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Friday, November 13, 2020

Cavs Lay Off 5% of Business Staff Same Week Owner Dan Gilbert's Rocket Companies Posts $3 Billion Quarterly Profit

Posted By on Fri, Nov 13, 2020 at 4:30 PM

click to enlarge ERIK DROST/FLICKRCC
  • Erik Drost/FlickrCC

The Cleveland Cavaliers/Monsters/Canton Charge/Cavs Legion organizations laid off approximately 5% of their shared business-side staff this week, according to a spokesperson who contended the downsizing was planned before the pandemic.

You can read the whole gobbledygook statement below but suffice it to say many teams across many leagues have undergone similar cutbacks since March, so in that regard the Cavs are not alone.

In other Cavaliers news: Team owner Dan Gilbert's Rocket Companies posted $3 billion in quarterly profit, it was announced this week. Gilbert's net worth has grown to $45.3 billion, according to Forbes, up some $38 billion since the summer when he took Quicken Loans public with an IPO. These are, of course separate businesses and companies, but billionaires are billionaires and Dan Gilbert is one of the top five richest owners in all of pro sports now.

Anyway, the statement:

"Our organization has undergone an evaluation of what an appropriate re-structuring would look like as relates to our business side. The resulting process and plan was designed to allow us to better, and more efficiently, align our resources and positions with our current business needs and future goals. The review and process began during the 2019-20 NBA and AHL seasons.

"We now have a strong and clear vision of what that alignment should be, how those operational and structural efficiencies could be created related to our business staff and are executing that plan now. This includes the elimination of a small percentage of business-side positions. The decisions were very difficult to make, but our responsibility to operate the business in the most appropriate and efficient way possible was at the core of this evaluation. In situations where positions have been eliminated and team members are departing the organization, we are providing comprehensive and generous support to assist them as they take the next steps in their careers outside of the organization.

"The process was elongated as a result of COVID-19, but not caused by COVID-19, as the review and process started prior to COVID-19 becoming a reality. We’re still navigating current industry conditions that have evolved over the last seven months, though. We have reduced events, games and concerts. These conditions will continue to impact our organization for the foreseeable future. As a result, a limited restructuring with our business-side staff became even more relevant and appropriate as a result of this continuing landscape."

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