Crains New York - July 23, 2012 - (Page 10)

OPINION S Losing Lin is bad business yria is in chaos, London’s LIBOR scandal has morphed into the latest financial debacle and the U.S. economic recovery is being undermined by state budget cuts, a Paul Volcker-Richard Ravitch task force reported last week. But there’s a more pressing issue commanding our attention. The New York Knicks let Jeremy Lin walk into the arms of the Houston Rockets. This was more than a basketball decision for the Madison Square Garden Co., the owner of the Knicks. Executive Chairman James Dolan had to consider the business bonanza that Mr. Lin triggered before a knee injury ended the point guard’s sensational run after just 25 starts. Lin merchandise flew off the shelves. The secondary market for Knicks tickets soared. National TV networks added Knicks games. MSG’s market value grew by $500 million. Although matching Houston’s three-year, $25.1 million offer for Mr. Lin would have put the Knicks well over the National Basketball Association’s salary cap and triggered penalties of perhaps $35 million, three more years of Linsanity would have been worth far more. Indeed, MSG’s stock price is down about 10% since investors began suspecting No. 17 would depart. So why did the team not keep him? Mr. Dolan was said to be upset that Mr. Lin stoked the Rockets to increase an offer that the Knicks were planning to match. Maybe so. But there’s also a lesson here in business management, as anyone familiar with a star-obsessed corporate environment knows. Mr. Dolan decided last year to build the team around Carmelo Anthony, who was acquired from the Denver Nuggets after leading that team past the first round of the playoffs exactly once in seven seasons. In letting Mr. Lin go, Mr. Dolan is doubling down on his Anthony investment. But despite the forward’s great talent, his isolationist style of play diminishes his teammates’ effectiveness. That’s why the Nuggets improved after their sticky-fingered star left. Mr. Lin, who made his splash with the Knicks while Mr. Anthony was sidelined with an injury, is the anti-Melo. He shares the ball and unfailingly praises teammates. In contrast, Mr. Anthony ran his first Knicks coach out of town and last week called Mr. Lin’s contract offer “ridiculous,” even though his own salary is $19.4 million. That signaled that he wanted Mr. Lin gone. A day later, he was. The Knicks are at risk of being knocked off their exclusive perch here by the rival Nets, who arrive in a new Brooklyn arena this fall with an improved roster of players known for protecting, rather than stabbing, their teammates’ backs. It will be fascinating to see which management model prevails. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman deputy managing editors Valerie Block, Erik Ipsen assistant managing editors Erik Engquist, Jeremy Smerd senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Massey, Miriam Kreinin Souccar reporters Amanda Fung, Andrew J. Hawkins, Shane Dixon Kavanaugh, Adrianne Pasquarelli web reporter, producer Ian Thomas art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern interns Esthena Brutten, Ken Christensen, Cara Eisenpress, Emily Lundeen, Mary Shell ONLINE AND INTERACTIVE SERVICES general manager, online & e-commerce strategy Kira Bindrim senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: There’s a lesson here for anyone familiar with star-obsessed workplaces CRAIN’S ONLINE POLL COMMENTS Let Chelsea Market grow newscom TENANT: BAD CALL, SCOTT STRINGER Yes. Politics is what he’s best at. Voters will forgive him for his personal failings. No. It’s too soon after the sexting scandal for him to be taken seriously as a candidate. Date of poll: July 16 buck ennis IS IT TIME FOR ANTHONY WEINER TO GET BACK INTO POLITICS? 407 votes 25% Yes 75% No As the owner of The Lobster Place Inc., a New York City business with two locations and 100 employees—55 in Chelsea Market alone—I’m baffled by Borough President Scott Stringer’s decision to oppose the Chelsea Market expansion project. Mr. Stringer’s shameless pandering to a small contingent of Chelsea residents who oppose the project is a slap in the face to the retailers, commercial tenants, construction unions and developers who’ve worked tirelessly to make Chelsea Market the beloved community asset that it is. And what’s worse, it ignores the reality that in these times of economic challenge, this city needs government representatives who will support a full spectrum of businesses—like those that Chelsea Market houses—to help put our neighbors to work. My parents moved The Lobster Place into Chelsea Market in the mid1990s, which were difficult times in this community. Newspaper headlines about the neighborhood back then were more likely to focus on violent crime, vandalism and the drug trade than the relatively benign discussions of architectural relevance that have taken center stage in our local public forums today. And just as Chelsea Market has changed the context of the public conversation about this neighborhood over the past 18 years, the expansion project will only continue to contribute to the security, prosperity, opportunity and excitement that have become emblematic of the Chelsea community today. Having been here when Chelsea Market was in its infancy and the Chelsea area was in dire straits, and having For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: been a part of a community of businesspeople who took a risk on this neighborhood only to see it flourish, I take offense at Mr. Stringer’s suggestion that Chelsea Market hasn’t done enough for this community. Moreover, I strongly support the Chelsea Market expansion for the 1,000 permanent jobs it will create, the 600 union construction jobs it will require, and for the opportunities it will continue to present to entrepreneurs like myself and my Chelsea Market neighbors. —ian macgregor President The Lobster Place Inc. 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | July 23, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - July 23, 2012

Crains New York - July 23, 2012
Contents
In the Boroughs
In the Markets
The Insider
Business People
Small Business
Opinion
From Around the City
Report: Real Estate
Real Estate Deals
For the Record
Classifieds
New York, New York
Source Lunch
Out and About

Crains New York - July 23, 2012