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| Courtesy of TCBMag.com |
Ed.: This article's author, Dr. J, is an esteemed and respected member of several online Minnesota sports communities. The Timberwolves' recent front-office moves inspired this friend and colleague to jolt this hibernating community back to life. Welcome to the 2 1/2th renaissance of MSE, and thanks, Dr. J, for this thought-provoking piece.
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Glen Taylor is not a “basketball guy”. He likely wouldn’t be
able to dissect his players’ pick-and-roll defense or tell you the intricacies
of a motion offense. Hell, I don’t even know if he has ever played an organized
sport. But one thing the current Timberwolves owner has always been is a businessman.
And the recent moves made to his basketball operations staff this offseason
only add to his business savvy. Pairing a young, talented roster with an
equally talented coach and front office has the potential to make Glen Taylor
richer. How much richer? How about hundreds of millions of dollars richer?
Last Wednesday, Taylor officially hired Tom Thibodeau as the
new Timberwolves’ President of Basketball Operations/Head Coach along with
Scott Layden as the General Manager. These moves are a far departure from the
way Taylor has previously conducted business with the Timberwolves. Taylor has
had a long history of hiring familiar faces and propagating a “country club”
atmosphere of Minnesota basketball nepotism. Look no further than the coaching staff
for the 2015-16 season, all having heavy ties to the organization: head coach Sam
Mitchell (former Timberwolves player), Sidney Lowe (former Timberwolves head
coach), Ryan Saunders (son of the late Flip Saunders), and David Adelman (son
of former Timberwolves head coach Rick Adelman). And the list goes on.
But that’s why the addition of Thibodeau marks such an
important transition. The hire has been widely acclaimed by both media outlets
and “basketball people”—and, more importantly, it doesn’t reek of country club
laundry. While Thibodeau did have a brief stint as a Timberwolves’ assistant
coach in the earliest chapter of the franchise, it almost certainly did not
factor into the hire, as the outside firm Korn Ferry handled the selection
process.
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| Thibodeau: Timberwolf times two. Courtesy of Vice. |
Handing the decision making power to someone with more
expertise is not exactly Glen Taylor’s specialty. Previous to this hire, Taylor
was comfortable making his own basketball decisions, like handing the keys to
the franchise over to a Minnesota great (Kevin McHale) rather than an outsider
with extensive front office experience. By staying within this bubble, many
Minnesota fans felt that Glen Taylor was never really invested in the success
of the franchise, that the team was more of a status symbol to the billionaire than
an avenue of competitive enjoyment. The anti-Mark Cuban, if you will.
And Taylor’s results since purchasing the team? A consistently
futile team whose only successes involved wasting many of Kevin Garnett’s prime
playing years. The roster has been consistently plagued with ill-advised
personnel moves, including, but not limited to, the Troy Hudson extension, illegal
Joe Smith contract, multiple draft debacles, and whatever the hell you want to
call having Darko Milicic on the roster.
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| Real AP story headline: "Darko Milicic loses kickboxing debut: 'I'm invincible.'" Courtesy of the Detroit Free Press. |
The move to hire competent people from outside the so-called
“country club” signifies a well thought out change in the franchise’s
direction. Glen Taylor took a step back from the hiring process because, for
once, he wanted... needed… to get
this one right, for the good of the players, for the good of the fan base, and
for the good of his wallet.
From Farm to Finance
Glen Taylor grew up in a small southern Minnesota town, far
away from the “bright lights” of Mankato (much less Minneapolis). Fifty miles
west of the home to his booming Taylor Corporation in Mankato, Taylor was
raised on a farm, helping out however he could to keep the family from going
under. In school, he excelled at math
and physics and was the top student in his graduating class. His sharp thinking
and attention to budgets helped him to eventually buy the printing business he
worked at during his college years. This acquisition was the first of many for
Taylor, who now owns over 80 businesses and is worth over $2 billion.
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| Your visual reminder to stock up on interactive print and marketing solutions. Courtesy of taylorcorp.com. |
In keeping with his small town roots, Taylor has always been a
loyal Minnesotan. He served on the Minnesota State Senate during the 1980s and,
even after stepping away from politics in 1990, has continued his civic service
to Minnesota in ways the average citizen could never do. In 1995, only two
years removed the heartbreaking departure of the North Stars, Taylor stepped in
to save the Timberwolves from a potentially similar fate, buying the team for
$88.5 million and preventing a move to New Orleans. While this investment will
surely pay off, Taylor’s main reason for buying the franchise was with
Minnesotans in mind. In 2014, with the Minneapolis Star Tribune struggling,
Taylor bought the newspaper for $100 million. Taylor surely knows that
newsprint is a declining market, but once again, he wanted to keep the
Minnesota business in the hands of a Minnesotan.
This tendency towards familiar connections is the exact
attitude that has shaped Taylor’s leadership of the Timberwolves. But now,
after two decades of owning the team, Glen is ready to move on. His team is on
the market, waiting for the “right” buyer. However, Taylor is in no rush to
unload the franchise, saying he would like to transition the sale over the next
few years. Also over the next few years,
the Timberwolves’ roster should be talented enough to rescue the franchise from
NBA perdition. That’s why it is no
coincidence that Taylor’s decision to change the way he runs the organization is
also coming at a critical time in the sale of the franchise. At this point, the
wisest financial decision is to wait until the roster grows into an exciting
force and maxes out interest in the franchise. Much like Taylor’s farming roots,
it is best to wait until the crop is ready before it is harvested.
The Team
By many accounts, the current roster is one of (if not) the
best groups of young talent in the league. Taylor recognizes this. He also recognizes
the skyrocketing value of NBA franchises. And with the upcoming sale of the
team, Taylor has a great opportunity on his hands. What he doesn’t have is a winner.
A top notch squad capable of long playoff runs and the associated
exposure/revenue that goes along with it. That’s where the new front office
comes in.
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| One-half of the new front office fun squad. Courtesy FSN North. |
Molding this young team into a contender would greatly
increase this team’s value. Currently, the Timberwolves are valued at $720
million by Forbes, good for 27th in the league (out of 30
franchises). Despite this low ranking, the Minneapolis/St. Paul market is
roughly in the middle of the league in terms of market size, which is perhaps
the largest factor in assessing franchise value. Just for reference, the top 5
valued franchises are based in New York, Chicago, Boston, and the two Los Angeles
teams. The Knicks, the NBA’s highest valued team, are currently assessed at $3.0
billion.
So what gives? Why aren’t the Timberwolves valued higher? Well,
another equally important parameter used to assess franchise value is the team’s
brand and product interest, which can both be related to the team’s success. Let’s
just say the Timberwolves have been lacking in this department for the last
decade-plus.
Let’s compare the Timberwolves to the San Antonio Spurs.
This comparison may seem unreasonable, and in some ways it is, as the Spurs are
the best organization in the league and historically the Timberwolves are probably
the worst (sorry Timberwolves fans). Despite a market size roughly double San
Antonio’s, the Timberwolves are worth about $400 million less. A respected
front office and the corresponding successes it can bring add significant value
to a franchise.
Now, if the Timberwolves were able to create a more
watchable product and bring their value to, say, middle of the league and more in
line with their market size, it could increase the value of the team by roughly
$250 million (the Portland Trailblazers are currently at the middle of league,
15th in value at $975 million compared to the Timberwolves’ $720
million). After a successful campaign in the early 2000s, the Timberwolves had,
at one point, the 16th highest valued franchise in the NBA. Thus, it
would be safe to assume a similar jump is possible for the current team, given
the great roster potential and front office guidance. [Note: This is probably a
conservative estimate because the impending Target Center renovation will only
add further value to the franchise.]
By hiring Thibodeau and Layden to run the show, Taylor has
put his franchise in very capable hands, giving his team the best chance for
future success and added value to the franchise. Unsurprisingly, this non-traditional
Glen Taylor decision comes at a crucial time in his tenure as owner when, you
know, he will actually cash in on his investment (likely to the tune of an
extra $250 million). While Glen Taylor’s run as the Timberwolves owner has
often seemed like a casual ode to Minnesota rather than a functional business,
the latest move proves that Glen Taylor the NBA owner can be as shrewd as the
Glen Taylor the billionaire entrepreneur. And you don’t need to be a
“basketball guy” to see that.
Dr. J’s required reading:
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