ADAM SILVER: Thank you all for being here today. We just finished two days of NBA board meetings here in New York. We had a long discussion about the governors' broader responsibility as stewards of the game, and what this league means to our communities and our fans.
For me, living here in the New York market, it's been exciting to see how enthusiastic the entire community has been, not just Knicks fans, around this Knicks championship. Again, I live in Manhattan. People are coming up to me all the time telling me how meaningful it is to have experienced a championship, how much they wish a parent or a grandparent was still around to share it with them. I always get a kick out of the roughly 20-something-year-olds telling me how they waited 53 years for a championship (smiling).
In all seriousness, it was a great reminder to everyone in the room just exactly what sports mean, what this league means to people. Enormous excitement around the coming season. As you all know, training camps for at least some teams open next week. We're five weeks away from opening tip.
Lots of basketball discussion as well. Of course, we also discussed the findings and penalties in the Clippers’ matter. I think everyone in the room understands that part of the core responsibility of the league is to have a set of rules that everyone agrees to operate under, and the league's responsibility to enforce those rules. If those rules are found to be violated, there then will be appropriate consequences.
Again, we reinforced that notion with the people in the room. I think everyone understands what's at stake when you agree to a set of rules and compete in a league.
On a much more positive note, we discussed as part of our meetings potential expansion around Las Vegas and Seattle. Gave reports on that topic. Also Mark Tatum, our deputy commissioner, spoke about the continued discussions around NBA Europe, which to me are a historic opportunity to potentially build on amazing traditions of European basketball, currently in the EuroLeague and various country leagues, but to now bring that to the next level by creating a combination of new clubs and existing clubs into an NBA-style European competition.
We're continuing to make progress there. We're making progress in discussions with the EuroLeague. We anticipate over the next several weeks we will have additional announcements.
Lastly, almost lastly, this was Larry Tanenbaum's last meeting both as a governor representing the Toronto Raptors and -- from my standpoint, maybe even more importantly -- as the chairman of our board, a position he served in for the last nine years.
Again, we thanked him in the meeting. I want to thank Larry again for his outstanding stewardship. I know I speak for my colleagues who are here at the meeting today, spent an enormous amount of time with us, fantastic guidance over the last several years.
It goes without saying that he is principally responsible for building the sport of basketball and the NBA in Canada, but also has had a huge influence on our global footprint as well. Good news for the WNBA is Larry also owns the Tempo. He's just beginning his legacy in that league. So we will still continue, of course, to deal with him on a regular basis in that capacity.
Also, we previously announced that Micky Arison, the governor of the Miami Heat, a longtime fixture in this league, will be assuming the role of the chairman of the board of the NBA beginning essentially after this meeting. Somebody I've worked with very closely over many years in the league. Someone who was very close, as you all know, to David Stern as well. I think there was enormous excitement around Micky assuming that position, again bringing his championship experience and top-rate operating experience to bear in helping guide the league going forward.
Truly lastly, let me congratulate our USA women on having just won their fifth consecutive (FIBA World Cup) championship in Berlin. Let me particularly single out Sue Bird, the managing director; Kara Lawson, the coach; and Breanna Stewart, who is the captain of the team and the MVP.
Another wonderful competition. Great for women's basketball, but all of basketball. It was a huge attraction in Berlin. Got an opportunity to watch many of the games here on TV. Congratulations to our women on bringing home the gold yet once again.
With that, happy to answer any questions.
Q. With the Clippers’ discussions, how did you sort of balance the penalty being significant, but also particularly with the draft picks, how much would be too much? Five is a long time to be competitive. How did you decide that was the right number?
ADAM SILVER: Well, one, we looked to precedent, as we always do in the league office. There is precedent of a team for cap violation, circumvention violation, losing five picks. That was something we looked to.
To your point, I think that's in some ways the most difficult part of adjudicating these disputes, because while there have to be competitive consequences, our view, if these rules are violated, we still want to be a 30-team league. We recognize that in some ways we're unfortunately punishing the fans of that team as well. That's the balance we're trying to seek.
I don't think in any way we've done permanent damage to this franchise. No question, this is a setback for the team. As I said, the ultimate goal in terms of these type of sanctions is to ensure that other teams don't engage in this type of behavior in the future.
So there has to be something beyond suspensions and financial consequences. That has to go directly to competition.
Q. In light of the Clippers’ situation, investigation, I know you were focused on that, but did you get any inkling that this was not a rogue situation, that this could have other instances of happening leaguewide? Is this something that you and the league need to take a closer look at, especially when you consider second aprons, contracts?
ADAM SILVER: The direct answer is no, no inkling like that. Again, this investigation was, of course, specifically focused on the Clippers. I've been around the league for decades. I pick up chatter here and there when other things are happening around the league. I've had lots of conversations with general managers, team presidents, owners as to the kind of conduct that goes on. We know around the lines there's been slippage over the years, but nothing of this nature that I'm aware of.
Q. The SEC investigation into Mark Walter started before he was approved as the majority owner of the Lakers. Was that something the league knew about? Would it or should it have been cause for concern as you approved him to take that role?
ADAM SILVER: I will say at the time that we vetted Mark Walter to be the principal governor of the team, again, he was already a part owner, minority owner in the Los Angeles Lakers. We went through the full process we all do.
We spoke to governmental agencies. We spoke to, in the case of Mark Walter, a heavily regulated insurance agency. We spoke to other leagues in which he has investments. We found no red flags.
Again, even to this day, as you know, these are -- call them allegations. There are issues that are now being looked into. Independent of Mark Walter choosing to sell his team right now, he was not being investigated by our league. I don't know what's happening in other leagues right now.
Maybe to answer your question differently, I had no prior notion that he was intending to sell his team until I heard from the buyers that they had a handshake with him.
Q. Given the ongoing federal investigations into the Clippers and Daktronics, Aspiration, as well as the investigation into Mark Walter, there has been a growing concern that wealthy individuals and entities are using the approval of the NBA to purchase credibility in the eyes of the public, meaning the fans. I'm just curious, if that growing concern is something that you share when it comes to the due diligence that follows the application of an owner or a sponsor, if you plan on changing anything about NBA due diligence processes because of that?
ADAM SILVER: Interesting, the way you put it. I've never heard it quite that way.
I understand that with team ownership comes a platform, both for individual owners, and helps them become widely known. But I also think it imposes responsibilities on them in their communities. It's my opening (remarks) -- it's one of the things we talked about today in terms of what comes with team ownership.
I would only say, this has even come up in your reporting, there are limits to what a reporter is able to do. Some ways reporters can do things that traditional investigators can't because you can in some cases keep all your sources confidential. I think there's different transparency obligations on leagues, and also maybe a different set of actors' willingness to talk directly to leagues.
We take the vetting process very seriously. A lot of what we do is intensive database searching. You would think in this day and age with AI and everything else, everything is centralized. It's not. In many cases, you're going state by state. In certain cases, people are of industries that are regulated state by state. So you have to go there as well. We also talk to as many people as we can find who have knowledge about these people. We do interviews.
But beyond that, I will say we're always reassessing to see if we can do more. In fairness to the parties involved -- even Mark Walter, as we sit here today, I know no more about him than we did when we vetted him. I read newspaper articles. In fairness to him, I don't know where those investigations are going to come out. I don't know where any government inquiries are going to come out.
Again, we're always seeing if we can do things better. I don't see a trend or some widespread issue certainly among our principal owners that gives me cause for concern.
Q. Steve Ballmer's statement on Sunday night indicated that he had remorse and he apologized. He never actually said, "We circumvented the cap." I wonder if that explanation or statement suffices with you in regard to him being reinstated as an owner within a year, if there's anything else you expect the Clippers to do? Also, who, if anyone, represented the Clippers at the meetings this week?
ADAM SILVER: The Clippers were not represented at the meetings over the last two days. I think that was largely because they're in the midst of a process now where they will be appointing an interim governor. That was part of our sanctions, in essence, that someone shall serve in that role over the next year. They're in the process of appointing that person. Per Pablo's question, that person has to be vetted as well. There's a bit of a process there before that person becomes official.
In terms of Steve's statement, putting aside the precise words he chose to use, most importantly he indicated a willingness to accept the league's decision in this case and the accompanying sanctions. That initially I was most focused on, which is markedly different than the initial statements that came out of his organization. I think there will be ample time to have additional conversations with him over the next year.
Also, this is not information that I'm sharing from a direct conversation with the Clippers’ organization. Even, again, from prior questions, there are other inquiries that have nothing to do with the NBA that the Clippers and Steve Ballmer are now dealing with.
My assumption is in some cases he has to choose his words carefully in terms of what he is saying. Aside from that, I appreciate the fact that he has stood down, that he did apologize and is accepting responsibility.
Our plan is to move forward. Every reason to believe that at the end the year period he'll return to be an owner in good standing.
Q. WNBA commissioner Cathy Engelbert announced her retirement earlier this month. Where does the search process currently stand for the next WNBA commissioner? How do you describe the autonomy this person is going to have in the hierarchy and yourself?
ADAM SILVER: In terms of the process, sort of my NBA/WNBA colleagues -- maybe that's part of the answer to the second part of your question -- are in the process now of interviewing search firms. Once we hire a search firm, we'll begin the search in earnest.
We've heard from several potential candidates. We've heard from others who are recommending candidates. We're keeping that list right now at the office. Again, we will move forward on that process.
In terms of autonomy, it's something I would say we're constantly recalibrating. Having been involved now with the WNBA for 30 years, I think there are enormous benefits to running integrated operations, and there are also aspects of the league which I think are best run independently.
As you know, Cathy was the first head of the WNBA who carried the commissioner title. I felt that was more than symbolism. Under Cathy, we fairly significantly increased the portion of our office who is solely focused on WNBA.
I would say on issues particularly around basketball and player issues, I believe those people should be independent of the NBA and should be under the direct control of the WNBA commissioner.
At the end of the day I think, yes, I oversee the greater organization, but Cathy had enormous independence in those areas -- player relations, when it came to overseeing collective bargaining discussions, certainly when it comes to potential rule changes in the WNBA.
On the other hand, for example, when we did our media deals, our ability to address the market with year-round programming I thought added significant value to both leagues. I think to our partners, both in media and some of our marketing partners, again coming to them and saying, We have both NBA programming and WNBA programming, it's year-round, in many cases it reaches different demographics, is very attractive.
There may come a time, some years from now, when it makes sense to have even more independence. My view is now -- and this is analogous to how many of the shared NBA/WNBA team organizations operate. They share certain infrastructure, and in other cases it makes more sense to be independent.
I maybe say this a bit defensively: I don't think it's hampered the operation of the WNBA at all. I think the WNBA is by far and away the most successful women's league operating right now, by measure of viewership, by measure of ratings, by measure of franchise value, by a measure of player pay now after the next Collective Bargaining Agreement.
I'm sure as we bring in this new commissioner, that person will have a view, too, as to the appropriate operating structure of the league.
Again, it's an ongoing conversation. I would say we also have crossover NBA/WNBA owners. We also have WNBA-only owners. I think we found a way to make it work.
I've thought about it maybe analogous to ESPN, members of that organization here. There's a portion of ESPN that's not owned by Disney, but Disney owns the majority of ESPN. The CEO of ESPN reports to the CEO of Disney. I think that's worked very well for the integrated company.
There's been discussions over the years, would ESPN be better off being an independent company and spinning off. So far, presumably Disney and ESPN have made the decision over many decades of operating that they're still better off as an integrated operation.
That's how we look at it. I think at least for now the WNBA is the beneficiary of the decades of experience of people in the NBA. I think also from a cost structure standpoint, not repeating certain core administrative functions separately for each league allows for cost savings and efficiency.
Q. On the NBA Europe front, if the starting date is still in place, which is roughly a year from now, when are you planning to announce the 12 franchises? It seems a couple of the potential investors are getting a little impatient. Did you discuss in the Board of Governors the possibility of formally making an offer to the EuroLeague to become a majority owner of the EuroLeague?
ADAM SILVER: To the second part of your question, yes, we did discuss ongoing negotiations with the EuroLeague. As I said earlier, I believe we're making progress there.
We believe that the league would be strengthened by joining forces with the EuroLeague. It doesn't have to happen, but I think we all would be better off as a unified front in Europe.
In terms of the potential investors, I'm not sure they're so impatient necessarily about next season. I think if it were up to some of them at least, we would wait longer to launch. At the same time, depending on where we stand with the EuroLeague, I do think it's important that we introduce competition into the market next summer. The initial product you'd likely see a year from now will be different than when we ultimately will have brought all the teams together and are formally operating the league.
I think the answer is, we want to get going. As I alluded to earlier, there will be announcements coming over the next few months. Those conversations are proceeding in earnest. It seems like everything takes longer than people outside the league would like it to take. These things are very involved. For us, in terms of NBA Europe, we truly see it as a once-in-forever opportunity. As I mentioned before, historic from our standpoint in terms of what this could mean, not just for basketball but the European sport landscape. And we want to get it right.
For us, ensuring that we're thinking about all the different structural issues that come with it, how you approach a salary system among your players, how we aggregate television rights, what should be done locally. There are plans for multiple new arenas across Europe.
Again, I'm pleased with the progress we're making. I think our team owners were as well. At the same time, this will take some more time before we're ready to firm everything up.
Q. In your tenure, no NBA franchise has relocated from its home market. Is that a point of pride for you? How committed are you to ensuring that the Trail Blazers do not become the first, particularly given the apparent lack of material movement toward a deal for the arena by the December deadline?
ADAM SILVER: Let me begin by saying that it is my hope and belief that the Portland Trail Blazers, or the Trail Blazers, can be successful in Portland, Oregon. It is important at the same time that Tom Dundon reaches a deal with the city officials and the state-elected officials that makes operating in Portland viable for the long-term. That's what we're focused on.
To me, I understand, whether it was under David Stern or other leagues, there are times when it becomes necessary for teams to relocate for various circumstances.
I don't want to make that point of pride for me. That would to me be prejudging the situation. I want to be very direct about it. I would see it as a failure if we did not keep the team in Portland. I've spent a lot of time in that community over the years. They've shown amazing support for the Trail Blazers. They're some of our best fans around the league.
At the same time, now I speak for our WNBA team in the market as well, we need a state-of-the-art arena. I think by any objective measure now, the current building there is in the bottom measure of any arena in the league.
I think everyone in the community acknowledges that not just for NBA and WNBA basketball, but for all the multi-uses of these modern arenas, concerts, conventions, graduations, you name it, the community needs the same thing.
These are centerpieces of not just midsize cities like Portland, but increasingly even some small arenas in communities throughout America.
It's my hope that we can lower the temperature honestly a bit in these negotiations. I had an opportunity to spend a significant amount of time with Tom Dundon while he was here in New York at our meetings. We did discuss the situation around Portland in one of our committee meetings with Tom. I think he was able to bounce ideas off other owners who have been through similar negotiations in other communities. I think there's some lessons to be learned there.
But again, offering myself and the league office to assist all parties there. As I said, we've had a great track record in Portland. No doubt in my mind it would be a failure if we weren't able to accomplish a result that makes Portland basketball, NBA and WNBA, viable for the long term.
Q. Should we understand that the Clippers punishment is final or is it still open to some sort of renegotiation in the vein of the Timberwolves with Joe Smith? Could you take us through, related to that, the negotiations with the union, perhaps Kawhi and his people personally, on how you arrived at the $700,000 fine and what else may have been considered?
ADAM SILVER: The discipline is final, to your direct question. I don't think it would be appropriate to take you through the back and forth with the Players Association. I did meet directly with Kawhi recently. I think we all agree it's time to move forward here. I think David Kelly represented his player well and the interest of the Players Association. All I can say is I think we reached a fair outcome for everyone.
Q. On the expansion front, how many active bid groups are still involved in Las Vegas? What, if any, discussions were had around arena sites in Las Vegas?
ADAM SILVER: Several active groups. I'll leave it at that. I'll say that there was a discussion led by Patrick Dumont, of course, who is a Las Vegas resident, enormous operating experience there in Las Vegas, just sort of as an independent objective party. Led a discussion around the various sites, potential sites, in Las Vegas.
I think that there is real excitement around either a renovated T-Mobile Arena. I think everyone acknowledges if a team were to stay there, it needs some significant improvements. But at the same time, there are groups who have presented plans to build what I would call a modern entertainment palace in Las Vegas. It's a unique market where you could truly see essentially 365-day-a-year activity.
There was some discussion about how much the Sphere has impacted Las Vegas - what a technological marvel that is, what it's meant as a showcase and even what it's meant economically for Las Vegas. So some discussions around in a similar vein.
I think right now we're at the point where there will be next-round bids coming in shortly, not final bids, but next-round bids coming in. My personal view is it's premature to start locking in a site. I think there are several different locations that would be very viable for NBA basketball in Las Vegas.
Q. What were the details of the discussions you had or the reports that were given about Seattle specifically at this meeting? What do you anticipate is the timeline between now and the end of the year when you've said you'd like a decision made to get to that point where you're ready to present to the owners a vote?
ADAM SILVER: There was not as much discussion around Seattle as there was around Las Vegas, largely because, per the prior question, Las Vegas, it's not even clear what the site will be, let alone the arena yet. Therefore, it's a much longer timeline before we can throw the ball up for NBA basketball.
On the other hand, in Seattle, we have had operational groups out to Climate Pledge. You clearly have a state-of-the-art arena there. May require some modifications for NBA basketball. If we were opening in five weeks, we could be ready in Seattle.
Because we can only take on so much at once, more of the discussion was around Las Vegas. As you said in your question, I've been saying it's our goal to have decisions by the end of the year. That continues to be our goal.
Q. When we were here in the spring, you mentioned how public discourse was a driving factor in the league's want to quell the load management issue, the lottery reform issue. It seems like your office has some level of sensitivity to the public reaction to how the second apron is impacting team-building strategies. It seems like there was a public cohort that said in "Adam Silver's NBA, the Clippers were not going to be getting a strict punishment." I'm curious how much, if any, that opinion impacted what ultimately did levy a pretty harsh punishment?
ADAM SILVER: Specifically on the last part of your question, it did not impact ultimately the discipline we set. I live in the world. I read what people write and say. That's okay if people have their opinions. Sometimes I'm influenced by them, sometimes I'm not.
Largely I'm more influenced by reporting where it's providing information to me that I don't have. As sort of the commissioner of the NBA, this notion that I or any of my colleagues treat one owner differently than another because of that owner's particular wealth or because of the market they're in, I think you guys would see fairly quickly that we're not operating a good league if that were to be the case.
I should have said earlier, I think as a sign of progress, the fact that in this last Finals we had essentially the largest market playing against a small market. That wasn't part of the narrative at all.
I think that speaks a little bit to your second apron question. The point was to design a system, I'm not embarrassed to say, more NFL like where every team was put in a position where, regardless of market size, they could compete for championships. Eight different champions over the last eight years. That isn't necessarily a sign of success. I'm fine if teams repeat. But I think over successive Collective Bargaining Agreements and revenue-sharing systems and other changes we've made, we've gotten closer to building the kind of parity of opportunity we want.
Even around the second apron, as I said around our board meeting in Las Vegas, I don't see the operation now as unintended consequences. I understand that for any individual player who is looking for a particular opportunity, we potentially impacted that player.
But I also, it goes to some of the earlier questions, it's my job to look out for the fan bases of 30 teams, not just that situation for that one player or that one fan base. When you look at the league operation in totality, I think the system is working pretty well.
Is it perfect? Of course not. Certainly our players and our Players Association has made some comments about operation of the current system. But I think also we have strong relations with each other. We recognize there will be an opportunity to sit down as part of a new process. There's always things that they want. There's always things that we want. I think in any partnership there's trades made along the way.
But it's always with these systems that sometimes, even as people are analyzing them, there's the sense that if I just could pull this one string and leave everything else in place, wouldn't that be better? But of course, that's never the case.
All of our systems are a result of many different tradeoffs, like any fair negotiation. When that negotiation is over, of course one side could say, that one thing that I really wanted but what gets lost is that the context of that 3:00 in the morning meeting when we made the trade that ultimately led to that final deal.
It may be where unintended consequences come in, is that when we sit back down, somebody may have misjudged how teams would perform or how players react to various aspects of the system. Just like the Players Association has their list, we have our list as well. So I think when we sit back down with them, I think we'll have a very constructive conversation.
I should add with David Kelly, former general counsel of the Golden State Warriors, taking over the Players Association, I think that's very healthy. He knows our system as well as I do. Actually I think that lends itself to better conversations because that sophistication across the table -- we have Dan Rube here, our lead negotiator -- that ability for them to have really nuanced conversations about systems, I think to the extent there's changes we want to make, make those conversations more constructive, more productive, less emotional, less personal.
Again, to the extent that there are ways we can improve competition, improve player optionality, we're happy to look at it. But as I said, certainly as compared to prior systems, I think this is the best system we've ever had.
To me, ultimately the judgment is made based on not just the competition on the floor. I don't remember a season, I should say, where the competition was as hotly anticipated as this year. There are so many good teams, so many interesting situations out there. I think there's a good blend of player movement together with at the same time players choosing to stay in their same markets. I think that's part of what adds excitement as well.
That together with, as you said, some of the conversation around changing the lottery system, I think we've made real advancements in the level of competition in this league.
I'll just end by saying I can't wait for the season to start.
FastScripts Transcript by ASAP Sports