Excerpts

In the fourteen years that Michael Jordan played in the NBA, no one other than a handful of players benefited more from the league's rising affluence and the shift in power from owners to players than David Falk. A relatively junior sports agent in the beginning of the era, Falk was by 1998 not merely the most affluent agent ever to represent basketball players but one of the two or three most influential men in the sport of basketball, a man whose power was said to rival that of David Stern himself. If the legal, economic, and technological changes that took place in the eighties and nineties had been good for players, they were arguably even better for agents. Since he first surfaced as an agent, he had split twice with partners: Early on, even before he was part of Jordan's team, he and Donald Dell split from Frank Craighill and Lee Fentress, and eventually he split off from Dell in what was considered a rather bitter professional divorce. In 1998 he sold his company to a larger firm, one that specialized in producing live entertainment in arenas around the country. The price was an estimated $100 million, and as part of the deal, Falk stayed on to run his part of the company. A press release announcing the sale noted that Falk's old company, FAME (Falk Associates Management Enterprises), "represented an unprecedented 6 first-round draft picks in the NBA, negotiated over $400 million in contracts for its free-agent clients, and negotiated four of the five largest contracts in team sports history." No one doubted David Falk's ability and intelligence, but if there was one thing that bothered people who cared about the league and the game in the broadest sense, it was whether he had any sense of a larger good, a belief that the greater good and health of the game was still something of an issue. Some felt that there was a danger that the size of some players' contracts exploited the vulnerability of varying franchises and threatened the long-range stability of the league. Falk seemed to enjoy his power as much as his wealth, the ability not to return calls and to make other people, particularly owners, feel vulnerable to him. "Be wary of David, and be particularly careful when he starts telling you how much he respects you," an owner once noted. "That's when you're going to either lose your wallet or your franchise player--it's his way of telling you he's more powerful than you are." In the summer of 1998, as the league and the players' union prepared for a major battle over contract rules and the owners prepared for a lockout of the players, a number of Falk clients, including Patrick Ewing, Dikembe Mutombo, and Alonzo Mourning, had risen (hardly by chance) to positions of leadership in the union. That did not mean that it was simply Falk against the owners, for there were a number of other agents equally active on the players' side, but the issues, particularly the question of a soft or hard salary cap, seemed more about the contract freedoms enjoyed by the elite of the league than the earning power of most players. Certainly a number of people knowledgeable about the NBA saw the lockout as something of a struggle between Stern and Falk, and certainly when David Falk spoke to reporters that fall, he implied that Michael Jordan might be willing to come back for one more season--if David Stern did not block the way. As the lockout continued, it became increasingly clear that Falk was a critically important figure on the union side and that the issues seemed to affect his handful of elite clients more than they did most of the players. In an unusually scathing column the influential New York Daily News columnist Mike Lupica wrote, "There may be worse phonies in sports than David Falk, but it is hard to come up with one today." Falk was, Lupica wrote, "a Rasputin coming off the bench" in these negotiations, the rare person who could make a writer root for a sports owner. As for David Stern, in the late summer of 1998, as labor tensions escalated and a lockout became ever more likely, he seemed to some of his friends to be significantly sadder, if not actually melancholy. It was as if he was lamenting the loss of a once-vital human connection to the league's players, what he thought of as a special partnership with them. He grew a beard, which he vowed he would not shave until a new labor agreement was worked out. At the same time, ever a world-class marketer, he opened a giant new NBA store on Fifth Avenue in New York City, filled with almost any kind of clothing and trinket that could carry an NBA logo. Soon to come are NBA restaurants in a large number of cities. Stern was very much aware that his longtime critics, people who hated the way the game had evolved in recent years--with its Dream Team conquest of lesser mortals at the Olympic competition, its affluent corporate-sponsorship deals, its big television contracts, its fancy new arenas with their luxury boxes and mandatory deafening noise, its growing separation of players from the media--thought he was being hoisted with his own petard. They believed that the league, with Stern as its master image maker had become too marketing-oriented in its struggle for parity with other major sports. Worst of all, in the process of gaining such stunning success, it had inevitably helped create the attitude among altogether too many players that they were beyond traditional norms of accountability, economically and socially outside the reach and control of society, and that the NBA's phenomenal (and unlikely) growth of the eighties and nineties was not some benign technological and societal fluke but nothing less than their just due. As their salaries had grown at such a remarkable rate in the past decade, so had their separation from reality. Stern sometimes joked privately with friends that he could be arrested for operating under false pretenses in having for so long minimized the warts and maximized the artistry of the players and the game and above all for having tried to diminish the idea that modern athletes were, well . . . greedy. He liked to talk nostalgically about his early days as a league executive, when he worked with an earlier generation of labor leaders and players, men who felt a sense of partnership and shared objectives. Everyone was learning the hard way that a shared partnership was a good deal more difficult in flush times than in hard times. What bothered him now, Stern told some associates, was that players' and agents' memories were so short--almost no one seemed to remember how recently the league could not get itself on prime time for playoff games. What made Stern's sadness particularly poignant was the fact that he had never been simply the owners' man, as was so often the case in big-time sports. He loved the players and the game itself and was committed to both, and he always had a broad sense of the larger health of the sport, a health that he believed began and ended with the public's respect and emotional investment in the players. In the words of Bob Ryan, "In that critical period when the NBA was just beginning to become successful, and a critical ingredient of it was the labor agreements which the league worked out with the union, I could as easily have envisioned David Stern heading the union and Larry Fleisher [the head of the union] being the commissioner--because there was no real difference in their love of the game, and the vision they both had of what they wanted to happen." That was certainly no longer true. It all changed under the weight of so much prosperity. Revenue and salaries had gone up in staggering increments in recent years, tearing asunder all kinds of partnerships. When Stern came into the league as a relatively junior executive in 1978, the total of all players' salaries was around $40 million; only twenty years later, Michael Jordan made close to that much himself in one year, his team's payroll was roughly twice as much, and the total for the league was around $1 billion annually. That meant that salaries had gone up roughly 2500% in the twenty-year period. But a new generation of players represented by a new generation of agents had little interest in the hoary stories from what seemed like another century about how far they had all come in so short a time. There was no small amount of irony in the fact that the agent who had pulled off the Kevin Garnett deal, which more than anything else united the owners in bringing on the lockout, was Eric Fleisher, son of the late Larry Fleisher, the first head of the union and an agent in his own right, a man once despised by the owners of his day but now regarded as the very model of decorum and fairness by a new generation of league owners and executives. The negotiations between league officials and owners on one hand and players on the other moved slowly in the fall of 1998. It was a most unusual labor dispute: on one side a large number of billionaires, on the other, countless millionaires. Tony Kornheiser of The Washington Post said it was a strike between tall millionaires and short millionaires. And Sam Smith of the Chicago Tribune wrote that watching the strike was like watching a collision between two limousines. "One guy gets out of the backseat of one limo complaining that he spilled his glass of Château Lafite Rothschild wine in the collision. And the guy from the other limo gets out mortified that his gold Rolex was scratched." By 1998, the average player's salary was $2.5 million. David Stern himself made $7 million a year, a sticking point for many of the players and agents. And Patrick Ewing, the head of the union, was making $18.5 million this year as part of a handsome four-year contract, a sticking point with owners. The issues seemed less about how much money was being made at the moment than whether salaries would be kept open-ended in the future. Would there be any ceiling on a team's ability to sign its best players? Could some formula be engineered that justly rewarded very valuable players after a certain period of service and yet did not threaten the very stability and balance of the league? Did the issues at stake affect 80 percent of the players or just a small handful of elite players who might be worthy of giant salaries? The truth was that with the salaries so large and getting larger, the players were inevitably the losers in a showdown like this. They had lost something crucial from their earlier public struggles with the owners: public support. Few young American sports enthusiasts, after all, had ever rooted for the owners or idolized them, and few American youths had grown up in their teens hoping one day to own a sports franchise. The owners had no popularity to lose. The players did. Out of touch with the world around them, strangers even to the better sportswriters who now covered them, encouraged by agents who had both a vested interest in their success and a fear of being candid with them, players rarely enjoyed the kind of dispensation granted a superstar like Michael Jordan. Theirs was hardly a popular cause even among those normally accustomed to taking labor's side in salary disputes. The owners wanted to put some significant limits on the Larry Bird exception in order to keep it within the agreed-upon boundaries of the salary cap. They were not, they said, trying to turn back the clock or move the pay scale downward, nor even trying to stop the ability of players to enjoy considerable freedom of movement. Instead, they were, in the period after Kevin Garnett's signing, trying to limit the ever-escalating madness--not just of the players but of themselves. If accepted, their offer would bring the total payroll to $1.2 billion in four years, roughly a 5 percent annual increase. Under the old shared-revenue agreement, the players were supposed to get 52 percent of gross revenues, but the annual increase in salaries had been so steep--roughly 15 or 16 percent a year--that the league now claimed that the figure had reached 57 percent and was still climbing. As Kevin McHale said when he finished up the Kevin Garnett salary negotiations, "We've got our hand on the goose which has been laying the golden egg, and we're already squeezing too hard." That Michael Jordan was special because he had helped change the economics of the game, and that his big paydays had come quite late in his career, seemed to be concepts beyond the comprehension of many of the players. A player named Jerry Stackhouse was a good example, although there were many others like him. Stackhouse had come out of Carolina after only two years in the Dean Smith program, and he had seemed at first to have the potential for true greatness--he was a slasher, someone whose drives to the basket were hard to stop because of his power and speed. He had entered the league with a handsome new sneaker contract and all the other accoutrements of the modern celebrity athlete. But he was still an unfinished player, and he did not improve greatly in his first three professional seasons. In part because his outside shot remained suspect, defenses could drop off him, and that cut down on his ability to drive to the basket. In addition, his posse--that is, his group of followers--did not seem to get along with Allen Iverson's posse, and in time, in his third season, he was traded to Detroit. But he was also heard to say that he was thinking in terms of a big contract, at least $10 million a year: If Michael Jordan was worth $30 million, he said, he was at least a third as good a player as Michael. Who would ever know if that were true or not. What was probably happening was that after a period of truly phenomenal growth in which all sides had benefited across the board beyond anyone's expectations, and the league had enjoyed a rise in popularity and a general growth unparalleled in sports history--in no small part because of profound technological change--and one great player had become the showcase for an entire sport, owners, commissioners, players, and agents were trying to define what the post-Jordan reality was--reality in a world that had no reality because it was driven, in all ways in the end, by fantasy. No company enriched Michael Jordan more than Nike or benefited more from his career. Jordan had made around $130 million from Nike over his career by 1998. Given his baseball sabbatical, that averaged out to around $10 million a year from just one company. In turn, he not only made Nike literally billions of dollars, he helped it win a series of epic life-or-death battles against Reebok at the height of the great global sneaker wars. Nike had just begun to slip behind Reebok when it signed Jordan, and the Jordan line changed that equation dramatically. In their first year the Air Jordans grossed an unheard-of $130 million, and the Nike comeback had begun. In 1986, because of a number of earlier quite serious miscalculations at Nike, the Reebok share of the domestic sneaker market was far greater than that of Nike: 31.3 percent to 20.7. Four years later, in no small part because of Jordan's presence, Nike regained the lead and widened it steadily. Among the first companies to learn that Michael's presence both on and off-court was special, and not easily repeated, was Reebok. It had placed a huge bet on Shaq but had not prospered. Shaq, eventually cut loose from his five-year $15 million deal, had become, by 1998, something relatively new in American sports, a free agent in the sneaker world. Not every athlete, it was clear, no matter what the level of charm or ability, could replace Jordan either on the court or on the screen. Not all of Nike's growth was attributable to Jordan's presence, of course, but in 1984 the company had revenues of $919 million and a net income of about $40 million, and by the end of 1997, Nike's revenues were over $9 billion, with a net of around $800 million, stunning annual growth rates. Michael Jordan had never become very close to Phil Knight, the most iconoclastic and least predictable of American CEOs. Knight was self-evidently a visionary, but he often seemed extremely awkward socially, and he was by no means the kind of person Jordan felt at ease with. Over the years the small talk between them was quite limited. At one point Jordan came very close to leaving Nike to become a full-fledged partner in a new sneaker company that was going to be set up by Rob Strasser and Peter Moore, former Nike men with whom he felt a far greater sense of connection. The showdown meeting between Jordan and Knight had not been a pleasant one: Jordan had kept Knight waiting for several hours, someone involved in the meeting remembered, and arrived in a hostile, angry mood. He had clearly been primed for battle by the ex-Nike renegades, apparently made aware of how small his cut of the giant pie he had helped to create really was. But in the end there had been too much risk involved, particularly for someone whose career could end with injury at any moment, and the prospect of an enraged Phil Knight using all of Nike's not inconsiderable might and muscle to keep a new Jordan-driven company out of the world's biggest sneaker stores was not something Jordan or Falk wanted to take on. One thing that did come out of those negotiations was a far better cut in the revenues for Jordan, and by the early nineties, very quietly, without too much public fuss, he was making around $20 million a year from Nike. Nike soon found that its success with Jordan was not lightly transferable to other athletes. To be sure, a campaign based around Charles Barkley had charm and wit and intelligence, in no small part because Barkley himself, whatever the egregious aspects of his behavior, was charming, witty, and intelligent. (Danny Ainge, his onetime teammate, once noted that he had been around a lot of players who were essentially bad guys trying to pretend they were good guys, but Charles was the only person he had ever met who was a good guy trying to pretend he was a bad guy.) But a good many other campaigns seemed to fall flat, most notably a campaign to promote a football-baseball player named Deion Sanders as a kind of comparable cultural hero. That Sanders was a gifted athlete was undeniable, but that he was any kind of cultural icon or even particularly likable to a broad spectrum of his fellow citizens was dubious. What was believed to be his charisma reflected all too accurately the aberrant quality of much of contemporary celebrity: It seemed to stem largely from his willingness to do wildly egocentric self-congratulatory dances in the end zone, as if each visit there was his first. Part of the problem in Nike's larger public relations, in commercials featuring Sanders and a number of other athletes, was that these commercials tended to reflect an important part of the company culture, that of being mavericks and upstarts ready to take on the rest of the world. After all, Knight started the company in his home, using a waffle iron to make sneakers designed by his old track coach, and at first he had gone from track meet to track meet selling his shoes out of his car. That was still the way he saw himself--a little guy taking on the big guys. The Nike guys liked to see themselves as "outlaws with morals," as one consultant who worked with the company said. So when Deion Sanders poured a bucket of ice cold water on an unsuspecting and fully clothed baseball announcer, Tim McCarver, because McCarver had questioned Sanders's athletic loyalty as he jockeyed back and forth between football and baseball in the midst of baseball playoff games (apparently encouraged by Nike, which paid for the helicopters that got him to and from games), no one at Nike seemed at all upset. In their opinion, Sanders was just a Nike guy doing a Nike kind of thing. But by the late nineties Nike was no longer a little guy taking on big guys; it was a very big guy whose reach and logo seemed to be everywhere, not just a multinational giant, but more like a huge octopus with tentacles that reached everywhere into the sports world. Its swoosh symbol seemed to be omnipresent, and its power--the immense sums it paid college coaches in order to be the sneaker and uniform provider of choice, caused a great deal of uneasiness among traditionalists in sports. Inevitably, because of its own high visibility and the singular visibility of its athletes, it became the ideal target for critics concerned with the broader issue of the labor practices of American multinationals in poor, third world countries. Charges of unacceptably low pay, unsafe working conditions, and exploitation of child labor were aimed against the company in general, and against Jordan in particular as the Nike poster boy. The Nike factories in Vietnam, where wages were said to be under two dollars a day, came under special criticism. The furor seemed to bewilder Jordan, who, like other celebrities caught in the name brand apparel game, never thought that the easy affluence his endorsements brought him would or should have that kind of a downside, nor that he would become a target of pickets for allegedly exploiting children in some far-off country. A series of cartoons mocking both Jordan and Nike soon appeared in the comic strip "Doonesbury." There was talk in the spring of 1998 that Jordan might visit the Vietnam factories in the summer with a select media entourage, a trip that would produce great television footage and comparable pro-company spin. By the early fall that trip seemed to be postponed indefinitely. If there was anyone more bewildered than Jordan by the furor it was Knight himself. Asia had long fascinated him. Long ago he had sensed the rising importance of that region not just as a market but, more important, as a challenger to traditional Western economic hegemony. He saw himself as both pioneer and visionary in a new world order in which the importance of Western Europe declined and that of Asia and the Pacific Rim ascended, someone who had seen the future before anyone else, or at least long before most other American CEOs. He did not respond well to charges that he was less a visionary of the future than he was an exploiter of the present. His early responses to these charges were remarkably insensitive, in no small part because he was so sure that Nike was good for these countries. In time, he made the mistake of granting an interview to Michael Moore, the irreverent filmmaker. Perhaps Knight thought they were fellow mavericks, soulmates who wanted the same thing. The segment, in a film called The Big One, was a disaster for Knight and Nike. Among other things it featured Moore inviting Knight to open a factory in Flint, Michigan, one of America's most depressed former industrial sites, rather than opening yet another factory in some village in Asia. In May 1998, realizing finally that much of the world did not see his company or his economic practices the way he saw them, he announced significant changes in Nike's overseas production. Its Asian factories would meet American health and safety standards, and the minimum age for new workers would be moved to eighteen from sixteen. He did not mention any increase in pay for workers, a likely future sticking point. When Michael Jordan hit that final jump shot against Utah in June, many of the people closest to him, like Roy Williams, believed that it was the final act of a brilliant career. The assumption was that the curtain had at last come down on his remarkable tour with the Chicago Bulls, despite the fact that in some ways he was playing as well as ever, and despite the fact that his taste for the game had not declined at all. He remained as hungry as ever. Still, Phil Jackson was gone, and could barely wait to clean out his desk at the Berto Center. Jordan had sworn that he would not play for a different coach, although there was some evidence that he might overcome that particular vow; even more important, it was unlikely that Scottie Pippen, the most critical of the dominoes now, was going to return. Furious at the Bulls organization, apparently burning with a desire to go elsewhere, Pippen appeared almost certain to depart, thus leaving Jordan unusually vulnerable to the assaults of would-be contenders. The 1997-1998 season had been hard enough and there was ample evidence that the Bulls as a team were wearing down. But a full season without Pippen as his alter ego, even with the ability of the Bulls to add other free agents, might expose Jordan as an aging star able to do only so much on the court. But the lockout changed all equations. Suddenly not only was all player movement limited, but players could not even talk to management. No one, as December 1998 started, knew when the season might start, or whether there would even be a season. Pippen remained frozen in place, seething with rage at the injustice of a world that, when it was finally his chance to have a big payday, had placed yet another obstacle in his way. The possibility of a short season, however, might, some people close to Jordan believed, affect Michael's attitude and might make him more inclined to come back. Perhaps, this thinking went, Michael and a patched-together team might be able to make the playoffs, where, by the power of his will, he would be able to dominate once again. If the answer by December was not yet in whether or not he would play again, there was plenty of evidence upon which to make an estimation of what his special role had been in American sports. He was not in any classic sense history's man, not one of those men like Jack Johnson, Paul Robeson, Jackie Robinson, Muhammad Ali, or Arthur Ashe whose own complicated lives and painful struggles against long-established prejudices and racial barriers revealed a great deal not merely about sports but about the history of race in America. He was not the first as Robinson, Ashe, and Johnson were, for example, nor did he end up by making a broader and on occasion more torturous political challenge to the white establishment as Robeson and Ali did. The timing of his entrance upon the American educational, athletic, and commercial scene was impeccable and precious little had been denied him because of his race. To the degree that his career reflected anything larger than sports in historical racial terms, it was the willingness of corporate America, however reluctantly, to understand that a stunningly gifted and attractive black athlete could be a compelling salesman of a vast variety of rather mundane products. Not that Jordan had not faced prejudice in this area at first. When he had first started out as a pitchman and David Falk had pushed him at a number of large American corporations, a representative of one multinational had suggested Jordan might be perfect to push Beanie Weanies, a sausage and beans product popular with poor blacks in the South, an offer in commercial terms not unlike the Harlem Globetrotters trying to sign him when he left Carolina after being college player of the year. Falk and Jordan had politely declined, and in that first year, to everyone's amazement, the Air Jordan line had broken all existing records for an endorsed product. With that the gap was breached, and he had transcended racial barriers in the world of advertising. In time he became a record holder in this area as well, for it was almost certain that no American salesman of any color had ever entered more homes, here or abroad, or successfully sold more products; in the summer of 1998, Fortune magazine undertook a detailed study of Jordan as a figure of modern capitalism, and estimated that he had helped generate $10 billion in revenues for the game, its broadcasters, and for his varying corporate partners. If he was not a figure from the pantheon of athletes as were such historical figures as Ali and Robinson and Johnson, men whose racial travails were at least as compelling as their athletic deeds, then what the average fan was left with was something less than a series of remarkable images of him as an athlete: a human comet who, miraculously enough, did repeat performances, and whom we were privileged to see flash through the night again and again and again, the most charismatic player ever in his sport--brilliant, balletic, and, of course, fierce. He possessed in the highest proportions all the requisite qualities for greatness; in addition, it was as if some geneticist had injected a magical solution for supercompetitiveness into his DNA, and he came to represent, more than any athlete of recent years, the invincible man, someone who simply refused to be defeated. He seemed sometimes to be as much explorer as athlete, explorer in terms of going beyond previously accepted limits of what was humanly possible, and somehow by dint of physical excellence and unmatched willpower, pushing those limits forward that much more. That, for the millions who watched him over the years, was no small gift. Excerpted from Playing for Keeps: Michael Jordan and the World He Made by David Halberstam All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.