Rico and it may allow them to solidify a second-round berth quickly and take some pressure off.

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Hey, thanks.

I figure there’s no time for sleep what with all the suggestions for passing time in Vancouver, Whistler, Seattle and Victoria and now I’ve got to spend the weekend working out some kind of itinerary.

Just like last year going to Ottawa for camp, and just like 2007 when we had that time in Rome and Madrid, you folks answered the call and it’s much, much appreciated.

(And if it’s too personal for some, tough noogies).

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Okay, get those cards and letters rolling in, I’ve got to figure out a weekend schedule that includes a Jays game tomorrow with the Yankees, a bash after and a Sunday with nothing to do while Super Family heads west and I get ready to go Monday but it’s got to include a lot of questions and answers.

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Comments

[z]

I don't know who fact checked that article, but the Raptors are the 11th most valuable franchise, valued at $400M.

http://www.sportsbusinessdaily.com/article/126027

Keep up the great work Doug!

Blogger's note: Since it's a privately held company that needs not disclose it's true value to anyone, all speculation on the value is just that, speculation.

[Josh]

Hi Doug,

Only one problem with your "high falutin'" use of fiduciary. You didn't use it correctly - While a fiduciary obligation often involves the management of one party's money by another party, the term itself is used to describe the legal relationship of trust and good faith that governs the relationship between the parties. Strictly speaking it has nothing to do with money. Sorry to be so pedantic and keep up the good work.

[Ted Bellinger]

The teachers fund is valued at approximately 100 billion dollars. Mlse represents approximately 1 per cent of their investment. They do not micro manage the raptors/leafs or any of their numerous investments. They are just good at finding profitable companies and letting them do their thing. Cutting back programing or withholding raises would not be on their agenda. The leafs /raptors spent money to the max and have been unsuccessful because of poor management decisions and not Teacher Pension interference. Doug I read you all of the time. I would value a personal email to get your read on this if I don't make the blog. Bashing a well run pension fund is easy but wrong. TB

Blogger's note: I didn't mean to bash, it exists to maximize earnings from its investments. And the representation on the board suggests they keep a close eye on spending at MLSEL

[MC B-Rad]

Wondering if you have heard anything more of any relevancy about the possible carroll trade....anything else in it for the raps or mavs you can talk about? heard rumours it may be to complete the 4 player deal...can you confirm or deny?

Blogger's note: I have no idea where you're getting your rumours, I've never seen than written or speculated on by any legitimate news source but if it's true, it's new to me. And the previous trade is done and over with

[chris]

Doug - if Matt plays like the pre 08/09 Matt Carroll, then that's an okay deal. If he plays like the Matt Carroll of last year, its a horrible deal...and why do we think he's going to be better than he was last year??

[Darren]

Hey Doug,

This is my first comment on your blog but Ive been reading for a long time. My comment is that your speculating way too much on the value of Caroll to this club in 2 years time and way too little of the value of Banks expiring contract. Caroll will have 0 trade value after 2011 since he wont be playing at all for about 3 years in a row. He's basically a worse version of Kapono which can be useful but finding guys to be a designated shooter is easier than most think. And he will only play if two of Wright, Derozen, Douby, Bellinelli leave and if Jack is proven to not being able to play shooting guard. The 3.5-3.9 million dollars over two years is way too much for a shooter who might not even crack the rotation. Banks becomes an expiring contract for the 2011 offseason and even if he doesnt get trade value it helps us luxery tax wise. Thoughts Doug?

Blogger's note: My thoughts on this possible trade have been pretty well spelled out

[stephen]

doug, poo-poo on those 'too personal' wankers. you do a great job on this blog because you get the story straight but you also are a human being, and you treat us like human beings (well, most of the time). i still think you should host a night at a bar sometime when a raptor's game is on so you can meet and greet the loyal blog readers. i think it would be a barrel of fun. ever thought of it?

Blogger's note: No, not really. Not sure it's workable

[MC B-Rad]

sorry meant to say to complete four team deal (hedo)...not the four player deal (delfino/ukic)...

Blogger's note: Same thing, that trade's dead and done

[James Ballswin (Realizar)]

If Caroll can play, than let's bring him in. If he can't play (because he's no good), than forgetaboutit!

The facts tell us that Matt Caroll is about as good a Adam Morrison. Do we lousy players on our team at the end of our bench? Hell no.

In terms of character, if Marcus Banks is going have a problem not playing, than trade him. But why would you ior anyone think Matt Caroll would be happy not playing either.

Both Marcus and Matt are bad contracts and lousy NBA players. So, let's keep the deadwood in the swamp (NJN) and out of our world-class city. The Republic deserves quality over quantity.

[stephen]

as long as carrol doesn't dribble the ball off his leg or travel every five seconds, he's an upgrade from kapono.

[Eric]

Everything Bryan Colangelo touch is gold. Or that's what we're led to believe.

If a guy like Doogs would be ok with a guy (Carroll) making around $4 mil as a 9th, 10th or 11th man- at BEST- three years from now, I wonder why a guy like Doogs was not okay with a guy (Ukic) making $1.5 mil in the same role next year. Kinda makes you wonder, doesn't it?

In other words, it's good to dump Ukic to get out from under his relatively small option next year (to say nothing of his upside and the fact that he might actually be worth it and is already far more tradeable than Carroll). At the same time, it's good to add yet another 3-pt shooter who can't play defense and his extra $8 million for an extra two years.

The contradiction is obvious. I think what Doug (and those who agree with him) is really trying to say is this: Carroll was acquired by Toronto, Ukic was traded away. That mean Carroll is good for the same reason Ukic was bad. Carroll's $4 million salary is low-cost 3 years from now. Ukic's $1.5 million next year was way too expensive.

Blogger's note: Doogs? Cute. Haven't got to 11 years old yet, I see.
And since you have severe comprehension issues, please, never, ever, ever think that you know what I'm saying. Not possible. First off, if you've read stuff, you'll know that I think they gave up on Ukic too soon; second, the comparison is ridiculous on its merits, which isn't surprising since it doesn't fit your idea of reality so why bother to have it make sense.

[Henry]

I'll believe MLSE is willing to go into tax territory, in order to bring a winner to their long suffering customers, when they actually do it.

[David Sidhu]

Hey Doug,

I wasn't sure what you meant by "what kind of way is that to treat a guy"?

Blogger's note: Kind of a joke that the signing of someone so criticial to a team's success would be treated with three wire service grafs. Nothing more

[MC B-Rad]

ok so moving on from my ridiculous rumour, you didnt answer the first part of my question...anything more about how the carrol trade is moving? normally you seem to be the guy in the city to break such news, but we havent heard anything at all more about this deal...is there a possibility (based on anything you have heard) about anything more being added to the trade? have you heard anything since the initial story you broke?

Blogger's note: As I mentioned the very first day, it wasn't imminent and might take a few days and that was, what, two days ago? No news and if there's some before I go away, I'll let you know. And, no. Despite a seemingly big desire for this to be part of something grander, it's one-for-one by everything I know.

[Lawrence]

Carroll: less money year-to-year than Banks, right? So less year-to-year money that pushes against the tax threshold, right? In the two extra years somebody is going to be on the team for some millions of dollars, right? So why not Carrol, right?

Well, I think eveybody that's a little s whatever is just a little whatever because they kind of know this team is still a piece away from the big prize and a truly solid on the ball defending, rim finishing wing to start out there with Hedo would probably do it.

All those down on Carrol really just wanted to see Banks and Evans go to Golden State for Maggette's 8M/yr for 4yrs, or something or other, you know?

[Raps Fan]

Doug,

In trading dead-line do you think the Raptors can get a draft pick for Patick O' Bryant?

Do you know Bill Simmons, o I mean Bull Simmons? Does he know anything about basketball? He looks at stats only and nothing else! Just listen to his show "The BS Report"!

Do you think you can beat Eric Smith in basketball one on one? LOL

And by the way

GREAT BLOG!

Blogger's note: Ask me in February, no, and I don't know and don't want to find out

[Raps Fan]

Doug

Did you finally watch "Shaq vs."? And you didn't talk about that he stole Steve Nash's idea!

In my opinion I would boo Shaq!!! But, his show is hilarious! LOL!

Blogger's note: Nah, never saw it.

[Geoff Read]

I enjoy the blogger's notes more than anything else on this blog!

People who are slagging Carroll should remember that Banks isn't exactly superstar material. Despite the considerable mythology around him, BC ain't Rumpelstiltskin (sp?). It's a decent trade that's at worst a lateral move and seems to address one of the team's less pressing needs on the bench.

I'm less convinced of the merits of the Delfino/Ukic trade. Still seems to me like they didn't get enough for Delfino in particular. Delfino's going to start for the Bucks; Johnson's going to play 5 minutes a game for the Raptors. And the Raps had to throw in Ukic to boot. To me that's a bad deal.

[BrotherK_13]

Hey Doug. Great blog. I enjoy reading it from the land that summer forgot (i.e. Winnipeg).

I can't understand how anyone can criticize Colangelo for his work this summer. It's been amazing. Now it's up the coaching staff to make it work. Their overall talent level is way up from last year, and it will be interesting to see how they gel.

As for the potential Carroll trade - they lost two of their key 3 pt threats - Kaponno and Parker - and they're looking for a bench guy with that skill set. Makes sense. People who dwell on last years shooting percentages are being a bit myopic. For his career his 3 pt average is pretty close to his FG % - which I think is 40 / 43 or something like that.

Anyway, like many others on this blog, I'm looking forward to the season.

[Sean D]

Looks like Italy is out, also looks like Bargs Box scores are ugly, any news on how he's doing in these games that mattered to him ?

Blogger's note: Italy's been out since they lost the second time to France, the final Finland game was entirely inconsequential to both teams. I've mentioned this half a dozen times or so. The people with the Raptors who saw him were happy Italy was running a high screen and roll for him and putting him in the low post. Boxscore ugly? Big whoop.

[Jon K.]

Gotta say who knew that end of the bench stuff was so important. It's clear that Banks doesn't want to be here - which is a problem. Why start the season with a problem? Carroll isn't a game breaker, but has been a decent bench guy and can shoot the ball OK. His attitude is good and he's a guy who knows his role. Banks wanted to be more than he can be, and sulked when he wasn't used in the way he thinks he should. Good move, but really inconsequential. I think it's clear that if Carroll is dead weight that BC can move him in a year or two. His cost is less every year - that may be attractive in years 3 & 4 of his contract.

It's not like they gave up on Ukic and traded him for Carroll...two separate deals people.

[STeph]

Doug, does the success or failure of the mens senior Canadian basketball team at this summers tournaments validate (or invalidate) Leo's abity to coach at this level?

Also, how diferent is it to coach at this level? Is it more meaningfull, the same of less meanigfull then coaching at the NBA level?

Blogger's note: Coaches are hired to win. That said, the dearth of talent and international experience at the highest level would have made it virtually impossible for anyone to get Canada to the Olympics and, likely, the last world championships so that factor has to be taken into consideration.

[Lou]

stephen, your suggestion is not a bad one, but can you imagine what would happen if that was actually set up? we'd probably see Eric show up with a "We (I?) want Banks" banner ready to spew more venom at everyone and suggest that he take over as the GM of the raps.

TB, as "hands off" as Teacher's Pension Plan is going to be, they will certainly be holding the ppl that run MLSE to continue to deliver on that rumored 20% IRR that they are producing right now. And the compensation of the higher ups that run MLSE are probably outlined as such in their bonus structures, etc. So unless the rewards, in the forms of extra merchandise/attendance/sponsorship, for winning a championship will be higher than the costs of going over the tax level (which is in the millions since the raps not only have to pay the amount that they are over the tax for, they lose out on the revenue sharing), the raptors will be an "under the tax" team for the foreseeable future.

[AS]

BC is positioning his salary for the next 2 years meaning carroll for banks saved us 2 mill why the f can't people just understand that.

[BrianV]

I have read in the past that The Teachers expect a minimum 10% return/yr on any of their investments. If that minimum is not met, they would reconsider their investment.

They have a responsibility to the retired teachers, who like you and I, like to be paid.