MELVILLE, N.Y. — The NBA quickly closed a potential loophole in the league’s collective-bargaining agreement that might have given the Knicks an edge in recruiting LeBron James.
A scenario reported by national editor Michael Ozanian suggested the Cablevision spinoff of Madison Square Garden as a publicly traded company would allow James to buy stock in MSG Inc., which would give the two-time MVP a vested interest in the success of the franchise and the overall brand, not to mention a potential financial advantage for benefiting from his own success, which is something that no other team could offer.
And considering the $775 million to $850 million Garden transformation project, there is potential for the stock value to rise over time, especially with James as the main attraction.
The league’s CBA prohibits a player from having an ownership stake in a team, but it says, “a player may own shares in a publicly traded company that directly or indirectly owns an NBA team.” In this case, MSG Inc. could be that company. But upon further review, the NBA says James would be forbidden from purchasing MSG stock.
Footnotes.
As expected, the 76ers hired Doug Collins as their coach, agreeing to a four-year deal.
• A Wizards employee posted on Facebook that the team will draft John Wall with the No. 1 pick. The posting was soon taken down.
• Rockets center Yao Ming and his wife, Ye Li, had a baby girl at a Houston hospital.
