If cancelling opening night and the rest of the NBA calendar for November failed to prove how serious David Stern is about saving his owners' money, there is this: the commissioner reportedly fined Micky Arison, the Miami Heat owner, a cool US$500,000 (Dh1.84 million) for a tweet suggesting he was not one of the owners willing to sacrifice games to save money.
In response to someone who labelled the parties involved in the lockout "greedy … pigs", Arison tweeted: "Honestly u r barking at the wrong owner."
The tug of war between owners and players, as well as commissioner and owners, has been a poor substitute for watching the Dallas Mavericks raise last season's championship banner into the rafters before taking on the Chicago Bulls, one of three games originally scheduled for opening night last week.
Stern's levy on Arison marked the third time he has lightened an owner's wallet for talking out of turn about the lockout - Charlotte's Michael Jordan and Washington's Ted Leonsis had already contributed $100,000 each to league coffers. But the extra-heavy hit might reflect more than the commissioner's growing impatience with rule breakers.
Though Arison later endorsed the league's line about the tweet being taken out of context, it is clear that his real sin was exposing the owners' less-than-unified stance.
Arison paid plenty to bring LeBron James and Chris Bosh to Miami and made plenty in return, not just for his franchise, but everywhere the Heat played last season.
Even if the league's claim that 22 teams are losing money is correct, successful teams such as the Heat, Knicks, Lakers and Bulls can't be thrilled with the prospect of losing an entire season of profits to help the poorer franchises squeeze a more favourable deal from the players.
But as desperate as the fine made Stern look in his bid to hold ownership together, he still has a much easier task at the moment than his counterparts at the union.
The 400-plus members of the players' association are being tugged in different directions by Billy Hunter, the executive director, and Derek Fisher, the president and veteran Los Angeles Lakers guard. They staked out different positions on the central question in the negotiations - what percentage of basketball revenues the players will settle for - and the campaigning behind the scenes has grown uglier by the day.
Fisher has been accused of secretly negotiating a deal with Stern to get the players to agree to a 50-50 split in exchange for a cushy job with the league down the road. The rumours grew so loud that he was forced to respond to the players in an e-mail, saying: "There have been no side agreements, no side negotiations or anything close."
For his part, Hunter has been adamant about the players keeping 52 per cent of revenue - a drop from the 57 per cent they got in the last agreement - which would still transfer more than $1 billion (Dh3.673bn) back to the owners in any new deal.
Hunter walked out of a bargaining meeting last week to dramatise his threat that the players will not consider a penny less, but the players' weakening position suggests it was mere grandstanding.
Most insiders, and likely even the players themselves, know the final deal will get made at 50-50 or not at all. Hunter's intransigence has led to speculation that he is taking a hard line to impress players and is more concerned about keeping his job with the union than getting the players back to work.
If the result is a bad deal - and whenever it is finalised, it is likely to favour the owners - at the very least it gives him an alibi.
There is a growing sense that the players would vote to take the deal at 50-50, since the only other option is to walk away, decertify the union, and take their fight to the courts. That would effectively wipe out the season, which has also led some players to question why the union did not exercise that option over the summer, when some leverage might have made a difference. Instead, it is the owners doing most of the squeezing.
Players will lose $350m because of the cancelled games this month, and the threat of sacrificing another round of games, likely to be followed by the owners putting an even worse deal on the table, should have the desired effect.
Stern holds most of the cards, and all he has to do is hold the owners together for a little longer. Buying that loyalty doesn't always come cheap, but as even Arison would likely concede, whenever the deal gets done, it rarely is a bad investment.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Last five meetings
2013: South Korea 0-2 Brazil
2002: South Korea 2-3 Brazil
1999: South Korea 1-0 Brazil
1997: South Korea 1-2 Brazil
1995: South Korea 0-1 Brazil
Note: All friendlies