Lakers only offering Odom a three-year deal?

Reports persist that Odom has been offered deals spanning three and four seasons in length from the Lakers, but that differs sharply from every bankable indication we’ve received.

The Lakers’ best offer to Odom, so far, tops out at $27 million over three seasons. The expectation among rival teams remains that the sides will eventually come to terms.

This makes more sense. I don’t know why Odom would turn down a four-year deal from the Lakers worth $36 million to consider a five-year deal worth $34 million from the Heat. If the Lakers are only offering three years, then the total value of the contract is about $24 million after state taxes, so Odom could elect to go with the security of the extra $10 million in the Miami deal.

This, coupled with the Lakers’ decision to pull their offer from the table, might convince Odom to head to Miami and play for the mid-level. Pat Riley also indicated that the Heat are trying to work out a sign-and-trade for Odom, though it’s not clear what players would have to be involved to get the Lakers to agree to take on the extra salary. Udonis Haslem? Michael Beasley?

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The SEC – that’s The Security and Exchanges Commission, not the Southeastern Conference – has filed insider trading charges against Dallas Mavericks owner Mark Cuban.

The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.

In a PIPE transaction new shares are issued at a discount to the current trading price. An announcement of a PIPE transaction is often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.

On one hand, I sort of admire all the time and money that Cuban puts into the Dallas Mavericks. I don’t think he actually knows all that much about basketball, but most owners don’t commit that much of themselves to the teams they own. Cuban is out there just about every night, cheering his team on. He’s also not afraid to make bold (but dumb) trades like the one that brought Jason Kidd to Dallas.

Then I think about how Cuban made his fortune. He started a company called Broadcast.com during the “internet boom” and he eventually sold the company to Yahoo for $5.9 billion in stock.

Most investors lost their proverbial asses during the internet bubble, but Cuban somehow walked away with almost $6 billion. Either Cuban was really smart to get out when he did or he was lucky enough to have the perfect timing.

Now there’s the news that this billionaire is willing to risk criminal prosecution just to save $750,000 on some stock. What’s the point? So you learn the company you own stock in is about to dilute your shares – is it worth the risk to save $750 K on the deal? Even if he doesn’t go to jail, he’s given himself a black eye as far as the public is concerned.

That doesn’t seem all that smart to me.