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  • Colangelo's extension being blocked, referred to as a "product of nepotism"

    http://www.thestar.com/article/95314...s-new-contract

    When Larry Tanenbaum, the Raptors’ chairman, offered a public endorsement of GM Bryan Colangelo in London last week, it raised an obvious question.

    If Tanenbaum and his fellow directors support Colangelo — “Bryan has a plan and we back his plan as a board,” Tanenbaum said — why has Colangelo’s contract, which expires June 30, not been extended?

    It’s because there remains at least one anti-Colangelo voice among the power brokers. That voice, multiple club sources confirm, belongs to Glen Silvestri, a representative of the organization’s majority owner, the Ontario Teachers’ Pension Plan. Since the board has seven seats, three of which belong to Teachers’, and since another one of its members, CEO Richard Peddie, is essentially duty-bound to the majority owner, Colangelo isn’t likely to ink a new contract unless Silvestri comes around.

    What, exactly, is behind Silvestri’s opposition to Colangelo’s continued presence in Toronto? That’s difficult to say since Silvestri, a chartered accountant who manages billions of dollars worth of the pension plan’s funds, referred all questions to Maple Leaf Sports and Entertainment, which owns the Raptors and Maple Leafs, among many things.

    Peddie, the MLSE CEO, refused comment on board matters. As for the status of Colangelo’s contract? Said Peddie: “There’s nothing to report.”

    That kind of silence has been typical of the pension plan’s representatives, and it leaves those who care to parse hearsay. Sources say Silvestri, who took a seat on the board last year, has emerged as an atypically opinionated presence around the Air Canada Centre. Along with criticizing Colangelo’s record as GM, Silvestri, one league source said, has also been heard to deride Colangelo’s career as the product of nepotism. Colangelo’s father, Jerry, was owner of the Phoenix Suns when Bryan became that franchise’s general manager in 1995.

    Bryan Colangelo, who was GM in Phoenix for 11 years before he succeeded Rob Babcock in Toronto in February 2006, has had success outside his father’s shadow. He was named the NBA’s executive of the year in Toronto in 2007 for inheriting a 27-win team and turning them into the 47-win champions of the Atlantic Division.

    He has made plenty of missteps in the wake of that triumph, to be sure. The Jermaine O’Neal deal, which insiders pin on Colangelo’s wish to assuage then-coach Sam Mitchell’s constant harping for more defence and rebounding, was a miss. Ditto Hedo Turkoglu. And Colangelo’s call-out of Chris Bosh, in the wake of Bosh’s exit to Miami last summer, raised eyebrows among those concerned about the team’s ability to land and retain free agents.

    Still, the club, depending on the result of negotiations on a new collective bargaining agreement between NBA owners and players, is expected to have salary-cap flexibility in the off-season. It will also have one of the top few picks in the June draft.

    Meanwhile, Colangelo’s most recent two draft picks, DeMar DeRozan and Ed Davis, both age 21, have shown promise and improvement. A turnaround, with some deft maneuvering and some luck, is neither guaranteed nor impossible to foresee.

    Some insiders downplay the conflict between Colangelo and Silvestri, and certainly there are many other factors that could be influencing the Teachers’ reluctance to re-up Colangelo. Peddie, who has announced he’ll retire at the conclusion of 2011, is expected to welcome his replacement in the coming months. A headhunting firm is currently conducting a worldwide search for that person; Peddie said the field will be pared to a shortlist in the near future.

    While Tom Anselmi, MLSE’s current chief operating officer, remains the in-house front-runner to get the gig, giving Colangelo a multi-year extension on the cusp of a new CEO’s arrival — especially since the date of that arrival is unclear — might not be seen as wise.

    It’s also unknown how much longer the pension plan, which owns 66 per cent of privately held MLSE, will be the majority shareholder. The Star reported in December that Rogers has kicked the tires on the Teachers’ stake, which has been estimated to be worth about $1.3 billion, and other suitors are expected to emerge. The real prospect of an NBA lockout doesn’t clarify anyone’s view of how Toronto’s basketball operation will look after this season.

    As one source said: “Confusion reigns.”

    And so Colangelo waits. Is it possible the GM could make the Raptors’ first-round pick in the draft on June 23, a week before his contract expires, without a new contract? Multiple team sources said it is. Colangelo declined comment on matters pertaining to his contract.

    What will come of all this? If the club is seriously considering replacing Colangelo, it’d be a good time to strike up a search. The corporation’s protocols demand that Peddie would be in charge of such a search; multiple sources have said there isn’t one under way.

    Even if Colangelo is ousted in short order — indeed, pre-draft workouts begin a little more than a month from now — the NBA draft, a crucial one for a rebuilding club, is a little more than three months away. Given that it’s not just Colangelo standing on the precipice — much of the basketball staff, including head coach Jay Triano and various assistants, not to mention assistant GM Maurizio Gherardini, are on expiring deals — these are anxious days in Raptorland.

    Tanenbaum, for his part, is said to see Colangelo as the club’s best hope to lead a quick recovery, but the chairman’s 20.5 per cent ownership stake doesn’t let him decide (TD Capital owns the other 13.5 per cent). Peddie has long voiced his public faith in Colangelo, but Peddie has always been a loyal servant to the pension plan.

    That Colangelo wants to stay is beyond question; he and his family are entrenched in Toronto. Whether they’ll be here come the fall is anyone’s guess.

    Check that: Silvestri’s guess would be better than anyone’s.

    The paying customers await his take. History suggests they may wait forever.
    I'm surprised an accountant would have an issue with Colangelo seeing as how the franchise has been more profitable under his guide than at any other time in its history.

    Further proof that MLSE are idiots. Nevermind if you are pro or anti Colangelo. The reality is stability is needed for a rebuiding franchise and it does not sound like things are stable at the top. As much as I hate Rogers, I'd much rather have them majority owners of the Raptors than the current ownership structure.

    Given BC's publicly stated desire to stay in TOR, it would appear there are two options in this situation:

    1) BC is not renewed with a situation similar to Kevin Pritchard in the works,
    or
    2) Negotiation tactic to get a shorter &/or cheaper contract.

    *EDIT* This could also have something to do with the lock out and the feeling by MLSE there is very little point in getting a contract when there will be no NBA business on going.
    Last edited by mcHAPPY; Sat Mar 12, 2011, 09:36 PM.

  • #2
    Colangelo's extension being blocked, referred to as a "product of nepotism"

    Feschuk article

    RR Take

    If Tanenbaum and his fellow directors support Colangelo — “Bryan has a plan and we back his plan as a board,” Tanenbaum said — why has Colangelo’s contract, which expires June 30, not been extended?

    It’s because there remains at least one anti-Colangelo voice among the power brokers. That voice, multiple club sources confirm, belongs to Glen Silvestri, a representative of the organization’s majority owner, the Ontario Teachers’ Pension Plan. Since the board has seven seats, three of which belong to Teachers’, and since another one of its members, CEO Richard Peddie, is essentially duty-bound to the majority owner, Colangelo isn’t likely to ink a new contract unless Silvestri comes around.

    What, exactly, is behind Silvestri’s opposition to Colangelo’s continued presence in Toronto? That’s difficult to say since Silvestri, a chartered accountant who manages billions of dollars worth of the pension plan’s funds, referred all questions to Maple Leaf Sports and Entertainment, which owns the Raptors and Maple Leafs, among many things.

    Peddie, the MLSE CEO, refused comment on board matters. As for the status of Colangelo’s contract? Said Peddie: “There’s nothing to report.”

    That kind of silence has been typical of the pension plan’s representatives, and it leaves those who care to parse hearsay. Sources say Silvestri, who took a seat on the board last year, has emerged as an atypically opinionated presence around the Air Canada Centre. Along with criticizing Colangelo’s record as GM, Silvestri, one league source said, has also been heard to deride Colangelo’s career as the product of nepotism. Colangelo’s father, Jerry, was owner of the Phoenix Suns when Bryan became that franchise’s general manager in 1995.

    Bryan Colangelo, who was GM in Phoenix for 11 years before he succeeded Rob Babcock in Toronto in February 2006, has had success outside his father’s shadow. He was named the NBA’s executive of the year in Toronto in 2007 for inheriting a 27-win team and turning them into the 47-win champions of the Atlantic Division.

    He has made plenty of missteps in the wake of that triumph, to be sure. The Jermaine O’Neal deal, which insiders pin on Colangelo’s wish to assuage then-coach Sam Mitchell’s constant harping for more defence and rebounding, was a miss. Ditto Hedo Turkoglu. And Colangelo’s call-out of Chris Bosh, in the wake of Bosh’s exit to Miami last summer, raised eyebrows among those concerned about the team’s ability to land and retain free agents.

    Comment


    • #3
      Yeah I would really not mind Rogers taking over majority of MLSE, but in terms of Colangelo.. his recent moves have given me a bit of hope but if you're going to give him a contract extension it has to be shorter and have more options so he doesn't just swing wildly for the fences all the time and measures his moves a little more. Not that I want ownership involved in the GMs job, but if there was some kind of accountability for lack of performance?

      Comment


      • #4
        Darien wrote: View Post
        Yeah I would really not mind Rogers taking over majority of MLSE, but in terms of Colangelo.. his recent moves have given me a bit of hope but if you're going to give him a contract extension it has to be shorter and have more options so he doesn't just swing wildly for the fences all the time and measures his moves a little more. Not that I want ownership involved in the GMs job, but if there was some kind of accountability for lack of performance?
        I'd agree. I would like a shorter deal with less money but, agree or not, many feel he is one of the better in the league.

        I think the swinging for the fences was a result of having a max player under contract and the pressure of having to win at all costs to keep said max player around.

        The rebuild takes away the sense of urgency in having moves/deals pay immediate dividends. Moves can be made looking 1-2 seasons down the road versus now.

        I really like the future of the team right now. Draft day may increase or decrease that optimism as much of it is hinging on that fateful night.

        Comment


        • #5
          im pretty optomistic about the future too. hopefully in 2 years time we may find ourselves in a similar situation boston had when they got garnett and allen. we will have alot of assets and there might be 1 or 2 bigger name free agents we could gather with those assets

          Comment


          • #6
            The Teachers Pension Fund do not care about basketball aspect of the business but only care about their own selfish financial gain. If they want to cut Colangelo its not because they think he did a bad job and want someone else but rather looking for ways to cut spending so more money will go to their fund.

            MLSE is a joke.

            Comment


            • #7
              Matt52 wrote: View Post
              http://www.thestar.com/article/95314...s-new-contract



              I'm surprised an accountant would have an issue with Colangelo seeing as how the franchise has been more profitable under his guide than at any other time in its history.

              Further proof that MLSE are idiots. Nevermind if you are pro or anti Colangelo. The reality is stability is needed for a rebuiding franchise and it does not sound like things are stable at the top. As much as I hate Rogers, I'd much rather have them majority owners of the Raptors than the current ownership structure.

              Given BC's publicly stated desire to stay in TOR, it would appear there are two options in this situation:

              1) BC is not renewed with a situation similar to Kevin Pritchard in the works,
              or
              2) Negotiation tactic to get a shorter &/or cheaper contract.

              *EDIT* This could also have something to do with the lock out and the feeling by MLSE there is very little point in getting a contract when there will be no NBA business on going.
              Why are you surprised about an accountant opposing him even if the team is profitable for now ? Imo, if we are looking at the attendance record which has been abysmal (did BC really think Toronto Raptors fans are like Maple Leafs fans that watch losing and misery? Guess what Toronto Raptors fans are not like that.). The financial vibrancy of a non-lottery team for a long time a la the Clippers especially if the Raptors don't make the playoffs 3 seasons after this one (which is more likely to happen under a BC extension imo) is horrible to think of, could likely lead to losses and that is clearly the job of an accountant which is to decide whether a business a la the Toronto Raptors is financially vibrant or not. Nobody loves a loser and supports a loser, making the playoffs every year (3 teams in each conference are guaranteed the playoffs as contenders and 5 more spots are up for grabs in each conference by 12 teams - that is good odds of making the 5 spots to me imo) should not be hard to do imo. My 2 cents.

              Comment


              • #8
                This crap coming out is not great whichever side of the BC situation you are on. He is still GM and there is a draft coming up. So what happens if there is no extension. Does he pick to show his commitment, read the writing on the wall and spoil the pick, or does SILVESTRI make the damn pick. Of course this accountant won't be the one picking the draft, I hope, but I sure as hell wouldn't want the decision going to Gheradini. Big risk with this coming public all around.

                Comment


                • #9
                  Hotshot wrote: View Post
                  The Teachers Pension Fund do not care about basketball aspect of the business but only care about their own selfish financial gain. If they want to cut Colangelo its not because they think he did a bad job and want someone else but rather looking for ways to cut spending so more money will go to their fund.

                  MLSE is a joke.
                  A new GM will probably cost the same as Colangelo and when you are a billion dollar corporation 5 million is inconsequential. That being said, if this story is true in the slightest then this guy must believe that Colangelo isn't making them enough money.

                  I have never been a fan of Feschuk, the writer of this article, because he never reports facts. It's rumors, heres and never has any base to it. He hasn't written about the raptors all year and he was adamant about trashing their prehistoric butts last season. Even this article never quotes a legitimate source. Of course no one is going to talk to him about a contract that is really no business of anyones until it is signed. Trash.

                  Let's say it is true and they're leaning rewards not signing him again. There's no point in firing him to get someone new before the draft. Even if the goal is to re-sign him, there's a lockout coming and there will be no transactions for a few months. Maybe they'll pinch their pennies and try to negotiate with him after it expires.

                  Comment


                  • #10
                    Hotshot wrote: View Post
                    The Teachers Pension Fund do not care about basketball aspect of the business but only care about their own selfish financial gain. If they want to cut Colangelo its not because they think he did a bad job and want someone else but rather looking for ways to cut spending so more money will go to their fund.

                    MLSE is a joke.
                    As a teacher, I take exception to your initial thinking. Say you work for a company that wastes your hard earned money (stock options and pension contributions) on financial ventures that fail, would you be happy about it? Yes, the teachers pension fund is exactly that - a fund that is managed and invested in several ventures, in this case, the MLSE. Sports is a business and no business wants to lose money. That said, in order for businesses to not lose money, you have to manage your assets and spend wisely on players that one thinks will be a good fit with the team. As they say, "if you build it, they will come."

                    Not renewing BC's contract is not motivated by the bottom line but rather the return on investment (this time his salary), as it is not yielding the appropriate return. You are correct, the teacher's pension fund does not care about the basketball end of things, they don't have to. That's the job of MLSE.

                    MLSE profits from basketball operations have actually gone up since Colangelo took over. Based on the teacher's pension funds' penchant for profits, they have all the motivation in the world to retain Mr. Colangelo. However, the reality is that the continued losing and the seemingly bleak competitive landscape (the strength of the Eastern Division) is making its investors think twice about his directions. Money is coming in now but if this continues, financial and sporting losses will pile up. Wouldn't you jump ship too if you knew that you're initial investment is about to hit rock bottom? Wouldn't you sell while you're still up?
                    Last edited by Balls of Steel; Sun Mar 13, 2011, 12:54 AM.
                    “The saving of our world from pending doom will come, not through the complacent adjustment of the conforming majority, but through the creative maladjustment of a nonconforming minority.” - Martin Luther King

                    Comment


                    • #11
                      albertan_10 wrote: View Post
                      A new GM will probably cost the same as Colangelo and when you are a billion dollar corporation 5 million is inconsequential. That being said, if this story is true in the slightest then this guy must believe that Colangelo isn't making them enough money.

                      I have never been a fan of Feschuk, the writer of this article, because he never reports facts. It's rumors, heres and never has any base to it. He hasn't written about the raptors all year and he was adamant about trashing their prehistoric butts last season. Even this article never quotes a legitimate source. Of course no one is going to talk to him about a contract that is really no business of anyones until it is signed. Trash.

                      Let's say it is true and they're leaning rewards not signing him again. There's no point in firing him to get someone new before the draft. Even if the goal is to re-sign him, there's a lockout coming and there will be no transactions for a few months. Maybe they'll pinch their pennies and try to negotiate with him after it expires.
                      OR, the Raps might just pull a Trail Blazer move by allowing BC to stick around long enough to draft, then let him go by not resigning him. The only difference here is that the Raps need not be douchebags about this. Pritchard was fired whereas BC wouldn't have to be renewed. As far as optics is concerned, there's nothing negative about the latter move.

                      PS> I have a feeling that if BC is not renewed, he's going straight to the Knicks. I'd be damned if that situation hasn't already been discussed as we speak. Can you say, Phoenix of the East in New York?
                      Last edited by Balls of Steel; Sun Mar 13, 2011, 12:34 AM.
                      “The saving of our world from pending doom will come, not through the complacent adjustment of the conforming majority, but through the creative maladjustment of a nonconforming minority.” - Martin Luther King

                      Comment


                      • #12
                        I really hope BC leaves but it will be a tough task for the New GM to clean his mess.

                        Comment


                        • #13
                          Raptor4Ever wrote: View Post
                          I really hope BC leaves but it will be a tough task for the New GM to clean his mess.
                          What mess? The young group that wants to improve? The players who actually like the city? The players who play with heart? You must be watching something else. Sure the win loss is bad right now but we all saw it coming. BC did absolutely everything he could to try to get Bosh to stay around and lucked out (offer to overpay Trevor ariza that summer, remember that?). Not his fault. Got turkuglu who we loved until he forgot how to play ball. BCs fault? No. He did what made sense and it didn't work out. How about this season? He wasn't setting us up to tank by trying to acquire Chandler, Diaw and Matt Barnes. He anted to be competitive. Things didn't work out and when he saw a team headed towards 25-30 wins he sent off JJ and started the youth movement. It's not a mess. He has actually done a good job when you consider everything that has fallen through. To call it a mess is absurd. The goal now is to win long term and not just next year.

                          Comment


                          • #14
                            Darien wrote: View Post
                            Yeah I would really not mind Rogers taking over majority of MLSE, but in terms of Colangelo.. his recent moves have given me a bit of hope but if you're going to give him a contract extension it has to be shorter and have more options so he doesn't just swing wildly for the fences all the time and measures his moves a little more. Not that I want ownership involved in the GMs job, but if there was some kind of accountability for lack of performance?
                            Nah, Rogers or any company owning the Teachers Pension stake will be more of the same (no wins but profits priority instead) - individuals are more ideal owners of major league (NHL, MLB, NFL) teams as individuals see owning a team as a hobby and wanting to win (which I see owning a major league team being about, not a profit oriented business if companies want profit oriented businesses - stocks and real estate are financially viable options imo) - same can not be said of companies as owners imo. Jim Balsillie should jump on this imo (put down an offer of $1.7 billion (overpaying by $400 million) which should get the the Teachers Pension stake and wine, dine and have a talk with Gary Bettman (as that is the only stumbling to Jim having an NHL team imo) if I were Jim Balsillie).

                            Comment


                            • #15
                              Maleko wrote: View Post
                              This crap coming out is not great whichever side of the BC situation you are on. He is still GM and there is a draft coming up. So what happens if there is no extension. Does he pick to show his commitment, read the writing on the wall and spoil the pick, or does SILVESTRI make the damn pick. Of course this accountant won't be the one picking the draft, I hope, but I sure as hell wouldn't want the decision going to Gheradini. Big risk with this coming public all around.
                              If he makes a bad pick as a resentment of not being re-upped, BC spoils his reputation as a class act to prospective employers if he is fired. Imo, BC should make the right pick and be a class act like Kevin Pritchard (notice teams are still interested in Kevin. Why? It is because he left as a class act even after being fired on draft day by making the right pick in the draft).

                              Comment

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