duncan228
06-08-2009, 11:43 PM
The Magic miss chance to cash in (http://www.mysanantonio.com/sports/spurs/The_Magic_miss_chance_to_cash_in.html)
Buck Harvey
Courtney Lee missed the money ball, though only in the sporting definition.
There was little he could have done about the economic one.
Even if the Magic rookie had evened the Finals on Sunday night, he couldn’t have done anything about getting his franchise to break even. Orlando is losing money this year, with a future that suggests it will lose more next year, even with a new building on the way.
That’s why Lee’s miss was so costly.
Was this the franchise’s best chance?
Maybe the Magic can get back to the Finals again and again. Dwight Howard is only 23, and he’s locked into a long-term contract. With Jameer Nelson starting from the tip next season, the Magic have reason to be optimistic.
Besides, Rich DeVos, the co-founder of Amway and owner of the Magic, can afford some payroll tax. Whereas Peter Holt’s fortune is quantified with terms that start with an “m,” DeVos’ start with a “b.”
This year’s financial numbers don’t suggest there’s a problem, either. Orlando’s payroll is in the middle of the pack and is nearly identical to the Spurs’. The Spurs had the 17th-highest payroll last season and the Magic the 18th.
But they aren’t the same. The Spurs are committed to about $4 million less for next year’s payroll, with all major players signed up, and they have a chance to shed more if they choose. That means they can still add a few pieces without paying a luxury tax.
Orlando, instead, is scheduled to pay $2 million more already. Worse for the Magic: That total does not include Marcin Gortat, and Hedo Turkoglu can opt out for a raise, as most think he will.
Assuming Gortat leaves for more money elsewhere and the Magic pay to keep Turkoglu, the Magic will be without a key sub and have a payroll that would be somewhere among the league’s five highest.
Cleveland was near the top this season, and maybe Orlando lives with the same red-ink reality. But the Cavaliers not only have some payroll chunks falling off now, they also made up for it with a revenue-producing arena.
Orlando admits, instead, it will lose as much as $14 million this season, even after the Finals run. The Magic get their own new building soon, but, in this economy, who can be sure about the profit?
Other NBA teams, including the Spurs, brace for declining revenue. Most think the cap will go down about $1 million this July and more next summer, and some franchises, such as Phoenix, have already been trying to chop away personnel to save money.
The Lakers have their own issues. They will likely lose Lamar Odom this summer, in part to keep Trevor Ariza. Teams such as the Spurs, with some flexibility and partially guaranteed contracts, are waiting eagerly for a bargain to fall their way.
So, economically, this is the Magic moment. The franchise had spent money to get this far, and sometimes too much. Orlando gave a max contract to Rashard Lewis, for example, when he’s not a max player.
He’s good, but his value isn’t equal to his $20 million average salary. The parallel is the same New Orleans franchise that was last year’s rising team. The Hornets signed Peja Stojakovic, a similar tall shooter, to a similar contract; the Hornets have since felt a similar pinch doing business.
So there was Lewis scoring 18 points in the second quarter Sunday, and there were the Magic at the end of regulation with a smart inbounds play. Lee was open, and what followed defined a series and a franchise’s vulnerable finances.
Orlando couldn’t afford the miss.
Buck Harvey
Courtney Lee missed the money ball, though only in the sporting definition.
There was little he could have done about the economic one.
Even if the Magic rookie had evened the Finals on Sunday night, he couldn’t have done anything about getting his franchise to break even. Orlando is losing money this year, with a future that suggests it will lose more next year, even with a new building on the way.
That’s why Lee’s miss was so costly.
Was this the franchise’s best chance?
Maybe the Magic can get back to the Finals again and again. Dwight Howard is only 23, and he’s locked into a long-term contract. With Jameer Nelson starting from the tip next season, the Magic have reason to be optimistic.
Besides, Rich DeVos, the co-founder of Amway and owner of the Magic, can afford some payroll tax. Whereas Peter Holt’s fortune is quantified with terms that start with an “m,” DeVos’ start with a “b.”
This year’s financial numbers don’t suggest there’s a problem, either. Orlando’s payroll is in the middle of the pack and is nearly identical to the Spurs’. The Spurs had the 17th-highest payroll last season and the Magic the 18th.
But they aren’t the same. The Spurs are committed to about $4 million less for next year’s payroll, with all major players signed up, and they have a chance to shed more if they choose. That means they can still add a few pieces without paying a luxury tax.
Orlando, instead, is scheduled to pay $2 million more already. Worse for the Magic: That total does not include Marcin Gortat, and Hedo Turkoglu can opt out for a raise, as most think he will.
Assuming Gortat leaves for more money elsewhere and the Magic pay to keep Turkoglu, the Magic will be without a key sub and have a payroll that would be somewhere among the league’s five highest.
Cleveland was near the top this season, and maybe Orlando lives with the same red-ink reality. But the Cavaliers not only have some payroll chunks falling off now, they also made up for it with a revenue-producing arena.
Orlando admits, instead, it will lose as much as $14 million this season, even after the Finals run. The Magic get their own new building soon, but, in this economy, who can be sure about the profit?
Other NBA teams, including the Spurs, brace for declining revenue. Most think the cap will go down about $1 million this July and more next summer, and some franchises, such as Phoenix, have already been trying to chop away personnel to save money.
The Lakers have their own issues. They will likely lose Lamar Odom this summer, in part to keep Trevor Ariza. Teams such as the Spurs, with some flexibility and partially guaranteed contracts, are waiting eagerly for a bargain to fall their way.
So, economically, this is the Magic moment. The franchise had spent money to get this far, and sometimes too much. Orlando gave a max contract to Rashard Lewis, for example, when he’s not a max player.
He’s good, but his value isn’t equal to his $20 million average salary. The parallel is the same New Orleans franchise that was last year’s rising team. The Hornets signed Peja Stojakovic, a similar tall shooter, to a similar contract; the Hornets have since felt a similar pinch doing business.
So there was Lewis scoring 18 points in the second quarter Sunday, and there were the Magic at the end of regulation with a smart inbounds play. Lee was open, and what followed defined a series and a franchise’s vulnerable finances.
Orlando couldn’t afford the miss.