[ClutchFans] Notebook Dump: Reflections on Dwight Howard, Morey, Asik and Lin

Well, if not from direct merchandising, then certainly from advertising and endorsements, whether to the team / holding company directly (or indirectly) or to the individual players of the team. One of the selling points of joining the Rockets in the past was that a player can get an endorsement from some Chinese company because of Yao's presence. This certainly alleviates the wage pressure on the team directly. Shane Battier, Luis Scola, Chuck Hayes and even Luther Head can attest to this. In addition, I see Chinese / Asian advertising all over the Toyota Center. Heck, its named the Toyota Center. There's an Asian connection to it (all starting from Yao's days).

Another thing that could factor into Les' commercial calculations is what effect Lin's presence has upon the valuation of the holding company of the Houston Rockets. I recall the value of the New York Knicks holding company, the Madison Square Garden Company, plummeting by about a hundred million (or so) the few days after Lin signed with the Rockets (and prior to that, the value of said company ballooning up by several hundred million because of all the attention Lin was generating for the Knicks). Who knows, maybe Les' networth is a couple of millions up due to Lin's presence on the Rockets *shrug*

Also, ultimately, as CyberX previously mentioned, the Rockets are nothing more then a side business for Les. He has a lot of investments or ventures with the Chinese market. There's no better way to start a conversation with a potential Chinese business partner then to say: "Hey, I'm the owner of the basketball team that has Jeremy Lin!" Stuff like this opens a lot of doors, mind you.

 

Still shared
http://www.cbafaq.com/salarycap.htm#Q12

 

Interesting. Noted. I am more familiar with English sports and how their advertising revenue / structures are constructed, not with basketball. (and I know nuts about American football :grin

 

just occured to me that maybe I should quickly explain to those who dont know what we are talking about what BRI(Basketball Related Income) is and why it matters.

Basically, BRI is a huge pool of all monies from every team in the NBA filled by all the income streams I listed above. That money determines the amount of money available to each team to spend on team rosters. It is shared amongst all teams.

for further details, or if you want to *really* understand how the league works, visit here and read. If you have trouble understanding some of it, feel free to ask questions there are lots of folks here who can help.

 

BRI can't be grabbing everything, or the Knicks and Lakers wouldn't have so much money to burn. There must be some revenue stream available, and I assume that Jeremy can tie into that somewhere.

 

Refer to my post before the one you quoted...that is cut and pasted directly from Coon's CBA FAQ, which is pretty much the Bible of NBA CBA answers.

Now, keep in mind that NYK is operated by a larger company that can divert money from elsewhere in the operation to cover operating expenses.

Also, BRI covers a percentage of certain revenue streams, so the teams do get *some* money to themselves...jsut not near as much as some folks think.




those certain revenue streams are

 

Thanks R2K!

JustAGuy, this is the reason.

https://www.google.com/finance?q=NASDAQ:MSG

The Knicks are under the ownership of a giant holding company on the NYSE. That gives them a lot of financial firepower. I am sure the same could be said for the Lakers (I haven't looked into their background, but I'm not a Laker fan, so can't be bothered *shrug*

Between early February to early July, the stock price of MSG went up from $30 to $38. A 26% increase over 5 months. If I recall correctly, the valuation of the company went up by about $300 million. A sizeable chunk of it was attributable to Lin and the attention he was generating internationally for the Knicks.

This is one of the articles explaining the effect Lin had on MSG's stock valuation.

http://www.grantland.com/blog/the-triangle/post/_/id/32639/taking-stock-of-jeremy-lins-value

How much of these factors into Les' calculations, we will never know. But if CyberX says he is a profit center for the Rockets, then who are we to argue with an insider :grin:

 

-Delete-

 

I looked at the list; thing is, any time you have a set of rules like that you know there is an accountant or lawyer in the background saying "you know, if we just build a holding company and drop team ownership of the stadium to 49% then we..." or whatever.

The percentage of revenue from signage/suites is the obvious first place to look for Jeremy dollars... assuming there were slots still available to be sold. I could see that making up the perceived $2M/yr in value... of course, doesn't help with the cap space.

 

Different values by different teams with different perspectives/needs/markets.

If JLin is indeed worth $6.5m then $8.3 ain't bad.

 

This^

I was at a sponsored event for Jeremy Lin and Sam Hinkie told us we were one of very few groups that had the same access to Lin, and that everyone else paid a LOT more than we did (it was a Harvard Club event). Your last point is also significant and would not be attributed to the Rockets' bottom line but is significant - being able to do JVs in a different country is a big advantage (I know, I know Yao led the way but it doesn't mean Lin doesn't help too) that you get that will hit Les', if not the Rockets' bottom line.

Also, don't forget the marketing. Every NBA team has significant marketing expenses. It costs money to buy marketing time or to grow the brand. Every free web hit, ESPN mention, etc. that does not have to be paid for is freed money that can be used elsewhere, or would otherwise enhance the value of the Rockets brand, generally speaking. Think about how much you have to shell out for 30 seconds at the Superbowl. Now you don't have the same thing, but there is a real benefit to the incremental mentions of Lin/Rockets in papers, websites, TV, etc. to the Rockets (yes, he's not the only one driving this but he helps).

I'm not saying Les/Morey won't trade Lin. They will do it if the end result is an improvement to the Rockets/Les. No more no less. I like Lin and would prefer he stay and think he will do well next to Dwight, but if Morey can get us Asik + Lin + TJones/DMO + lots of pick can yield us LaMarcus Aldridge or somebody else really good, I'll be the first to say, cool.

Lin helped us last year - he helped get us to the playoffs (3rd win share according to Morey) which helped get Dwight. He's a nice guy and I think he will improve because he works hard (he already clearly improved over the course of last year). Given our firepower, we don't need an elite point guard. I do think he is clearly being shopped and a deal may even be imminent for all we know. It's just too strange that he hasn't said anything via twitter (he's too nice to not do that, unless he's been given a heads up that he will most likely be moved in the near future) and that Parsons and others aren't referencing him.

 

Hey, it's only basketball talk so don't get too serious and just try to enjoy the freak shows. And know that most CF now love or miss Yao but in his days there were plenty of his haters too just look it up. That's why I didn't sign up back then because I could not stand the derogatory remarks. JLin will never be appreciated unless he can average 20/10 (all the while without plays designed for him and without the green light to shoot and without the trust to run the team as the true pg, and being relegated to the 3rd or 4th option) or makes less than league average or better yet league minimum. Heck, Lin outplayed John Wall everytime they met but everyone just brushes that off as small sample size. If JW is available, CF would trade Lin for him in a heart beat. That's the reality today. Lin has said he will always have doubters and that's both on and off the court.

You support him; I support him. But no need to get upset with those who hate and/or doubt him. They have rights to say what they want just like you and I. I am confident that Lin will prove his doubters wrong. Let's support him where it counts.

 

That's pretty much about it. Basically a lot of people see him as a Chinese all-you-can-eat buffet, and won't pay decent price to go to a real Chinese restaurant.

 

*tiny violin*

 

Asik I HOPE accepts that we all love him as a player and hope he sticks it out with us because he is just as important to us to helping us win a championship as Dwight or any other player. With both there skill sets on defense we can do amazing things. So what if your not a starter if your getting paid good and can be a champion. I HOPE Lin continues to grow as well. We need him to be a solid player on the court to win as well.

 

Asik cemented himself as a top 7-12 center last year and he knows it. It's easy for us as fans to say that he should be happy with the money and a chance to win, but in his heart, he know's that he should be a bona fide starter in this league, and for a young man, it's tough to accept a lessor role...if he was past his prime, I'm sure he'd be more willing, but I know that if I was in his place, I'd rather start and show how good I am, rather than just being the 7th man off the bench, even if I win a title in the process.

 

Agree. Athletes have pride. It's not just about money (especially when you've made enough already).

 

Is it just me or is this guy just a troll.

It seems to me if your English vocabulary contains words like: logic, understand, agenda, presented, misjudged, diminished and reality and they are used properly then your grammar can't be this bad. "I don't want argue with you any more. I am talking pure logic sense, you don't seem understand." Seriously, don't know how to use "to" in one paragraph then use it correctly in another? "You can argue that the rockets misjudged Lin's talent, or you can argue Lin did not play to the expectation, but you can't say Morey knows he is overpaying Lin at the time he signed him. The reality, more likely, is Harden's arriving diminished Lin's value to the team."

Does this guy have a split personality? More likely he is pretending that English isn't his first language so he can write crap and cause controversy by writing stuff like "I have come to a conclusion, in regarding of Lin, Clutch is biased AND stupid. He maybe just plain stupid."

 

Correct if I am wrong, but the first offer was a rumour, not something in writing. A rumour spread by the Rox to gauge Knicks likelihood of matching. In any case, whatever that first offer was or was not, as long as it is higher than the Knicks qualifying offer of $1m Lin would take because none of the other suitors, Toronto, Dallas, etc offered Lin anything as far as we know. So Lin took the only offer out there, thus that was his market value. One can argue he did not play to his contract but one cannot argue that the original offer was above market.

 

Big markets still make bigger profits. They just have to share those profits.

http://www.cbafaq.com/salarycap.htm#Q24