Posts Tagged ‘Charles Smith’

Report May Jeopardize Billy Hunter’s Fate As NBPA Executive Director

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A report strongly critical of NBA union executive director Billy Hunter, released Thursday by an independent law firm hired by the players, could lead to Hunter’s ouster.

The investigation, authorized in April 2012 by the National Basketball Players Association, focused on Hunter’s business practices, possible misuse of union funds and allegations of nepotism and conflicts of interest. It was conducted by Paul, Weiss, Rifkind, Wharton & Garrison.

The findings? Hunter did nothing that would rise to the level of “criminal acts.” But he did violate “fiduciary obligations” to put the union’s interests ahead of his own and “did not properly manage conflicts of interest.”

The 469-page document, along with a 39-page executive summary, concluded: “Based on the findings of this report, the BPA should consider whether Mr. Hunter should remain as the Union’s Executive Director and whether new and more effective controls should be enacted to govern the NBPA, its Foundation and its Executive Director, whoever that may be.”

The independent review and financial audit sprang from union in-fighting that came in the wake of last season’s lockout and eventual settlement. The U.S. Attorney’s office in Manhattan also has been investigating NBPA business practices.

In a statement released late Thursday afternoon, Hunter said: “While I strongly disagree with some of the findings contained in the report, I am pleased it recognized that I have not engaged in criminal acts nor was I involved in misappropriation of union funds. … In my work for the NBPA, my priority has always been to promote the interests of the players.”

Union president Derek Fisher – whose attempted ouster by the Executive Committee led to the Paul, Weiss investigation – issued a statement saying he looked forward to reviewing the report’s findings and recommendations. “As there is an ongoing investigation by the Government as well,” Fisher’s statement read, “I hope that this is a chance for us to become an upstanding, strong organization with the sole purpose of serving the best interests of current and future players.”

Amid tension stemming from the lockout – driven by accusations that the union conceded too much and splintering among the NBPA execs, rank-and-file players, some high-profile NBA stars and a group of elite agents – the Executive Committee voted 8-0 seeking Fisher’s resignation. Fisher refused and instead asked for an audit of the NBPA’s business practices. (Hunter’s stance was that an audit had recently been done, was not necessary and would have cost the union as much as $400,000.)

The NBA declined to comment on the union matter.

Among the findings that could threaten Hunter’s term with the NBPA:

  • The union “never properly approved Mr. Hunter’s current employment contract with the union” as required by its constitution and by-laws. Also, Hunter knew that his contract had not been approved, yet failed to disclose that to the Executive Committee and the player reps. [Hunter, in his statement Thursday, noted: “Regarding my contract … it was ratified by the NBPA Executive Committee and signed by President Derek Fisher. I believe the contract and extensions are valid.”]
  • Hunter received $1.3 million for “accrued but allegedly unused vacation time (146 days)” without providing an independent review of records or advice to the union on its obligation to make the payment.
  • He involved family and friends in union business as vendors or employees, including daughter Robyn Hunter; daugher-in-law Megan Inaba; Prim Capital, a financial services company where Hunter’s son is a partner, and the law firm Steptoe & Johnson, where daughter Alexis works.
  • Hunter “created an atmosphere at the NBPA that discouraged challenges to his authority.” It cited an instance in which former player and NBPA secretary-treasurer Pat Garrity was stopped by former general counself Gary Hall from talking about potential conflicts of interest.

Hall, who died in May 2011, curiously was the only union attorney involved in negotiating Hunter’s contract. That contract paid him $3 million for the year that began July 1, 2011 and reportedly has three years remaining.

The report also was critical of some business decisions by Hunter and others within the NBPA that showed “poor judgment” or “display insensitivity to conflicts of interest.” Among them:

  • Hunter approved a pay of approximately $28,000 to cover personal legal fees incurred by Charles Smith, a former Executive Director fo the National Basketball Retired Players Association.
  • He “spent union funds on luxury gifts for Executive Committee members, including nearly $22,000 for a watch he gave to Derek Fisher in June 2010.”
  • He made “questionable choices” when charging travel expenses to the union, pursued “atypical” business ventures as potential NBPA investments and ran the NBPA Foundation “without regard for its by-laws or governance standards applicable to non-profit entities.”

Fisher, members of the Executive Committee and even player reps are cited in the report for not properly monitoring Hunter’s activities or following union procedures. For example, Fisher did not put Hunter’s contract to a vote, as required by the by-laws.

That contract pays Hunter approximately $500,000 more than NFLPA head DeMaurice Smith receives and double or triple what their MLB and NHL counterparts are paid. Hunter’s salary jumped by $600,000 on the day the 2011-12 lockout began.

Now 70, Hunter assumed the role of Executive Director in 1996 and steered the NBPA through two lockouts that resulted in shortened regular seasons. He negotiated every NBA collective bargaining agreement in that time with the league’s owners and familiar adversary, commissioner David Stern.

Prior to this involvement with the NBPA, Hunter played professional football for the NFL’s Washington and Miami franchises and worked as a U.S. Attorney for the Northern District of California at San Francisco.

The question now, as labor unrest in the NBA takes on a post-lockout meaning and tilts one way, is: Does he stay or does he go?

Or as the report itself asked, Should Mr. Hunter remain as Executive Director? Here is how it summarized, leaving the hard choices up to the NBPA’s and Hunter’s willingness to fight:

“The Player Representatives and the Executive Committee could decide that it is possible for Mr. Hunter to rectify the problems he has created and serve as an effective Executive Director in the future despite the issues of the past. Should they decide to permit Mr. Hunter to continue leading the Union, they may wish to retain independent counsel to negotiate a new employment contract…”

It continues:

“But the Union need not keep Mr. Hunter. If the NBPA’s Player Representatives and Executive Committee members decide for any reason that the Union deserves a fresh start, they are free to do so. They may choose not to ratify or renegotiate Mr. Hunter’s employment agreement, appoint an acting Executive Director and authorize a search for a new Executive Director.”

TNT analyst David Aldridge contributed to this report.

Knicks-Bulls Seems Like Old Times

 

HANG TIME, Texas — The only things missing were Charles Oakley and Patrick Ewing clubbing Michael Jordan like a baby seal as he drove through the lane, Charles Smith missing layups or maybe Jeff Van Gundy derisively referring to Phil Jackson as Big Chief Triangle.

It was just like old times when the Knicks and Bulls collided on Friday night at the Garden — tempers flaring, heads butting, technical fouls flying and, in the end, of course, Chicago winning.

Where else but the Big Apple would it be more appropriate to make snap judgments and leap to hasty conclusions? Especially since the New York media have spent the first third of the season once more pounding the drumbeat of hope — or fantasy — for the Knicks’ first championship since 1973.

This was the second time in two weeks that the feisty Derrick Rose-less Bulls had stuck the Knicks, who are more earthbound at 5-3 since that soaring flight over Miami on Dec. 6.

First, let’s go over the gory details of the Friday Night Fights from main man Marc Berman of the New York Post (that’s BOTP, if you’re a Twitter follower of our hilarious good buddy @FisolaNYDN):

In the worst Garden night of the season during which they fell behind by 25 points late in the third quarter, the Knicks fought the referees, fought the Bulls players, but didn’t fight hard enough to win. As the final buzzer sounded on a discouraging 110-106 loss, coach Mike Woodson, Carmelo Anthony, Tyson Chandler — all ejected — weren’t around to hear it.

The loss dropped the Knicks (19-7), percentage points behind Miami (17-6) for best record in the Eastern Conference. The Knicks, who also lost to Chicago two weeks ago, shot 33 percent in the first three quarters and trailed 83-61 and then blew their cool.

First, Anthony got ejected with 6:45 left for a hard slap on the ball held by Joakim Noah, picking up his second technical foul. Then Woodson followed Anthony to an early shower 1:30 later, earning his second technical for profanely berating the referees. Woodson, outcoached by Tom Thibodeau, appeared to mouth “terrible bleeping call,’’ then adding “bleep you.’’ as a kicker.

Bad move as all hell broke loose after that.

Fact is, despite all the talk about the Knicks’ excellent defense and chemistry and coaching and cohesion and Anthony, so much of their sizzling start has been based on their shooting the ball at a record-setting pace from behind the 3-point line. When Jason Kidd, Raymond Felton, Steve Novak, Anthony and virtually anyone in a NY uniform are connecting at a 40 percent clip while Tyson Chandler takes care of business on the inside, that’s a recipe for success.

However, the question has always been whether the Knicks could keep up that pace from downtown? In their last three games, the outside temperature has cooled with the Knicks shooting 28-for-86 (32.6) from long range, which has included a pair of losses this week to the Rockets and Bulls.

Is the answer as close as the Erie Bayhawks of NBA D-League, where Amar’e Stoudemire is putting the final touches on his rehab from knee surgery?

On one hand, Woodson says: “We’re going to post Amar’e some when he comes back. We will stick him down there and try to get him the ball, and let him work a little bit and see what happens.”

On the other are reports that the Knicks have tried to peddle the contract of the 30-year-old Stoudemire to every other team in the league unsuccessfully. The dilemma was spelled out wonderfully on Friday by Howard Beck of the New York Times:

In his prime, Stoudemire was the N.B.A.’s most lethal finisher in the pick-and-roll. But that role has been usurped, too, by Chandler, who is taller and longer, with a bigger bounce and healthier knees.

The obvious solution is to have Stoudemire anchor the second unit, running the pick-and-roll with Pablo Prigioni, while Novak, Smith and Rasheed Wallace spread the floor with their 3-point shooting.

But playing as a reserve means fewer minutes and a diminished profile. For all his public diplomacy, it seems doubtful Stoudemire would be content. On Thursday, he told reporters he was ready to “return back to dominance,” which hardly sounds like the words of a player ready to cede the spotlight.

Ask those who have worked with Stoudemire, and they eventually invoke the same word: prideful. Not selfish or egocentric, but simply prideful — a man who views himself in grand terms and spends every minute trying to live up to the image. At age 30, even after multiple knee operations and back problems, Stoudemire still views himself as an elite player.
Reintegrating Stoudemire — whether as a starter or a reserve — might be the greatest challenge the Knicks face this season. (His famously poor defense is also problematic.)

It is a cruel crossroads for Stoudemire, one he never could have foreseen. He surely deserves a better fate.

But considering the way the Knicks opened the season with a bang, stirred the passions in New York and raised the possibility of challenging Miami’s supremacy in the East, they do too. Old times against the Bulls weren’t such fond memories.