CCLB MAIN 10-02-06 Cavs 1 CCLB 9/28/06 11:34 AM Page 1

MARC GOLUB Danny Ferry, in his second year as the Cavaliers’ general manager, is excited about the next steps for the team, including building upon last year’s performance in the postseason, when the Cavs beat the and took the to the brink of elimination. Finding his footing

After a whirlwind first year on the job, Cavs general manager Danny Ferry is focused on plotting the future of the team. Eventually, he says, that future holds an NBA championship.

THE DANNY FERRY FILE Story by JOHN BOOTH [email protected]

FRONT-OFFICE EXPERIENCE: raised the bar on both internal and external 2005-present: General fter one year in the Cavs front manager, office, former player Danny Ferry expectations for this year. 2003-2005: Director of basket- seems more relaxed — and more “We should have more confidence in general ball operations, (2004-2005 NBA champions) excited. as a team,” he said. “I think we should be PLAYING EXPERIENCE: ACan you blame him? The Cleveland hungrier, because we’ve had a taste of it (the 2000-2003: San Antonio Cavaliers’ general manager and 13-year NBA postseason). And teams are going to focus on Spurs (2002-03 NBA champions) us more. We’re not going to be able to fly under 1990-2000: Cleveland Cava- veteran is coming off a return to the playoffs, liers (all-time leader, games played) and an offseason that included the highest- the radar.” COLLEGE EXPERIENCE: profile contract talks in the league. That much was clear this summer, when 1985-1989: Ferry is clearly looking forward to his the Cavaliers’ contract talks had fans biting (1989 Naismith Award winner, top player in the nation; first-team All- second year on the job, with good reason. their nails until LeBron James and Drew American, 1987-1988, 1988- After an eight-year playoff drought, the Gooden inked new deals. 1989) Cavaliers not only reached last year’s post- “We walked into the summer saying we had PERSONAL: a good year,” he said. “We started to build He and wife, Tiffany, have four season, but clocked the Washington Wizards daughters: Hannah, Grace, Sophia in the opening round and pushed the Detroit momentum, and said, ‘Let’s continue to build and Lucy Pistons to seven games in the Eastern from the inside out.’ Obviously, LeBron is a key Conference semifinals. ingredient for Northeast Ohio and our team. Ferry called attaining the playoff berth We also believe Drew, for our team, played an “kind of a burden shed,” but said it also See FERRY Page C-7 CCLB MAIN 10-02-06 Cavs 2 CCLB 9/28/06 2:48 PM Page 1

C-2 CRAIN’S CLEVELAND BUSINESS OCTOBER 2-8, 2006

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RUGGERO FATICA Parts of the Cavs’ new-look front offices have hardwood floors, including this area with a scoreboard-encased television. Front offices latest Gilbert upgrade oyster perpetual yacht-master Cavs owner aims to add excitement level to work environment with face-lift

By JOHN BOOTH [email protected]

t’s tough not to be excited about how the Cavaliers spent OFFICIAL ROLEX JEWELER their summer vacation: The ROLEX OYSTER PERPETUAL AND YACHT-MASTER ARE TRADEMARKS. team re-signed LeBron James Iand and in many NBA analysts’ eyes, nabbed two great draft picks in and . Team owner shares that excitement. He’s equally enthu- siastic, though, about changes to a facet of the team that most people won’t ever see: the $4.2 million reno- vation of the Cavaliers’ front office space at Quicken Loans Arena. It’s just one more step toward his efforts at building a “championship Several front-office conference rooms were part of the renovation. culture” that extends beyond the court. to each other, for instance, and for million he has put into renovating “This is a fun entertainment busi- the first time, Cavaliers general The Q over the last two years. ness, and as far as I’m concerned, manager Danny Ferry and head “We don’t sit here and make an when people walk into the front coach Mike Brown won’t have offices ROI (return on investment) decision OW! offices, it shouldn’t be a law firm,” he on different floors at opposite ends of on every investment we make or 45 ppm! said in a telephone interview. “We’ve the complex. every dollar we spend,” Gilbert said. got a great product and exciting stuff “All of these little things matter, “We think that’s very short-sighted.” happening, and that’s how the peo- and what appear to be little things As an example, he points to last As low as ple’s environment should be that to people are huge things,” Gilbert year’s replacement of the seats in $52.00 per they work in every day, so they can said. “It would be like Spock and the arena, and the switch from month! project that to our fans.” Kirk trying to run the Enterprise … bright blue to Cavalier wine. ‘Non-office office’ from different parts of the Enter- “Is that really going to make one prise. It just doesn’t work that way.” single person, because that seat’s a When the roughly 230 Cavs office As far as Ferry and Brown being different color, come and buy a ticket Get the versatile HP LaserJet 4345mfp today for about half the employees move back into their next door to one another, Gilbert to a game where they otherwise spaces on the fifth and sixth floors of said, “Being able to see each other wouldn’t have? The answer’s ‘no’ if price as some single-function printers and for less than most office The Q (they spent their summer and communicate and build their you isolate it.” But, he goes on to say, copiers...and without complex copier contracts. working out of Quicken Loans’ Cleve- relationship, with their staffs talk- that change and the money behind it land branch offices), they’ll find what ing to each other, can only result in played a role in the team’s television Gilbert calls a “non-office office.” better things.” talks with Fox Sports Net Ohio. Work spaces are separated by low Fox officials, he recalled, felt walls, so there’s little division in the Part of the bigger picture secure in signing a long-term deal expansive space. Cavaliers’ colors Gilbert says his idea of a champi- with the team because they’d seen and photos and logos are every- onship culture is built on the same how much cash Gilbert and his where, and regulation basketball philosophies with which he runs partners had poured into the arena. hoops are mounted throughout. Quicken Loans. Gilbert says there’s no reason Parts of the office have hardwood He refers often to a Quicken why the approach he uses with (216) 663-8181 • (800) 888-9752 court-style floors, including the employee handbook called “Isms in Quicken Loans shouldn’t carry over Cleveland • Columbus • New York conference room, which is shaped Action,” which espouses thoughts on into the Cavaliers operations. email: [email protected] like the key of a basketball court. effectively running a business. Of “It’s what I call ‘carrying the Through the ceiling, a giant basket- paramount importance, he says, are thread’ through the organization,” ball seems to descend. the ideas of reducing bureaucracy he said. “I just personally believe The makeover, designed by Vocon and increasing employee creativity. that that kind of culture, a champi- Design Inc., a Cleveland architectural One of those oft-quoted “isms” onship culture, is nearly the same firm, is supposed to be more than — “Money follows, it does not lead” thing, whether it’s an NBA team or fun, though. Changes in the layout — comes into play when Gilbert a great business or a nonprofit or are meant to put work groups closer talks about the more than $20 whatever.” Q CCLB MAIN 10-02-06 Cavs 3 CCLB 9/28/06 11:33 AM Page 1

OCTOBER 2-8, 2006 CRAIN’S CLEVELAND BUSINESS C-3 Brown: Experience in playoffs, LAMBAKE READYTO C COOK&EAT $ .95 continuity will sustain success SEASON FOR ONLY: 14 Do it yo IS H ERE!! urself or we can arrange for a c Second-year coach optimistic Cavs can continue on road to title REWARD YOUR EMPLOYEES! aterer Host a memorable picnic... By JOEL HAMMOND State Fish supplies everything [email protected] but the tablecloth. Starting as CUSTOM BAKES low as $14.95 per person AVAILABLE s long as LeBron James SPECIAL dresses in the home locker BONUS Mention this ad for room at Quicken Loans special Crain’s bonus Arena — which will be at leastA until the summer of 2010 — Call our Clam Bake Experts Today! the Cavaliers will be a contender for the NBA championship. 216-696-0080 or 800-362-2257 The retention of power forward 1600 Merwin Ave. Cleveland • www.statefishinc.com Drew Gooden and three additions to James’ supporting cast have coach Mike Brown thinking big for the 2006-2007 season, which begins with a home preseason game next Tuesday night, Oct. 10, against Boston. Dating was meant to be simple. Brown, entering his second year as the Cavs’ coach, says the team’s

continuity and its postseason My Executive Assistant

success from a year ago — when convinced me to join It’s Just Lunch. the Cavs beat Washington in a HANS DERYK/REUTERS “ thrilling six-game series and took LeBron James walks off the court at the Palace of Auburn Hills May 21 after the The overall experience has been fun,“ Detroit to the brink of elimination Cavaliers were eliminated by the Pistons in Game 7 of the Eastern Conference exciting and is a much better way to — will help the team get to that semifinals. James’ supporting cast remained intact with the retention of Drew elusive “next level.” Gooden, and the Cavaliers are expected to challenge for the Eastern Confer- meet people that fit my style. “Any time you can have carry- ence title in 2006-07. over, it’s a good thing, especially when you had success,” Brown Anderson Varejao. Pollard, entering WHO’S ON TAP? th said. “Now we have added pressure his 10 year, has been a part of It’s Just Lunch!, who will you meet? on us that we haven’t had a chance A look at the intriguing successful Kings and Pacers teams, At It’s Just Lunch, we’re first date experts. We hand select our clients’ dates and make all to experience yet. Last year, we matchups on the Cavaliers’ and is known as a player who isn’t the arrangements, so all you have to do is show up for lunch or drinks after work. Let us were able to sneak up on some 2006-07 schedule: afraid to dive on the floor and do give your personal life the personalized attention it deserves. Give us a call today and let people. … This year it’s going to be the so-called “dirty work.” He’s us take care of all the arrangements. It’s Just Lunch, dating for busy professionals. a little different. People are going to Q Nov. 1, Washington: Home averaged 4.7 points and five mark our game as a big game, and opener and rematch of exciting rebounds per game for his career. It’s Just Lunch Directors: they’re going to come after us opening round of the 2006 playoffs “I like the different things the big because they know we’re capable of Q Nov. 9, Chicago: Bulls in the guys bring,” he said. “Donyell is our winning ball games.” offseason made major upgrades, stretch big, and in this day and age James signed a shorter-than- including ; they’re a you need one; Andy brings a lot of anticipated three-year contract trendy pick to win the East energy; Drew has an ability to be very good at a lot of things; and Z Paula Angela Nancy PJ extension in the off-season, which, Q Dec. 21, Detroit: Cavs took the Komar Curtis Kirsch Osgood is unique in what he can do coupled with the team option for Pistons to the brink in Eastern offensively. We went out and got Cleveland 216.328.9000 www.itsjustlunchcleveland.com the 2006-07 season from his rookie semis; an early opportunity to Scot because we feel like he has contract, keeps him here through remind Detroit of its inability to basketball left in him and can help the 2009-2010 season. intimidate the Cavs last spring James is a known commodity, as us.” are Gooden, who signed a three- Q Jan. 28, Phoenix: Suns are one The Cavs must also contend with year, $23 million contract exten- of the most exciting teams in the a rapidly improving Eastern sion; , league; Cavs rallied from a 17- Conference and a Central Division who returned late in the season deficit to beat them last year at from which all five teams went to We Believe in Building Relationships that Last from multiple surgeries on a broken The Q the playoffs a year ago. finger to contribute in the playoffs; Q Feb. 1, at Miami: First meeting In the Central, the Bulls took a and veteran Zydrunas of the season between Dwyane major step forward, signing Ben The Staubach Company is pleased Ilgauskas. Wade and LeBron James Wallace from the Pistons, trading There are questions, however, for veteran forward P.J. Brown of with the remainder of the roster. Q Feb. 9, Miami: Cavs fans get to the Hornets and drafting versatile to have represented The draft-day additions of guards see Wade in person from LSU. Shannon Brown (Michigan State) Q Feb. 11, L.A. Lakers: Kobe In response, the Pistons signed St. Paul Travelers and Daniel Gibson (Texas), along Bryant’s only appearance in town; Flip Murray away from the Cavs with the free-agent signing of many remember the now-No. 24’s and center from in its office relocation to veteran David 38-point outburst last year the Spurs. The Bucks somehow convinced Wesley, give the Cavs a glut of Q March 17, Utah: If healthy, 60,000 square feet the Raptors to trade them power guards on the roster. ’s first game in forward Charlie Villanueva and That trio joins veterans Eric Cleveland since spurning Jim in Park Center Plaza II signed Ruben Patterson away from Snow, , Sasha Paxson two years ago Pavlovic, Luke Jackson, the Nuggets. in Independence. and Eddie Basden, who was — Joel Hammond The Pacers added forward Al acquired from the Bulls in a trade Harrington from Atlanta and swing- for Martynas Andriuskevicius, in man Marquis Daniels from the competing for minutes. is versatile, with the ability to pene- Mavericks. Brown said the depth in the trate against bigger guards and Oh, and the world champion We appreciate the trust our clients place in our firm. backcourt will only help the team. shoot over smaller ones. Heat? They’ve got a couple decent “They all bring something “I think it was a ,” the coach players in Finals MVP Dwyane Call us today to discuss your real estate needs! different to the table, and they’re said. “I don’t know the draft Wade and center Shaquille O’Neal. looking forward to the challenge,” extremely well, but the scouting “That (conference movement) he said. “Nothing’s guaranteed — staff did a heck of a job recognizing should make us want to work that except for LeBron — so it’s going to the talents that Shannon has, and much harder, just so we can be a dogfight to find out who’s the stuff he could bring to this compete with all the other teams in going to play.” team.” the East,” Brown said. “It’s a tough The coach is especially excited Depth, too, marks the front league, and we’re playing in the Great Lakes Region Corporate Services about the addition of Shannon court, with the addition of Scot toughest division in the league. www.staubach.com Brown, picked 25th overall in June’s Pollard to go with James, Gooden, We’re not going to have any nights draft. Listed at 6-foot-4, the player Ilgauskas, and off.” Q (216) 861-7171 CCLB MAIN 10-02-06 Cavs 4 CCLB 9/28/06 3:36 PM Page 1

C-4 CRAIN’S CLEVELAND BUSINESS OCTOBER 2-8, 2006 Clinic seizes opportunity with naming rights of Cavs’ new practice facility Partnership with Cavs means more exposure for Cleveland Clinic

By SHANNON MORTLAND [email protected]

ne word holds even more weight in professional basketball than LeBron James: Exposure. OIt’s the name of the game for advertisers who pay big bucks to put their names in the arenas, on special promotions and even on the venues themselves. For the Cleve- land Clinic, the planned construc- tion of a $20 million practice site for PHOTO PROVIDED the Cleveland Cavaliers represented Cleveland Clinic Courts, seen in this sketch, will be the Cavaliers’ new practice a golden opportunity for maximum facility in Independence. global exposure. studio where journalists can inter- it’s bound to increase the number of To be named Cleveland Clinic view Cavaliers players and officials. foreign patients who seek health Courts, the 50,000-square-foot site in Terms of the naming rights deal were care at the Clinic, Mr. Blazar said. He Independence will have two basket- not disclosed. also expects the name to better ball courts, therapy and massage “The naming of this facility gives resonate in the region, where the rooms for players and even a media us tremendous exposure in all three Cavaliers market to 15 million of our audiences — local, national people in Ohio, western Pennsylva- and international,” said James nia, northern West Virginia and Blazar, chief marketing and western New York. communications officer for the When people from those areas Clinic. “As we look at all the ways to come to a Cavaliers game, Mr. What’s it like to work with people get our message out, this is actually Blazar said, they’ll realize Cleveland a very efficient way.” is easy to reach, which the Clinic who love what they do? Indeed, , hopes they’ll remember when they president of the Cavaliers and need health care. The results are now in! Quicken Loans Arena, said all But there’s more to it than just a media interviews other than those name. The Clinic’s doctors treat the at the basketball games will be held team’s players, and they will help at Cleveland Clinic Courts, so there architects and designers create the Our annual Service Quality is an unlimited amount of times the new building’s therapy and Clinic’s name can be used. massage rooms, Mr. Blazar said. Measurement Survey results are in. “The team will function at Cleve- The Clinic’s electronic medical The results show, once again, that land Clinic Courts,” Mr. Komoroski records system also will be installed the people of Grant Thornton bring a passion to everything they “The naming of this facility gives us tremendous do. The survey measured the audit exposure in all three of our audiences — local, national and tax service attributes most and international.” important to clients in assessing – James Blazar satisfaction. Clients ranked chief marketing, communications officer, Cleveland Clinic Grant Thornton higher in satisfaction than the averages of said, noting that the practice site is at Cleveland Clinic Courts so doctors the top 50 firms and of the Big 4.* the equivalent of an office for the can pull up players’ records wherever players. they’re treating them. In addition, the With Grant Thornton you get A logo-laden banner also will hang Clinic’s new sports medicine facility, easy access to partners that’s been behind the players and team officials which will provide a full range of during TV interviews, again spot- sports medicine services, will be less the hallmark of Grant Thornton in lighting the Cavaliers and Clinic than two miles away when it is the U.S. for 80 years. And you get names, Mr. Komoroski said. The completed, he said. the benefit of Grant Thornton Cavaliers will be on national televi- Mr. Komoroski said partnering International member firms in sion 33 times in the coming basket- with a hospital system such as the ball season, which is the maximum Cleveland Clinic gives the practice 112 countries, that fast-growth number allowed by the National site one more selling point in companies look for in today’s Basketball Association, he said. recruiting players. With salary global markets. With the Cavaliers expected to caps the same for every NBA make the playoffs again this year, team, intangible factors such as Why not give our Managing Partner, and some pundits predicting they’ll practice courts and medical and Jim Sanfilippo, a call at 216.858.3601 fare better than they did last rehabilitative care can have a ma- season, the media attention around jor influence on which team a or contact our partners at the world and in Cleveland only will player chooses to work for, Mr. www.grantthornton.com? increase, Mr. Komoroski said. Komoroski said. The Cavs will go from an aging Find out how it feels to work with Overseas appeal practice court at The Q — which people who love what they do! The number of media represen- often isn’t available due to the tatives who came to Cleveland to other 180 events held each year at cover the playoffs last spring more the arena — to a state-of-the-art than doubled from the first to the building constructed only for the second series, said Steve Meyer, team’s use. In a world where all director of corporate sales for the NBA teams are trying to best each Cavaliers. To top it off, NBA games other in their offerings to players, are shown in some form in 230 the new site is a must, he said. * Based on 2005 Grant Thornton client satisfaction study and countries — with over one billion “If we don’t have a facility independent client satisfaction research survey sent to Chinese people tuning in last year, to match (others), we’re at a clients of the Big 4 and Top 50 U.S. accounting firms. For details visit www.GrantThornton.com/GTSurvey2005. Mr. Komoroski said. competitive disadvantage,” Mr. With that many people watching, Komoroski said. Q CCLB MAIN 10-02-06 Cavs 5 CCLB 9/28/06 11:30 AM Page 1

OCTOBER 2-8, 2006 CRAIN’S CLEVELAND BUSINESS C-5 Cavs’ momentum extends to local businesses

pull out of parking and there is no here, which is nice. The crowds are to watch that game. Game 6 of the Bars, restaurants in Gateway neighborhood waiting around,” he said. coming back.” Detroit series was where we saw The Clevelander’s McCarthy is that. feel a push from the team’s 2005-06 success ‘The crowds are coming back’ hoping the Cavs’ momentum — “We had a packed bar and had At Alesci’s Downtown on Huron and the business that comes with it they won we couldn’t have fit By CHRISSY KADLECK we are on the ground floor on a Road, it’s sometimes hard for regu- — continues into the 2006-2007 another person in this bar, it was [email protected] parking garage and by way of our lars to find a table on game nights. season. that full.” lease arrangement many years ago Alesci’s is primarily a lunch busi- “The playoffs were really where Going head to head with the t the same time the owner we have $2 parking 24-7 here,” ness, with night hours scheduled we saw (the business skyrocket), Detroit Pistons legitimized the Cavs of The Clevelander Bar & Zamborsky said. around Gateway events, concerts particularly the Detroit series when as a real contender for the champi- Grill was considering the “After the game, instead of being and Indians and Cavs games. Cleveland was caught with the onship, not just to make the play- lease option for his two- stuck in traffic or being stuck on a “Since LeBron and Mr. Gilbert playoff craze,” McCarthy said. offs, he said. storyA Huron Road establishment ramp waiting, waiting and waiting, being involved with The Q, busi- “We’re a playoff starved city — “We’re hoping that the craze this summer, the Cavaliers’ shining they come over to the Fat Fish Blue, ness is up greatly,” said Jeff Burson, we’re really so into it. We have kind kind of continues right out of the star aligned himself with the team have a couple brews, celebrate, if Alesci’s manager. “It’s a sold-out of always been waiting for the big box,” McCarthy said. “And that for the next four years. they didn’t have dinner, they have a crowd now, and it has definitely game, where even if you don’t have people are going to be just as crazy “The option actually happens to late-night dinner with us and they increased the traffic flow down a ticket, everyone comes downtown as they left off.” Q coincide with LeBron’s contract extension, so it made exercising that option a no-brainer,” said P.J. McCarthy, who owns the restaurant that sits only two blocks from Quicken Loans Arena. “The Cavs are kind of what gets us through the winter.” Similar to McCarthy’s experience at The Clevelander, other businesses near The Q say they too have scored big since the start of LeBron James’ reign on the Cavs’ court. “This is a mixed-used neighbor- hood with business and residential, but when the Cavs and Indians do well that’s just an added-on bonus,” said Tom Yablonsky, executive director of Historic Gateway Neighborhood Corp., a nonprofit local development corpo- ration. “Sports success only bodes well for the neighborhood. The Cavaliers’ recent success and anticipated future success is part of that same phenomenon we lived through during the Cleveland Indians playoff era,” he said. Slam-dunk for business Ken Kleinhenz, general manager of Winking Lizard Tavern on Huron Road, said his business has seen an impressive increase in customers since the NBA sensation starting dunking baskets for the Cavs. “When the Cavs come into town we do about two times our normal business on a weekday, and on the weekend it’s almost the same thing, it almost doubles our sales,” said Kleinhenz about the restaurant that has two bars and can pack in about 350 people. “It’s not only built our days when the Cavs are at home, but people still like to come in on any Cavs game, even if it’s just on TV,” he said. “A lot of the businessmen and businesswomen who come into town for conventions … come down here to watch the games. “If say the games start at 7 p.m., by 5 p.m. it’s too late to get in here. You’re going to be on an hour-plus wait. After the games it is some- times even crazier — win or lose, it doesn’t seem to matter that much,” he said. Steve Zamborsky, managing partner and founder of Fat Fish Blue, said the increase in business has been “visible” and “measurable.” “LeBron has had a tremendous positive impact, no question about that,” he said. Zamborsky said one of the reasons that the Louisiana-Creole restaurant captures the Cavs crowd is its location at Prospect and Ontario avenues. “What’s really huge for us is that CCLB MAIN 10-02-06 Cavs 6 CCLB 9/28/06 11:32 AM Page 1

C-6 CRAIN’S CLEVELAND BUSINESS OCTOBER 2-8, 2006

Tired of Being Screwed? Additions to Q’s floor level offer Then stop hiring fly-by-night “roofing contractors” whose only office address is wherever their pick-up truck happens to be parked at the time! upscale look into the suite life The no-insurance, irresponsible operators are driving the few remaining honest roofing contractors out of business. Unless the consumer gets wiser, ultimately there will be no one By SCOTT SUTTELL a private, meet-the- responsible left! We are looking for a few wise consumers. [email protected] players event. If you fit the bill, call “The allure of this is eil Kruschke the exclusivity of it,” Jr.’s business is Estis said. “There are 216•881•1999 plastics, but only five companies in www.careyroofing.com the lifeblood of Cleveland that will be founded in 1946 Nhis company, Stopol Inc. CAREY able to entertain at this Roofing Corp. MEMBER: National Roofing Contractors Association of Solon, is level. You get the best of relationships. both worlds — high-end That’s why Stopol, suites and floor seats, which arranges the which are the best seats acquisition and sale of in the house.” manufacturing equip- In part to accommo- ment, parts, businesses, date buyers of Platinum product lines and licenses Suites, the Cavaliers MEETINGS & CONVENTIONS in the plastics industry, is have added 244 new in on the ground floor — PHOTO PROVIDED floor seats at The Q for literally — of the Cleve- The Platinum Suites at Quicken Loans Arena offer a swanky this season. land Cavaliers’ entry into SAWMILL CREEK RESORT & alternative for the Cavs’ experience — at $180,000 per season, Work in progress ultrahigh-level corporate the five suites offer perks including one spot in the players’ park- CONFERENCE CENTER entertaining: the Plat- ing lot and access to a private, meet-the-players event. Estis said three of the inum Suites at Quicken five Platinum Suites • NEW! 16,000 s.f. BALLROOM Loans Arena. have been sold, and he expects the 35,000 s.f. TOTAL FUNCTION SPACE As the name implies, the five “We’re bringing in clients other two to be sold before the start Platinum Suites aren’t cheap. Nor • GOLF from the West Coast who of the season Nov. 1. Other than do they look it, with 650 square feet are going to be ecstatic to Stopol, he would not identify the • LAKEFRONT MARINA of space, high-end décor, plasma other two companies that have TVs and all the trimmings. see LeBron up close.” bought the Platinum Suites. A Platinum Suite costs $180,000 – Neil Kruschke Jr., “The biggest challenge has been Sandusky/Huron, OH 44839 per season and requires a five-year Stopol Inc. that we haven’t had a finished suite 1-800-729-6455 commitment. Suiteholders also to show,” Estis said during a Sept. must buy eight to 12 floor seats for Kruschke, whose company last 20 interview in one of the suites, each game, at a cost ranging from year “did very well” in sharing a which was under construction and $100,000 to about $300,000, traditional suite at the arena, said will be done by Oct. 10, the date of depending on the location of the he committed last spring to buying a Cavaliers exhibition game at seats, said Chad Estis, executive one of the swanky Platinum Suites. The Q. vice president and chief marketing “It’s a unique way of entertaining With the addition of the five officer for the Cavaliers. Traditional clients and our vendors,” Kruschke Platinum Suites, Quicken Loans sawmillcreek.com suites at The Q go for $150,000 to said. “The paybacks that we’ll get Arena has 93 suites, about one- $230,000 per year, but that includes will far exceed the costs. You can’t third more than most National 12 tickets for all events in the arena. imagine how many deals we get Basketball Association arenas, Estis done before the game, after the said. He expects all or most of them game, even during halftime.” to be sold for the season, even The combination of high-level though the Cavaliers have competi- amenities and a playoff-ready team tion from two other professional makes for customers who are eager sports franchises and operate in a to spend time at The Q in the region that hasn’t fully experienced company of Stopol executives. an economic . “We’re bringing in clients from “For our market size, it’s a highly the West Coast who are going to be competitive market,” Estis said. ecstatic to see LeBron up close,” “But we feel we have a product that Kruschke said. His company corporate clients like and see as a THANK YOU FOR A employs an administrative assistant way to enhance their business.” SUCCESSFUL FIRST YEAR. whose job in large part involves In celebration of our 1-year anniversary, handling entertainment arrange- Elite company we have a special offer for your next ments for Stopol customers. Tad Carper, senior vice president event. Book your event by 12/31/06 In the money of communications for the Cava- and hold it by 12/31/07 and you will liers, said only four other NBA have a chance to win a Marriott Revive The Cavaliers decided to build teams offer suites comparable to Bedding Package and up to 125,000 the Platinum Suites to address the the Platinum Suites at The Q: the Marriott Rewards Bonus points. needs of companies such as Stopol , , Going above and beyond. that entertain frequently and want and San Antonio SM IT’S THE MARRIOTT WAY. to do it in a plush setting. Spurs. (Folks in Texas apparently “We really didn’t have an option like to do everything big.) for people with a lot of money to Carper said The Q, which opened spend,” Estis said. in 1994, is the oldest NBA building The team has gone to great that’s home to such high-end suites. lengths to make sure it is corporate Estis said to make the Platinum money well-spent. Suites more attractive to potential What’s formally known as The buyers, the team also offers a Platinum Lounge & Suites, built at a $30,000 food and beverage credit cost of $2.5 million, is on the ground and a $15,000 credit for concert floor near the area where Cavaliers tickets at The Q. players enter the court. Suiteholders The Cavaliers will assign veteran entering the area will walk through employees at The Q to work in the an elegant bar to their suites, which Platinum Suites area, Estis said. feature high ceilings, private “The mantra is going to be that Cleveland Marriott East restrooms and a special catering service will be at an exceptionally I-271 Exit 28B/Harvard Rd. menu that was still under develop- high level,” he said. Warrensville Heights, OH ment in the last week of September. Stopol’s Kruschke said he already And there’s no shortage of cool gets that sense in his dealings with Call one of our Sales Professionals perks. the team. For instance, suiteholders get for all the details. “I can’t say enough about the one reserved parking space under Cavs organization,” he said. “They 216-378-9191 or visit the arena in a lot with the players’ kind of set themselves apart in the www.clevelandmarriotteast.com cars. They also are invited to attend level of service they offer.” Q CCLB MAIN 10-02-06 Cavs 7 CCLB 9/28/06 2:54 PM Page 1

OCTOBER 2-8, 2006 CRAIN’S CLEVELAND BUSINESS C-7

2006-2007 CAVALIERS ROSTER

PLAYER POS HT WT DOB FROM YRS Eddie Basden G 6-5 215 2/15/1983 Charlotte 1 Shannon Brown G 6-4 205 11/29/1985 Michigan State R Daniel Gibson G 6-2 190 2/27/1986 Texas R Drew Gooden F 6-10 242 9/24/1981 Kansas 4 Stephen Graham G 6-6 215 6/11/1982 Oklahoma State 1 Larry Hughes G 6-5 184 1/23/1979 St. Louis 8 C 7-3 260 6/05/1975 Lithuania 8 Luke Jackson F-G 6-7 215 11/06/1981 Oregon 2 LeBron James F 6-8 240 12/30/1984 St. Vincent-St. Mary HS 3 Damon Jones G 6-3 190 8/25/1976 Houston 8 Donyell Marshall F 6-9 230 5/18/1973 Connecticut 12 Ira Newble F-G 6-7 220 01/20/1975 Miami (Ohio) 6 Aleksandar Pavlovic F 6-7 210 11/15/1983 Serbia & Montenegro 3 Scot Pollard C-F 6-11 265 2/12/1975 Kansas 9 G 6-3 205 4/24/1973 Michigan State 11 Ejike Ugboaja** F 6-9 225 5/28/1985 Nigeria R Anderson Varejao F 6-10 240 9/28/1982 Brazil 2 David Wesley G 6-1 203 11/14/1970 Baylor 13

SOURCE: CAVS.COM; ROSTER CURRENT AS OF SEPT. 28, 2006; ** DENOTES UNSIGNED DRAFT PICK Ferry: Offseason gives GM room for optimism Make it Last.

continued from PAGE C-1 inch of information and seeing the important role, and we look guys we needed to be seeing, and I forward to having the continuity of just felt we were very organized and having him back.” prepared come draft time.” A year of firsts The team’s key picks were Michi- gan State guard Shannon Brown in Last year also marked the Cavs’ the first round and Texas point first year under head coach Mike guard Daniel Gibson in the second. Brown, whom Ferry has said is one “Shannon has the opportunity to of the major reasons he returned to really grow into a very solid NBA Cleveland. Brown was an assistant player,” Ferry said. “We’re all very coach in San Antonio during Ferry’s excited about him. And with Daniel playing years there. Gibson, we felt that was an unbe-

“I believe we’re going to (win the NBA championship). I don’t know if it’s this year or next year ... but I believe we’re going to.” – Danny Ferry Cavaliers general manager

“He’s a talented young coach lievable value, getting him in the who has a chance to be one of the second round as we did. better coaches in the league,” Ferry “You have to be kind of unemo- said. “Mike’s ability to communi- tional, especially with the draft. cate with the guys, his passion for You’ve got to make the right being a coach and being a part of decision for your team more than the team, and his passion toward anything else. I felt good because I the defensive end of the court are a knew all the hard work that went lot of the reasons why (Cavs owner) in.” Dan Gilbert hired him. That was only reaffirmed last year.” Uncharted territory Ferry said the biggest hurdle he Now that he’s no longer the rookie faced in his first year was time, GM, Ferry says he’s much more because of “all the things that we comfortable not only with what his had to answer.” He joined the team role is, but with the entire Cavalier in June, prior to the start of the front office. It’s just one more reason 2005-2006 season. he’s excited about this season. “From travel to scouting to the “We’ve started to build a real draft,” he said. “We had so many teamwork mentality that was question marks as a team, and I had impossible to have last year at this question marks. As far as our team, time,” he said. we (Mike Brown and I) were out- For all the team learned last siders looking in. year, though, about itself and its

“If he and I did not have a high philosophy and its coach, there’s © 2006 Mellon Financial Corporation level of trust and shared philosophies one thing the Cavaliers haven’t about the basketball team, about an learned. organization, it would really have “I still don’t think we know the Across market cycles. Over generations. Beyond expectations. been almost an impossible chal- answer to how good we can be,” The Practice of Wealth Management.® lenge.” Ferry said. Later in the conversa- The Cavaliers’ playoff run made tion, he nonchalantly says, “When time an issue this offseason, too. No we win a championship, it’s going sooner had the Pistons series ended to be an incredible story. The than the team had to prep for the passion this city will have will just c draft. explode.” Still, Ferry said, they were ready. Did he just say “When?” Not “If?” “From really the previous August He affirms it with a nod. until the draft, we rebuilt our scout- “I believe we’re going to,” he Wealth Planning • Investment Management • Private Banking ing process and group, and I was said. “I don’t know if it’s this year or Family Office Services • Business Banking • Charitable Gift Services able to watch it unfold,” he said. “It next year, and I’m not making any Please contact Charles E. Long, Jr., Senior Director, at 216-464-4244. mellonprivatewealth.com was exciting, because I really felt we predictions now, but I believe we’re were doing our job of finding every going to.” Q CCLB MAIN 10-02-06 Cavs 8 CCLB 9/28/06 3:47 PM Page 1

C-8 CRAIN’S CLEVELAND BUSINESS OCTOBER 2-8, 2006 NBA’s salary cap provides level playing field for Cavs, others

dividing that figure by the number of The $53.135 million cap for this with a team option for the fourth Structure prevents major market teams teams, the league arrives at its cap. season is up from $49.5 million a year year, a deal exactly like the one For the remainder of the current ago. This season’s increase is a result James will still be operating under from dominating free agency, like MLB collective bargaining agreement, that of higher-than-expected basketball- this season. The only difference: defined figure is 51% of basketball- related income; as part of the collec- Brown’s deal is worth $4.1 million, By JOEL HAMMOND designed to level the league’s related income, and the cap is set at tive bargaining agreement, if the whereas James, as the first pick in [email protected] playing field and punish teams who $53.135 million for this season. league takes in more money than it 2003, signed a contract worth outspend the cap with a luxury tax. This means that no team should projects, it must in turn allow for the approximately $18.8 million. f he were an outfield compadre “With our collective bargaining spend more than that amount on all players to be paid more. “I think overall, the players under- of Grady Sizemore, Cavaliers agreement, the salary cap is a situa- player salaries. However, the NBA James certainly has added to stand that they’re very well paid, and superstar LeBron James could tion where it’s a win-win for the uses a “soft” cap, meaning there are Cleveland’s contribution of the that what’s good for the game of bas- likely make triple or quadruple players but also for the teams,” said exceptions that can be used to add league’s basketball-related income: ketball is also good for them,” Ferry Iwhat he’ll make this season in his Cavs general manager Danny Ferry. salary even if a team is over the cap of He had the third-best-selling jersey in said. “At the same time, people want annual salary. “Our players do a great job. They’re $53.135 million. This is different than the 2005-2006 season, and the to make a great living. I think the Luckily for the Cavs, they play at paid very well, but it’s done within the NFL’s “hard cap,” for which the Cavaliers’ attendance has increased players see it as a win-win as well.” The Q, not next door at Jacobs Field. the framework of a system that luxury tax begins at the first dollar markedly from the year prior to his In turn, the structure encourages James signed for the maximum allows teams to be in a position to over the cap number. arrival. According to league atten- younger players to earn their second amount he could under the NBA’s have sustained success, oftentimes The NBA’s exceptions include, dance figures on the Cavaliers’ web contract, which is infinitely more collective bargaining agreement regardless of the market size.” among others, the “ site, the team was last in 2002-03, lucrative than a rookie contract. this offseason, a three-year deal The current collective bargaining Exception,” which allows teams to when James was a senior in high Veterans see their salaries grow as worth about $60 million. agreement, effective through the exceed the cap to sign their own school, averaging just 11,496 fans per they gain more experience, hence Without the NBA’s salary cap, 2010-2011 season, is an extension free agents; and a “mid-level” game. The next year, they improved James signing only a three-year James would have been free next of the 1999 agreement. That deal exception, allowing teams to sign to 18,287, followed by 19,128 in 2004- extension this offseason, rather than summer — at the end of his rookie followed a league lockout of players free agents for the league’s average 05 and 19,326 this past season. the maximum five-year extension to contract — to accept a deal from prior to the 1998-1999 season. salary — $5.215 million in 2006-07. While the cap is based on 51% of which he could have agreed. the highest bidder. Major market By taking a defined percentage of The latter exception can only be projected basketball-related income, Salaries of players with fewer than teams, such as the the league’s projected “basketball- used every other year. the luxury tax threshold — the point seven years of experience can’t and , would have related income” — a figure that Meanwhile, the salary cap has at which teams begin to pay a penalty account for more than 25% of a fallen over themselves in wooing includes, as the title suggests, any- increased from $24.4 million just 10 — is also based on a defined figure, team’s total salary expenditures. By James to their cities. thing basketball related, from ticket years ago, fueled in part by increased 61% of the league’s basketball-related negotiating a deal that ends after his The limitations placed on player receipts to concessions and mer- earnings from TV deals and global income. Teams over $65.42 million seventh year in the league, James will salaries by the NBA’s cap are chandise sales to advertising — and exposure. will pay a dollar-for-dollar penalty, be eligible for an extension that can which in turn is paid back to non-tax- pay him up to 30% of his team’s paying teams. salary cap, or in this year’s case, $15.9 For example: According to a July million. That’s a salary few teams can ESPN.com report, after the cap was afford in the days of the cap era, officially set for the upcoming sea- because it prevents them from sign- son, the Knicks are approximately ing other front-line players or from $44 million over the cap. Any other developing depth. team’s penalty will be combined with Ferry said it’s a tightrope that he the Knicks’ and paid out to the other and other GMs must walk in deal- 27 teams in the league. The teams ing with the cap. receiving tax payments can use their “It depends where you are as a share for anything they want. team, depends on what your roster is, Another of the collective bargain- depends what you’re playing for at ing agreement’s main functions is the time, depends on strategically, setting parameters for maximum and where you are as an organization,” he minimum salaries and rookie con- said. “Ours is ‘win.’ And that’s where tracts, based on years of service in the we are right now — to aggressively league, with rookie contracts based win, but balance that with being able on where in the draft a player is to do it for awhile.” Q selected. The Cavs’ Shannon Brown, as the 25th pick in the draft, signed a Crain’s reporter John Booth standard three-year rookie contract contributed to this story.

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OCTOBER 2-8, 2006 CRAIN’S CLEVELAND BUSINESS C-9 Market ripe for LeBron to FREE MILK attain billion-dollar mark Why buy the cow? Are you or your sales people: Cavs star takes advantage of Jordan’s example to capitalize on his earning potential • Giving away the solutions before the sale? • Qualifying the prospect before the presentation? deals in all types of categories — By JAY MILLER LBJ BY THE NUMBERS • Allowing your proposals to be shopped around? [email protected] financial institutions, automobiles, 100,000,000+: Estimated technology, mobile phones, home Don’t let prospects control how you sell! iming is everything, and dollar value of James’ endorsement entertainment — all kinds of They’ll just take your ideas, pit the competition against you and then ask for more LeBron James’ entry into the deals, primarily from Nike categories.” free advice. Instead, land more business with solid sales training that works! And these opportunities will span sports world comes at a time 60,000,000: Value, in dollars, of No memorized lines. No pre-packaged programs. For more information, or to reserve the globe. A key destination is Bei- your place at our next FREE Executive Briefing, call Rose at 440-575-7000. when there are unlimited the three-year extension James Tpossibilities for the basketball star’s jing, where the 2008 Olympics will signed with the Cavaliers marketability and earning potential, be held. Carter expects the LeBron 6,307: Points scored so far in according to industry experts. brand to extend itself to China and NBA career (26.5 points per game) In fact, the 21-year-old James beyond by that time. could eventually outearn Michael 56: Career high in points in a “(The opportunities) are all over Jordan, according to Lynn Merritt, game (at Toronto on March 20, the world because basketball has senior director of basketball sports 2005) become such a globally recognized sport and the stars are such marketing at Nike, in speaking with 42.5: Average minutes played CALL TODAY. globally recognizable celebrities Advertising Age, the leading advertis- per game in the 2005-06 season, SELL MORE. that there are deals all over the ing trade newspaper and sister publi- second in the NBA cation of Crain’s Cleveland Business. world,” Carter said. 440-575-7000 • WWW.SALESCONCEPTSINC.COM • 800-346-3724 32: James’ original uniform “The state that LeBron comes in number at St. Vincent-St. Mary High with now, with the Internet and all School in Akron. He later switched to kinds of technological advancements No. 23 as a tribute to Michael that weren’t around when . was at his peak, well, LeBron could be the first billion-dollar athlete in all 21: Age, in years. He turns 22 on aspects,” Merritt said. Dec. 30. When you go one-stop insurance shopping, While it used to be that athletes 9: Number of consecutive games put their names on baseball gloves last season in which James scored be sure you get a full bag and the occasional soft drink, at least 35 points. Only Jordan and Michael Jordan was a pioneer in have done that since parlaying his skill and personality 1970. into a multimillion-dollar business. 3: Number of NBA players, includ- Tiger Woods followed to become ing James, to average 20 points, five today’s highest-earning athlete. rebounds and five assists per game Fred Schreyer, a former director of as rookies. The others are Jordan sports marketing at Nike and current and . president of the Professional Bowlers Association, agrees James can take 2: Number of medals won during his marketing to a level not previous- international basketball competi- ly seen with Jordan and Woods. tions, in the 2004 Olympics and Risk Management “Since Michael Jordan, the way 2006 World Championships. Both athletes are used and the earning are bronze medals. power they have outside of sports has 1: Number of episodes of “The Commercial Property & Casualty multiplied,” said Schreyer, who was Simpsons” in which James was a working for James’ agent when the guest star. The episode is called athlete was talking to several shoe “Homer and Ned’s Hail Mary Pass.” Employee Benefits companies after high school gradua- tion. “MJ’s success changed that.” SOURCES: NBA.COM, WIKIPEDIA It all adds up 401 K Shortly after he graduated from St. Still, James’ overall marketing Vincent-St. Mary’s in Akron, James effort has made him one of the top- Safety/Loss Control Engineering signed commercial contracts that will earning athletes in the world. eventually pay him over $100 million Sports Illustrated put him sixth — that’s in addition to what he earns on its list of the “Fortunate 50” with Claims Management Consulting from the Cleveland Cavaliers. an annual income of $28.6 million. The biggest chunk of that cash Woods is at the top of the list, earn- will come from Nike, which signed ing $97.6 million. Risk Management Information Systems the Akron native to a seven-year, Just the beginning $90 million basketball shoe deal. Coca-Cola also signed on for the Now, James has a team hard at Environmental Risk Management long haul, giving James a six-year, work to go to the next level. That $12 million deal to promote its team is LRMR Marketing led by CEO Sprite and Powerade products. Maverick Carter and two other young MGA/Program Marketing In addition, Upper Deck, a sports men, Randy Mims and Richard Paul. card company; chewing gum brand Carter, a former Nike marketing Bubblicious; and even Microsoft representative, believes his long- have joined Team LeBron. time friend has broad appeal. Jim Kahler, executive director of “He’s positioned as a generous, the Center for Sports Administration dedicated, hard-working, playful, at Ohio University and a former loves-to-have-fun kid at heart but senior vice president for sales and an adult off the court who handles marketing for the Cavaliers, esti- his business,” Carter said. mates that James is only one of five Since James changed agents and National Basketball Association created LRMR, he hasn’t made any When does one-stop insurance shopping for your company make sense? When you players getting significant national significant additions to his partner- want to consolidate your insurance program and save money. Choose an agency that endorsement dollars. He said the ships, but that’s likely to change. has everything you need to fill the bag up... plus a others are Kobe Bryant, , Over the summer, LRMR held a 68-year track record to back it all up. We're Ohio's and Shaquille O’Neal. “Sports Marketing Summit” with At the moment, replicas of marketing execs who already partner largest independent insurance agent. James’ jersey are not the top seller. with James to hear about where he Call Dan Fischer, Business Development Director at He’s been eclipsed by guard and LRMR are headed. the Hylant Group today! 1-888-4-HYLANT of the championship “There’s a ton of opportunities all , according to Sport over the place for Mr. LeBron James ScanINFO, a sports marketing that he hasn’t done partnerships ANN ARBOR BLOOMINGTON CINCINNATI CLEVELAND COLUMBUS DETROIT FORT WAYNE INDIANAPOLIS TOLEDO service that tracks sales. with,” Carter said. “We’re looking at RIS K MANAGEMENT INSURANC E40 1K BENEFITS