In Appreciation of Peter Holt
The presumed net worth of Peter Holt, CEO and owner of Spurs Sports & Entertainment, is around $80 million, making him one of the least wealthy owners in the NBA. Mr. Holt’s wealth derives from HOLT CAT, the nation’s largest authorized dealer of caterpillar machines, of which he is also CEO. Given the housing crisis that the United States has been experiencing since the fall of 2008, it’s safe to assume these are unnerving times for a man whose livelihood is based on the sale of construction equipment.
(I was unable to find financial data on HOLT CAT but the stock price for Caterpillar Inc., a company to which HOLT CAT’s fortunes are closely aligned, has fallen by nearly half since September 2008.)
Considering the financial pressure Holt is currently under, he did something brave yesterday: He allowed R.C. Buford to send the Spurs at least $10 million over the luxury tax line.
With a collective salary of $72,054,727, the Spurs were already $2.13 million dollars over the tax line (set by the NBA yesterday at $69.9 million) before they signed Antonio McDyess, Marcus Haislip, and Malik Hairston.
For every dollar the Spurs spend over the line, they must pay a one dollar tax to the league. By signing McDyess to the full Mid-Level Exception and Haislip to the full Bi-Annual Exception (most likely), the Spurs are now a solid $10 million over the line. In that number I have yet to include the recently signed contract of Malik Hairtson (the details which are unknown), and the still unnegotiated contracts of DeJuan Blair and Jack McClinton. In short, the Spurs just committed themselves to paying anywhere from $12 to $15 million worth of luxury tax dollars this upcoming season.
Peter Holt took a serious financial hit yesterday and he did so for the good of the franchise you love.
It’s hard to feel sympathy for a man whose net worth is counted not just in millions but in tens of millions, but compare Holt’s situation to Mark Cuban’s, whose net worth is presumed to be north of $2 billion, and you begin to recognize the commitment Holt is making to the franchise. When the Mavericks head into the luxury tax, Cuban hardly feels the prick of a pin. Holt and the rest of the Spurs ownership group commit a significant fraction of the franchise’s net worth to the team’s success.
Mr. Holt’s financial commitment to the team is significant to no one more than the 3 individuals we adore most: Tim Duncan, Manu Ginobili, and Tony Parker. Whether by only requesting reasonable contracts or restructuring their contracts to allow the team to acquire the necessary supporting cast, over the last several years the big three have done their part to ensure the Spurs are in a position to compete for championships. By allowing the front office to take the steps they took today, Holt has kept up his end of the bargain.
In 2008, the median income of a household in San Antonio was $39,140. Over the last 12 months, that figure has surely gone down. I have just begun graduate school and am now neck deep in student loans. For all intents and purposes, you could say my net worth is zero. Given that most sports-related financial figures exist in millions, not thousands, it’s hard to feel like you can affect the life of a man like Mr. Holt. But you can.
Buy a ticket. Buy season tickets. Hell, buy a backhoe for all I care. You alone may speak the language of thousands, not millions. But there are over 2 million people in the greater San Antonio metropolitan area. We speak in millions. Fans have been known to organize financial boycotts of their favorite franchises when they disapprove of the ownership (see Cincinnati Bengals Fans for a simultaneously righteous and hilarious example). We can express approval with our wallets as well.
And remember, the franchise consists of more than just the Spurs. Go to Austin Toros games. Go to Silver Stars games. The franchise is deeply committed to the success of those two teams as well.
In many people’s opinion, the Spurs were teetering on the edge of irrelevance. By giving R.C. Buford and Gregg Popovich the necessary freedom, he has helped bring them back to the center of the contender debate. And he has done so during a time of great financial uncertainty. For this, Mr. Holt, we are deeply appreciative.
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