Larry Miller

Portland's cool customer

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5BJ In-Depth

Portland's cool customerLarry Miller uses lessons learned at Nike to lead a Rip City renaissanceBy JOHN LOMBARDOStaff writerPublished October 26, 2009 : Page 01

Portland Trail Blazers president Larry Miller reaches into a shelf behind his pin-neat desk and sheepishlypulls out a framed photograph of himself standing next to a beaming David Stern. A bold inscription onthe photo reads: "To the NBA's No.1 turnaround specialist."

It's high praise from the demanding NBA commissioner given that, under Miller, the Blazers have yet tomake a profit, much less advance far into the playoffs, and are hamstrung with a cable deal thatprevents much of the state from watching the team's games on television. Yet there is little debate aboutwhether the Blazers stand as the league's most notable reclamation project.

Gone are the rap-sheet players, their bloated long-termcontracts and the team's humiliating "Jail Blazers" rep.Gone is ineffective leadership and a rift with locallawmakers. Gone are the deep financial losses that just afew years ago gave team owner Paul Allen, one of theworld's richest men, reason enough to throw the RoseGarden Arena into bankruptcy and nearly dump thefranchise.

Today, as Miller begins his third season running theBlazers, the team has moved from an NBAembarrassment to a Rip City renaissance. While everyother NBA team this year cut or froze season-ticketprices, the Blazers boosted prices by nearly 7 percent.While most other teams struggle to renew season-ticketholders, the Blazers sport a 90 percent renewal rate andexpect to sellout every game.

But it's more than the business metrics that have markedMiller's tenure with the team. He's injected a unifiedapproach into the organization with a brand-first mentality built from his years working at Nike. TheBlazers have cut the nearly $100 million in operating losses from just a few years ago to projectingthey'll break even this season.

"The Blazers had fallen out of favor with their community and Larry has restored the connection," saidStern, who this year named Miller to the league's influential labor relations committee. "It is somethingthat [team owner Paul Allen] has charged him with and it's taken a Herculean effort to unite both sidesand get the team back on course."

Winning 54 games last season and returning to the playoffs certainly helped heal the wounds, but theresurrection began the minute Miller first walked through the Blazers' front-office doors in June 2007. Onthat first day on the job, Miller felt an odd buzz follow him as he walked through the halls. When hegathered the entire staff to introduce himself, he heard the whispers.

"Finally someone said that I was violating the dress code because I had jeans on," Miller said. "So thatwas the end of the dress code."

A small gesture to be sure, but given the malaise that had struck the beleaguered franchise, the move

rang loudly through the ranks.

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"It was the first thing he did," said Blazers general manager Kevin Pritchard. "And the message to uswas: Be yourself."

A casual approach

Miller, 60, has spent his entire career carving out an individual style that has taken him far from bluecollar West Philadelphia, where he grew up. He drove a limo to help pay for college and, sincegraduating, he's held key executive jobs with standout brands like Campbell's Soup, Jantzen and Nike.Along the way, he has carefully groomed his reputation as a listen-first executive armed with an auditor'seye for the bottom line, a powerhouse Rolodex, and an uncanny sense of timing.

His cool, humble demeanor is effectively disarming. Arrange a meeting with Miller and you won't beushered into a stately office by a public relations manager or staff assistant. Instead, on one recent day,Miller wore jeans, a crisp white, untucked dress shirt and a well-tailored sport coat. He appeared in thelobby by himself with a friendly smile and led a visitor into his modest-sized office sleekly decorated withblack metal furniture.

Miller may be humble, but he's got some serious sartorial style. In a city that is far more Patagonia thanPrada, Miller buys his Italian-made shoes at Berluti's in New York City, where ready-to-wear shoes startat $1,100 and made-to-order shoes start around $5,700. He has his suits custom-made by a tailor whodresses NBA players. His designer red-tinted glasses are a staple. He has a collection of cars, including aBentley, that he drives to the arena as a game-day tradition.

On one office shelf is a nod to his Nike days - abobblehead doll lineup of the original NBA playerswho endorsed Nike's "Air Force" brand. Anothershelf features a display of miniature Nike shoesfronting a stack of books on boxing and acherished photograph of Miller and MuhammadAli. Name any prize fight in recent history andchances are that Miller has been there ringside.

"It started when I was a kid and would watchfights on television with my dad, brothers anduncles," Miller said.

Larry's father worked as a laborer for U.S.Gypsum while his mother stayed home to raiseLarry and his seven brothers and sisters.

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Under Larry Miller's leadership, the Trail Blazershave gone from huge operating losses a few yearsago to projecting they'll break even this season.

"We had a large family and my dad was a goodprovider at that time for someone who didn't have a high school education," Miller said. "I got somegood real lessons in terms of working hard and doing the right thing."

After high school, Larry worked as a machinist, grinding out a living until age 28, when he went toTemple University. He graduated from the university in 1982 with an accounting degree and next earnedan MBA from LaSalle University. "The initial plan was to get into computers, but once I took Accounting101, it sparked a flame," Miller said.

One of his first jobs was as an accounting supervisor with Campbell's Soup at a factory in Camden, N.J.,where he learned a vital managerial lesson. "It was important to really see how a product was createdand to work with people in the plant," Miller said.

A string of finance management jobs followed as Miller shot up the corporate ladder. In 1992, Millerheaded to Portland-based VF Corp., an apparel company owning brands such as Lee Jeans, Wrangler,North Face and, when Miller joined the company, Jantzen swimwear. His first job was a companycontroller and then, in a fortuitous twist, Miller was named vice president of business development forJantzen.

"1 was working with a guy who ran the swimwear division who was real sharp in sales and marketing bu.tstruggled on the numbers side," Miller said. "1 told him that I would teach him as much about numbers If

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he would teach me as much about sales and marketing."

East Coast native Miller admits he had some initial culture shock, but he soon adapted to the more laid-back Portland lifestyle. "I came out in August when it was sunny and I didn't know it rained the rest ofthe year," he said.

As vice president of business development for the Jantzen brand, Miller figured that a partnership withNike would be able to help drive business and breathe new life into the relatively unknown brand.However, historically, Nike had no interest in any licensing deals. But when Miller heard that thecompany was considering a change in strategy, he quickly arranged a meeting with Nike executives.Soon, Nike had struck its first licensing deal and Miller was named president of Jantzen.

"Pretty good timing," Miller said.

The Nike way

As president of Jantzen after the company's Nike deal, Miller had quarterly dinners with Steve Gomez,who ran Nike's worldwide global apparel business.

"We'd talk, but after a while, I felt that I was being interviewed," Miller said.

His instincts proved correct. In 1997, Nike hired Miller as a vice president of U.S. apparel. Joining thefast growing company meant not only a change in Miller's responsibilities, but also a major shift incorporate culture.

"Nike is a difficult place to break into," Miller said. "It is an insular place. But I got great advice fromSteve Gomez, who was not only my boss but my mentor, who told me to come in, listen, learn and lookfor ways to contribute, not to change the world. Nike is a place that even if you are a superstar, youcan't act like one. The culture there is that it is about team goals, not individuals, and that's how thingsget accomplished."

Miller's team-oriented managerial approach began to pay dividends for the fast-track executive. Hebegan to earn a reputation for solving problems calmly and with a quiet confidence gleaned from workingalongside power players like Nike Chairman Phil Knight, Michael Jordan and nearly every other Nike-endorsed superstar athlete.

"It doesn't matter if you are the president or just another person in the office," said Vada Manager, whoworked with Miller at Nike. "Larry treats you the same and it's authentic."

Miller's sharp instincts and ability to manage people soon earned Knight's trust. When Nike decided tocreate its "Jordan Brand" initiative, Miller was tapped to help lead the launch in 1999.

It was seen as a risky move given that the company was creating a brand under Jordan, who was aboutto retire for the first time. Some in the company believed Jordan's consumer relevancy would fall afterhis retirement, but Miller sensed that Jordan could drive an entire apparel brand, not just shoe sales.

"There were a lot of people who thought it was a good run but that it was over," Miller said. "But I wasvocal that the Jordan 'Jumpman' logo could evolve and I put together a team, though Phil accuses me ofcherry-picking the organization."

In 1999, Miller was named president of Jordan Brand, which meant playing peacemaker between Nikeexecutives and Jordan during the sometimes contentious rollout given that Jordan had his own vision ofthe brand that sometimes clashed with Nike's interests.

"Larry is a great listener and Michael wanted a lot of input and Larry was willing to go to bat for thoseideas," said Manager, who was part of the Jordan Brand team. "Larry was like Henry Kissinger betweenJordan and Nike management. There was a lot of money and a lot of business at stake and Larry wasable to calmly navigate both the large and small issues between the two entities."

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Miller had every reason to shout from thegold-plated chandeliers during a privatecelebratory dinner with Jordan and 15 otherJordan Brand executives at the ritzy St. RegisHotel. Instead, Miller sat back and watchedJordan and Co. drink expensive red wine andsmoke fat cigars as they toasted a venturethat would eventually top $1 billion inrevenue.

"Larry's demeanor never changed thatniqht," Manager said. "He never gets toohigh or too low. He just sat back with thattrademark smile of his and made everyoneelse feel comfortable."

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A return to the playoffs last season reignited thepassion of a fan base that had tired of the team's

earlier woes.While Miller and Jordan Brand wereflourishing, the Blazers were floundering, first under Bob Whitsitt, who ran the team from Seattle, wherehe was also running the NFL's Seattle Seahawks, also owned by Paul Allen. A series of bad playercontracts and player legal issues derailed the Blazers, and Whitsitt resigned in 2003. He was replaced bySteve Patterson, a longtime NBA executive with the Houston Rockets and former executive with the NFLHouston Texans.

Patterson's tenure was marked with both success and failure. He began shedding bad player contracts,but he also was seen as an outsider. He became embroiled in public feuds with the local media while theteam struggled on the hardcourt. Patterson resigned in 2007 and Allen brought in TodLeiweke, CEO ofthe Seahawks, on an interim basis to run the team. Leiweke began an immediate search and zeroed inon Miller at Nike.

An introductory drink at EI Guacho restaurant in downtown Portland led to a two-hour dinner, butLeiweke wanted to meet again with Miller, who was so soft-spoken inside the loud restaurant thatLeiweke wasn't sure that anything of substance was related between the two.

"I'm not sure if he heard anything so we met again and things went from there," Leiweke said.

Four more dinners with Leiweke at the same restaurant led Miller to consider leaving Nike after a decadewith the company.

"The question wasn't why would I hire him, it was why wouldn't I hire him," Leiweke said. "He has agreat finance background, he had managed a huge brand at Nike, and he was respected by everyoneinside the NBA. He was also 10caL/I

The more Miller talked with Leiweke, the more intriguing the job became, and Miller got serious aboutmaking a major career move despite his success at Nike. "I could see what the team needed to do andalso could see that they were moving in the right direction," Miller said.

Miller flew up to Seattle to meet with Allen. While the meeting went well, it took another trip for bothsides to feel comfortable.

"I told Paul that I had a good job at Nike and I needed to hear that he was committed and he wasn'tgoing to sell the team," Miller said. "It was a difficult decision to leave Nike. I still love Nike, but therearen't many opportunities like the one I have with the Blazers. It was a surprise to a lot of people."

The Barbershop

The drive from Miller's downtown Portland home to his Rose Garden Arena office takes roughly eightminutes putting Miller in his office most days around 8 a.m. Divorced, with his two grown children out ofthe house, Miller rises at 6 a.m., reads the papers and spends time online connecting with people backeast where the work day is already in full gear.

Miller never eats lunch, typically works until 7 p.m., and then prefers to be home. "I try to get my work

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done during the day," he said. "Evenings are for myself except for game nights."

He typically goes into the office on Saturday mornings where, undisturbed by calls and meetings, headdresses various administrative tasks that have piled up during the week. Other than an occasionalnight out at a local jazz club, Miller stays home and out of the society pages.

Consider the e-mail he sent last season to the league's 29other teams threatening legal action if they signed forwardDarius Miles. The team had ruled that Miles had suffered a career-ending knee injury. If another teamsigned him, the Blazers would owe Miles $18 million that would count against the salary cap.

At work, Miller makes a point to walk through the Blazers' frontoffice, greeting employees, congratulating them on a sale, orsimply engaging the employees in friendly banter .••E-mail isfine, but I like face-to-face contact," he said. "I want[employees] to know that I am part of the team."

Once a week, Miller gathers his department heads for ameeting called "The Barbershop" where they sit around and airtheir opinions, grievances, or anything else on their minds. It'spart of the team-aver-individual management style that Millerlearned at Nike and is applying fervently to the Blazers frontoffice.

"We'll talk about whoever, whatever, and I would rather havesomebody challenge me rather than have them keep theirfeelings inside and then tell it to someone else," Miller said."The vision is that we can win a championship and also befinancially viable off the court. I learned at Nike that product isking and it is the same here, and I want a culture whereeveryone feels good working here."

While many other NBA teams say they have no divisionbetween the basketball and business sides of the business, it'slargely empty talk. Under Miller, the team's basketball andbusiness departments are truly integrated.

"There is not a major decision that we don't get involved in,"Pritchard said. "Larry looks at this not just as a franchise, butas a program and it builds loyalty."

The "barbershop" meetings are deliberately casual, with Millerencouraging participation to push ahead his plans, withexecutives from both the basketball and business operationsattending.

"Larry had created an environment where everyone has a voicein the barbershop," said Sarah Mensah, chief marketing officerof the Blazers. "He listens to everyone but he ultimately makesthe decisions and he is not afraid to be contrarian."

IlISAElGETTY IIMA~:ES (2!

The team branded its communityoutreach efforts as "Make it Better."Projects have included renovatingarea basketball courts and serving

an annual "Harvest Dinner" (left) tohomeless and poor people in

the area.

The threatening e-mail defied Miller's nice-guy reputation and caused an uproar within the league.

In an e-rnall response by Cleveland Cavaliers owner Dan Gilbert, made public last year by Yahoo Sports,Miller was taken to task.

"I fully understand the frustration you and your team's ownership must be feeling in regards to this .situation, but a preemptive threat of 'litigation' directed at all of yo.u.rpartners thrO~gh a.group e~mal\d t sit well with me and seems to be incongruent With the SPirit of keepmg a ftduciary duty andg~~~ ~;artner-like duty' to y?ur 'N~A joint ventures,'" Gilbert's e-mail read. "I would trunk there has got

to be a better tactic than this one.

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The Memphis Grizzlies summarily ignored Miller's threats and signed Miles. It cost the Blazers $18million, as expected, but the team took no legal action.

"It was an attempt to look out for our organization," Miller said of the e-mail. "We were all involved inthe discussion about the e-mail and I don't regret it."

This year, Miller faces another major challenge. Because of an iron-clad cable deal Comcast SportsNorthwest had before Miller joined the team, Blazers games are prohibited from being shown on otherproviders, costing the team vast exposure to fans who are not Comcast cable subscribers. When Millerjoined the Blazers in 2007, he vowed to change the arrangement, but the issue remains unsolved.

"My responsibility is to get it done and we are focusing on it," Miller said. "It didn't get done the first yearor the second year and what matters is that some of our fans can't get the games."

While Miller works to expand the team's television exposure, his efforts to reach out to the corporatecommunity have paid off handsomely. Sponsorship revenue was up 15 percent last season and despitethe recession, there has been no erosion of the team's corporate revenue, a testament to the team'simproved relationship with local corporations.

"Larry is quiet but he's charismatic," said Don Pearson, regional president of Wells Fargo, a four-yearteam sponsor. "What makes him so effective is that he is very conscious of the brand. A lot of times,you have a sponsorship and you get your name in the arena, tickets, and a box to the games. But withLarry, the engagement goes far beyond the game on the court."

Even those who find themselves on the opposite side of the negotiating table respect Miller's directmanner.

"He is easy to deal with even when he delivers a tough message," said Merritt Paulson, a former NBAexecutive who owns the minor league baseball Portland Beavers and unsuccessfully tried to build a newstadium on the site of Memorial Coliseum, land where the Blazers want to develop an entertainmentdistrict. He is not a pound-your-fist-on-the-table kind of guy."

Instead, Miller prefers to use a velvet glove approach to push ahead his agenda.

"We can be the best organization in sports," Miller said. "I treat people like I want to be treated and youdon't have to walk around like a tough guy. But people have to know you can make the tough call."

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