Archive for February, 2012

The Business of Sports Teams: Part 3

Wednesday, February 29th, 2012

“An update on the Sacramento Kings story…”


Part 3 of 3…

We are pleased to post this update on the Sacramento Kings story.  WSJ reported yesterday that the Kings are staying in Sacramento!  The mayor announce he had cut a deal with the owners for the Kings to stay, with Sacramento building a new $400 million facility.  The owners will contribute $70 million to the costs of the facility.

The article highlights the issue for smaller communities of keeping sports teams. You can find the article HERE

We would reaffirm our questions of whether a community’s investment in sports teams is a wise use of funds?

We would love to hear your thoughts!

Read Part 1 of this blog HERE

Read Part 2 of this blog HERE

The Business of Sports Teams: Part 2

Tuesday, February 28th, 2012

“The Sacramentos feel attacked as the Kings consider relocating…”


Part 2 of 3…

The Sacramentos feel attacked as the Kings consider relocating. Last week, we gave a brief history of the team and its owners. This week we explore the issues surrounding the City of Sacramento as it faces this challenge. Relevant WSJ article can be found HERE.

We like the U.S. because of its freedom of movement. We can relocate from state to state, from city to city, even from church to church. The factors underlying a relocation decision are many, but economics and finances are one of them. Even in the Bible, such relocations occur. For example the Book of Ruth records both a movement out of Judah, during a famine, and a coming back to Judah after personal crisis. Of note is that if the relocation had not happened, Ruth would not have married Boaz and become a lineal parent of Jesus.

Sacramento has only one of the four top professional teams. Should it try to save the Kings? If so, what can be done? How much can it spend, given that finances are part of the equation? Are there contract considerations that are appropriate? Does the 8th Commandment or other Commandments give biblical insight?

The Business of Sports Teams

Tuesday, February 21st, 2012

“The Sacramento Kings are up for grabs. Let’s look at the owner’s issues, the Sacramento issues and the new city’s issues….”


Part 1 of 3…

The Sacramento Kings are up for grabs. Let’s look at the owner’s issues, the Sacramento issues and the new city’s issues. We need to remember that ethics is not about what is legal, but about what is right. What is right is the fuzzy part of ethics, because who defines “right.”? The Center endeavors to look to Scripture for the definition of “right.” Does Scripture have a contribution here?

“Lin-mania” leads us to “March Madness”, meaning that it is basketball time. The Center would like blog a bit on the business of sports teams. The Center’s theme of “Stealing” or the 8th Commandment makes a nice court to bounce around some issues.

The Sacramento Kings will be our team of choice for this discussion. There are three parties of interest: (1) The owner of the Kings, (2) the City of Sacramento, and (3) Seattle and other cities interested in the Kings. While the fans, the league and others are of interest, let us focus on these three. Each week we will consider the business decisions and ethical issues of these three parties.

What is the problem? Wall Street Journal Weekend edition for February 18, 2012 has an article on Sacramento endeavoring to keep the Kings. View the article HERE! The article reports that the owner is looking to move the team to Seattle and Seattle is cutting a package to make it worth the owner’s while. The article also notes there are other cities that would be interested in hosting the team.

Before jumping in to the fray, a bit of history would be helpful. The Kings moved to Sacramento in 1985-6 season, after starting in Rochester (Rochester Royals, 1920’s) and having stops in Cincinnati (Cincinnati Royals,1957) and Kansas City (Kansas City Kings, 1972). As a smaller city team, it has always struggled to make profits. The Maloof family acquired the team in 1999. A brief description of the Maloof’s and their business activities can be found HERE. In 2011, the Maloof’s filed to relocate the team to Anaheim, CA. But Sacramento intervened and the team stayed put.

But now it looks like a new owner may be in the picture, Christopher R. Hansen. The WSJ article reports that Hansen wants to take the team out of Sacramento and may have a deal with Seattle to settle the Kings there.

Questions:

1. Do the Maloofs have any responsibility to Sacramento in their evaluation of the options of keeping, relocating or selling the team?

2. What biblical base counsel would you give to the Maloofs?

Next week we will consider Sacramento’s issues in Part 2 of 3…

Bad Biz: Leadership Stories from the Bible

Tuesday, February 14th, 2012

“Do not use dishonest standards when measuring length, weights or quantity. Use honest scales and honest weights, an honest ephah and an honest hin. I am the LORD your God, who brought you out of Egypt.” NIV….

Amos: Leadership Stories from the Bible

Bad Business

By Brent Garrison, Director of Relations, CEO Forum

Hear this, you who trample the needy

and do away with the poor of the land, saying

“When will the New Moon be over

that we may sell grain,

and the Sabbath be ended

that we may market wheat?”

Skimping on the measure,

boosting the price

and cheating with dishonest scales,

buying the poor with silver

and the needy for a pair of sandals,

selling even the sweepings with the wheat. 8:4-6 NIV

In the cited passage, we see that businessmen as far back as the 8th century B.C. used unscrupulous business practices. In this case, the wrongdoing was taking advantage of the poor by using dishonest scales. This goes against God’s standard of accurate measurements (e.g. talent, shekel, cubit, and homer) outlined in Leviticus 19:35-36:

“Do not use dishonest standards when measuring length, weights or quantity. Use honest scales and honest weights, an honest ephah and an honest hin. I am the LORD your God, who brought you out of Egypt.” NIV

Scales in biblical times lent themselves to dishonest standards, since they were primitive devices, and the standards for weights were somewhat subjective. The shekel, which means “to weigh,” equals .41 ounces, but archaeologists have discovered differing amounts that range from .41 to .35 ounces. Such a small variance seems insignificant, but it becomes significant as product amounts increase.

Other passages in the Bible speak to dishonest scales, such as Micah 6:11. In this passage it appears that the businessman is using weights that appear to be correct but are inaccurate. This same idea of false measurements is described in Malachi 3:8-10, where God accuses some of lying about the amount of food they brought to His storehouse.

Lying about the value of something reminds us of the story of Ananias and Sapphira in Acts 5. This couple was involved in a real estate deal with good intentions. They sold their property with the intent of giving the proceeds to their church, but when Ananias gave a different amount from the sale price, Peter asked him why he lied. Apparently, this couple collaborated about their story, because Sapphira repeated the same amount of the sale as her husband. In this case, their bad business practices brought untimely death. We are told that their deaths reverberated through the fledgling church (Acts 5:5) and certainly were deterrents from similar practices.

Amos calls out businessmen who are using faulty scales, but bad business practices can take on a plethora of forms. A business leader can allow bad business practices through false financial statements, shortcuts in manufacturing that knowingly impact the quality of a product, slow or non-payment of a supplier, or breaking the terms of a contact. You no doubt can add to the list from personal experience, but I pray you have never been the leader who allowed bad business practices on your watch.

Forbes, and the Ethisphere Institute, a New York City think tank, have for the past five years assembled a list of the World’s Most Ethical Companies. The latest list was compiled from nearly 3,000 companies, in 100 countries and 36 industries. Ethisphere has created a proprietary rating system, called Ethics Quotient. Selection is done by reviewing the following:

• Codes of ethics

• Litigation and regulatory infraction history

• Investment and business practices

• Nominations of senior executives for leadership excellence

• How industry peers, suppliers, and customers view the company

As followers of Christ, the companies or ministries you oversee should exemplify places of integrity and good business practice and be viewed as companies worthy of being listed among the world’s most ethical. It should never be said of you or your company that you were unscrupulous. The following Scriptures from Job and Titus clearly teach we are to live lives above reproach:

And the LORD said to Satan, “Have you considered by servant Job, that there is none like him on the earth, a blameless and upright man, who fears God and turns away from evil? He still holds fast to his integrity, although you incited me against him to destroy him without reason.” Job 2:3 NIV

Show yourself in all respects to be a model of good works, and in your teachings show integrity, dignity, and sound speech that cannot be condemned, so that an opponent may be put to shame, having nothing evil to say about us. Titus 2:7-8 NIV

Leadership Reflections:

1. Reflect back through your career. Have you ever seen or been part of any business practice that was dishonest or lacked integrity? Journal about that experience and draw insights into how you found yourself in that situation. What were your actions before, during, and after this bad business scenario?

2. In your journal, write out those things your company does to ensure that business practices are totally above board. Did you discover an area that needs attention? If so, what action will you take to address this bad business practice?

3. Read the following quotes about good and bad business practices and record your thoughts in your journal.

a.“We have to make America the best place in the world to do business.” Dick Cheney

b.“We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly.” Aristotle

c. “At this moment, America’s highest economic need is higher ethical standards—standards enforced by strict laws and upheld by responsible business leaders.” George W. Bush

d. “Try not to become a man of success, but rather try to become a man of value.” Albert Einstein

e. “A business that makes nothing but money is a poor kind of business.” Henry Ford

What the Bible Teaches about Capitalism

Friday, February 3rd, 2012

“this article affirms the key role Christianity plays in commerce as we know it today…..”

I thought you would be interested in the following Wall Street Journal Article by Aryeh Spero: What the Bible Teaches about Capitalism

Without addressing the salvation aspect of faith, this article affirms the key role Christianity plays in commerce as we know it today. The last sentence is notable in that the author makes proper commerce thinking a moral issue. The Center affirms that this discussion of foundational principles is a moral issue for our country, because these principles go to the ability of all people in the US to be able to pursue life, liberty, and happiness.

What are your thoughts?