Miami Heat president, coach to take pay cuts
BY MICHAEL WALLACE
mwallace@MiamiHerald.com
Economic problems have forced Heat president Pat Riley, coach Erik Spoelstra and several members of the team's front-office to take pay cuts entering the season.
Spoelstra said recently that he expected to open his second season as coach with his entire staff of assistants intact. But financial problems that led to reductions of about 20 employees on the business staff earlier this year have apparently spilled over to basketball operations.
The Heat is already facing the prospect of having to pay about $3 million in NBA luxury tax fees for operating beyond the league's $69.9 million threshold for excessive payrolls. Miami has only 13 players under guaranteed contracts entering the season, two less than the league maximum.
It was unclear Monday how much of a paycut the coaching and administrative staffs are facing. The Heat opens training camp Sept. 28 and plays its season opener Oct. 28 against New York.
The Heat is one of several league teams that have had to endure pay cuts or reduce their scouting, coaching or administrative staffs in recent months amid the global economic downturn. The Heat reportedly was among several NBA teams that saw a big drop in ticket revenue last season, with Miami's dip estimated at about $3 million. According to the April edition of the Sports Business Journal, the Heat's 6.4 percent decline in 2008-09 ticket revenue represented the third steepest drop-off among the league's 30 teams.
Riley has taken a frugal approach to addressing the team's apparent needs, having made one minor trade and opting to pass on any free agent signings this summer. The Heat also allowed both of its draft picks to instead sign to play next season with European teams, moves that helped Miami avoid even minimal additions in salary.
























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