Two ways for Hawks to go at the deadline

[txsting]

So - I've argued yesterday that the Hawks CAN resign our core. Which leads us to option 1:

1) Keep our expiring contracts for ourselves. Buffer the cost of signing Childress and Smith with that money. Fill out the roster with lower cost options (our 2008 second rounder, and a couple of veteran minimums or Mario West types).

OR:

2) Take one of the core who is up for signing this year or next (Childress/Marvin/Smith), and pair him up with whatever spare parts and expirings it takes in order to get back "the best player in the deal".

I really think ASG/BK are willing to go with 2) IF the deal will make the team better. The only thing I have seen reasonably along those lines would be Childress+stuff for Mike Miller, and who even knows if that deal is available. I certainly hope they can find that deal. I think 1) has been the solid backup plan all along.

I made a mistake recently by saying that it would be a blunder if we did not use our expiring contracts (our "capital") in a deadline deal. This was wrong - I now see that keeping those contracts for our own resigning needs is a viable path forward at this time. Actually, it's the most likely path. Assuming no big deals are available, it would be superior if we could make a minor deal to improve the team and boost morale, while still keeping the bulk of the expirings for ourselves (see my Jarrett Jack post).

[Vol4ever]

Sorry but there will be no deals, ownership is losing too much money.

[txsting]

No they aren't losing money. Hawks netted $10M profit last year, $37M over the last four. Show me where they are losing money, in any way approaching fact or even substantiated rumor.

[coachx]

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No they aren't losing money. Hawks netted $10M profit last year, $37M over the last four. Show me where they are losing money, in any way approaching fact or even substantiated rumor.

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The $10,000,000 profit was a result of the ASG operating the Hawks on the cheap. For instance we were between $10,000,000 and $15,000,000 under the salary cap last season and this season.

Had the ASG been like 90% of owners and strategically used all the payroll under the cap then they would have operated at a loss. So in essence they were profitable only b/c they are operating on the cheap.

You got to spend money to make REAL money....I hope they pony up at some point. It sucks having one of the 5 lowest payrolls in the league (5 seasons running)and having all this salary cap space if your never going to use it until 2009-2010. That money could have been spent the last 3 seasons for some quality help that would fall off the books at the appropriate time to resign the Joshes.....but that salary cap space was waisted the last 3 seasons while the Hawks were cellar dwellers and the ASG were trying to turn a buck on one of the cheapest run franchises in the NBA over the last 5 seasons as a whole.

$10 mill of profits for an NBA Franchise seems like a very low profit margin with all the overhead they have.

Disclaimer:

I know the courts tide the ASG's hands with Free Agent Dealings but it seems like more could have been done then actually did get done.

[Diesel]

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No they aren't losing money. Hawks netted $10M profit last year, $37M over the last four. Show me where they are losing money, in any way approaching fact or even substantiated rumor.

The ASG bought the Hawks with Heavy Debts owed (from the TW days)... Even though they've turned a 10 Million dollar profit on the team, I'm sure that the ASG made at least 2 20 million dollar debt payments. This is without Belkin paying a nickel.

The financial situation sure looks good but only from outside.

And Gearon Lies in the Business Chronicle about firing Duffy and Mullen.

[txsting]

I can't offer anything to refute that statement Diesel, other than I would expect that any liabilities assumed by ownership would be on the Hawks books (or split between the Hawks and Thrashers books), and therefore already accounted for in the profit. I wonder how Forbes got all of that information - I didn't think sports teams filed public financial reports like traded corporations do.

[txsting]

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The $10,000,000 profit was a result of the ASG operating the Hawks on the cheap. For instance we were between $10,000,000 and $15,000,000 under the salary cap last season and this season.

Had the ASG been like 90% of owners and strategically used all the payroll under the cap then they would have operated at a loss. So in essence they were profitable only b/c they are operating on the cheap.

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Agreed. But can you blame them...the books looked like $hit when they bought the teams, and they needed to turn them around and get the top line moving in the right direction. They've done it. It takes time.

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You got to spend money to make REAL money....I hope they pony up at some point. It sucks having one of the 5 lowest payrolls in the league (5 seasons running)and having all this salary cap space if your never going to use it until 2009-2010. That money could have been spent the last 3 seasons for some quality help that would fall off the books at the appropriate time to resign the Joshes.....but that salary cap space was waisted the last 3 seasons while the Hawks were cellar dwellers and the ASG were trying to turn a buck on one of the cheapest run franchises in the NBA over the last 5 seasons as a whole.

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This is where the "win now" mode of the Hawks comes into play. This is the first year BK has even said the word "win". Don't you think he's been told to win, Woody's been told win? Why do you think Acie's minutes are inconsistent, and Shelden and Solo don't get to play? I think it's because they aren't helping this team win now, and that is the highest business priority right now. Right or wrong. If this franchise can reestablish itself as a playoff mainstay, maybe we can finally hope to move up that payroll. Each playoff home game is $$$$, if I'm not terribly mistaken, and we're going to need it.

Unfortunately we don't have a Cuban who has so much bank that he doesn't care or notice that he loses money year-over-year-over-year. He knows when he sells that team that he has tripled it in value anyway. For the ASG, and most owners, the business matters. We need to win, fill the arena, generate interest and sales, and hopefully it could all lead to a more lucrative local TV contract. That's where the REAL money is. I'm trying to find out what the details are on our current TV deal with SportsSouth/FSN, but I have nothing yet. My guess is that we're making a pittance.

And maybe it's just by chance, but we HAVE lined up a ton of expiring money just at the right time.

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$10 mill of profits for an NBA Franchise seems like a very low profit margin with all the overhead they have.

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It is. The top teams are clearing $20-40M. It's hard for us to compete. I hope the ASG has the steel to absorb a few lean business years, because that's what it will take to reach the next level, both in basketball and profit.

[Diesel]

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I can't offer anything to refute that statement Diesel, other than I would expect that any liabilities assumed by ownership would be on the Hawks books (or split between the Hawks and Thrashers books), and therefore already accounted for in the profit. I wonder how Forbes got all of that information - I didn't think sports teams filed public financial reports like traded corporations do.

I think Forbes only look at the Gate, TV Contract money, and merchandise money, then subtract it by Salaries and other expenditures.

I have been following the Forbes accounting of the Hawks for a few years now. They have never seemed to account for the bill that the Hawks had coming in and yet the owners still pay it.

Maybe because it's spread across the Hawks, Thrashers, and Arena Forbes don't consider it at all a part of either teams portfolio. In that way, it makes a little sense... Becuase then you can chalk that up to the owners personal debt. Maybe it's even seen as Arena debt. Just like the Arena makes about 95 Million per year. That doesn't get accounted to the Thrashers or the Hawks either.

[Vol4ever]

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No they aren't losing money. Hawks netted $10M profit last year, $37M over the last four. Show me where they are losing money, in any way approaching fact or even substantiated rumor.

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T, I was being sarcastic. Of course they are not losing money. They are sorry owners who don't give a hoot about the team. We have a pitiful GM. I bet BK has the worst losing % in the history of the NBA as a GM.