–I've about had enough of American Idol.
—Brian Windhorst from the PD broke the story this morning that Dan Gilbert might be welcoming Chinese money into the Cavs. Apparently a gentleman named Hua (Kenny "Smith") Huang has been with Gilbert the first two games, and he's ready to inject some money into Gilbert's operation.
This is interesting. A decade or so ago, we all got mad when Japanese interests bought U.S. properties, like Rockefeller Center. Now we'll probably all be happy if Huang inject Chinese money into the Cavs — provided no lead-paint-filled toys are included. Why would we be happy? Because it might help the Cavs keep LeBron. It's clearly a good thing to keep LeBron right where he is.
None of us know much about minority owners, but a Chinese group might appeal to James because it would help him expand his business interests in the burgeoning China markets. The interest in LeBron in China is off the hook. A Chinese sports newspaper has three reporters covering the East Finals, just because of LeBron, and one said if the Cavs make the Finals there will be 10 reporters covering it. From China (wonder if Chinese money wants to invest in U.S. newspapers.)
One interesting tidbit in the story stated that the Cavs, and Gilbert, have lost millions the past couple years. That's pretty stunning — especially looking at the Q every night, with all the sellouts and all the advertising and all the sponsorship. Losing millions? Hard to imagine.
—Want to hear a song that will pull at your heart, listen to "Kilkelly Ireland" by Ciara Considine. Google it. (Yes it's Irish, part of my heritage. Deal with it. You think with a name like McManamon I'd be writing about a song called "Minsk Russia"?)
It's disingenuous the way the Cavs PR people are spinning this. All this tells me is Gilbert is hemorrhaging in all of his businesses, not just Quicken, and he could not find anyone domestically willing to invest in what is apparently a losing proposition.
People used to attack Modell for purportedly being such a poor businessman with those attendance numbers. Well, then what does this make Gilbert? Seems like a double-standard with the media here.
If anything, this should actually make James nervous about staying. If Gilbert can't even afford to buy the minority stakes since dumped by Gund and Katzman, then how is he going to afford the payroll to surround James post-2010? I mean, Gilbert already couldn't afford Shaq's future salary. So unless he's intending to sell a majority interest in the franchise, it should make James really think hard. Once James signs an extension on the dotted line, then what's to prevent Gilbert from simply finding other players on the cheap? After all, he already locked in the meal ticket. So to heck with James.
And what in the world does a Chinese minority interest have to do with James' business interests? There are power brokers all over the world, James' people don't require Chinese minority ownership in the franchise to spread the gospel of James into Asia. It always amazes me how the media always blindly gulps down whatever the Cavaliers propaganda machine is feeding.
The timing of this is also quite curious. Clearly Gilbert needs that infusion of capital sooner than later. And after recently reading in Crain's what is going on with Quicken reneging on their plans in Detroit, things are not looking pretty.
Not even including the local TV and radio deals, the sponsorships, the ticket sales, ad sales, the freakin' Cleveland Clinic's annual dollars for sticking their name on anything and everything, or any other of the franchise's revenue streams, I should have also noted that the Cavaliers' equal share of the league's national TV and digital rights deals was $31 million this season. That's $31 million.
So, in light of all this, does anybody in their right mind honestly believe that Gilbert is going to give more priority to winning than he does to the bottom line? Correct me if I'm wrong, but there isn't an empty seat in the house during the regular season, and they play additional playoff games where there isn't an empty seat. So, with all the other additional revenue streams coming into the franchise, if the Cavaliers can't make money now, then when will they?
Heck, if I was LeBron, I'd be telling Gilbert to either sell the entire franchise to the Chinese and/or I'd be telling Worldwide Wes to make a few calls to the 212 and 646 area codes.