Thursday, October 17, 2013

The Spirit of Business


We live in interesting times.  The recent showdown over the shutdown and the subsequent deal making, braking, and faking concluded on Wednesday night.  Despite being technically furloughed, I worked every day except two during the shuttering of the government, and truthfully it felt good to see something positive after so much effort.

Many will opine about the eventual deal reached at the 11th hour, but I believe another settlement deserves our attention today.  I didn’t know about the story I’m about to spin until Wednesday night, but boy it’s a good one.  (For those who watched the documentary “Free Spirits,” I appreciate your clicking this link…you may proceed to the Bits if you like).  The story conveniently ends with what might arguably be the greatest business deal ever, and should be common knowledge to today’s sports aficionados.

Let’s turn back to 1974.  The American Basketball Association (ABA) was a professional league that somewhat competed with the NBA, but added its own specific brand to the sport.  The league pioneered the idea of mass marketing and running a team purely for entertainment value.  Teams played in big-time arenas and thus, being something of Little Brother to the NBA, worked to put butts in the seats through promotions and outrageous halftime shows.  But, we owe a little more to the ABA than Bobblehead Night.  The ABA first used the three point line, adopting it a full ten years before the NBA.  Imagine basketball now without the trey…it would be a different game, with lead swings coming only after much concerted effort.  Scoring totals for players like Kobe or Michael would be reduced.  The three-point field goal revolutionized basketball and created a new kind of player, the 3-point specialist.

The other thing we owe to the ABA is the slam dunk.  Another marketing strategy pushed playing above the rim to bring a more exciting brand of basketball.  While the NBA also had its share of slammers, the ABA looked to take it a step further.  The first Dunk Contest occurred at the 1976 ABA All-Star Game, a historical footnote that only adds to the legacy of a league that played with a red-white-and-blue ball.

Anyway, the league is significant for a lot of reasons, but was unable to keep itself going.  Eleven teams began the ABA in 1967, but only two of those eleven stayed in one city during the league’s existence.  Bob Costas has described it as a chance for people with “some money” to get in on the game of basketball by owning a professional franchise.  The league struggled from the get-go, with many different owners hawking teams and moving them to different markets.  As a brief aside, this led to some excellent team nicknames: Minnesota Muskies, Denver Larks, Louisiana Buccaneers, Baltimore Hustlers, Oakland Oaks, San Diego Conquistadors, and Washington Capitals to name a few.

But, another great nickname came to the team in St. Louis.  The Carolina Cougars, based mainly in Greensboro, were bought by two brothers, Ozzie and Dan Silna.  Looking to take advantage of a potential ABA-NBA merger, the Silnas moved to St. Louis, the biggest market then without an NBA franchise.  The team was dubbed the Spirits of St. Louis, another fantastic nickname from a league too often thrown to the historical dogs.

The Silnas brought in tons of players, leveraging another ABA innovation, drafting players early.  Moses Malone never went to college, moving right to the ABA’s Utah Stars.  The main get for these Spirits was Marvin Barnes, a player out of Providence who had been drafted number two overall in the NBA.  He chose the Spirits, adding another feather to the ABA’s cap.

And Barnes dominated the court, averaging 24 PPG in each season he played for the team.  In that first season, in which Barnes won ABA Rookie of the Year, he also averaged 15 rebounds per game.  While there isn’t a whole lot of tape from those days, his prodigious talent looks fairly evident on the small amount that I’ve seen.  Behind Barnes’ leadership, the Spirits beat the defending champion New York Nets in the playoffs, triumphing over Dr. J in his heyday.  Things looked up, but everything came to a halt one year later.

And that’s where this whole thing becomes important.  The ABA sought a merger with the NBA, a proposition that the leagues both took seriously.  After a series of negotiations, the NBA agreed to subsume four ABA teams: the Denver Nuggets, Indiana Pacers, San Antonio Spurs, and the Nets.  That left, by then, two teams on the outside looking in: the Kentucky Colonels and the Spirits.  Kentucky’s owners received $3.3 million in exchange for shutting the team down.  The Silna brothers had no intention of going quietly, and looked for some alternative deal to compensate their losses.

The resulting business settlement sounds not only prescient and genius now…it sounds like theft.  The Silnas agreed to a deal in which 1/7 of the TV revenue from each of the four merged teams would go directly into their pockets.  One-seventh from the Nuggets, Pacers, Spurs, and Nets…those were the terms.  And there was no term limit on this clause, as the contract granted this money “in perpetuity” to the Silnas.  As the literacy level of Americans seems to be decreasing precipitously, I feel compelled to reiterate that “perpetuity” means forever.

The Spurs’ success speaks for itself.  They have been a powerhouse in the West despite playing a supremely anti-ABA brand of basketball under mastermind Gregg Popovich.  The Nets reached their pinnacle in the Jason Kidd era, but have remained a viable franchise since the merger.  The Pacers are perhaps the second-best small market team in the NBA, doing well during the Reggie Miller years and enduring the tough Artest years before the current team of young studs (for my money, Indiana wins the championship in ’04 if the Malice at the Palace doesn’t happen).  The Nuggets aren’t as great a success story, but they continue to gain playoff berths.

So, how much TV revenue do you think those franchises have made since the ink dried in 1976?  As of last year, according to the New York Times, the Silna brothers have collected $255 million from the ABA merger.  All that after owning a team for two years that barely made a dent in the hierarchy of the ABA.  At the time of the deal, CBS paid the NBA a very modest amount for its games.  Now…the NBA receives about $930 million from all its TV contracts.  The same Times article pinpoints the Silna’s yearly earnings at $14.57 million presently.  Really not bad at all 35 years from the last whistle in St. Louis.

The Spirits, despite being forgotten, are an exceptionally compelling team for other reasons.  Their coach during that second season was Rod Thorn, the gentleman who drafted Michael Jordan in Chicago and helped build the Nets in the Jason Kidd era.  Of similar significance is the man who has been Thorn’s periodic boss, David Stern.  The current commissioner served as Outside Counsel to the NBA during the merger discussions, and generally receives credit for pushing both sides to reach an agreement on which teams would be collected.

The St. Louis players had mixed success going forward.  Barnes played four seasons in the NBA for four different teams and has admitted to doing drugs before, after, and during games while playing with the Celtics.  He wound up homeless in the early 90s and continues to work his way back to sustainability.  Moses Malone played in St. Louis during the second season, and he now sits firmly in the Hall and is one of the 30 (at least) best players ever.  Don Chaney went on to be a vaunted sixth man for the Celtics, Ron Boone held the record for consecutive pro games played for many years, and Mike D’Antoni has forgotten defense as a pro coach.

And yet, perhaps the best footnote on this team is their broadcaster: Bob Costas.  He has achieved the kind of cultural notoriety held by only a few broadcasters in the era of sports, allowing him to insert his own opinions without ridicule or shame.  His calls for Spirits games are, from what I’ve heard, not especially invigorating, but the associations with this short-lived team continue to amaze me.

There you have it, a team that has provided us with one of the best business deals ever and a mish-mash of associations too coincidental to not be mentioned.  For all of the discussions about how well sports does, it’s refreshing to hear that it wasn’t always the case.

Bit #1: Goodness these people need to shut up

I respect Jim Irsay’s honesty, but he needs to can it.  Irsay said he was “disappointed” that the Colts didn’t win more Super Bowls under Manning.  Technically speaking, I understand his sentiments.  The Colts won at least 12 games for seven straight years, yet only made two Super Bowls, winning one.  Yes, Manning could have won more championships, but Irsay’s comments are particularly idiotic.  Since his family moved the franchise from Baltimore in the dead of night, Irsay can only point to Peyton Manning for the team’s success.  I wrote an inaugural blog post almost two years ago laying out the unbelievable effect Manning had on the Colts prospects.  Yeah, he didn’t bring home enough rings, but expressing any kind of reservation about the man who singlehandedly resurrected the franchise is insulting.  I hope Peyton kills Indy this weekend by throwing it all over the yard and putting up a 56-0 sinning score.

The other guy who should shut it is Dwight Howard.  This past week, Dwight said he would like to see Orlando retire his #12.  Howard, in an interview with the Orlando Sentinel, said he was “a little upset” that the team allowed Tobias Harris to wear 12.  He elaborated by saying that the team did some “special” things while he was there.  Of course, he’s right.  Howard led the team to the NBA Finals, eliminating LeBron James in the process.  But, is he serious?  We are only two years removed from Howard’s attempts to fire his coach and general manager.  Howard’s antics put the basketball world onto his scent as being an immature star who could really use a dose of better judgment.  Eventually, I’d predict the number will be retired.  But, the wounds are still too raw (have you seen how the Magic are doing recently?) for Howard to expect that or to even express frustration about it.

Bit #2: What’s Wrong with the Caps?

I realize the season is young, but the Caps have a 2-5 record.  That’s unacceptable for a team that has tons of talent on its roster and has proven it during the past two seasons.  The big guns are firing.  Ovie has six goals, Backstrom has seven assists.  But, the problem remains (as it has for the last four years, Mr. McPhee) on the defensive end.  The injury to Jack Hillen, causing him to miss 4-6 months threw our defensive alignment awry.  John Erskine missing games also doesn’t help one bit, as he took a giant step forward last season with his play.  But, even with them on the ice, the team gives up too many goals.  Their 24 goals allowed are six above the league average.  No Caps player has a positive plus/minus rating, and the defensemen who have played are a combined -23.  Some of this also goes on the goalies, Neuvirth and Holtby, who both have save percentages beneath 90% and have goals-against-averages above three.

It comes down to needing to beat teams that we should beat.  Dallas and Carolina beat us in past weeks, and these are teams that ranked in the bottom half of the league last season.  The Caps also need to pick it up in order to deal with the new divisions, which make it tougher for them.

Bit #3: NFL Power Rankings

1.      Broncos (6-0)

See my comments about Manning above

 

2.      Chiefs (6-0)

Lots of folks looking forward to Week 11 when this team takes on Peyton.  Expect the two to be at 9-0 and looking forward to the playoffs.  I’m still not sold on this team deep into the playoffs, but stranger things have happened.

 

3.      Saints (5-1)

Tough loss for New Orleans, especially in a game where they fairly outplayed the Pats in many aspects.  The injury to Jimmy Graham, however, could be trouble after the upcoming bye week.  Of larger concern is the ineffectiveness of Graham on Sunday to catch a ball, which might be a blueprint for opponents going forward.

 

4.      Seahawks (5-1)

For a team that started as an elite squad, I’m not entirely sure how to read this year’s version.  Such a middling win over the Titans isn’t exactly cause for uproarious rejoicing, but the defense will keep them in games going forward.  Their opponents before the bye week: Arizona, St. Louis, Tampa Bay, Atlanta, and Minnesota.  They should be up here by then.

 

5.      Patriots (5-1)

I don’t know what you can say about Tom Brady.  He’s not been overwhelming this season, but my goodness he looked good on that final drive.  I will be in attendance during his game this weekend, and I bet the team defense continues.

 

6.      Colts (4-2)

Huge game this weekend against Denver as Andrew Luck gets his second straight primetime game.  The loss to the Chargers has to be put on the defense, who gave up a fair chunk of yardage to Ryan Mathews.

 

7.      49ers (4-2)

A team running under the radar the past two weeks, with their two games before the bye week against Tennessee and Jacksonville.  I have Vernon Davis on my fantasy team, boo-yah.

 

8.      Bengals (4-2)

They’ve won four of their last five, but sustainability is the real question.  Can Andy Dalton win enough games while not airing it out too much?  The defense is gross.

 

9.      Packers (3-2)

Everybody knows I love this team as a contender not being discussed right now, but the injuries to Randall Cobb and James Jones are problematic.  Rodgers has a great plug-and-chug mentality, but it bears watching as to what he’ll do.

 

10.  Bears (4-2)

Not sure I like putting them here, but the possible replacement is the Lions, who aren’t consistent enough.  Jay has a juicy matchup this week against Washington and Brandon Marshall looks to be sufficiently placated.

No comments:

Post a Comment