Jim Buss vs. Steve Ballmer: Who will get his team to championship faster?
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Who gets his team to a championship faster?
Jim Buss who hired Mike D'antoni and Mike Brown
54%
 54%  [ 71 ]
Steve Ballmer, the screaming CEO behind Windows Vista
45%
 45%  [ 60 ]
Total Votes : 131

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PostPosted: Thu Aug 21, 2014 5:18 am    Post subject:

shnxx wrote:
Ringfinger, my bad.
I did not realize that Clippers made so little money.

Based on those numbers, I suppose it's possible that he overpaid by a billion dollars or more.

However, I think there are three factors, which could make his purchase price more palatable:

1) Expected increase in profits: As you and others have mentioned, the current profits are based on Donald Sterling's incompetent ownership. Upcoming TV deals and similar deals likely be more lucrative.

2) Accuracy of the numbers: I don't know where these revenue/profit numbers come from, but I seriously doubt that anyone outside of the NBA has Clippers' annual balance sheets. Although 15 million profits sound ridiculously bad compared to the 2 billion dollar purchase price, the numbers may not be all that accurate. For instance, what about revenue sharing with other teams? Are all the sources of income accounted for in this figure?

3) Sales price: Price of NBA teams has appreciated phenomenally over the last 20-30 years. It is possible that by the time he sells the team, Ballmer will be able to sell the team at a significant premium over the purchase price.

In the end, I find it rather disturbing that he overpaid for the team, because it implies that he desperately wanted to be the owner of the Clippers.
Although I made this poll kind of facetiously, it seems entirely possible that an enthusiastic Ballmer, already with a better team, may get the Clippers to a championship faster than Jim Buss, especially with the current roster lacking any future franchise player, might.


Back to your original point regarding Ballmer's lack of intelligence, I would dispute your point, even if Ballmer did overpay by more than 1 billion.
The man is worth over 20 billion according to Wikipedia; given the looming tax implications upon his death and the penchant for billionaires like Ballmer to pour billions into foundations, buying the Clippers seems like a rather fun way to spend his money.
Even if we suppose that he overpaid by 1 billion, that purchase would amount to someone with a net worth of $200,000 buying a used Honda Civic (~$10000) or someone with a net worth of $20,000 buying an economy class roundtrip airfare to Asia ($1000).


You have made some great points about why Ballmer bought the team.

Perhaps he does want the tax write-off of a few hundred million a year. Perhaps he just wanted in the club of professional sports ownership. A new shiny toy because he is bored, sitting on billions and needed a new challenge. He certainly has increased his media exposure and is getting a ton of positive press as the White Knight that rode in and saved the Clippers.

Sterling certainly profited over the decades from owning the Clippers. Not just from the sale either. I can remember ridiculing Clippers fans when he openly discussed how he had no financial incentive to field a good team or win because of profit sharing. He openly discussed how he could make more by continually replacing players with high draft picks then paying them when they hit free agency. That was a over a decade ago at least.

It is going to be interesting to see the direction Ballmer takes the team. If he is dedicated and serious about winning it could get real interesting in Clipper land. As you mentioned, he has the deep pockets to build new training sites, not care about profits or luxury taxes or even staying in Staples. He could build his own arena nearby or move the team if he wants to.

All depends on how invested he is into the team and for how long the new toy is fun to play with. " Little brother" potentially just became very formidable if Ballmer is committed to winning.
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PostPosted: Thu Aug 21, 2014 6:33 am    Post subject:

The Clips are as good as they're going to get and that's still not good enough to win a chip. Lakers will rebuild like they always do just like the Clips will slide back into mediocrity, like they always do. All this despite their ownership.
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PostPosted: Thu Aug 21, 2014 7:02 am    Post subject:

The only concern I have is how badly the league seems to want to hurt the Lakers and their image of dominance. Ballmer will get every assistance.
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PostPosted: Thu Aug 21, 2014 7:03 am    Post subject:

shnxx wrote:
Ringfinger, my bad.
I did not realize that Clippers made so little money.

Based on those numbers, I suppose it's possible that he overpaid by a billion dollars or more.


He overpaid by around $1.4B. The value of the Clippers franchise was about 600M at the time of the purchase meaning he paid about 350% of the franchise value.

shnxx wrote:
However, I think there are three factors, which could make his purchase price more palatable:

1) Expected increase in profits: As you and others have mentioned, the current profits are based on Donald Sterling's incompetent ownership. Upcoming TV deals and similar deals likely be more lucrative.


Sure, that makes it more palatable. And wearing a t-shirt in sub-zero temperatures would make the temperature more palatable relative to wearing nothing but it doesn't mean you're not underdressed.

shnxx wrote:
2) Accuracy of the numbers: I don't know where these revenue/profit numbers come from, but I seriously doubt that anyone outside of the NBA has Clippers' annual balance sheets. Although 15 million profits sound ridiculously bad compared to the 2 billion dollar purchase price, the numbers may not be all that accurate. For instance, what about revenue sharing with other teams? Are all the sources of income accounted for in this figure?


The figures are from Forbes. Here's a link: http://www.forbes.com/nba-valuations/list/

shnxx wrote:
3) Sales price: Price of NBA teams has appreciated phenomenally over the last 20-30 years. It is possible that by the time he sells the team, Ballmer will be able to sell the team at a significant premium over the purchase price.


It's certainly possible. But it's also possible that he isn't able to in his lifetime. In either case, if you buy a Snickers bar today for $10 and in 30 years you can sell it for $12, that doesn't mean you didn't overpay. They cost $1 today.

shnxx wrote:
In the end, I find it rather disturbing that he overpaid for the team, because it implies that he desperately wanted to be the owner of the Clippers.


You're exactly right. A lot of this is because Ballmer is an emotional guy. You saw the little rally they held at Staples right? Overpaying wasn't a smart move, it was an emotional one.

shnxx wrote:
Although I made this poll kind of facetiously, it seems entirely possible that an enthusiastic Ballmer, already with a better team, may get the Clippers to a championship faster than Jim Buss, especially with the current roster lacking any future franchise player, might.


It's certainly entirely possible. At this point in time though, there's absolutely no reason for me to believe Ballmer will be better or faster than Jim. The only basketball thing Ballmer has ever done is overpay to the tune of 350% of franchise value for the Clippers. Meanwhile, for the last decade Jim has been in a decision-making role with the most storied franchise in the league, and was making the basketball decisions for a team that won two championships.

If you remove the names and looked only at basketball accomplishments, there's be no reason to pick Ballmer here.

shnxx wrote:
Back to your original point regarding Ballmer's lack of intelligence, I would dispute your point, even if Ballmer did overpay by more than 1 billion.


The only point I made is that Ballmer overpaid. You've already conceded that he did, so I'm not sure what other point you're disputing. I never said he lacked intelligence, I just asked if he was so smart, why did he overpay? Besides, just because he got an 800 on the math portion of the SAT test he took nearly a half century ago, doesn't mean he'll be winning a championship with the basketball team he overpaid for any time soon. Does it?

shnxx wrote:
The man is worth over 20 billion according to Wikipedia; given the looming tax implications upon his death and the penchant for billionaires like Ballmer to pour billions into foundations, buying the Clippers seems like a rather fun way to spend his money.
Even if we suppose that he overpaid by 1 billion, that purchase would amount to someone with a net worth of $200,000 buying a used Honda Civic (~$10000) or someone with a net worth of $20,000 buying an economy class roundtrip airfare to Asia ($1000).


Actually, your analogy is a little off. He spent $2B on something worth $600M on a $20B net worth. So it would be like someone with a net worth of $200,000 spending $20,000 on a base model 2005 Honda Civic LX with around 120,000 miles (worth about $6K).

Many of us here, myself included, have a net worth greater than $200K and I would not pay $20,000 for a Honda Civic or any one thing that has a value of $6,000.


Last edited by ringfinger on Thu Aug 21, 2014 12:21 pm; edited 1 time in total
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PostPosted: Thu Aug 21, 2014 9:53 am    Post subject:

laker4life wrote:
kikanga wrote:
Can't believe on a lakers fan site over 40% of voters think the clippers will win a chip before us. Since we've won our last chip the clippers have won a couple playoff series. That's it. No conference finals appearances, let alone an NBA finals appearance.
The voting is not a good sign. But maybe people aren't thinking the clippers are that good. Maybe they think we are that bad. Makes sense, we did just have the worst LA Lakers season...ever.


Lakers fans are also pretty smart.

That is why the percentage is high. Also, Laker fans know what a great owner such as Jerry Buss can do and what a great coach like Phil brings to the table.

Lakers fans probably acknowledge that the Clippers have a better owner now and pretty dam good coach and definitely a better team.


You are a poor choice to speak for Laker fans. I think the Lakers have the better owner and that the coaching is about the same. I do agree their team is better now, but nowhere near title-worthy. At least not until they learn how to win the tough games.
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PostPosted: Thu Aug 21, 2014 10:11 am    Post subject:

After further reflection I still give Ballmer a better chance

1) I've been reading many pundits saying "no one wants to play with Kobe."

2) FA's have no faith in the organizations leadership.

3) And first and foremost, the Clippers have a better squad.
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PostPosted: Thu Aug 21, 2014 1:51 pm    Post subject:

ringfinger wrote:

Actually, your analogy is a little off. He spent $2B on something worth $600M on a $20B net worth. So it would be like someone with a net worth of $200,000 spending $20,000 on a base model 2005 Honda Civic LX with around 120,000 miles (worth about $6K).

Many of us here, myself included, have a net worth greater than $200K and I would not pay $20,000 for a Honda Civic or any one thing that has a value of $6,000.


Nope I don't think it's off at all.

1) Honda Civic is a depreciating asset with no dividends.
$6000 Honda Civic is a depreciating asset that gives you no income on its own although it can be assisted in doing so.
If you try to sell the Clippers in 10-20 years, you will probably at the very least get near the purchase price.
Even if we take 600M figure to be the number used by future buyer, how long will it take for 600 to reach 2B?
Well the league average on team value is 15% increase annually.
That means in 10 years, the team's value could be 2.4B assuming it starts from 600M, which I argue below that may not be accurate.
Assuming inflation of 2%, he's looking at breaking even around year 10.

The same thing could not be said for the Civic or any other car, which will be at a junkyard worth less than scrap metals.
In the meantime, the Civic will need maintenance fees to function while the business of Clippers will be paying Ballmer dividends.

That's why I only accounted for the "loss" of whatever he overpaid by.
Assuming he overpaid by 1B or 1.4B, that is analogous to "losing" 10-14K for someone worth 200K.
Plenty of people worth less than $200K "lose" $14,000 on the purchase of a new car (almost any car worth more than 40K will lose that much over 5 years).

2) Your $600M number is NOT the only valuation number (if there were even such a thing)
Valuation of a business is never an exact thing.
Valuation depends on which method you use and there are some assumptions that have to be made.
You throw around the 600 million dollars figure as if it were the "true" number but there is no reason to believe that Forbes method of valuation is the only proper valuation method.
In fact, it was done by Forbes. Does Forbes have internal accounting numbers?
Of course not.

Check out this article which covers the inaccurate reporting by Forbes on the NBA:
http://fivethirtyeight.blogs.nytimes.com/2011/07/05/n-b-a-disputes-forbes-analysis-suggesting-league-is-profitable/?_php=true&_type=blogs&_r=0

What do financial professionals (not Forbes) think?
Bank of America estimated that the team was worth 1 - 1.3 billion dollars, not $600M.
They estimate that this is 20 times the EBITDA, not including payroll costs.
Assuming accounting numbers are approximately correct, that is clearly a very very high multiple.
But the average rise in value of NBA teams over the years has been a healthy 15% a year, which could offset the loss at the time of the sales.


As you said, it is very likely that Ballmer overpaid; by what amount, however, is up to debate, not precise.
What is the correct multiple of EBITDA that should be used? 5? 10? 20?
It would depend on the business' outlook and its growth potential.

Taken together, I think the above points argue strongly that the analogy of losing around $10000 is valid, assuming he overpaid by about $1B (could be less or more depending on accounting numbers and valuation method used.).
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PostPosted: Thu Aug 21, 2014 2:50 pm    Post subject:

Ballmer because he has two top 5 players on his team and one of the best defensive centers. If the Lakers miss out on Durant, it could take 6 to 7 years before their a contender again.
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PostPosted: Thu Aug 21, 2014 3:20 pm    Post subject:

Dave20 wrote:
Ballmer because he has two top 5 players on his team and one of the best defensive centers. If the Lakers miss out on Durant, it could take 6 to 7 years before their a contender again.


If we miss out on Durant and Jim Buss does not leave or he stays and does not improve on his decision making, it will more than 7 years easily.
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PostPosted: Thu Aug 21, 2014 3:27 pm    Post subject:

venturalakersfan wrote:
laker4life wrote:
kikanga wrote:
Can't believe on a lakers fan site over 40% of voters think the clippers will win a chip before us. Since we've won our last chip the clippers have won a couple playoff series. That's it. No conference finals appearances, let alone an NBA finals appearance.
The voting is not a good sign. But maybe people aren't thinking the clippers are that good. Maybe they think we are that bad. Makes sense, we did just have the worst LA Lakers season...ever.


Lakers fans are also pretty smart.

That is why the percentage is high. Also, Laker fans know what a great owner such as Jerry Buss can do and what a great coach like Phil brings to the table.

Lakers fans probably acknowledge that the Clippers have a better owner now and pretty dam good coach and definitely a better team.


You are a poor choice to speak for Laker fans. I think the Lakers have the better owner and that the coaching is about the same. I do agree their team is better now, but nowhere near title-worthy. At least not until they learn how to win the tough games.


Coaching is different since Doc Rivers has won a championship as a coach and he simply seems to get more out of his players.

Also, although Bryan took the Nets to championship twice and I recognizes his contribution to the Laker championship teams in the 80s, he was the coach of the Cavs when they had the second longest losing streak in NBA history.


Whether true or not, there is a general impression among the non biased NBA fans that Ballmer is better than Jim.

Look at it now. Among Laker fans, it is fairly close (only 10 %). Can you imagine if you ask Clipper fans which owner will get their team faster to a championship? It would be overwhelmingly in support of Ballmer.


Last edited by laker4life on Thu Aug 21, 2014 4:38 pm; edited 1 time in total
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PostPosted: Thu Aug 21, 2014 3:37 pm    Post subject:

who will blue screen first
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PostPosted: Thu Aug 21, 2014 3:50 pm    Post subject:

laker4life wrote:

Quote:

Look at it now. Among Laker fans, it is fairly close (only 10 %). Can you imagine if you ask Clipper fans who is a better owner? It would be overwhelmingly in support of Ballmer.

Poll doesn't ask who's the better owner. It asks "Who will get his team to championship faster?" I'm a dyed in the wool Laker fan. Realistically I have to give Ballmer the nod.
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PostPosted: Thu Aug 21, 2014 7:02 pm    Post subject:

shnxx wrote:
ringfinger wrote:

Actually, your analogy is a little off. He spent $2B on something worth $600M on a $20B net worth. So it would be like someone with a net worth of $200,000 spending $20,000 on a base model 2005 Honda Civic LX with around 120,000 miles (worth about $6K).

Many of us here, myself included, have a net worth greater than $200K and I would not pay $20,000 for a Honda Civic or any one thing that has a value of $6,000.


As you said, it is very likely that Ballmer overpaid; by what amount, however, is up to debate, not precise.
What is the correct multiple of EBITDA that should be used? 5? 10? 20?
It would depend on the business' outlook and its growth potential.


The above is all that was necessary. Just like with the poll, just keep it simple.
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PostPosted: Fri Aug 22, 2014 5:18 am    Post subject:

Quote:
Pretending that a team executive who has been part of the core of decision making for the last decade was uninvolved in it's success is intellectual dishonesty.

I am under the assumption that it's about ownership. Executive positions where there's great influence from the actual owner and even to the point where there's some perception that a few bad moves (hiring MDA, Kobe extension) came on orders from the real owner and man in charge, makes it a little tough for me to give him credit as a winning owner. Just wanted to make it clear that Jimmy hasn't won a ring as the owner or guy making the final call or in the role of his father Dr Buss or what role Ballmer will be in.

Now if the argument is that he's prepared well, he was in a FO role that helped a team build a winner and that he is better positioned to win rings as a owner than Ballmer, I fully can see that POV and agree with it.

I also agree that jimmy often gets blamed for Mitch's bad moves (the few Mitch actually makes) and that's not cool or fair.
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PostPosted: Fri Aug 22, 2014 6:33 am    Post subject:

Yeah, jim seems to get the double standard. When its a good result, dad was still the final call so no cookie. Bad result? Well, dad was technically still making the final call but we all know it was all jm. Jim should be part of credit and blame for the last decade.
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PostPosted: Fri Aug 22, 2014 6:50 am    Post subject:

Ballmer.

Clipper's advantages:
1) 2nd tier Contenders right now
2) Unlimited funds if needed
3) League has proven it's willing to collude to give them talent
4) League itching to make the Sterling-less Clippers a feel-good story, so they'll be getting the "special" treatment to show how much Sterling was hurting the league.
5) Don't have to burn 2 years on a goodbye Kobe tour

Lakers' advantages:
1) Lakers' history
2) Randle

Notice that most of these have nothing to do with FO quality.
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PostPosted: Fri Aug 22, 2014 6:52 am    Post subject:

If the Clippers can't win with this crew, it's a much longer road ahead to get back in to contention and history doesn't bode well for them.
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PostPosted: Fri Aug 22, 2014 9:38 am    Post subject:

I think the negative sentiments toward Jim Buss is fair right now.

Championships are not won by owners; they are won by great players surrounded by role players.
I don't think anyone would be mad at Jim Buss if we were a competitive team.

But over the last few years, Jim Buss made several bad decisions, like hiring of Mike Brown and Mike D'antoni, which almost EVERYONE could see was not a good move from the very beginning, which left the franchise in disarray.

Jim Buss is likely a billionaire and I don't think we should feel sorry because some LG fans and radio personalities are down on him right now. lol.
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PostPosted: Fri Aug 22, 2014 12:20 pm    Post subject:

shnxx wrote:
I think the negative sentiments toward Jim Buss is fair right now.

Championships are not won by owners; they are won by great players surrounded by role players.
I don't think anyone would be mad at Jim Buss if we were a competitive team.

But over the last few years, Jim Buss made several bad decisions, like hiring of Mike Brown and Mike D'antoni, which almost EVERYONE could see was not a good move from the very beginning, which left the franchise in disarray.

Jim Buss is likely a billionaire and I don't think we should feel sorry because some LG fans and radio personalities are down on him right now. lol.



IMO of coarse the critisism is fair when the team is coming off of the worst season in franchise history! People on here can't cherry-pick what Jimbo was in charge of and what he wasn't. If you read some of the comments on here Jimbo was in charge for the back-to-back championships, but wasn't in charge of hiring MDA over Phil. It's just a feeble attempt to divert blame from the bad mistakes and take credit for the good choices.

And who in their right mind would feel sorry for a guy who was born with a silver spoon in his mouth and hasn't worked a day in his life?!?!
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PostPosted: Fri Aug 22, 2014 1:47 pm    Post subject:

kwase wrote:
shnxx wrote:
I think the negative sentiments toward Jim Buss is fair right now.

Championships are not won by owners; they are won by great players surrounded by role players.
I don't think anyone would be mad at Jim Buss if we were a competitive team.

But over the last few years, Jim Buss made several bad decisions, like hiring of Mike Brown and Mike D'antoni, which almost EVERYONE could see was not a good move from the very beginning, which left the franchise in disarray.

Jim Buss is likely a billionaire and I don't think we should feel sorry because some LG fans and radio personalities are down on him right now. lol.



IMO of coarse the critisism is fair when the team is coming off of the worst season in franchise history! People on here can't cherry-pick what Jimbo was in charge of and what he wasn't. If you read some of the comments on here Jimbo was in charge for the back-to-back championships, but wasn't in charge of hiring MDA over Phil. It's just a feeble attempt to divert blame from the bad mistakes and take credit for the good choices.

And who in their right mind would feel sorry for a guy who was born with a silver spoon in his mouth and hasn't worked a day in his life?!?!


Why do people still keep talking about hiring MDA over Phil? Phil didn't want to coach, said he didn't want to coach, Lakers wanted a long term coach, if Phil did, he would've only done it for a year.. yet it's Jim that passed up on Phil. Hello?? It's Jim that wanted Phil to consider coming back to the Lakers to begin with.. Phil was reluctant.. that was that.

Stop with that dialog that was proved to be false by PHIL HIMSELF!!
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PostPosted: Fri Aug 22, 2014 2:20 pm    Post subject:

NomisR wrote:
kwase wrote:
shnxx wrote:
I think the negative sentiments toward Jim Buss is fair right now.

Championships are not won by owners; they are won by great players surrounded by role players.
I don't think anyone would be mad at Jim Buss if we were a competitive team.

But over the last few years, Jim Buss made several bad decisions, like hiring of Mike Brown and Mike D'antoni, which almost EVERYONE could see was not a good move from the very beginning, which left the franchise in disarray.

Jim Buss is likely a billionaire and I don't think we should feel sorry because some LG fans and radio personalities are down on him right now. lol.



IMO of coarse the critisism is fair when the team is coming off of the worst season in franchise history! People on here can't cherry-pick what Jimbo was in charge of and what he wasn't. If you read some of the comments on here Jimbo was in charge for the back-to-back championships, but wasn't in charge of hiring MDA over Phil. It's just a feeble attempt to divert blame from the bad mistakes and take credit for the good choices.

And who in their right mind would feel sorry for a guy who was born with a silver spoon in his mouth and hasn't worked a day in his life?!?!


Why do people still keep talking about hiring MDA over Phil? Phil didn't want to coach, said he didn't want to coach, Lakers wanted a long term coach, if Phil did, he would've only done it for a year.. yet it's Jim that passed up on Phil. Hello?? It's Jim that wanted Phil to consider coming back to the Lakers to begin with.. Phil was reluctant.. that was that.

Stop with that dialog that was proved to be false by PHIL HIMSELF!!


Except that MDA didn't turn out to be a long term coach, the collateral damage of that decision is plain to see. We have gotten worse since Phil left not better, infact we even sunk into the lottery.

You have to take blame for the losses if you want to take credit for the wins. Under Jim the Lakers have sunk lower than they have ever been in their entire history.
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PostPosted: Fri Aug 22, 2014 5:23 pm    Post subject:

Keeping Bernie would've been preferable to hiring MDA.
It wasn't as if they were taking some chance with Mike Brown and Mike D'antoni, where it could've paid off.
Almost all of the fans and the media knew what we were getting in these guys.

Mike Brown - a defensive coach who wasn't so charismatic or bright (just look at the interviews). Fired by Cleveland.

Mike D'antoni - a redneck who says odd things that don't make any sense who lucked out with Nash then was exposed later in NYC.

It's quite incredible that Lakers hired these guys. I really don't think it's hindsight bias either because at the time of hire, the board was very much negative on the hires.
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PostPosted: Fri Aug 22, 2014 5:42 pm    Post subject:

Clippers won't win jack as long as the Spurs are still relevant in the west and Lebron and his buddies come out of the east.
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PostPosted: Fri Aug 22, 2014 6:16 pm    Post subject:

24 wrote:
Yeah, jim seems to get the double standard. When its a good result, dad was still the final call so no cookie. Bad result? Well, dad was technically still making the final call but we all know it was all jm. Jim should be part of credit and blame for the last decade.


Exactly, Jerry, Jim and Mitch should get credit and blame for the past decade.
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laker4life
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PostPosted: Sat Aug 23, 2014 10:12 am    Post subject:

venturalakersfan wrote:
24 wrote:
Yeah, jim seems to get the double standard. When its a good result, dad was still the final call so no cookie. Bad result? Well, dad was technically still making the final call but we all know it was all jm. Jim should be part of credit and blame for the last decade.


Exactly, Jerry, Jim and Mitch should get credit and blame for the past decade.


That would be true with some fans who simply want to blame Jim for everything.

Some educated fans take the time to point out the shortcoming and missteps by Jim.

When the Lakers experienced a setback in the early 2000 with the Shaq trade, there were a lot of rumblings here especially when Shaq went to Miami and proceeded to win a championship one year.

Fans were upset at Mitch and calling him Mitch "Cupcake", etc. Mitch made it worse when he spoke about his "magic wand".

However, fans changed their perspective when the Gasol trade went down. Mitch earned his recognition.

As for Jim, he is going through the same. Unfortunately, he has made repeated bad choices with the coaches as well as some his ill-timed comments that simply does give fans any confidence.

Most people are smart enough to recognize and acknowledge he significant difference between the father and son or Ballmer v. Jim Buss.

Jim, like Mitch, will get the credit when he deserves it.

Until then he will be belittled.
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