Back in April 2011, HoopsHype reported that Rudy Fernandez sent a termination letter to Andy Miller of ASM Sports and Spanish agency U1st Agency.  At the time, it was only known that Fernandez was signing with Spanish agent David Carro of Hoops Fair Play.  Soon thereafter, Fernandez also signed with Arn Tellem of Wasserman Media Group, which provided him with a strong international agent and a prominent agent within the United States.

Fernandez, a 6’6 shooting guard/small forward, is currently signed to the Dallas Mavericks, but is playing with Real Madrid while the NBA and NBPA try to come to an agreement on a new collective bargaining agreement.  Raul Barrigon recently got a hold of Fernandez and asked him quite a few questions about his role with Real Madrid and the Mavericks, but the following Q&A caught my attention:

Why did you change agents?

Rudy Fernandez: I was not in contact very often with Andy Miller. My agents in Spain handled my day-to-day stuff. I was very happy with Gerard Darnes, Jordi Vila, Nuria Martinez. They were very important for me during my career. But I felt I needed something else… Then there was the issue with the fines, which I didn’t like… Also some other things happened that I didn’t like. Also in order to change my image I needed this. Now I’m with Arn Tellem, Jose Ortiz and David Carro. Pau [Gasol] and Marc [Gasol] said very good things about Tellem and I’m happy about this change.

Rudy Fernandez Happy About His Change To Arn Tellem from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

On August 19, 2011,  Kaufmann Sports Management Group, LLC (KSMG) announced (via its Facebook page) that it had signed Dallas Mavericks Guard Dominique Jones as a client.  He has become KSMG’s first basketball client.  Jones will be represented by KSMG for marketing purposes, while he will continue to be represented by Mike Hodges for team contracts.  Hodges has represented Jones since he left the University of South Florida (USF) after his junior year.

Dominique Jones was selected by the Memphis Grizzlies in the 1st round (#25 overall) of the 2010 NBA Draft.  The Mavericks quickly purchased that pick from the Grizzlies and made Jones a part of what would become the 2011 NBA Champions.

Jones did not see much playing time during his rookie season, performing in only 18 games and averaging just shy of 7 minutes per appearance, but the guard is expected to have a promising future in Dallas.  Do not expect to see him become a part of the starting five anytime soon, but do anticipate that he will enter more games and play more minutes (if there even is a 2011/12 NBA season).

Dominique Jones Hires KSMG For Marketing from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

• JJ Barea – Dan Fegan (Lagardere Unlimited)
• Rodrigue Beaubois – Bouna Ndiaye (Comsport)
• Corey Brewer – Happy Walters (Rogue Sports)
• Caron Butler – Raymond Brothers
• Brian Cardinal - Mark Bartelstein (Priority Sports)
• Tyson Chandler - Jeff Schwartz (Excel Sports)
• Brendan Haywood – Andy Miller (ASM Sports)
• Dominique Jones – Mike Hodges
• Jason Kidd - Jeff Schwartz (Excel Sports)
• Ian Mahinmi - Bouna Ndiaye (Comsport)
• Shawn Marion – Dan Fegan (Lagardere Unlimited)
• Dirk Nowitzki – NOBODY
• DeShawn Stevenson – Mark Bartelstein (Priority Sports)
• Peja Stojakovic – David Bauman (DB Hoops)
• Jason Terry - Dan Fegan (Lagardere Unlimited)

What stands out most is that Dirk Nowitzki is not represented by anyone.  Yesterday, Bloomberg Sports released a video explaining Nowitzki’s representation situation (embedded below).  Nowitzki does not have an agent or a business manager, but he does apparently have a friend in Germany who advises him on contracts.

Who Represents The 2010-11 Champion Dallas Mavericks from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

It was only yesterday, June 6th, that crowdseats.com officially launched its website. Crowd Seats is a daily deals site that offers sports tickets at HUGE discounts.  The discounts range anywhere from 50-90% off face value with no fees. This is a benefit for both the consumer and the sports organization. These time-sensitive, daily deals offer fans an opportunity to get in the crowd at a fraction of face value, while teams benefit from generating significant revenue from otherwise perishable inventory. The  inherent overages (i.e. additional revenue streams) that are guaranteed for each ticket sold on Crowd Seats are what makes sports tickets a perfect fit for this business model.  Popular group buying sites get merchants on board by promising new customers in exchange for huge discounts.  Crowd Seats’ merchants can expect more – each ticket sold on Crowd Seats will lead to more revenue through supplementary purchases such as parking at the stadium, concessions such as beer, soda, and hot dogs, and merchandise like jerseys and hats.  These additional revenues make daily deals ideal for sports teams.

A handful of teams have thought about this already and have utilized group buying websites for the past two years. Many sports organizations, including the Dallas Mavericks, have experimented wtih Groupon and LivingSocial and had great results. In a case study produced by Crowd Seats, deals involving tickets for NBA, NHL, and MLS games were reviewed.  The combination of revenue generated through ticket sales via various daily deals sites and supplemental revenue generated at the stadium (Fan Cost Index) has resulted in NBA teams taking in an average of over $50,000/deal.  The NHL and MLS based deals also did tremendously well.

Notable Deals:

• Dallas Mavericks, October 2010, 4819 Tickets Sold, $173,000 Revenue
• Toronto Raptors, March 2011, 2368 Tickets Sold, $101,000 Revenue
• Toronto Raptors, November 2010, 3049 Tickets Sold, $97,000 Revenue
• Colorado Avalanche, February 2011, 1784 Tickets Sold, $51,000 Revenue
• New England Revolution, August 2010, 2515 Tickets Sold, $45,000 Revenue

The Fan Cost Index is the sports industry metric of measuring what a fan spends once he/she buys the ticket.  This includes parking, food, beverages, beer, souvenirs, programs, etc. Each time a ticket is sold on Crowd Seats, the team will generate revenue from the ticket sale (minus Crowd Seats’ cut, which varies) on top of the guaranteed additional “overage” revenue from parking, concessions, etc.  This model makes Crowd Seats very attractive to teams and sporting events of all levels (pro, minor league, local).

According to Justin Cener, Founder and CEO of Crowd Seats,  “Sports ticket inventory is very similar to hotel inventory – if you don’t sell it, you lose it.  Crowd Seats enables teams to generate significant revenue from otherwise perishable inventory.  Moreover, unlike traditional businesses, sports teams generate large supplementary revenues after the ticket is sold through parking, concessions, and merchandise, making the sports industry the perfect partner for daily deals.”

It is clear that consumers will benefit, receiving discounts at 50- 90% off the face value of tickets to their favorite teams. Teams will also greatly benefit from the first group buying site specifically targeted towards their product. With the website now officially online as of Monday, June 6th, you can now go and check it out yourself. Fans who want to receive future offers for local events can sign up for the” Deals Newsletter” at http://www.crowdseats.com.

Crowd Seats Brings Group-Buying and Sports Tickets Into the Same Arena from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Former Wisconsin guard Devin Harris is in his 6th year in the NBA, currently playing with the New Jersey Nets.  Prior to joining the Nets, Harris was with the Dallas Mavericks.  Harris consistently got better in each of his four seasons with the Mavericks, logging more minutes and points in each successive year.  This year, he is averaging around 15 points and 8 assists in 32 minutes per game.  His assists are at an all time high, but Harris is barely shooting above 40% from the field and his 3-point percentage is sub-30%.

The 5th overall selection in the 2004 NBA Draft has decided to part ways with his now former agent, Henry Thomas of Creative Artists Agency (the same agency that represents Wade, Bosh, and James) in favor of Jeff Schwartz of Excel Sports Management.  Harris joins an agency that also represents Kevin Love, Blake Griffin, and Paul Pierce.  From one mega basketball agency to another.

On To The Next One: Devin Harris from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Here are the final NBA previews.  I am very excited for the season to begin, and especially interested in seeing how my Miami Heat fare this year.  But let’s talk Northwest Division for a minute.  It seems like every year the San Antonio Spurs are in contention.  I don’t think this year will be any different.  All the main pieces are back, but I am focused on how Tiago Splitter adds to the team.  I have been following him for a while; I think he has big upside.

Grizzlies:  Straight Outta Vancouver | 3 Shades of Blue | SBN Recap

Hornets: At the Hive | Hornets247 | SBN Recap

Mavericks: MavsMoneyball | The Two Man Game

Rockets: The Dream Shake | SBN Recap

Spurs: Pounding the Rock | Project Spurs | SBN Recap

NBA Blog Previews: Southwest Division Recap from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The Western Conference playoffs had such promise when the regular season ended. A young Oklahoma City team got an unlucky draw against the big bad Lakers, a coach Karl-less Nuggets team faced the insignificant Jazz, the ever so delicate Trail Blazers tried to finally make a splash against that old Canadian guy in Phoenix. Oh, and the Mavericks played the Spurs, but other than Texas, who really cared?

Unfortunately the West is where you go to have whatever Cinderella hopes there is in professional sports shattered (See Al Davis’ Raiders 2003-forever).

The Rundown:

LA vs. OKC

A scrawny kid who couldn’t lift 185 pounds in a weight room three years ago all of a sudden carried an entire city and franchise to its first playoff series since Ray Allen wore the green and gold in Seattle. Where did it land him? Face to face with arguably one of the best basketball players of all time; oh dear.  However, the Thunder sparked hope in NBA fans, as their team of kids who are barely old enough to drink, took two from the defending champs and tied up the series! Unfortunately all good things must come to an end; it was a shame, though, that it had to be off a Bryant miss and a Gasol last second tip in. (LAL win 4-2)

Denver Nuggets vs. Utah Jazz

The Denver Nuggets have been the team to cheer for since their loveable coach, George Karl, took a leave of absence to fight throat cancer. Unfortunately nobody told his team they were supposed to keep playing! Carlos Boozer and Deron Williams decided to play like the last dynamic duo that laced ’em up for Jerry Sloan and send the Nuggets home. (UTH win 4-2)

PHX vs. POR

Since Brandon Roy became the face of their franchise (better him then Greg Oden and his exploratory photographs), the Portland Trail Blazers have lost their nickname of just ‘Blazers’ and become a fun team to watch over the season. However, they have not been a title contender since Kobe lobbed that ally-oop to Shaq in game 7 of the Western Conference finals in 2000.  All they had to do was stop the Benjamin Button of the NBA in Steve Nash and they move on, right? Wrong. Brandon Roy gots hurt, LaMarcus Aldridge still isn’t a star big man, and Jarron Collins wons a playoff series as a starting center. Yeah that’s right, Jarron Collins. (PHX win 4-2)

Dallas Mavericks vs. San Antonio Spurs

A blockbuster trade, rejuvenated roster, and a prehistoric Spurs team should equal an easy opening round series, except that the basketball gods like picking on Mark Cuban because he is like a kid who never learns his lesson.  Thanks to Manu Ginosebleed* and the always classy Tim Duncan, the Spurs once again bent those kids from Dallas over their knee and well, the rest is just history. A thought to keep on the back-burner - If the San Antonio Spurs continue this tough play, with a young bench and good shooting, could they upset the Lakers and once again make David Stern cry over horrific NBA finals ratings? You kind of have to hope so. (SAS win 4-2)

So far this year’s playoffs have been a bit of a disappointment, considering there was a whopping zero games that went into overtime in the West, but the 2 seed and 4 seed lost, yet no one called it an upset? When do the playoffs start getting fun again? I kind of miss the intensity, the loud fans, and the hustle the players show for the unnecessarily long playoff runs.

As for how the West was won: The Spurs beat the Suns in 6, the Lakers beat the Jazz for the third consecutive year in 6 because Kobe starts to make that snarling face and Deron Williams gets spooked. Lakers take down the Old fellas from Texas after a long 7 game series. Congrats Kobe, here is your chance to make that Jordan vs. Bryant comparison everyone loves.

The Not So Wild West from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

“Mamma.com decided in the spring of 2004 to raise capital in a so-called private placement in public equity offering, known as a PIPE, according to the SEC suit. In late June, as the PIPE moved toward closing, Mamma.com’s investment bank suggested the company invite Cuban to participate. On June 28, Mamma.com Chief Executive Guy Faure e-mailed Cuban asking him to call him “ASAP,” the SEC said. Cuban called four minutes later from the American Airlines Center in Dallas, home of the NBA’s Dallas Mavericks, and spoke to Faure for about eight minutes. Faure, who resigned last year, began the conversation by telling Cuban he was about to give him confidential information. Cuban agreed to keep it to himself, the SEC said. Cuban became upset and angry during the conversation, and said that he didn’t like PIPEs because they dilute the value of company stock for existing shareholders, according to the SEC.”

After Cuban got off the phone he then called his broker and traded all 6.3% of his Mamma.com shares. Some reports said it was within only 8 minutes of the conversation ending, others claim it was hours later, but before the public announcement of the offering. The federal regulators claim that by selling his shares when he did, Cuban saved losses of around $750,000.

Scott Friestad, the SEC’s deputy enforcement director claimed that “It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market.” In the SEC’s statement, they urge that unless he is subject to an injunction, Cuban “is likely to commit such violations again in the future.”  Although the issue at law regards insider trading, the real issue that Cuban and his attorneys will question, asks if Cuban is being singled out by the SEC because of his high profile name.

In response to the allegations, one of Cuban’s attorney’s Ralph Ferrara, said on Cuban’s blog that the SEC’s case “has no merit and is a product of gross abuse of prosecutorial discretion. Mr. Cuban intends to contest the allegations and to demonstrate that the (SEC’s) claims are infected by the misconduct of the staff of its enforcement division.”

Cuban, in his own statement, said, “I am disappointed that the (SEC) chose to bring this case based upon its enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”

In a later post on Cuban’s blog, Cuban’s attorney, Stephen A. Best, claims that the conversation between Mr. Cuban and Mr. Faure had no agreed discussion of keeping the information private. Below is the relevant interview regarding the phone conversation between the two.

Christopher Clark:

1) Q- We spoke earlier about you were telling Mr. Cuban in words or substance : “I have confidential information for you”.

A- Right. 2) Q- Do you recall anything Mr. Cuban said in response or reply to that statement by you ?

A- No, I do not.

Whatever defense Cuban and his attorneys use, they better make sure that he sticks with his story and does not lie in any way. The charges against Cuban, currently, are only civil charges and not criminal. Meaning that if he complies with the SEC he could get away with paying only restitution damages and no jail time. On the other hand, if he lies, the government is likely to press criminal charges, including obstruction of justice. This could place him in the same situation that Martha Stewart was in. The two cases are eerily similar, except that Martha fabricated a defense and was charged and jailed not on insider trading charges alone.

With the Mavericks off to a dismal start this season along with this complaint, Cuban has not had the greatest month of November. If he handles the civil complaint appropriately, he might only be forced to write a check, and will be allowed to go on and conduct business as usual. But will the charges have any furthering effect on Cuban’s business?

David Stern and the NBA have the right to discipline/fine team owners and managers for their actions. As we have previously seen with Stern, he does not hesitate to issue fines and suspensions to athletes for criminal charges and actions off the court. He has even fined Cuban before for “comments” he made after a game. So, if the SEC finds Cuban guilty, he may also face sanctions by the NBA.

Another business area that could be affected by the complaint might be the potential buying of the Chicago Cubs. Using my own “insider information” from Mr. Cuban himself in October, the potential deal to buy the Cubs is off the table. Mark told me it would have been a wonderful opportunity for him and the Cubs organization, but they both were unable to agree on future terms. If the deal were still up in the air and assuming he was the highest bidder, before he could officially buy the Cubs he would still have to get approval by all other MLB owners. And with a charge of insider trading hanging over his head, that task of getting other owners approval may be a little harder.  So accordingly, Cuban owning the Chicago Cubs in the future is not going to happen.  Sorry Cubs fans.

This past October at the Entertainment Law Forum in Los Angeles, I was lucky enough to meet Mr. Cuban. Not only was I impressed with his overall charisma, knowledge and creative business ideas, but he was extremely personable and social to me as a law student.  I read earlier this year that Cuban would only allow the NBA All-Star game to be held in Dallas if they allotted seats for his season ticket holders.  This act shows that he cares about the fans and not only about money and his business.  Besides these allegations, Cuban is a role model for entrepreneurs and many other professionals out there.

With the economic situation in America today, I believe the SEC is looking to show Americans that they are still a force of regulation. Like Martha’s ordeal, charging a big name star, such as Cuban, brings added attention to the agency and gives Americans more belief that the government is trying to fix the economic situation.  The charges against Cuban are certainly shocking. As one of the richest individuals in the world (161st according to Forbes in 2007), Cuban is always looking for other business areas to break into and innovate. If he recognizes a potential loss, like any good businessman, he attempts to reduce his losses. Hopefully, Cuban will continue to try and reduce his losses the best way he can (by not lying), because this time there is a lot more to lose than just $750,000.

Mark Cuban’s Complaint from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Dallas Mavericks

Jake Kerr: Mavs Moneyball

Houston Rockets

grungedave and UofTOrange: The Dream Shake

Memphis Grizzlies

Joshua Coleman: 3 Shades of Blue

New Orleans Hornets

Rohan: At the Hive

ticktock6 & mW: Hornets Hype

Ryan Schwan & Ron Hitley: Hornets247.com

San Antonio Spurs

Graydon Gordian: 48 Minutes of Hell

Also see links to all the previews at CelticsBlog.com

NBA: Southwest Division Previews from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules