AROUND the NBA: Tatum Signs 5yr/314 Max Extension| Celtics up for sale!

[HoosierDaddyKidd]

Adrian Wojnarowski (@wojespn)
ESPN Sources: The Detroit Pistons are hiring J.B. Bickerstaff as the franchise’s next coach. Bickerstaff comes to the Pistons after consecutive trips to playoffs with Cavaliers —- including the Eastern Conference semifinals.

This is kind of surprising to me.  I always thought he got raw deal in Cleveland. He took them to the 2nd round in the playoffs (even though it took a game 7-win vs the Magic to get there) for the first time since LeBron left before injuries to Allen and Mitchell did them in vs Boston.

[SleepingHero]

Vincent Goodwill (@VinceGoodwill)
J.B. Bickerstaff will be the new Pistons head coach, sources tell @YahooSports. It was between Bickerstaff and former Pistons assistant Sean Sweeney, who’s in Dallas.

Woj first on the report

[SleepingHero]

This is kind of surprising to me.  I always thought he got raw deal in Cleveland. He took them to the 2nd round in the playoffs (even though it took a game 7-win vs the Magic to get there) for the first time since LeBron left before injuries to Allen and Mitchell did them in vs Boston.

What's crazy to me is that I don't think we heard Bickerstaff mentioned at all in the coaching search for DET.

Always was Borreggo and Sweeney, unless I missed something.

[Mavs2021]

Vincent Goodwill (@VinceGoodwill)
J.B. Bickerstaff will be the new Pistons head coach, sources tell @YahooSports. It was between Bickerstaff and former Pistons assistant Sean Sweeney, who’s in Dallas.

Woj first on the report

Finally some good news for us. Pistons are on a roll. After taking THJ and not taking Sweeney, I think they should offer Klay a max contract next. 

[SleepingHero]

Adrian Wojnarowski (@wojespn) ✧
J.B. Bickerstaff has agreed on a five-year deal to become the Pistons' coach, sources tell ESPN.

[Mavs2021]

Adrian Wojnarowski (@wojespn) ✧
J.B. Bickerstaff has agreed on a five-year deal to become the Pistons' coach, sources tell ESPN.

Smart move. The last five year deal worked out very well for them.

Washington and Detroit replaced all their front office people and seem just as dumb as before (so far).

[RoyTarpleysGhost]

Pistons gonna Piston. Glad we get to keep Sweeney for one more year.

[Mavs2021]

Pistons gonna Piston. Glad we get to keep Sweeney for one more year.

It´s amazing. Sweeney would have had the exactly correct profile for the job. What you want to do when you enter a rebuilding stage is to hire a young coaching genius that wants to establish himself (see Utah or OKC, oh look only WC teams again) and will work through the lows, not some established as mediocre win now coach like Williams.

This really is FO 101 and these East teams can´t even copy that.

[Winter]

deleted

[khaled1987]

It´s amazing. Sweeney would have had the exactly correct profile for the job. What you want to do when you enter a rebuilding stage is to hire a young coaching genius that wants to establish himself (see Utah or OKC, oh look only WC teams again) and will work through the lows, not some established as mediocre win now coach like Williams.

This really is FO 101 and these East teams can´t even copy that.

Sweeney is 40, JB is 45 but with experience in making a 22 win team into 51 win team. Is the being 40 rather than 50 is that much of an advantage to think he is more sure thing for Detroit?

[juanc]

Pistons gonna continue get Piston

FIFY

[KillerLeft]

Boston Celtics for sale!? Shocking!

https://x.com/wojespn/status/1807823591125254247

[Moviemavguy]

Boston Celtics for sale!? Shocking!

https://x.com/wojespn/status/1807823591125254247

You have to be an oligarch to fund an NBA team these days.  

They are great value in theory, but it doesn't seem like the teams are making enough money to justify keeping.

[KillerLeft]

John Hollinger:

Selling the Celtics rn is low-key brilliant -- cash out and let somebody else either deal with that massive repeater penalty coming in 2025-26, or be the bad guy for breaking team up.

https://x.com/johnhollinger/status/1807825223292453046

[DallasMaverick]

John Hollinger:

Selling the Celtics rn is low-key brilliant -- cash out and let somebody else either deal with that massive repeater penalty coming in 2025-26, or be the bad guy for breaking team up.

https://x.com/johnhollinger/status/1807825223292453046

Buy low.  Sell high.  

Seems like a good strategy.

[KillerLeft]

Buy low.  Sell high.  

Seems like a good strategy.

For sure, and he's right. That team is either gonna get broken up or hemorrhage money.

[DallasMaverick]

For sure, and he's right. That team is either gonna get broken up or hemorrhage money.

NBA franchises are mostly like zero-coupon bonds.  They don't really provide any cash flow, but you get a big payday at the end.

[omahen]

NBA franchises are mostly like zero-coupon bonds.  They don't really provide any cash flow, but you get a big payday at the end.

In 2022/23 season Mavs revenue was 430 mil and operating income was over 80 mil. I don't think this is considered as bad business

[DallasMaverick]

In 2022/23 season Mavs revenue was 430 mil and operating income was over 80 mil. I don't think this is considered as bad business

True, in recent years they've actually shown a small net profit.

https://www.statista.com/statistics/2860...sociation/

...although the Operating Income number excludes some expenses, like rent payments on their arena.

...and I'd argue that a $3 billion dollar asset should produce better than a 2.5% income, if it's cash flow you're after.  And if you total the last 22 years' worth of income, it's about a 1% annual cash return.

So I'll stand by my argument that it's much more like a zero-coupon bond, or maybe raw land, than a business or a commercial building, for example.

This is one of the reasons the NBA only wants owners with strong balance sheets.  They don't want the owner counting on any cash flow while they own the franchise.

[omahen]

True, in recent years they've actually shown a small net profit.

https://www.statista.com/statistics/2860...sociation/

...although the Operating Income number excludes some expenses, like rent payments on their arena.

...and I'd argue that a $3 billion dollar asset should produce better than a 2.5% income, if it's cash flow you're after.  And if you total the last 22 years' worth of income, it's about a 1% annual cash return.

So I'll stand by my argument that it's much more like a zero-coupon bond, or maybe raw land, than a business or a commercial building, for example.

This is one of the reasons the NBA only wants owners with strong balance sheets.  They don't want the owner counting on any cash flow while they own the franchise.

But it is not cash you are after, it is growth.

What the numbers show is that Mavs (or any other franchise) are a positive business, they don't need rich owners pumping cash into them. All the while their value is growing at a very high rate.