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Why Bulls Will Not See the NBA Finals Until Owner Jerry Reinsdorf Relinquishes Control to an Heir Who Loves Sports and Winning

Under Jerry Reinsdorf’s ownership (with a little help from MJ), the Bulls have become one of the most valuable franchises ($511 million) in the league, ranked third behind the Los Angeles Lakers ($607 million) and New York Knicks ($586 million). The same Forbes NBA Statistics rankings hold true for revenue generation; but the Bulls are first in the ratio of income to revenue and in highest average attendance over the last decade.

How have Bulls fans been rewarded for the support they’ve provided since 1998? Ownership gave Michael Jordan, Scottie Pippen, Phil Jackson, and the rest of the championship team their walking papers to save money. They began immediately perfecting their strategy of “planned mediocrity” to secure and “lock-in” increases in net income. They keep player and coach costs low; they don’t renew expiring contracts of those whose value has increased; they replenish their roster with lower-tier players released by other teams and hire head coaches with no experience. Occasionally they may acquire a top-tier star to give the impression they’re trying to win but it’s merely the subterfuge or sleight of hand ploy in the austerity policy. They don’t really intend to make the team substantially better; that is against their business philosophy.

Without trying the Bulls sometimes accidentally reach a tipping point of potentially becoming a good basketball team. When it occurs ownership discourages it by arranging the exit of players at the center of the unplanned ascendancy. The last time they were on the brink of becoming very good was in 2009 when they had Ben Gordon, Derick Rose, John Salmons, Joakim Noah, Brad Miller, Kirk Heinrich, Tyrus Thomas, Taj Gibson, Luol Deng, etc. Guess what, they let them all go save Rose, Gibson, and Noah under the guise of clearing salary cap room to sign big-time free agents. Add Carlos Boozer and Omer Asick to that old core and you have the potential of winning 53 games or more. But Bulls ownership is loath to having second, third, and more helpings of talent on the team. For them that costs too much.

Aside from the philosophy of losing to be more financially successful, another serious impediment to their winning is inability to establish a serious professional and mutually beneficial collegial rapport with players and coaches based on shared respect. They don’t seem to understand its importance to overall performance, team goals, and the perception peers and others form about the nuance and style of their management. Their handling of Scott Skiles, Ben Gordon, and Vinny Del Negro are examples of this deficiency. They were undeservedly alienated by the organization’s nasty, awkward behavior in employee relations and pushed out over trivial matters.

Teams like the Lakers and Celtics understand there is a natural divergence if ideas and concerns between management and employees that has to be managed through dialog – not one-way instruction. The Bulls have always been defective in this area. They have never developed an organizational philosophy and related skill-set in employee relations and associated competencies.

Dwyane Wade sniffed-out this issue during the free agent signing period when he expressed his wariness of the Bulls history of, shall we say, inelegant relations with former players and coaches. Wade’s view is it is fundamentally important that an enduring trust and respect is built and maintained between franchises and employees. Its value is incalculable. It is the bedrock upon which concern from any quarter within the organization can be raised, discussed, and resolved without recrimination. The Bulls failures in this area are the reason the big 3 free agents did not sign with the team. Wade, James, and Bosh all felt the neurosis embedded in the organization’s psyche, which is an unhealthy need to control employee interactions from a position of mega-strength such that they (the employees) are rendered impotent with no “rights” it need hear or respect.

I would venture to say that if the Bulls were adept in this area, Wade would have converted to Chicago and the other two would have joined him. But Wade knew a Reinsdorf led franchise could never reconcile itself to accepting and validating the idea of star players capable of forming a “block” and engineering the salaries and destination of their performing. He knew, also, Reinsdorf could not ever imagine adding the cost (cut-rate even) of three super-stars to his payroll. .

For the Bulls, all decisions are based on “bottom line before winning” considerations or the perception the organization’s authority is under siege and must be protected. Anyone who, even on an exploratory basis, articulates an intelligent coherent view counter to the organizations is viewed as a threat and will quickly feel Reinsdorf’s wrath. The vice president of the organization and the general manager operate under a severe cloud of fear. This anxiety renders them devoid of any creativity or inventiveness in their interactions with peers that might result in moves to make the team better.

Lakers and Celtics ownership have learned from Mr. Phil Jackson and Mr. Glenn Rivers that players win championships. Savvy owners and their management shape the structure, philosophy, and goals of their organizations in a way that attracts the best talent. They manage their gift of capacity with a competence that is sensitive to the vagaries and pitfalls athletes are heir to and the bumpy road they travel toward professional and personal growth. When that competency is achieved an organization can hold on to good young players and build an extraordinarily strong team, over the time period their skill and understanding matures and merges. Add Pat Riley of the Miami Heat to the list of basketball executives “in-the-know” about this important a aspect of organizational science.

The fundamental owner vs. fan conflict for the Bulls is this – the owners are not fans of basketball; they are businessmen before all else. The fans want wins, championships, and bragging rights. The problem is what fans want is of no consequence to Bulls owners especially and specifically if it reduces income below targeted measures.

I hope I’m wrong about this; thanks for hearing me out,

Papa GM, a Bulls Fan

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  • http://ufrsports.com UFR Sports

    Papa G, what about this summer’s attempt to get LBJ and JJ Redick. In addition they refused to let Noah go at almost any cost.

    Your man Reinsdorf is definitely shady, but I think he intended to win this season. Riley had Wade take LeBron out for a night on South Beach and that was a wrap.

    Didn’t know the Bulls were still doing so well in terms of revenue.

    • Papa GM

      Part of the execution of the Bulls mediocre or bust approach is to “fake-out” fans by periodically flirting with committing to success. After they merely mentioned interest in free agents, the local and national press played up the idea that the Bulls were a real contender for their talents.. But there never was a serious effort to get any of the Big 3 and they would never get into a bidding war for Redick, or anybody else for that matter.

      All around Chicago Noah is the recognized and undisputed engine and heart of the team right now and this management does understand. It was a good move to re-sign him early.

      Michael Jordan made no more than $3 million in all his years with the Bulls save the last two of the second 3-peat in which he made $30 million and $38 million respectively. Reinsdorf is committed to never again paying a ball player that kind of money. Check it out, those $3 million and fewer years included the first 3-peat! He had been seriously underpaying MJ for years! Think about it, if the last championship team had been retained the Bulls would have needed help from the league to pay MJ, Scottie, and the others. Actually, there would have been a good argument for that because the Bulls consistently filled up all of the arenas they played in and lined the pockets of other franchises.

      After the last championship (1998) Reinsdorf rededicated himself to winning financially first (like he did before 1997), which is not bad in and of itself but to hold fast to a plan to win only the number of games possible using predominantly average players salted, perhaps, with one “near-the-top” star – how does that curry favor with the fans who are footing the bill?

      While Bulls revenue and attendance is down slightly they remain one of the top franchises in the league in everything but winning.

      • http://ufrsports.com UFR Sports

        But Papa G, Jordan willingly accepted those salaries to “keep the band together” so to speak. He wanted to keep winning. MJ knew he would make his real money with his endorsements and other off-court endeavors.

        Reinsdorf realized skyrocketing salaries wouldn’t work. Look at where the Heat find themselves right now. They can’t get better, even if they sign Dampier. Their salaries are too full. They’ll get their money back on the back end with licensing rights on all the Heat crap they will sell, but fans will be stuck with a competitive team, who will never compete.

        Even take my own Orlando team. We’re saddled with huge salaries for bad players, Lewis and Carter.

        Ultimately the NBA created this problem, when they went with a player focused marketing strategy, rather than highlighting the game.

        When character issues became a problem, ie Iverson etc, they tried going with European players. That fell a part as well. So they relied on the “League” super star approach with LBJ.

        You can’t blame Reinsdorf for protecting his money.

        But I believe you’ll see the pendulum swing the other direction with the upcoming CBA negotiations. If the league and owners are smart, they will get back to ol’ skool basketball, where team rivalries and team play drove fans.

        That would alleviate the need to have the league fix the officiating to make the game more exciting.

        Papa G, keep feeding the masses. It’s good to have a real “basketball” fan in the blogosphere.

        These new school cats with their media driven perspective, rarely provide such good NBA discussion.

  • TheLadyGM

    You’re welcome, Ron! Look for more post from Papa GM in the near future. Thanks for visiting!

  • Ms. Sophisticate

    Excellenty written article! PapaGM, your detailed outline of what those money-grubbing folk (I mean Reinsdorf) are doing is definitely on point!

    I see where the LadyGM gets her persceptive insight.

    Bravo!!!!!

  • MoneyPlayers

    I disagree with the title of your article regarding Reinsdorf. Its actually the opposite which is true. The reason the Bulls can’t win is because Reinsdorf relinquishes TOO much control to people in his organization. He gave Krause too much control and let him get rid of Phil Jackson and bring in Tim Floyd. That caused a ripple effect and Jordan never wanted to play for Tim Floyd. It took the Bulls 10 years to recover from that…He plucked John Paxon from the broadcast booth and made him President of Basketball Operations. He let John Paxson keep Kirk Hinrich and Luol Deng and we could have gotten rid of both of them and got Kevin Garnett a few years back. They finally trade Kirk Hinrich and they can’t find a taker for Luol Deng…So if Reinsdorf wants to win stop giving control of your franchise to people like John Paxson who never paid their dues as an assistant GM and making them your President of Basketball Operations.

    • Papa GM

      Make no mistake about it, Reinsdorf made the decision to let Phil Jackson go for the same reason de did not bring Jordan back. Their contractual demands were too costly. Putting aside the Tim Floyd debacle the long result of Jerry Krause’s tenure is that his personnel decisions helped his team win 6 championships and catapulted the Bulls to elite status in the NBA. He brought in Phil Jackson, Bill Cartwright, Dennis Rodman, Bison Dele, Tony Kukoch, Ron Carter, Luke Longley, etc. He garnered more of Reinsdorf’s confidence than Paxson ever will. Sadly, we fans never gave him the respect he earned and deserved.

      Anyone who believes Reinsdorf gives John Paxson a free hand in decision making is flirting with grand delusion. Paxson’s decision making, if any, is made within a circumference of Reinsdorf monitored “sanction” so small, constrained, and tight that he is less than insignificant.

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