Sam Presti Pulls Off a Coup

This past offseason, Sam Presti decided to allow the Orlando Magic to overpay Rashard Lewis. To do so, Seattle and Orlando agreed to a sign-and-trade deal that allowed them to gain an eight million dollar trade exception. Rather than holding onto that extra money, Presti did a masterful job of converting it into a handful of extra assets.

The first move, was to acquire veteran forward Kurt Thomas and the Phoenix Suns' first round draft choices in 2008 and 2010 for a conditional second round draft choice. Phoenix needed to clear Thomas from their payroll and Seattle was able to leverage their trade exception into multiple assets.

Then on Wednesday night, the Sonics traded Thomas to the Spurs for guard Brent Barry, center Francisco Elson, and a 2009 first round draft pick. Both Barry and Elson are in their last year of their contracts and will fall off the payroll this summer.

Presti said after making the trade with the Spurs, "looking at the first-round pick, in combination with our other future picks, we have great flexibility to add to our core or acquire another impact player in the future. At the same time, Kurt is a tremendous person and player, and I appreciate his contributions this season and wish him success."

Seattle has 13 draft picks over the next three years, including six in the first round - two each season. After next season, Luke Ridnour, Earl Watson, Nick Collison, Kevin Durant, Jeff Green, Damien Wilkins, and Johan Petro are the only SuperSonics currently under contract. Presti has plenty of flexiblity and some intriguing young players to be big time players within the next few years.

From Intern to General Manager

On June 7, the Seattle SuperSonics hired Sam Presti as their new general manager. Presti became the youngest current general manager in the NBA at thirty years old. He also became the second youngest general manager in league history to Jerry Colangelo, who was 28 years old when he took the job with the Phoenix Suns in 1968.

Presti was born in Concord, Massachusetts. His career started in high school when he was the captain of the Emerson College basketball team. While at Emerson, he was a Rhodes Scholar candidate and the first in the school’s history. He earned his bachelor’s degree in 2000 in communications, politics and law.

In 2000, he began his career in the NBA with the San Antonio Spurs. Presti began with the Spurs as an intern making $250 a week. After one season, he was named the team’s basketball special assistant. In September 2002, he was promoted to assistant director of scouting. The Spurs named Presti the director of player personnel in September 2003, and then became the Spurs assistant general manager in September of 2005.

Presti launched himself through the Spurs organization when he led the design and implementation of the Spurs scouting database, a system that is now being used by numerous teams throughout the NBA. He spent valuable time around great leaders like Avery Johnson, Danny Ferry, Steve Kerr, Terry Porter, Peter Holt, Greg Popovich, R.C. Buford, and P.J. Carlesimo.

Presti stresses his belief in team defense and strong character players. He also values versatile players, who fit into the team’s system. He has said that taking responsiblity for performance and effort is something that he holds highly.

During the first two months of his time with Seattle, Presti already has experienced a great deal. Seattle is threatening to relocate under their new ownership, led by Clay Bennett. He has also added Kurt Thomas, Kevin Durant, Jeff Green, Wally Szczerbiak, and Deltone West, while trading Ray Allen and their 2007 draft pick, which became Glen Davis. Additionally, Presti hired Carlesimo, who he worked with in San Antonio. Presti also allowed Rashard Lewis to leave for Orlando for a maximum value contract.

In a short time, Presti has begun to shape Seattle into the contender that the Spurs have been over the last decade. With Durant and Green leading the way, along with cap flexibility and future first round picks, the SuperSonics should turnaround their fortunes quickly.

Young General Managers Coming Up Through the Ranks

"Young Executives Are Coming of Age"

Fresh Faces Molding Teams' Futures

By Greg Sandoval, Washington Post Staff Writer

Friday, November 14, 2003

As the 27-year-old director of player personnel for the San Antonio Spurs, Sam Presti knows what he wants -- to be the Warren Buffett of the NBA.

Presti hopes to select basketball players as shrewdly as Buffett -- one of the world's most successful investors -- chooses stocks.

"I'm in a similar business really," Presti said. "I'm in a futures market. Teams are trying to predict the appreciation of an asset at the same time they identify ways to help grow that asset."

Presti at times sounds like an investment banker rather than an executive of an NBA team, and it's no wonder. He is among a small but growing number of whiz kid executives applying modern business practices and technologies to big league sports. The practice of injecting quantitative analysis into the athletic world has gained a foothold in baseball, with young executives of at least five major league teams using it in their player evaluations. But Presti is among the first to take this model and apply it to the NBA.

The fruits of Presti's work will be on the court at MCI Center on Saturday night, when the Spurs play the Wizards. Presti assumed his current position last summer. But in his previous role as the team's special assistant for basketball operations, he was a major factor in assembling a lineup that last season won the NBA championship. This included drafting rising star Tony Parker, a point guard from France, two years ago and endorsing efforts to bring Turkish-born forward Hedo Turkoglu to San Antonio from Sacramento.

In baseball, some of Presti's contemporaries, people such as Theo Epstein, general manager of the Boston Red Sox, and Paul DePodesta, assistant general manager of the Oakland Athletics, have leapfrogged more-experienced executives by impressing owners with their versatility. They unscramble player contracts, skillfully decipher market-cap rules and slash inefficiencies.

"General managers used to do handshake deals and jot the terms down on napkins," said Kevin Towers, general manager of the San Diego Padres. "Nowadays, you have to get out a payroll-summary sheet. You have to understand contractual language, no-trade provisions, escalators, the way bonuses are structured. . . . It's very complicated."

Perhaps the most important attribute the new executives share in this era of skyrocketing player salaries and flat revenue growth is a desire to operate teams more on a corporate model by tightly controlling costs and risk. They crunch traditional statistics -- be it slugging percentages in baseball or free throw percentage in basketball -- looking for new ways to more accurately measure an athlete's skills. The goal is to reduce the risk of making a bad draft pick or paying too much for a free agent.

When their methods work, they manage to put together winning teams of lesser-known, lower-cost players. The Spurs' payroll ranks 20th in the 29-team NBA.

"Owners are tired of losing money," Towers said. "They want people who manage their payroll wisely, put a good product on the field and turn a profit."

DePodesta, 30, of Alexandria, is credited with helping A's General Manager Billy Beane develop Oakland's seemingly limitless pipeline of stars that has propelled the club into the playoffs four consecutive years.

DePodesta is known in business parlance as a "quant." He pours over statistics in his laptop to dig up talented but overlooked free agents or potential draft picks. Beane and DePodesta refuse to assess players solely on the opinions of sage scouts, whom the A's say are statistically wrong as often as they are right. Crunching numbers is just another way to hedge their bets, DePodesta said.

But statistics are just one part of the equation, and teams always need scouts, said DePodesta, who two years ago turned down an offer to become general manager of the Toronto Blue Jays. Statistics, for example, can't reveal whether a player has trouble getting along with teammates, drinks too much or doesn't like to practice.

"A mutual-fund manager won't pour money into a stock after only reading a financial report," DePodesta said. "If he's smart, he's also going to talk to the company's executives. We want to combine the subjective with the objective. All we're trying to do is take out as much of the guesswork we can."

In addition to their business smarts, Epstein, Presti and DePodesta have wowed coworkers and bosses with their hustle. Epstein, 29, earned his law degree at the University of San Diego at night while working 70 hours a week for the Padres.

Towers, Epstein's former boss, remembered asking him to prepare the complex statistics the team would need for salary arbitration cases. Some major league teams, Towers said, hire law firms to compile data that show what an arbitration-eligible player should earn, a process that can take up to two weeks and incur $50,000 in fees. Epstein plunked the brief down on Towers's desk the next day. "The work he was able to turn out was incredible," Towers said.
Presti is described much the same way in San Antonio.

A former basketball player at Division III Emerson College in Boston, where he was the school's first Rhodes Scholar candidate, Presti once wrote up a contract that legally bound each of his teammates to play hard. After learning of Presti's promotion with the Spurs, one of those teammates, Alex Tse, said, "I don't mean any disrespect to the people who held his job previously, but there's no doubt in my mind that Sam outworked them."

When the Spurs hired Presti as a $250-a-month intern three years ago, Presti immediately immersed himself in the history of the NBA draft. He noted which first-round picks flopped and which late-round picks flourished. He created charts and spreadsheets to unearth patterns and tendencies. Presti refused to disclose exactly what he discovered, citing the competitive pressures of the NBA, but said the Spurs have since put his findings to use.

Presti said the Spurs are experimenting with new ways to analyze statistics to gauge player performance. Mark Cuban, owner of the Dallas Mavericks, is using similar methods to put together his team, one of the best in the league.

"I told [Spurs Coach Gregg Popovich] within two weeks after we hired Sam, 'Pop, this is a guy we need to keep,' " said Spurs General Manager R.C. Buford, who has promoted Presti in each of his three years with the club.

Presti crisscrosses the United States to scout high school and college players. Gym rats in countries such as Greece, Spain and Serbia and Montenegro recognize him when he swings through to see foreign players. One European scout dubbed him the "NBA's Indiana Jones."
Presti was still in his first year with the Spurs when he pressed the team not to give up on drafting Parker after the French-born guard had a poor pre-draft workout. Presti created a five-minute highlight videotape of Parker that persuaded Popovich to give Parker, then 19, another look, Buford said.

The Spurs chose Parker with the 28th pick of the first round in the 2001 NBA draft. About two weeks into the season, Parker was made a starter. Last season, he averaged 15 points and five assists while helping the Spurs win the championship. Few of the guards drafted before Parker, such as Brandon Armstrong, Kedrick Brown and Joseph Forte, have come close to his impact. Forte is already out of the league.

Presti, whom one NBA executive said is almost certain to be courted by other teams for a front-office job, said he has only begun to apply business management techniques to professional basketball.

"I don't think it makes sense for me to account for my age or how many years I've been in the business," he said. "That's where I think I have an advantage on some who've been around for a while. They are used to doing things a certain way. I go ahead and challenge those concepts."

Article available at:
http://www.washingtonpost.com/ac2/wp-dyn/A38111-2003Nov13?language=printer

What does Sam Presti do next?

Newly hired Sam Presti has been busy already this summer, drafting Kevin Durant and Jeff Green, and trading Ray Allen and Rashard Lewis. Additionally, Presti was able to acquire Delonte West and a trade exception from the Magic worth $9,350,000.

Although the other team got the better player in the trades of Ray Allen and Rashard Lewis, Presti was able to acquire some valuable assets and provide flexibility for his team. With Allen, the Sonics were able to create future cap relief, as well as, bring in West who could be promising. West is a lefthander who has a strong outside shot, especially from midrange, and good quickness and athleticism. He's not a natural point guard, however, as it's not his instinct to drive and dish and he doesn't push the ball well in transition. West is better in halfcourt set-ups where he can use his size to shoot over opponents, and he's a very good spot-up shooter when he plays off the ball. He has the tools to be an outstanding defender, but is not quite there yet. The trade of Allen also brought in Jeff Green, who seemingly is a perfect talent to put next to Durant.

Rashard Lewis left as a part of a sign-and-trade with Orlando. The Sonics and Rockets competed with the Magic for Lewis’ services, but in the end Orlando outbid everyone. Many have criticized the Magic for giving Lewis a sixth year in his contract when the Sonics were not going to match the five year offer in itself. Presti was smart enough to realize that overpaying for Lewis would not be smart for the long-term success of his team.

Presti recently was quoted as saying: "The exception has made me the most popular person in the gym (Thomas & Mack Center) the last 24 hours. We have to be smart about how to utilize it. If the right opportunity comes along, we won't hesitate to use it.”

So what is the next move for Presti? I believe that Presti should package some of the assets he has remaining to continue to rebuild the Sonics around his two young wing players. The assets that Seattle has in its pocket include:

*$9,350,000 trade exception from Orlando Magic
The trade exception expires after one year if it has not been used. It can be very valuable in an effort to bring in premium talent.

*Delonte West
2007-08 Contract: $1,889,759
2008-09 Contract: Qualifying offer of $276,282,800
2009-10 Contract: Potentially Unrestricted Free Agent
West could be very valuable to a team looking for an experienced, big guard to add to their backcourt.

*Wally Szczerbiak
2007-08 Contract: $12,000,000
2008-09 Contract: $13,000,000
2009-10 Contract: Unrestricted Free Agent
Szczerbiak has played at a high-level in the past and is a tremendous shooter. His contract likely will be a bigger asset to other teams than his talent.

*Chris Wilcox
2007-08 Contract: $6,500,000
2008-09 Contract: $6,750,000
2009-10 Contract: Unrestricted Free Agent
Wilcox is an outstanding leaper and great finisher around the basket. He rebounds the ball well, but does not bring much to the table from the offensive side and can still improve a great deal on defense. For a team looking to bring in another big body to bring off the bench, Wilcox would be a good fit. His contract expiring after the 2008-09 season would also be attractive to many teams.

*Luke Ridnour
$19,500,000 over the next three years
Ridnour is an experienced point guard having started there since the 2004-05 season. He fell out-of-favor with his coaches in the second half of the season and had a disappointing season. However, he maintains a strong assist-to-turnover ratio and gets to the basket fairly well. The biggest knock on Ridnour in the past has been his poor defense. He has quick hands and decent anticipation, but zero strength, average lateral movement, and can be shot over. He can be a nice addition for a team looking for a point guard who can eat up some minutes.

*21 year old, athletic centers
Robert Swift, Saer Sene, Johan Petro
Each one of these three do not make more than $3,000,000 per season and have great potential. Nobody in the group has played significant time in their career, but were all at one point first round picks. Swift missed last season when he blew out his knee in a preseason game, but in the past he has shown the ability to pass in the post and stay active. Sene most likely has the most upside of the group. He has wowed scouts in the past with his athleticism and shot-blocking ability. Petro is a great athlete, but has not been able to grasp the subtle aspects of offense. He generally looks to dunk the ball around the basket and has shown a decent short hook shot. He needs to develop some more post moves and improve in his team defense.

So, what should Presti do with this group of assets? I would look to acquire more talent to help the progression of Durant and Green. Some options at the point guard position would include: Jarrett Jack, Jose Calderon, Juan Carlos Navarro, and Mike Bibby. In the post, Marvin Williams, Jermaine O’Neal, Shelden Williams, and Drew Gooden may be available.

What would I do if I were Presti? I would offer the Pacers, Johan Petro ($1,077,120), Wally Szczerbiak ($12,775,000), Delonte West ($1,889,760), the $9,350,000 trade exception, and Seattle’s first round pick next year for Jermaine O’Neal ($19,728,000) and Jamaal Tinsley ($6,300,000). This trade would bring the Sonics back a top-knotch post player in O'Neal, who would play a similar role that Tim Duncan has played with the Spurs. A combination of Tinsley and Ridnour at point guard, Jeff Green at shooting guard, Kevin Durant at small forward, Nick Collison at power forward, and Jermaine O'Neal at center would be a great start towards the Sonics climb to the top of the West.

The Pacers should do this trade because of the great flexibility and the specific talents it gives them. The Pacers plan to alter their style of play this year under newly hired coach, Jim O'Brien. O'Brien recently said, "We're going to shoot the 3. I don't know (how often), but we're going to shoot the 3." Additionally, he said, "I can't have enough perimeter shooters." With this trade, he would be getting more perimeter-type players. West would immediately step into the starting point guard spot for the Pacers, and Szcazerbiak would provide the outside shooting they have missed since Peja Stojakovic left in free agency. Also, Petro would be an intriguing player the Pacers would be able to develop.

From a financial prespective, all the players the Pacers would receive in this trade could be off their payroll after the 2008-09 season. Including Tinsley in the trade would also be very attractive to the Pacers. He has four years remaining in his contract and clearly fell out-of-favor with Indiana's management last year. With the Sonics first round pick included in the trade, the Pacers would gain additional flexibility to rebuild their squad.

At this point, there have not been much reports of Seattle making another meeting immediately, but if I were Presti and the Sonics, I would surely go ahead and call the Pacers to try and pry away O'Neal. With O'Neal (28), Green (20), and Durant (18) as their core, the Sonics would definitely contend for the title for years to come.

Sam Presti Looks to Summer 2009 to Make a Big Splash

As new SuperSonics general manager, Sam Presti, begins to build his team, he clearly has an eye on the summer of 2009. With shooting guard, Jeff Green, and small forward, Kevin Durant, to build around, Presti will be looking to add to his squad.

Fortunately, at that time, he will have several major contracts coming off his payroll, including:

Wally Szczerbiak - $13,000,000
Chris Wilcox - $6,750,000
Robert Swift - $3,579,131
Delonte West - $2,762,828

At that time, only Luke Ridnour, Earl Watson, Nick Collison, Damien Wilkens, Saer Sene, Johan Petro, Durant, and Green will remain on the payroll. Those eight players total at $22,650,000.

So, if Presti wants to add some major talent at that time, what will be available? Well, if he’s looking for an all-star, Kobe Bryant, Allen Iverson, Chris Paul, Carlos Boozer, and Kevin Garnett may be on the market. If Presti is looking for an emerging star, he may have his choices of Andrew Bynum, Channing Frye, David Lee, Danny Granger, Gerald Green, Jason Maxiell, Marvin Williams, and Raymond Felton. If he thinks that he just needs to add a veteran to his squad to push them over the top, Andre Miller, Drew Gooden, Eddy Curry, and Lamar Odom could be options.

So along with acquiring two building blocks on this past draft night, Presti also set his team up to acquire more talent down the line. It may not be long until Presti has success in building Seattle into the Spurs of the northwest.

"Power structures" by Sean Deveney

Excerpt of Article from January 3, 2006 in The Sporting News.

Money and market size aren't all a franchise need to get way ahead. It also needs a great front office setup -- y'know, like the ...

New England Patriots

Bill Belichick handles New England's personnel from both the front office and the sideline, with backing from owner Robert Kraft (who has gotten more hands-off with age). Belichick was hired in January 2000 and brought in Scott Pioli as his personnel deputy two weeks later. Within two years, Belichick and Pioli had turned the Patriots into Super Bowl champs, relying on overlooked players such as Bryan Cox, Antowain Smith and, of course, sixth-round draft pick Tom Brady. The team has made bold personnel moves, emphasizing a team of replaceable parts by getting rid of popular players -- Drew Bledsoe, Lawyer Milloy, Ty Law -- before they became salary cap burdens. The results are undeniable: three Super Bowl championships in four years.

San Antonio Spurs

Says one pro scout of the Spurs and Pistons, who are a close second to the defending champs among NBA franchises: "Those two teams listen to the people in their organizations. Most teams have a bunch of scouts who never get heard, and sometimes you wonder why you bother filing reports."The Spurs have a relatively small front office, with power centralized in the pairing of coach Gregg Popovich and general manager R.C. Buford, but the duo is open to input from anyone in the organization. Sam Presti, for example, was hired as an intern in 2000 and has worked his way up to assistant G.M. at age 30. It's not just a show title -- Presti pushed the Spurs to stick with Tony Parker in 2001 despite a bad predraft workout, and it was Presti who introduced the Spurs to 18-year-old Ian Mahinmi, an unknown big man who was San Antonio's first-round draft pick in 2005.

Atlanta Braves

The team's roster has changed dramatically over the past two decades, but the Braves just keep piling up the hardware. They've won 14 straight division titles under general manager John Schuerholz, 65, a man who is a rarity in that he's twice as old as some of his colleagues and has been a general manager in the big leagues for 24 years. Schuerholz was smart (and secure) enough to hire Frank Wren as assistant G.M. just a week after Wren had been dumped by the Orioles (for, among other things, "incompetence") six years ago. The pairing has made for a sharp duo at the top. Also on board is 38-year-old Dayton Moore, an assistant G.M. who many believe will be an excellent general manager and Schuerholz's likely successor. Schuerholz also has unwavering trust in a scouting staff that includes Dick Balderson, Jim Fregosi and Chuck McMichael.

Article available at: http://www.sportingnews.com/yourturn/viewtopic.php?t=49822.