Alaska Milk top honcho wants PBA commissioner to monitor salary cap

NOT only is Kia Picanto being questioned for its dubious trade sanctions but whether its team is complying with the requirements of maintaining at least a minimum salary cap allotted.

Alaska Milk Chief Executive Officer and former PBA chairman Wilfred Uytengsu expressed apprehensions on the future of Kia Picanto, which is now the center of controversies not only because of trading away its first round picks in two of the last three years, but also its future of maintaining a pro basketball squad.

“The purpose of the draft is to strengthen the weaker teams. However, what we have seen lately is these weaker teams end up selling their top draft picks because if you look at who is being traded in return, it clearly doesn’t make basketball sense for the weaker teams, unless there is other consideration,” said Mr. Uytengsu in a statement sent to BusinessWorld.

“There is already a lot of about Kia benefiting financially if this trade were to go through and you have to wonder if they are even making the league minimum salary cap,” added Mr. Uytengsu.

Mr. Uytengsu’s comments came on the heels of Kia’s latest trade involvement as it entered a deal with San Miguel Beer.

The Picanto are shipping their top overall pick for the coming Rookie Draft on Sunday initially for the Beermen’s first round pick (no. 11 overall), veteran center Jay-R Reyes and sophomore guard Rashawn McCarthy. Several revisions were made by the Beermen to sweeten the deal, but PBA Commissioner Chito Narvasa said he hasn’t made a decision yet.

Two years ago, the young franchise also dealt its second overall rookie pick, which turned out to be Troy Rosario, who was dealt to the TNT KaTropa in exchange for then national team standout Aldrech Ramos and versatile forward KG Canaleta.

If Mr. Uytengsu is dubious on Kia allegedly violating the minimum salary cap rule, he’s also on a lookout at bigger teams like San Miguel and Ginebra.

“If you look at the composition of SMB and Ginebra, you will see they are stacked with first to third picks,” added Mr. Uytengsu. “Many of those players came to them from curious trades. SMB’s starting five is: June Mar Fajardo (no. 1 pick), Arwind Santos (no. 2 pick), Alex Cabagnot (no. 2 pick), Chris Ross (no. 3 pick), and Marcio Lassiter (no. 4 pick). Ginebra has Greg Slaughter (no. 1 pick), Japeth Aguilar (no. 1 pick), Joe Devance (no. 1 pick), Kevin Ferrer (no. 3 pick), LA Tenorio (no. 4 pick) and Scottie Thompson (no. 4 pick).”

“It’s difficult to comprehend how a team can fit within the team salary cap, playing those players, all at approved maximum PBA salaries while still maintaining a strong sixth to eighth players. I’ve done the math and it doesn’t work,” added Mr. Uytengsu.

Mr. Uytengsu is calling on Commissioner Narvasa to enforce strict measures on looking at the salary cap as well as maintaining balance among teams and not allow dubious trades.

Several board members who requested anonymity questioned Kia’s latest trade transaction with San Miguel, sensing there might be a conflict knowing the two companies had a business deal just recently.

San Miguel Corp. has reportedly entered an agreement with Kia, which would allow the giant beverage company to become the majority shareholder on the BMW distributorship in the Philippines.

Kia, under the company name Columbian Auto Cars owned by Pepito Alvarez, is the one previously in charge on the distributorship of the world-renowned cars in the country. In a report published by the

Philippine Daily Inquirer’s business section, the giant beverage company is set to acquire 65% stake from Columbian Autocars Co. owned by Pepito Alvarez.

A separate report from Car Guide also confirmed the entry of Ramon S. Ang as board director of BMW Philippines.

But Mr. Narvasa sees no conflict between Kia and San Miguel Corp.

“I understood that was a 100% buyout, so there’s no cross ownership there. Therefore, no conflict,” added Mr. Narvasa. —