Last season's New York Knicks sensation is this season's New York Knicks departure: Jeremy Lin is gone, off to the Houston Rockets. Jeremy Lin says he would have preferred New York, why New York Knicks owner and president James Dolan says he's feeling hurt and betrayed by the move. Whose side should Knicks fans take? 

The dispute came down to a matter of money: The Knicks didn't want to pay Jeremy Lin the offer handed to him by the Houston Rockets; they felt that he was untested, and not worth his asking price. But is this true? After all, Jeremy Lin brought a whole bunch of fans to basketball and the Knicks who weren't there before, which is besides the fact that his emergence as a global sensation basically solved one of the most bitter cable carrier fee disputes in recent history. Shareholders in Madison Square Garden Entertainment stock certainly don't buy the Knicks' line; the stock has taken a hit since Lin's departure became imminent (and continues to go down through today).

Now, we're hearing from Jeremy Lin and James Dolan, as each air out their own side of the story.

[READ MORE: The Jeremy Lin Effect on $MSG Stock: Jimmy, We're Going Down]

Sports Illustrated's Pablo Torre got an exclusive interview with Lin. Highlights:

Why Lin Left:

"...My main goal in free agency was to go to a team that had plans for me and wanted me. I wanted to have fun playing basketball. ... Now I'm definitely relieved."

The Moment Lin Knew He Might Leave:

"[Former Knicks point guard Raymond] Felton's signing was the first time when I thought, 'Oh, wow, I might not be a Knick,'" Lin said.

Why Houston?

"The Rockets kept saying how sorry they were that that they'd cut him, and how much of a mistake it was," [Jeremy Lin's agent Jim Tanner] said. "They almost said it too many times. They kept acknowledging it."

Why It's Not About The Money:

The notion that Lin has always cared about money above all else, in particular, eats away at him, especially as he sleeps in his childhood home. "If I really wanted to, I could have triple-digit endorsements," Lin pointed out, but he does not. Instead, and in large part because Lin wanted to concentrate on basketball, he declined to cash in on the Linsanity gold-rush -- namely, the mountain of business opportunities in Asia -- and picked only three companies: Volvo, Steiner Sports and Nike.

What James Dolan Told Lin:

"I have plans for you in the future," Lin recalled the owner saying. "This is a long-term investment. Don't rush back."

Lin on Playing in New York City:

"I love the New York fans to death," Lin said. "That's the biggest reason why I wanted to return to New York. The way they embraced me, the way they supported us this past season, was better than anything I've ever seen or experienced. I'll go to my grave saying that. What New York did for me was unbelievable. I wanted to play in front of those fans for the rest of my career."

Meanwhile, Knicks owner James L. Dolan unofficially aired out his side of things via sourcing to the New York Daily News:

The decision was both financial and emotional since Garden chairman James Dolan was upset over Lin restructuring his deal with Houston last week to include a third year salary of $14.9 million. Dolan, according to sources, felt he was deceived by the 23-year-old Lin.

That's it. No interviews, no media statements, nothing else from James Dolan other than the fact that he felt "deceived." James Dolan's relationship with Knicks fans is already tense: There was that nasty streak of letting Isaiah Thomas run the team that didn't work out, which is to say nothing of contracts like those handed to Stephon Marbury, Eddy Curry, Zach Randolph, and so on. He's had an embattled relationship with the sports press, at one point all but completely denying them access to the team. And ticket prices—which have only steadily risen over the years despite the team's lack of serious playoff appearances over the last decade—recently took another hike as box seating was placed lower in The Garden, effectively alienating the socioeconomic majority of fans who even could see the team play even further.

Even as the press files away columns on the matter—like the usually even-handed New York Times ("Dolan Breaks Faith With Knicks Fans Again")—the true test of public opinion will be how Knicks fans react to Lin when he comes back to the Garden to play against the team in Houston next year. He could be booed, or—as was the case with Hideki Matsui, who the Yankees declined to resign after the championship season for which he was awarded 2009 World Series MVP—be embraced.

Either way: Besides the fact that the public financial interest (and thus, faith in him) isn't exactly surging these days, it's pretty clear James Dolan's name will not be worn by fans any time soon.

fkamer@observer.com | @weareyourfek

Let's flash back quickly to February, when Jeremy Lin started making notable appearances on the court for the Knicks:

For a few days, the stock experienced slow, steady gains. And then, as Lin started performing, the rest of the world —(and the markets) took notice:

$MSG stock began to experience spikes and swells, and continued to rally. Despite Lin's injury in March that took him off the court for the rest of the season, there was little speculation that he'd be traded. In May, after the Knicks were ousted from the playoffs, talk of Lin's contract began with a dispute over the nature of his free agency, and whether or not the Knicks could exceed the salary cap in attempting to resign him. In recent weeks, it was made clear that Lin would be talking to other teams. And in recent days, it was made clear that Lin was taking some of these talks seriously.

But at the end of June, the question of how much the Knicks could pay Lin was resolved in their favor. For a moment, things looked up.

And then...

"Lin Withdraws From U.S. Select Team, Citing Free-Agent Status" - New York Times, July 3, 2012

"Knicks Get Kidd and Make Plans to Keep Lin" - New York Times, July 5, 2012

Lin stayed out of the Olympics to deal with his contract negotiation (and not run the risk of injuring himself further, so he could still court offers). Lin also signed a term sheet with Houston that the Knicks would have to begrudgingly match.

Which is when this happened:

Retuers reports:

"I think the gain in MSG shares earlier in the year as well as the Jason Kidd incident/potential Lin loss that hit the shares yesterday and today has already efficiently been reflected in the stock movement," said Miller Tabak analyst David Joyce.

What's perceived by many to be the legendary mismanagement of the New York Knicks by ownership (and is generally reflected in their winning percentage from the last few seasons) proved a decent map to see where this was headed: Regardless of Lin's ability as a player, he is a global fan phenomenon—for nerds, for Christians, for Asian-Americans—especially in New York City. Lin piqued the interest of those who had no interest in basketball prior to his rise. Lin was essentially responsible for ending one of the most bitter cable carrier disputes in recent history.

And yet: An investment in a consistent, larger fanbase, let alone the potential for Lin's play on the court to elevate the team notwithstanding (which, to an extent, was arguably proven) didn't prove enough for the brass at The Garden to resign Lin. Whether or not it was a good play or not has yet to be seen; given the track record at hand for the team, however, the very least that could be said about the move was that it's not unexpected. Not necessarily because Jeremy Lin wants to make as much money as he possibly can so much as that the Knicks seem to do whatever will further alienate fans and spectators as a matter of course.

Or as New York Post columnist Mike Vaccaro:

If the Knicks themselves asked you to look at [Jeremy Lin's numbers, comparable to his inflated asking price], you might wonder where the catch was. The Tappan Zee Bridge couldn’t span that credibility gap. And somewhere in the murky waters below rests the Knicks’ benefit of the doubt. Even if they happen to be right.

It looks like that credibility gap might extend to the fleeting glory of a high-tide share price as well.

fkamer@observer.com | @weareyourfek

Kris Humphries: Nothing but Nets (Getty Images)

Beleaguered wax-man Kris Humphries has had a rough twelve months. The NBA lockouts had us fearing that he would forever be employed as Mr. Kardashian, until negotiations broke down on that front as well, leaving him booted from Team Kim shortly after their fairytale wedding. ("Fairytale" in the sense that it was entirely made up and in no way based on reality.)

His refusal to sign the divorce papers have lead to an ugly court case, with allegations of cheating, stalking, sex-tape set-ups, and a bunch of other sociopathic behavior on both sides. On occasion, he's been booed off the court before he could even foul.

But now things are looking up for Mr. Humphries. The Brooklyn Nets (previously of New Jersey) have re-signed the power forward with a two year contract for $24 million.

That's an obscene amount of money for a mediocre player: his previous contract for one year was 8 million, the average player makes $5 million a year and price caps for signing deals make Mr. Humphries only several million behind great players like Lebron James and Carmelo Anthony. (Kobe Bryant remains the exception, with his $25.24 million salary playing for the Lakers' 2011-12 season.)

Why the high cash? It's certainly not because of his amazing media presence. Already, the anthropomorphized Ken Doll is doing his best to screw up his good deal, as he announced his re-sign on Twitter with this message:

You get it? Because Jay-Z is part owner of the Nets, and is the mentor of Kanye West, the man currently having sex with his Ms. Kardashian, to whom Mr. Humphries is still legally married (at least until their bloody, bloody court case is settled)? Very "LOL," indeed!

The logo sheet, above, comes from the team's official site. In a post by Nets blogger Ben Couch, it's explained that rapper and Nets investor Jay-Z designed the new logo, which they apparently put some ideas into:

[The logo retains] the shield from its previous iteration, and adds that iconic Brooklyn 'B' to the basketball that has been part of every logo since the franchise's 1967 inception as the Americans. The Dodgers had their lettermark, and the Nets have added another model for the borough to bear. "Brooklyn," of course, is spelled out below.

Of course, this wouldn't be an unveiling without a promotional press outing, of which there naturally was: At a Modell's across the street from the Nets' new stadium in downtown Brooklyn, a bunch of people stood in line for free tickets and to look at new shirts. One Knicks fan from Queens told the Daily News he's not switching teams, but:

"Brooklyn is easier to get to," he said. "I'm hoping for tickets that are more affordable as well."

Of course somebody from Queens would mistake something in Brooklyn for the potential to be less expensive than something in Manhattan.

This is the entire illusion that has helped Brooklyn more or less conquer the universe, and it is wrong. But hey, here's for hope and a neat new expensive basketball team with neat new shirts (replete with the inevitable "Brooklyn's Finest" T-Shirt swag for sale). We'll be grabbing one.

fkamer@observer.com | @weareyourfek

If you are a sentient human being, you have no doubt heard by now that tonight the New York Knicks are playing against the Miami Heat tonight, in Miami. This is basically a euphemism for "LeBron James and Jeremy Lin: The Title Fight."

It's exciting because LeBron James is a polarizing figure who people love to hate, or love to love because of all the people who hate him, and because Jeremy Lin is the most exciting thing to happen to the NBA since Ron Artest got beer all over him. Also, seeing as how LeBron James turned down both the New York Knicks and the soon-to-be Brooklyn Nets to go to Miami, fans of Tri-State Area basketball have quite a bit invested with this. Figuratively speaking.

But for those who truly want to take something away from this evening, and the entire Jeremy Lin craze, which will reach a new level of fever pitch tonight?

Option A:

• BOVADA: Miami Heat -9.5.
• BOOKMAKER: Miami Heat -10.5.
• TOPBET: Miami Heat -9.

 
Basically everyone thinks Jeremy Lin and Co. are going to be used to mop the floor of American Airlines Arena , by somewhere from nine to eleven points. If you want to "short" the Miami Heat, well, mortgage your house, put it on the Knicks, and hope Jeremy Lin gets passed the ball enough so that they don't lose by 11 points or more.*

Option B: Buy some ridiculous Jeremy Lin gear on Etsy and vaccum seal it.*

Option C: Watch this game instead. Way more exciting, and Jeremy Lin isn't going to leave either team in a year for California after he gets sick of stupid New York Post headlines about him.

[*This is not actual investment advice.]

fkamer@observer.com | @weareyourfek

Luckily, that’s about to change, and none too soon. The National Basketball Association has been shut down for months because of a labor dispute, but last week the players union finally agreed to give up a portion of basketball-related revenue, agreeing to a 50-50 split with owners (the players had been getting 57 percent). The league will begin a truncated regular season on Christmas Day, but for basketball-starved New Yorkers, a short season is far better than no season at all. Kudos to Commissioner David Stern and his staff, including Deputy Commissioner Adam Silver, for standing firm, getting a good deal, and rescuing most of the season.

Last year the Knicks took several big steps toward recapturing the magic of the mid-1990s with an exciting young team that promised to have the Garden rocking this year. And if you don’t think the Knicks contribute to New York’s buzz, you weren’t in the vicinity of the Garden back in the days of Patrick Ewing and John Starks and those memorable battles with Reggie Miller and Michael Jordan.

With the lockout over, the Knicks will have a chance to deliver on the promise they showed last year, when they put together their first winning season in a decade, led by superstars Amar’e Stoudemire and Carmelo Anthony. Just as important, the bars and restaurants around the Garden once again will be packed on game nights, and the arena’s vendors, ushers, security staff and other support personnel will be returning to work.

Unlike some other NBA cities, New York certainly doesn’t need professional basketball—there is, after all, no shortage of other distractions in the Big Apple. But there’s no denying that the Knicks add something special to a city that loves a good show with world-class performers.

Welcome back, Knicks. The city’s not the same without you.

But an NBA player running an entire ponzi scheme? That'd be impressive. And in former New Jersey Nets and Milwaukee Bucks player Tate George's case, it kind of is, especially when you consider the magnitude of the lies he told, and who he targeted: he told his investors he had $498M more than he had in his portfolio.

What kind of investors would believe that?

Per Bloomberg:

Tate George...was charged with running a $2 million Ponzi scheme that targeted ex-professional athletes.

According to the FBI, George had been running the scheme since 2005, and is looking at 20 years in the pen if convicted. He spent the money on initial returns to investors and then in supporting his lifestyle, which included (among other things) child support and mortgages.

So much for that $500M real estate portfolio of The George Group.

Or their website.

Or that October 2008 Portfoilio features entitled "Success, by George!" about what a great guy he is:

Since he left the hardwood, he has gone on to launch the George Group, establishing the stable and substantial real development portfolio of the company that currently exceeds $500 million. His business education began with a degree from the University of Connecticut and continued with a real-world education in Wall Street banking in New York. Since the founding of the George Group, he has built relationships and raised millions of dollars for an extended variety of clients in the fields of commercial development, real estate development, and international finance, as well as the entertainment and sports industries. George's company, which has six employees in New Jersey and Florida, has put $51 million into three public/private redevelopment projects.

To be fair, Tate George isn't entirely a goon. He did make one of the most incredible buzzer-beaters in NCAA history:

Sadly, Conn then lost by one point to Duke in the Final Four, who then went on to lose by thirty points to the legendary 1990 UNLV Runnin' Rebels team that consisted of Larry Johnson, Stacey Augmon, Greg Anthony, George Ackles, and Anderson Hunt, coached by Jerry Tarkanian, who was later forced to resign from coaching UNLV when a picture of three of his players in a hot tub with Richard "The Fixer" Perry—his name was "The Fixer," there's not much else to know there—ended up on the front page of the Las Vegas Review Journal. Maybe this drew itself deep within George; maybe Tate George held onto the idea that criminals come out on top in the end for just a little too long.

Or maybe he thought he could run a Ponzi Scheme and get away with it, and he didn't. Either way, he's pleading not guilty, and is currently out on bail living at his mother's house in Newark.

Ex-NBA Player Charged in $2M Ponzi Scheme [Bloomberg]

fkamer@observer.com | @weareyourfek

Just a bit more profane. Last night, the real-life Morgan walked out of his courtside seat at the Knicks-Heat game at the Garden, and engaged in a nice chat with Charles Barkley and Kenny Smith, live on TNT's "Inside the NBA." Like anyone with any reporting chops would do, Smith asked Tracy Morgan a question that was sure to elicit a ridiculous response.

"He's the only one who can settle it," Smith explained. "Tina Fey or Sarah Palin?"

Barkley intervened.

"Sarah Palin's good-looking, isn't she?" he said.

And then Tracy Morgan's response! Let's just say it was bad enough that TNT crawled out of bed to issue a response.

Do yourself a favor and watch below, because the content is too much for us to even write about.

(Kidding! Tracy said Palin is "good masturbation material." There. Got that out of our system.)

http://www.youtube.com/watch?v=xdmYAYBgDIo

nfreeman [at] observer.com | @nfreeman1234

Click for Scandal Report: Champagne Mania Makes for A Boozy Golden Globes

At a protest Thursday afternoon in front of Madison Square Garden, Brooklyn residents turned their focus from the hard-fought development--which drew seven years of protest before construction began--to the NBA's treatment of owners and the Nets' new owner, Russian billionaire Mikhail Prokhorov.

As NBA fans lined up in anticipation of the NBA Draft Thursday night, Rev. Clinton Miller spoke to a small crowd about what he called the NBA's "double standard" for owners and players and how a company that Mr. Prokhorov partially owns has alleged ties to Zimbabwe, a country the U.S. holds sanctions against.

Some of those gathered held signs with slogans like "NBA DAVID, GET STERN WITH THE OWNERS" and "DID THE NBA REALLY VET THE NET(s)?"

"We have seen and heard reports of many owners of the NBA who have engaged in sexual harassment, racial discrimination and other transgressions, but we've never heard of the NBA making a statement against the transgressions of its owners, but we always hear the NBA making statements against the transgressions of its players," Mr. Miller said. Attending the protest was Daniel Goldstein, the longtime holdout who lived in the Nets arena footprint until he finally sold his apartment to arena developer Bruce Ratner earlier this year.

"I think that the NBA is playing with fire in that they looked the other way and didn't fully investigate Prokhorov because they are desperate for the money he is bringing to the Nets, and I think it's going to burn them in the end," Mr. Goldstein told The Observer at the protest.

Brooklyn residents have already sent a letter to NBA Commissioner David Stern asking him to start an investigation of Mr. Prokhorov and Renaissance Capital. At the protest Mr. Miller asked for explanation from Mr. Prokhorov.

Mr. Prokhorov became owner of the Nets in May.

As for Atlantic Yards, Mr. Miller said that is a separate issue and the project is going forward.

“Everywhere” includes 1166 Avenue of the Americas and the under-construction 11 Times Square. At the latter, the firm went so far as to do layouts, the broker said. There was even discussion of painting the globe at the building’s setback to look like a basketball, perhaps emblazoned with the letters “NBA.”

But, said the broker, “since September, they’ve been sitting on their hands.”

Sitting on their hands, as in, waiting for the economic turbulence to settle down? Or sitting on their hands, as in, staying put in their 150,000 square feet at Olympic Tower at 645 Fifth Avenue?

“I don’t know what the hell they’re doing,” the broker said.

Newmark’s Barry Gosin and Moshe Sukenik, who are repping the tenant, wouldn’t comment. Nor would an NBA spokesman.

drubinstein@observer.com