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David Morway

Mel Daniels Fired, Drama Returns to Conseco

by Tim Donahue on October 23, 2009 at 5:21 pm

The abruptness of Mike Wells’ opening sentence was befitting of the jarring news:

Mel Daniels, whose ABA number is retired by the Indiana Pacers, was fired as the team’s director of player personnel.

In today’s message-conscious world, the word “fired” isn’t something you expect to hear associated with Mel Daniels. Mel was — and still is — a Pacers icon. He led the franchise to three ABA titles and has been in the front office in various capacities since 1986.

It seems to me that someone of that import to the organization and the community would merit more than an apparently hastily prepared 71-word report. The Pacers press release used softer language, but did nothing to indicate that this action had been well-planned:

FOR IMMEDIATE RELEASE
Oct. 23, 2009

INDIANAPOLIS – The Indiana Pacers today confirmed that Director of Player Personnel, Mel Daniels, is no longer with the organization.

“Mel was a great basketball player who helped make the Pacers a well-known franchise”, stated Larry Bird, President of Basketball Operations, “and we wish him well.”

The Pacers are working with Mel, and we are hopeful we will be able to make a joint statement in the near future.

The way the news is being reported, and the fact that the Pacers are confirming that Daniels is no longer employed, leads me to believe that these are relatively rapidly changing events, rather than a pre-planned, cost-saving reduction or termination.

Many Pacer fans, including myself, were somewhat dazed by the move. Events took a further turn when Peter Vecsey unloosed a volley at the Pacers in his blog for the New York Post. Some of his more inflammatory comments included:

Owner Herb Simon and team president Larry Bird should be ashamed for not superseding GM David Morway’s decision to hatchet one of Indianapolis’ most revered sports figures, something he’s wanted to do for months; conveniently he was out of the office, in Orlando, when the execution was implemented.

… and …

Donnie Walsh should be embarrassed he ever hired such a paperweight as Morway, a former player agent whose basketball opinion rings hollow at his own family dinner table, to understudy him.

At first blush, I had to wonder why Vecsey, or anyone outside of the immediate Pacer community, would take any notice of Mel’s termination. Secondly, it struck me odd that he was so vitriolic in his comments. Almost immediately, however, I realized that this wasn’t the first time this week that Peter Vecsey had led off his column with a story about the Pacers. On Sunday, October 18, he published a piece headlined, “Sources: Bird set to go at end of season.” In the piece, he said two sources, a former and a current employee of the Pacers, had said that Larry Bird would step down at the end of the season. The reasons given were health and “lack-of-enjoyment” issues.

For those who have followed the Pacers, this is an entirely plausible scenario. Though he was a successful coach, Bird’s post-basketball career has never even approached the success he experienced as a player. The humiliation this franchise has suffered (much self-inflicted), along with the paucity of talent and scarce financial resources, can’t make that job pleasant for anyone. However, Vecsey did not stop at that. Perhaps the most potentially incendiary comment came towards the end, quoting an unnamed source:

One thing’s for sure, “Our players were sick when they heard about the extension,” someone on the scene accentuated.

Of course, “the extension” refers to the Pacers decision to pick up the 2010-2011 option on head coach Jim O’Brien’s contract. If this news was in fact true, in part or in total, it would be very reminiscent of the dysfunction that’s plagued the Pacers for years.

In any case, the nature of Daniels’ firing, coupled with the quick response from the distant Vecsey, led me to strongly suspect that Mel Daniels might be his source inside the Pacer organization.

This story is far from completely told, however. While I was writing this piece, Bob Kravitz of the Indianapolis Star posted a column on Daniels’ ouster. In it, he notes others’ speculation that Daniels was the source for Vecsey’s story, but he also mentions that Daniels denied that charge on the record. He gives the outline of political infighting in the Pacers’ front office. This is hardly news. Anybody who has worked in a corporate setting has witnessed this type of feuding first hand.

While he notes that the biggest battles were between Daniels and Pacers’ GM David Morway, he does cite that Daniels also apparently had ongoing disputes with Coach Jim O’Brien and Director of Scouting Joe Ash. Mel, unsurprisingly, was apparently loud and unapologetic in voicing his dissent. I clearly do not know this specific dynamic first hand, but I can tell you that the value of that particular approach in a management setting is variable, at best.

Both the Pacers and Daniels are being relatively mum on the subject. The only person Kravitz quoted in his column was former Pacer Bob Netolicky, a long-time teammate of Daniels:

Netolicky believes Bird and Morway wanted to be surrounded by yes-men and they chafed when Daniels had the temerity to disagree.

“Mel’s basketball knowledge is so great, he knew more about the game than all of those (front-office) people put together, especially in terms of seeing a player and understanding how he’ll fit in,” Netolicky said. “All I know is, some people just dance to the beat, and Mel made the mistake of voicing his opinion.”

Netolicky had also been let go by the Pacers in May. He had been with the team for 10 months, and they told him “it was a cost-cutting thing.”

Kravitz finishes his piece with the following dark words:

The wounds are deep. The anger is real.

So real, it wouldn’t shock me if Daniels demanded his jersey be taken down from the fieldhouse rafters.

We haven’t heard the last of this.

Now, Kravitz, like Vecsey, loves the drama, and isn’t above valuing a provocative comment over any actual truth or substance. That could certainly be the case here, but this news is coming to the Pacer nation pretty hard and pretty fast. The problem that Bird, Morway, et al, face is that all of the issues occurred behind closed doors. This isn’t a GM with a history of bad moves or a coach with a long losing record. The Pacer community as a whole will never really know what happened. So what it will come down to is what — or more accurately, who — people are going to believe.

Who’s got more credibility with the Pacer faithful: The guy whose number is hanging in the rafters or the guy in this picture?

Artest Cover

There are so many ways that this can go, and almost none of them are good for the franchise.

If what Vecsey, Kravitz and Netolicky are claiming is true then the Pacers have replaced an old dysfunction (the apparent inability for Bird and Walsh to reach mutually acceptable decisions on personnel) for another (a front office unwilling to listen to opinions it doesn’t want to hear). And even if the sentiments expressed by those three prove exaggerated or simply untrue, but Daniels decides to play the victim, a large portion of the fanbase will be alienated. That, in some ways, could be just as bad or worse than a dysfunctional front office, because we’re talking about the absolute hardcore fans here — and even they only have so much patience.

In either case, the Pacers, as usual, are screwed.

If I were to speculate (which I’m gonna do), I’d guess that Mel had effectively become more trouble than he was worth. I’d also say that it seems likely that Bird and Morway believed that he was Vecsey’s source, despite his denial. (Given Vecsey’s response, I’d consider that to be reasonable speculation.) I’d have to believe they had some pretty strong motivation for letting him go, and for doing it now. Unless they’re completely naive, Bird and Morway would have to know that this would get an ugly reaction from a PR-standpoint. The timing couldn’t have been worse (effectively eclipsing the positive image surveys by Frank Luntz), and the handling could not have been more ham-handed. (I should probably wait on making that judgment until this all plays out. It can always get worse.)

I’m beginning to wonder if the Pacers should forgo trying to come up with a new slogan each year (this years’ tagline is “Passion. Pride. Pacers”), and simply contact Dorothy Parker’s estate and acquire the permanent rights to “What fresh hell is this?”

If that’s too high-brow, perhaps “D’oh!” will be more appropriate.

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I Keep Thinking Tomorrow Is Coming Today . . . So I Am Endlessly Waiting

by Tim Donahue on July 30, 2009 at 7:55 pm

These lyrics from the Counting Crows song “St. Robinson in His Cadillac Dream” aptly sum up the current state of Pacers Nation.

Indiana entered the summer of 2009 as a team needing to change and improve, but they had very few options to do so. They had the 13th and 52nd picks in a notoriously weak draft. They had a budget of around $9 million to fill out the roster. They had to figure out what to do with restricted free agents Jarrett Jack and Josh McRoberts.

With all of the exciting draft prospects gone by the time the Pacers picked, and all of the attractive free agents out of their price range, the Pacers options appeared to be a choice between “Meh” and “Bored, Now.” Watching Larry Bird and David Morway handle the draft and free agency this summer brought 30-year-old flashbacks of my mom shopping at Zayre’s for my school clothes. They have eschewed the trendier locales and the pricier aisles, instead heading straight to the clearance section — a strategy that seems destined to draw snickers from the cooler, richer kids and an exasperated “Awwww, mom!” from Pacer fans.

It’s hard for Pacer fans to watch that snazzy power forward (Blake Griffin) leaving the store in another team’s shopping basket, just as it was hard last summer when we couldn’t take home that really cool point guard (Derrick Rose). It’s hard for Pacer fans to watch their former nemesis (Detroit) go shopping with daddy’s Gold Card. It’s hard to watch that car they have come to like (Jarrett Jack) be replaced by a cheaper one with more miles (Watson).

It’s hard to get excited about adding a collection of players who scream “serviceable” when “difference-maker” is the most ardent desire. But, again, Pacer fans can find solace in the words of founding father Benjamin Franklin: “He that can have patience, can have what he will.”

Learning to Live “In Between“

In my 43 years of stumbling through life, I’ve come to the conclusion that “in between” is without question the crappiest place to be. That is where the Pacers and their fans find themselves. They are in between the bad and the good. In between the despair and the hope. In between the fall and the rise.

The problem with “in between” is the uncertainty. It’s the feeling that you could go either way. Doubt grows, first making you antsy, then panicky.

Now, don’t mistake my intentions here. I am not saying “Be patient. Everything will be OK.” I have no idea whether everything will be OK. I am simply saying that remaining patient will be crucial for everyone as the Pacers try to get from here to there.

In the meantime, Bird and Morway must avoid confusing activity with accomplishment. It could be reasonably argued that the small moves this summer are proof that the front office is doing exactly that, but I would disagree on two counts. First of all, the acquisitions made this summer (Tyler Hansbrough, Dahntay Jones, Earl Watson and Solomon Jones) all bring qualities that were lacking in last year’s squad, primarily in the areas of defense, toughness and athleticism. Given the tenuous position of both their finances and their reputation, the Pacers must continue to put a competitive product on the floor. While none of these players may be difference makers, they may help players like Granger, Rush and Hibbert to be more effective.

Secondly, none of the decisions made this summer will be difficult to “un-make.” Some may question the length of Dahntay Jones’ contract or the size of Earl Watson’s one-year salary. But, as in all assessments, proper perspective is necessary. To shed some light, I offer the following three financial nuggets:

Only the contracts of Hansbrough and Dahntay Jones extend beyond two years (with the final two years of Hansbrough’s being team options)
Over the next four years, Dahntay Jones will be paid $5 million less than the Pacers will have paid Jamaal Tinsley to not play a single game in three seasons.
The five contracts added this summer (Watson, Jones, Jones, Hansbrough and McRoberts) represent about $27 million in total salary commitments (and that’s including team options). Compare that to the some past decisions that couldn’t be “un-made,” and you’ll see that the price paid to acquire five new players is roughly equal to the Jonathan Bender extension, about $6 million less than the salary burden added in the Murphleavy trade, and about $13 million less than the Tinsley extension.

The moves made by Bird and Morway this summer were designed to address modest, short-term goals without jeopardizing any long-term plans or flexibility. As with all decisions, some will prove wise, and some will prove foolish. But even if they all fail, they won’t cost the franchise as dearly as any one of a half-dozen or more foolish decisions made in the years since the Pacers played in the NBA Finals.

There will be one or two minor deals made yet this summer, the most likely of which will center around the rumored sign-and-trade deal with Boston for Marquis Daniels. It is doubtful, however, that any more acquisitions will cause much more than a ripple in terms of Pacer or NBA news.

A Light at the End of the Tunnel

Patience is crucial for Pacer fans, if for no other reason than to preserve their sanity. It took years to create this quagmire, and it will take years to extricate the team from it. Pacer fans will need to save their energy for next year, when we see the real, foundational moves begin to be made. (Or, at least, I hope will be made.)

There has been a recurring charge over the past few years that Indiana’s leadership, particularly Larry Bird, has the goal of perpetual mediocrity. I’ve always considered this a straw man argument, primarily because I can’t imagine Bird, of all people, embracing mediocrity.

That being said, I think it is valid to be worried that mediocrity may be the final result of Larry Bird’s tenure. Over the past two years, Bird and Morway have demonstrated that they are quite adept at righting the ship, plugging the leaks and navigating the treacherous seas the Pacers blundered into years ago. The bigger question remains whether or not they actually will lead the Pacers back into contention. They have done a wonderful job of bringing in players that the fans can feel good about cheering for, most recently demonstrated by Earl Watson’s charming and engaging performance in his fan chat. This is laudable, but these players will need to be able to win games, too.

Bird and Morway have shown the ability to make sound, conservative decisions when those are appropriate. But do they have a vision? Can they make bold, aggressive moves when the opportunity presents itself? Can they create that opportunity, if it is not forthcoming?

Regrettably, the answers to these questions belong to tomorrow. And tomorrow is not coming today.

So until it does, I leave you with one last quote from The Count of Monte Cristo author Alexandre Dumas Pére: “All human wisdom is summed up in two words: wait and hope.”

patience

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Exiting the Tinsley Bear Trap

by Tim Donahue on July 24, 2009 at 8:58 am

They finally did it. The Pacers finally “freed” themselves of the steel bear trap that is Jamaal Tinsley’s contract. They spent more than a year desperately trying to find a trading partner for the mercurial point guard, but to no avail. So, with an arbitration hearing to formally resolve the issue less than a week away, Indiana’s leadership elected to be done with the matter once and for all. Wednesday afternoon, they gnawed through their ankle to escape and bought out Jamaal’s contract.

Per policy, neither the Pacers nor Tinsley’s agent commented on any terms of the deal. Both sides were cordial and resolute not to discuss anything publicly. This, of course, prevented anyone from knowing how much the Pacers paid — for nearly 12 full hours.

Mike Wells of the Indianapolis Star soon reported that the buyout agreement will pay Tinsley approximately $10.7 million of the $14.7 million remaining on the last two years of his contract.

When a player is bought out, the amount of the buyout replaces the original salary on the team’s payroll for salary cap purposes. It is spread over the remaining years with the same timing as the original contract. So in buying out Jamaal’s contract, the Pacers were able to immediately reduce their cap figure by roughly $1.9 million this year and $2.1 million next season. (Or, if Jamaal signs with another team for greater than the veteran’s minimum, which is $1.2 million for a player of Tinsley’s age and experience, the Pacers’ cap hit will be reduced by one half of the difference between the contract signed and the minimum.)

That’s what happened. But what does it mean?

The Bloody Stump

There’s very little question that the resolution of the “Tinsley question” was vital to the Pacers future. There is a sense of overwhelming relief flowing throughout the Pacer faithful. With Jamaal’s departure, the team is rid of the last of the players identified with the utter embarrassment that has befallen this franchise in the five years since the infamous Malice in the Palace in November 2004.

Furthermore, both the $4.0 million savings and clearing roster spot are going to be very valuable to this team over the next two years. These both give the team flexibility, and there are few more precious commodities for a team operating in such tight fiscal quarters. This move has allowed the Pacers to move forward.

But while they have freed themselves from the bear trap, they’re not entirely out of the woods yet. While the team did save $4.0 million, it’s important to remember that they really did have to “gnaw off an ankle” to get it. Indiana will still be paying $10.7 million to a player who is likely going to be wearing another uniform. That’s close to 10% of their total cap going to dead salary.

While the $14.7 million owed to Tinsley seemed particularly onerous given the fact that he won’t play, it should be noted that it pales in comparison to the $23.0 million owed to Troy Murphy over the next two years. Mike Dunleavy is similarly owed $20.3 million over the next two years, and even the most optimistic estimates don’t have him returning to the lineup before the January, 2010. And TJ Ford and Jeff Foster are still under contract for $17.0 million and $12.7 million, respectively, over the next two years.

As everyone knows, this franchise was dealt a severe blow by the brawl all those years ago. Just as much damage has been done by desperate reactionary moves since then, however.

Follow the bouncing ball:

(1) Ron Artest burns his Indianapolis bridge by demanding a trade and is traded for (2) Peja Stojakovic, who gets a ridiculous offer from (3) New Orleans, who agrees to do a sign-and-trade deal that gives the Pacers front office (4) a “trade exception” that they use to acquire (5) Al Harrington — who comes over from the Hawks to begin his second tenure as a Pacer, aka, Al Harrington Part Deux, aka, 2 Al 2 Harrington — but he flops both critically and commercially at the box office and gets lumped into another deal with Golden State as a sweetener so that the Pacers can unload (6) Stephen Jackson (who, believe it or not, was a bigger pariah in the community than either Ron Artest or the bear trap in question here) in a trade that nets a return of (7) Mike Dunleavy, (8) Troy Murphy, and (9) something on the order of $33 million in additional salary, which virtually guarantees that there is no way that the Pacers would be able to offer a significant extension for the 2009-2010 season to (10) Danny Granger without unloading the $23 million salary owed to (11) Jermaine O’Neal at that time.

Phew…

Now, Jamaal’s buyout basically ensures that the Pacers will not only stay under the luxury tax threshold this season but probably still have $2 to $3 million of wiggle room once they fill out their roster. This helps in a number of ways, the first of which aligns with the rumored Pacers/Celtics sign-and-trade deal that will send Marquis Daniels to Boston. The buyout and the resulting wiggle room makes almost any of the proposed scenarios with Boston doable without a threat of exceeding the luxury tax limit. (The popular speculation has the Pacers acquiring one or more of Bill Walker, Eddie House, Tony Allen, JR Giddens or Gabe Pruit if the deal goes through.)

That breathing room will evaporate next summer, however. With doom-and-gloom projections coming from the NBA corporate office, it is likely that the luxury tax threshold will drop from $69.9 million this year to no more than $65.0 million next season — and people are saying it could drop as low $62.0 million if the NBA’s overall “basketball-related income” drops by a scary-but-possible 5 percent.

Meanwhile, the Pacers are already committed to over $62.5 million in guaranteed contracts next season for only nine players. If you include the partially unguaranteed contract of Josh McRoberts and the guaranteed contract of the team’s first round pick next summer, they would already eclipse the potential $65 million luxury tax ceiling — and they would still need to fill three or four roster spots.

The Shining Beacon of Hope

The Pacers have paid the luxury tax in the past – and spent several years with one of the higher payrolls in the League – but they have been absolutely committed to avoiding it over the last two to three years. This financial philosophy makes perfect sense given the team’s current level of performance both on the floor and on the bottom line. Fiscal prudence isn’t exciting, but it’s a necessary quality if the franchise is to survive these rocky days of sparse attendance and apathetic public support in Indianapolis.

As the ship gets back on course, the summer of 2011 is the shining beacon for both Pacer ownership and Pacer fans. It is the hope held in the distance — the day Indiana can finally be back on track to make the bold, aggressive moves necessary to improve this franchise’s lot.

The Pacers have over $43 million in contracts that expire in the summer of 2011. These can be used either to create cap space to acquire free agents or as trading chips before the trade deadline in 2011. Given the Pacers history on the free agent market — or, more accurately, the lack thereof — the popular assumption is that major talent acquisition must be done through trade or the draft.

Thus, it will be very important to watch how the Pacers organization, and specifically its ownership, approaches the 2010-2011 luxury tax issue. Recent history says they will do what they can to get avoid the tax. But clearing salary will be difficult and Indiana will have a tough time finding takers for contract dumps. They face two separate issues that preclude teams from wanting to take on salary: (1) the declining, Leaguewide basketball-related income and salary cap structure, and (2) the rapidly approaching, much-ballyhooed and long-dreamt-about summer of 2010, the year for which many teams have been specifically clearing space to lure big fish free agents like LeBron James, Dwyane, Chris Bosh, Dirk Nowitzki and Carlos Boozer.

There are two crucial questions here:

1. Can the Pacers find a way to avoid the luxury tax for the 2010-2011 season?
2. Can they do it without severely undermining their opportunities for the following summer?

Hoping the Wound Will Heal

The Pacers are certainly not in an enviable position. The relief gained from the Tinsley buyout, while fantastic emotionally, is limited financially. It continues to be a step in the right direction, however. The team seemed to not understand how to cut their losses, as evidenced by the Artest to Peja to Harrington to Holy-Mary-Mother-of-God-who-gave-them-those-contracts routine.

Tinsley’s buyout may have been a blow to the pride of Bird and the Simons, and I’m sure it gives plenty of Pacers fans heartburn. Still, it was the prudent thing to do. Bird, Morway, et al, face a grueling uphill climb to get a competitive team on the floor while straightening out the finances.

I guess we’ll find out if they’re up to the job.

bear trap

Eight years ago as a rookie, Jamaal Tinsley averaged 9.4 ppg and 8.1 apg and looked like one of the most promising young players in the game. After a long-term contract extension and a series of off-court problems, however, the Pacers are now viewing the reality of paying him to not play for the team as a relief — even if the actual cap relief of the buyout is minimal.

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