Mark Cuban Unabashed

What advice would you give business owners regarding how to handle their star players and their executive management?

There’s no set answer. You’ve got to deal with them individually. You don’t want to tell the people who aren’t at the star level that they’re treated differently or they’re not treated the same as the star. You’ve got to recognize the differences in people. I’ve always tried to keep them motivated in one way or the other. I’ve always had an approach, whether it’s the Mavericks or any of my organizations, there’s no limit on compensation. If you take the risk of commission, more power to you if you sell a lot. I’m not going to string you out to squeeze you back so I can make a bit more money.

I think by trying to let everyone know that their compensation is only limited by their effort, you tend to be able to deal with stars. Whereas, if you put a limit on them, then it’s like saying, “I played my 40 minutes; I don’t have to do anything else.” They reach the limit then they go to bed. Or, even worse, they’ll look around and say, “I sold my quota and you didn’t. What’s the matter with you?” You’ve got to deal with all that nonsense. I tend to not place limits and I tend to encourage people. Sometimes I’ll also put the reward ahead of the cart. Someone once gave me a great example where they gave new salespeople a Cadillac. They were told if they don’t hit their numbers, it will be taken away. No one wants to be the guy who lost the Cadillac. Sometimes, by giving the reward up front and having it be something that is very visible, the fear of losing that visible reward tends to balance things out. I’ve tried various tricks, but you have to understand the people you’re working with.

The other thing I’d say is you have to define the culture of your organization because, if there isn’t a culture, individuals tend to fight it out to try and have things their way. Players on a basketball team like to be general managers. This coach can’t do this or this player can’t do that. Players are terrible judges of talent and salespeople are terrible managers of talent, as well. You hire them for a specific job. Their talents may allow them to expand into other things and you reward them in helping you get there. Sometimes, entrepreneurs fall short in that they don’t define and understand the culture of their companies. I’ve always tried to make the culture of any of my companies about selling. It’s always selling time. If I see two salespeople talking to each other and it’s 3 p.m., I’m going to walk up and say, “Who’s got the check?” Because someone better damn well be buying something from someone else because, otherwise, it’s selling time and they should be out there selling. If they’re doing that and they’re successful, I’m rewarded; and if they’re not, they’re not doing their job. A little culture of fun and a culture of adventure have really helped all my companies.

Flying here, I sat next to a pilot who was deadheading. He was on his way here to get some simulator time at American Airlines Pilot Training Center. He lives in northwest Chicago. I told him who I was coming to interview. He quickly said, “Man, I wish he would have bought the Cubs.” During our conversation, both of us were wondering what it must be like to wake up in the morning and know you own a prominent NBA team.

It’s pretty cool. It’s fun most of the time. It’s fun when you’re winning because you’re proud as a peacock walking down the street. It’s painful when you’re losing because it’s my responsibility. It’s, kind of like being dad. When your kids are doing great in school, you’re thrilled as you can be, proud as you can be. When your kids aren’t doing well, then you’ve got to hear the bad news from the teacher and figure out how you’re going to deal with it because there’s so much at stake. I’m not saying what happens with a sports team is as important as what happens with your kids, but what I am saying is that I never realized the importance of the Mavericks to the community until I bought the team. I was a fan, but I could let it go when I left the arena after a game. I may talk to friends, I may get excited about it, but that was just entertainment to me. Once I bought the team, I started getting e-mails, calls, letters and visits from people talking about the importance of the team to their family. You start to recognize that, for some families, grandma watches every game and it’s the only way she can relate to little Johnny or little Susie who are all tattooed or got everything pierced—they talk about the Mavs at dinner.

Or families, friends or couples that go to games and how they feel that night depends on whether or not we win; kids who look up to certain players. It’s heart wrenching and I can’t tell you how many times this has happened where I’ll get a call or an e-mail from a parent who is just distraught that their son or daughter has cancer or has died. I’ve had it happen twice where someone has asked to be buried in a jersey or another player’s jersey. You’re on the positive side of winning things. We met at a Mavs game; our first game was a Mavs game; we’re huge Mavs fans; the theme of our wedding is going to be the Mavs. I just had this question: “Can we get the warm-ups in these sizes and will you help us because our groomsmen are going to be wearing Mavs warm-up jerseys?” I’m thinking, you’re crazy, but it’s cool.

Knowing that you’re so entrenched in the community is wonderful, but it’s also a weight and a responsibility. I think when owners in any sport that are really involved watch a game, they don’t just see a win or loss, or loss for that game. They see the implication of all decisions they have to make when things are working, versus when they’re not working. They brought this player in as a pitcher or as a center, as a point guard; and, if they don’t do what is expected of them, how does that impact all their decision making and how does that impact the future? How are they going to sell it to fans and what are fans going to think? That’s their customer and they’ve got to keep their customers happy. It’s exciting, but it’s also, sometimes, overwhelming.

Mark Cuben spent his early life in a suburb of Pittsburgh, Pennsylvania. Rather than attending high school his senior year, he enrolled as a full-time student at the University of Pittsburgh. After one year there, he transferred to Indiana University in Bloomington, Indiana, where he later graduated with a bachelor’s degree in business administration. In 1982, he moved to Dallas, Texas and got a job as a salesperson for Your Business Software, a PC software retailer. A short time later, he decided to start his own company, MicroSolutions. MicroSolutions operated as a software reseller and system integration company, selling products such as CompuServe, Carbon Copy and Lotus Notes. In 1990, Cuban sold MicroSolutions to CompuServe for approximately $6 million. Then, in 1995, Cuban and a friend formed Broadcast. com, a company that was later acquired by Yahoo! for more than $5 billion in Yahoo! stock. Cuban is currently the owner of the Dallas Mavericks basketball team, purchasing the team on January 14, 2000. Several of his other notable ventures include HDNet, a high-definition TV network, and 2929 Entertainment, which produces and distributes films and video. Cuban currently resides in the Dallas area with his wife and children.