Blazers Cutting Costs

Discussion in 'NBA General' started by Shapecity, Jul 8, 2003.

  1. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    <div class="quote_poster">Quote:</div><div class="quote_post">PORTLAND, Ore. -- The Portland Trail Blazers laid off nearly one-third of their 280-person staff Tuesday, a day after the team suspended guard Damon Stoudamire for his recent arrest on drug charges.

    Affected employees -- 40 front office workers and 48 arena staffers -- learned their fate at a series of meetings Tuesday morning, but the possibility of layoffs had been looming for three or four months, said Blazers executive vice president Erin Hubert.

    "There are clubs similarly situated that are being run with roughly half the staff," said Blazers president Steve Patterson. "If you look at the arena size, the payroll is nearly two times what you'd have for a similar building."

    Patterson also said the cost-cutting measures will not end with these layoffs. Player payroll will undergo a significant reduction which has yet to be determined, he said.

    "We're not going to have a $105 million roster again," Patterson said.

    The Blazers will lose over $100 million if the NBA's luxury tax kicks in later this summer. The luxury tax penalizes teams over the salary cap by one dollar for every dollar over the limit. Portland would have to pay about $50 million in penalties.

    All of the affected employees were given severance packages and will receive help finding a new job, Hubert said.

    The layoffs are the latest in a series of changes made by the Blazers since being eliminated by Dallas in the first round of the playoffs.

    Former president and general manager Bob Whitsitt resigned from both positions in May. He has been replaced by Patterson and a general manager still to be hired.

    When he hired Patterson, team owner Paul Allen said he was taking the team in a new direction. He said the Blazers would emphasize player character over talent and would reduce its expenditures.

    According to a report in the Portland Business Journal, the Blazers are considering selling the naming rights to the 8-year-old Rose Garden to generate new revenue.</div>

    http://espn.go.com/nba/news/2003/0708/1578245.html
     
  2. mike18946

    mike18946 JBB

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    I think it's time for a re-building process in Portland
     

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