Kings Saving Money to Make Money?
by Tom Ziller on Jul 27, 2010 8:53 AM PDT
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The weekend's great Ailene Voisin Q&A with the brothers Maloof included a quote from Gavin Maloof that read that the Kings nearly broke even last year and could make a small profit this season. Remember: the Kings sat on minor cap space last summer, and are currently sitting on major cap space this summer.
There are basketball (or at least "NBA") justifications for this. The market has been bloated by significant contracts for quasi-signficant-ish players. You don't want to blow a wad of cash for a player who won't help that much just because you can. And -- let's be honest -- players who could really, really help aren't exactly banging down the door. Teams which win 25 games and aren't based in L.A. or New York don't typically draw the big names in free agency. The team is building a young core, with one star-in-the-making (Tyreke Evans) and another player reasonably expected to be a franchise cornerstone (DeMarcus Cousins). Throwing $15 million a year at a 28-year-old All-Star would be change of course, and weird.
And let's not even get into the whole collective bargaining riddle, in which the Kings are currently set up to profit hugely from a proposed league plan to institute a hard cap and force superteams to cut star players.
Mark Kreidler suggested this morning that a real reason the Kings could be sitting on all this cap space is not just those reasonable suggestions and justifications, but that to break even or turn a small profit this season, payroll can't get much higher. Attendance is still expected to be bad. Corporate sponsors won't be lining up to gobble up rows of seats. You can affect a bottom line positively in two ways: expand revenue and decrease spending. The Maloofs, Kreidler suggested, don't see revenue expanding by much, so they are decreasing spending.
It makes perfect sense, given the Maloofs' other recent decisions, like selling off the New Mexico beer distributorship for cash, like shuttering the Monarchs to cut costs, like restructuring the business operations of the Kings to streamline and push push push the market. The Maloofs' cash flow issues are more pressing than the Kings' talent deficit. It is currently more of a priority to save the family from "going under" than to bump the win total from 25 to 40.
I think this is just one part of it -- the basketball justifications, of which a major one is that no one the Kings had a shot at would really turn this team into a 40-42 squad, are real. But it's a compelling piece of the puzzle.
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If I were in the Maloofs' shoes, I'd have done the same regardless of the money situation.
It just so happens that what makes good basketball sense for the Kings also happens to make good financial sense for the Maloofs – and there is some decent overlap between the two. No need to blow big money on no-names.
"Where hope goes to die"
by napg on Jul 27, 2010 8:57 AM PDT reply actions 14 recs
I am still for big name splash
but a mid name splash… NUH UH. These teams giving guys like Carlos Boozer insane money are consigning themselves to early playoff exits for a long time
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 10:41 AM PDT up reply actions
Well Boozer to me was a damn good pick up for Chicago
They already have Rose and Noah, two very good building blocks, and now they add the low post threat they’ve needed. They also have Korver and Deng who can spread the floor.
Author of the Pick and Scroll. Follow me on Twitter here.
by Aykis16 on Jul 27, 2010 2:35 PM PDT up reply actions 1 recs
Agreed, Chicago did pretty good this summer
in the historically dangerous “mid-name splash” department. Boozer’s exceptional fit with the Bulls roster makes him worth the contract. Same for Korver and Watson (although I’m not sure you’d consider those guys even “mid-name” players. Maybe Korver.)
More controversially, I also like the Amare signing for the Knicks. The fans deserve some excitement at MSG, and STAT will electrify. Additionally, he may very well lure a higher quality of free agent to the Knicks as soon as next year. (I’m NOT predicting that they are going to start winning this year with just Amare, though.)
The Rudy Gay signing was more difficult to judge for me. What’s a small market to do, but overspend to keep their top players? The Kings may be looking at a similar quandary down the line with Evans, Casspi and Cousins…
by basketball galactica on Jul 27, 2010 3:52 PM PDT up reply actions
Part of the times
Economy is in the tank. Have to cut expenditures and try to at least break even. They’re not the only ones right now having to do this.
"Dodger fans aren’t happy when foul balls get into their section, because it interferes with their playing with the beachball"- Mike Krukow
Whether it's Maloof cash problems or actual strategy
It’s good strategy. There’s always tension between good rebuilding technique, i.e. getting as bad as possible for a few years to shed bad deals, and revenue-generation strategies, which is to get the team at least halfway decent to fill seats.
It sure seems like the Maloofs have been forced to avoid spending on salary because money is so tight. Which, luckily, is totally fine for now. I know we’re all excited about next year, but this is still probably only a 30-40 win team, and better to see a bit of improvement and land in the lottery for one final piece, then make a splash next year.
My concern is that the Maloofs still won’t be in a financial position to make that splash, and the Kings will start looking like the Oakland A’s. But we’ll see.
My thoughts exactly
I was thinking of the A’s as I read the article. Draft good talent and then watch as said talent leaves as opposed to paying the big bucks.
It works somewhat for Oakland bug I don’t think that the NBA has as big a talent base as baseball so I dearly hope that this I’d not the Kings’ direction.
I highly doubt it, but you never know.
by Mityt on Jul 27, 2010 9:45 AM PDT via mobile up reply actions
They were in position to make a splash
But only of the BIG BIG kind. They were apparently ready to make a run at Lebron when they called him and his agent basically hung the phone up in their face without a 2nd word. They will only sign a name that will immediately put butts in seats or turn the team around in a big way.
Sorry Boozer, Rudy Gay and David Lee… you’re all damn good but you won’t sell out an arena and you aren’t worth near max deals.
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 10:54 AM PDT up reply actions
We need not apply for the LeBrons of the world
They aren’t coming here.
I doubt when they signed Vlade that they were thinking, “Wow, what a draw he will be.”
No, he was simply a guy who could make the team better. So if you think Boozer, Gay, Lee or someone else does that and you don’t have to pay them LeBron money, you take a look.
Personally, I think the Maloofs are counting their pennies and trying to put on a good front while getting back to the basics of creating a good, competitive product and entertainment value.
"I know we certainly gave up a lot to get him, but we do have other players on the perimeter who we can plug in. We haven’t had anybody who we feel is a go-to guy in the post. So we gave up a lot to get a lot, and we’re real excited about adding Carl." - Paul Westphal
The Maloofs may have the money, but I think GP is wearing the pants with the wallet in them.
I suspect that if the right player had been available and willing to come here, the vault door might have been dynamited right off of its hinges. In reality, you could probably have listed players meeting that criteria on one hand, maybe even a Simpson hand.
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
by andy sims on Jul 27, 2010 9:05 AM PDT reply actions 1 recs
On spending
Another quote from the same article from Gavin:
We still have cap space and even more available next year if we want. Are we going to spend it this year? Probably not, but we could. We’re going to strike. We’re just going to be disciplined and wait for the right time and the right player.
I don’t think this throws a lot of water on the idea that the Maloofs are tightening their financial belts, but as Sims says, I think they will spend if they believe their cash outlay will improve the product (and thus improve attendance).
Beware certitude.
this is an old quote
and just reeks of PR BS. oh yea, we’ve got the $, no we aren’t gonna spend it, BUT WE COULD. No shit, of course you could, that’s what cap space is. Money you COULD spend. We are gonna spend it, just not now. They never had any intention of spending any $ this offseason. I am actually in favor of this move just due to the CBA scenario, combined with the possible FAs that were out there. I just don’t like the way he puts that at all. He sounds like a 12 year old who knows he can’t do something, but insists he could if he wanna.
Nobody besides
James, Wade or Dirk 4 years ago was worth the money they are commanding. Bosh ain’t worth a max deal either.
If Chris Paul changes his mind and looks for a trade again the Maloofs very well might try and make something happen. But if they add anybody it will be at a position that compliments Reke and Cousins and the best person for that is a PG/SG. Think Brandon Roy or CP.
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 10:58 AM PDT up reply actions
I'm confused
How exactly are you in favor of something but also think it’s BS? Sounds like a 12 year old that isn’t getting everything he wants.
Kings fan in OKC
by rockrichmond2 on Jul 27, 2010 9:12 PM PDT up reply actions
um
This quote is from the same article cited by TZ. And to be honest it does not reek of PR bull. It is sound strategy to say that we have money we can use on an impact player if the opportunity presents itself, but we are not going to spend money just to spend it.
Beware certitude.
Why not save the $'s
3 Potential Scenarios
1. Enable team to get a good player or draft picks for taking on another teams salary
2. Leave it in the bank for when this team is successful in 2-3 years to keep some ‘Luxury Tax Reserve’
3. Preparing to go into Hibernation Mode for 2011 Lockout
A lockout is quite possibly coming
The super-duper-stars are getting getting deals only a couple million per above what guys 2 notches below them are getting.
If upper-level non elite players are getting deals worth near the league max its system busting. I highly doubt the players union wants to have anything to do with stopping it. The NBA is the only sports league where the players get too much of the revenue and its been getting worse every year.
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 11:03 AM PDT up reply actions
The owners in Chicago, Atlanta,
Miami, New York and the smallest markets of the big players – Oakland and Memphis… I didn’t see Minn, Portland, Utah, Sacto.
Of those that reached the only 2 that can’t support those kind of numbers are Oakland and Memphis. They absolutely are living hood rich. The other cities can afford to outspend the smaller markets dramatically. The owners in the major cities are outspending the cap and driving up mid-tier player contracts to the point where it will put smaller market teams deeply into debt.
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 11:51 AM PDT up reply actions
There's a million ways to skin a cat
Small-market owners just have to play it smart and not overpay mid-tier guys like upper-tier guys. They have to draft well, and they have to be smart about when to cut guys loose.
The fact that San Antonio, Utah, Portland, Miami and even the Kings back in the day (all small or mid-market teams) are/were able to compete in the upper tier of the league is because they by-and-large make smart cap-related decisions. So it can be done – this isn’t MLB.
Nobody spends more money than the Knicks, and they can’t win squat. Spending money wisely is what makes a team competitive.
In short, blame the owners for signing players to contracts they don’t deserve. Don’t blame the players for signing the contracts they are offered.
by otis29 on Jul 27, 2010 12:03 PM PDT up reply actions 3 recs
Really jumps out at me
In short, blame the owners for signing players to contracts they don’t deserve. Don’t blame the players for signing the contracts they are offered.
Anyone who has ever typed (woof!) and found it witty, you ought to keep that in mind.
Also, does anyone really believe that Golden State, by virtue of having their facility in Oakland, is actually the NBA equivalent to MLB’s Athletics? The Dubs have that entire market to themselves, if they don’t make smart free agent signings, it’s really not because their hands are tied financially.
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
It’ll just be fun to watch when the new ownership keeps making the same crappy personnel moves.
Those who walk on eggshells rarely leave footprints.
by SierraSpartan on Jul 27, 2010 12:33 PM PDT up reply actions
The A's have a crappy market because they share it with the Giants.
EvilCowtownInc: Screwin Suckaz over since 1985...... On Twitter
No mistakes in the tango, Donna. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
Well, that was my point.
More importantly, they have the smaller, less prosperous portion.
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
Yeah the 2nd part is more important IMO.
The East Bay sports teams have always been more appealing to the blue collar flophouse type. (Like me.) But, not to the snobby intellectuals or people who like Willie Mays, Barry Bonds etc etc.
Such is life. I wouldn’t be disappointed if the A’s move out of the Bay Area. I really wouldn’t. It’s not like they’ve ever really gotten the kind of support they need to stay there. They got less support during the Raiders glory years of the 70’s. The 80’s was the only time they were well supported, and that’s mainly because they weren’t playing in a football stadium then.
The A’s are not the Kings.
EvilCowtownInc: Screwin Suckaz over since 1985...... On Twitter
No mistakes in the tango, Donna. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
Maybe now they'll be able to make enough money to afford some grown up clothes
#vfettkefordraft
by vfettke on Jul 27, 2010 9:14 AM PDT reply actions 1 recs
Dude
If I had that kind of money, you’d have a hard time convincing me to even wear pants. “Grown-up clothes” would be out of the question.
Never forget: I am a complete idiot
by Exhibit G on Jul 27, 2010 9:32 AM PDT up reply actions 5 recs
I'm just saying that someone needs to tell them they're a little too old to wear skater hats and bedazzled Ed Hardy shirts
a regular t-shirt and jeans are perfectly okay. A douche bag uniform is not
#vfettkefordraft
The hat looks silly
Other than that, I see a Volcom t-shirt and a t-shirt for a Maloof event. Should I get off your lawn now?
Never forget: I am a complete idiot
I wasn't just talking about the above pic
there’s been several times where they’ve been dressed like teenaged boys
#vfettkefordraft
Acting your age (after 40) is the beginning of the end IMO
Might as well tune up your shuffleboard skills and start walking hunched over.
I'm not talking about acting one's age
I’m talking about dressing like a normal person
#vfettkefordraft
Soilent Green people!
They’re just trying to fool the Soilent Green agents.
"We're not talking about me and Darko in the same sentence." - Chris Webber vs KAHN!
by caseycheesecake on Jul 27, 2010 11:37 AM PDT up reply actions
Lil John isn't that much younger than the Maloofs
Act like a sober human being, not a drunk Internet username. -- Brian Galliford
by NorCal BillsFan on Jul 27, 2010 7:38 PM PDT up reply actions 1 recs
Whhaaatttt!!!!!!!!
"Children want what they want when they want it." ... Andy Sims
by edm7 on Jul 27, 2010 9:33 PM PDT up reply actions 2 recs
I doubt there was a collared shirt to be found this day...
Sound the trumpets, Raise the drawbridge, and drop the Oldsmobile
Maybe... just possibly
they are AT the Maloof Money Cup in that picture.
Gimme 1 round!
by ItBurnzWhenIP on Jul 27, 2010 11:04 AM PDT up reply actions 1 recs
Kings have a good strategy going in my opinion
They’re already $17 million under the cap, leaving them the option as being partners in uneven trades, or 3rd teams where players need to be unloaded, and then they also have $15 million more coming off the cap this year when Sammy D and Landry’s contracts expire. The Kings will have the most flexibility of any team after the new CBA, and that could be really, really good.
Author of the Pick and Scroll. Follow me on Twitter here.
by Aykis16 on Jul 27, 2010 9:15 AM PDT reply actions 2 recs
We'd have to be in the consideration of all teams looking for "big" contracts.
We’d be setting the precedent on how much players get paid right?
"We're not talking about me and Darko in the same sentence." - Chris Webber vs KAHN!
by caseycheesecake on Jul 27, 2010 11:38 AM PDT up reply actions
Fact of the matter is
that the Maloofs are struggling financially..just like most (if not all) small market teams across most major sports in the US. They are still a pretty smart business family and I believe that they are trying to do the right thing for the long run, which unfortunately makes for a painful view for those who are short sighted.
The Kings have a tremendous core of young talent. Talent that is gaining national attention and this is the core that will help carry this franchise through the tough times and they will come back lean and mean. At that point (in conjunction with the ability for big stars to make big advertising dollars in any market due to technology) it will be much easier to attract the complementary pieces needed to put Reke & DMC over the top.
Your friendly neighborhood Purple Drank retailer.
If Kings fans
want the Maloofs to spend money on free agents …. there’s only one thing we can do to help …. sell out Arco.
by Dub_TC on Jul 27, 2010 11:20 AM PDT reply actions 9 recs
You, Sir, are a true patriot.
"We're not talking about me and Darko in the same sentence." - Chris Webber vs KAHN!
by caseycheesecake on Jul 27, 2010 11:39 AM PDT up reply actions
I call your egg, sir, with this chicken...
The Maloofs appear quite convinced that bringing in any free agents will only help at the margins in terms of the W-L record, maybe getting the Kings 5-10 games above .500 – which in the Western Conference may possibly earn a 7th- or 8th-place finish, instead of the (realistic) prospect this year of finishing roughly .500, with far less financial outlay than they would be liable for given the typical FA max deal.
It looks for all the world like the Kings are trying to duplicate what’s going on in OKC. Whether that leads to greener pastures in terms of championships, well…
Those who walk on eggshells rarely leave footprints.
by SierraSpartan on Jul 27, 2010 11:51 AM PDT up reply actions
How often?
How often do you see the word “great” before Ailene Voisin’s name? Shocking!!! As I commented on the Bee’s web site, she finally found something she couldn’t screw up…a straight question and answer piece.
Shameless plug: Please visit my web site and vote for your favorite Sacramento sports team – www.sacsports.net
It was embarrassing
I don’t know if it was said up above somewhere but -
It was actually embarrassing to me a year or two ago that we were over the Luxury Tax for that crappy team going nowhere.
Please (GP & Maloofs) take your time, make smart decisions and use the $$ to build a playoff team heading towards contention.
So imitate the action of the tiger!.
Lend the eye a terrible aspect
- and teach them how to war!
Henry V iii
The Kings didn't pay luxury tax a year or two ago.
Your information is incorrect.
EvilCowtownInc: Screwin Suckaz over since 1985...... On Twitter
No mistakes in the tango, Donna. Not like life. Simple. That's what makes the tango so great. If you make a mistake, and get all tangled up, you just tango on.....
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