Da Kid is now Da Rich Kid
The "Basketball for Thought" is a commentary by Kris Gardner.October 1997
October 1st, the Minnesota Timberwolves' franchise took a giant step toward the future: they re - signed F Kevin Garnett, "Da Kid", to a 6 - year contract extension reportedly worth between $121 to $126M. The extension gave Garnett vindication for turning down the club's original offer of $103M for six years a few months ago. If the T-wolves have success on the court, they should have success off the court; however, if they don't win, the franchise could be in serious financial jeopardy.
Kevin Garnett is 21 years old and a rising star. Some say he is the future of the NBA; however, any one in Detroit (re: Grant Hill) would argue that point. Garnett made last season's All - Star Game only because of injuries to other players. His skills are raw and un-refined; but, at now a reported 7'1", he has the potential to revolutionize the small forward spot in the NBA. However, as Houston Rockets forward Charles Barkley stated: "...Just imagine if he could play".
The contract is arranged to allow Minnesota to re-sign G Stephon Marbury, Kevin's best friend, and forward Tom Gugliotta. Both players can have their contracts re - done next summer. Next season, Garnett will make $14M; $16.8M next; escalating to $28M the last year of the extension. The entire contract is, of course, guaranteed.
Minnesota owner, Glen Taylor, is taking a huge gamble; but, Taylor believes Garnett will, not only improve the club's win - loss record, but also, the value of the franchise. Taylor bought the team 2 years ago for $88.5M. According to Financial World, the club has increased in value to $123M this year. Taylor has dreams of the club's value escalating to around $300M in the future.
Minnesota is projecting a profit of about $18.5M this season and $23.4M in the '98 - '99 season. With on court success, will come sell outs and increased revenue. More wins will result in more television appearances. Long runs in the playoffs, mean more home games and more revenue. A doubling of the NBA's new television package to about $2B should provide each NBA team an additional $8 to $10M per season for a total of about $20M. All of these numbers are merely projections or conservative assumptions.
Projections for the final four years of Garnett's contract, when his salary is added in with an extra $20M a year to cover, Marbury, Gugliotta, and others, show the T-wolves absorbing increasing operating losses: $17M in 2000 - 2001; $27.6M the next year; $28.8M in the following year; and $29.9M the final year.
If those projections, which assume a doubling of national TV rights again in 2002 - 2003, are in the ballpark; the T-wolves would have operating losses of $56M during the length of Garnett's contract.
The team might avert some of those losses by broadcasting some home playoff games on pay - per - view as other NBA teams have done. Moreover, any losses have to be viewed in the context of the club's future appreciation in value.
Minnesota has to win and, eventually, win big in order to reap the benefits. Last season, the T-wolves qualified for the Playoffs for the 1st time in franchise history finishing 40 - 42. They were swept in the first round by the Rockets.
With Garnett's signing, the level of expectations
has raised for himself, the team, and the organization. Kevin not producing
statistics worthy of the huge contract will be viewed by the fans as a failure.
A sub .500 record will be a failure. Getting swept in the first
round will be a failure.
Ironically, as good as Garnett may be; along with
the improvement of Marbury; and the steady play of Gugliotta; Minnesota's
success this season may hinge on the health of one man: center Stanley
Roberts. Roberts has had a history of injuries due to his weight
problem: torn left and right Achilles' tendon, knee, back and ankle.
Presently, Stanley is nursing a sprained right ankle.
Minnesota's back - up center is rookie Paul Grant.
So, if Roberts lives up (or down) to past health problems, Garnett,
his money, and his teammates may not be as good as they were last season
which could bode very ill for the future of "Da Rich Kid" and his
franchise.
