Owning an NBA Franchise no longer a license to print money.

Leave a comment

here was a time when owning and NBA franchise (or really most professional sports franchise) was seen as a can’t-miss proposition.

For a couple decades starting in 1980, the expansion of ways to make money on sports (fueled by the rise of cable television, new stadiums with luxury boxes and a society more accepting of advertising at every turn) meant that even if your team just broke even year to year on the balance books, the overall valuation of the franchise was skyrocketing. You just needed to hold on for a few years and when you sold you were paid handsomely, much more than you paid to own the team in the first place.

But with the value of NBA franchises so high now — there are varying reports depending on debt taken on, but the official value of the Bobcats purchase was $275 million — things are different now.

Henry Abbott has a fantastic post at TrueHoop, talking with George Postolos (who was in the running to buy the Bobcats and owns a consulting business to help people buy teams), and the upshot is that with the prices of franchises so high you get a different kind of buyer.

No question, but today in 2010, buyers are not looking for that as much. There’s a narrower set of considerations. But generally speaking, they’re looking for a good business with an opportunity to make money, in addition to those other considerations. That may not have been the case in a frothier environment, or when teams were less expensive. I mean, a lot of these families, the Millers in particular, when they acquired their teams the franchises didn’t trade for hundreds and hundreds of millions of dollars.

As the numbers have gotten bigger, a smaller set of investors are able to meet those requirements, particularly after what our economy has gone through over the last few years. Those people can be more discriminating, and they’ve become more discriminating, and they’re looking for a legitimate business with a legitimate chance of a return on their equity.

There’s still an upside case for sports franchises, but it depends on the particular situation, and it depends on skilled ownership and management. They’re more important than they’ve ever been.

Read the entire article, it’s a fascinating insight into team ownership today. It’s still a money making venture, but now you have to be smart. You can’t just coast to profits.

Marcus Smart wants to be back for Game 6 vs. Bucks

1 Comment

Boston Celtics guard Marcus Smart has been out for some time after injuring his thumb earlier in the year. The absence of one of Boston’s most important guards has been felt even more so after Kyrie Irving went down following knee surgery.

In short, the Celtics would like to have Smart back on the floor.

We’re now close enough that Smart has begun to give solid timeframes to reporters. Speaking to media on Sunday, Smart said that his plan is to be back for Game 6 against the Milwaukee Bucks. Boston took on Milwaukee on Sunday in Game 4.

Via ESPN:

Right now, [a Game 6 return is] the plan and we’re still on the same track,” Smart said before Game 4 on Sunday. “I’ve been doing everything but contact, so I will be able to go and start that.”

Smart said he believes the thumb is ready for contact.

“The surgery did its job,” said Smart, who injured himself March 11 while diving for a loose ball in a game against the Indiana Pacers. “Thumb is holding up well. I feel ready, I feel strong enough to get back out there. I’m just waiting on the OK.”

The series between the Celtics and Bucks has been tumultuous, a back-and-forth affair as an injury-riddled Boston squad takes on a healthy but offensively-sluggish Milwaukee team. Smart could add a shot of life for Boston in a much-needed way.

The Bucks won Game 4 and the series is now tied, 2-2. Game 6 would be on Thursday, April 26 if need be.

Manu Ginobili leads Spurs over Warriors

2 Comments

Although the San Antonio Spurs were outmatched against the Golden State Warriors, Manu Ginobili was an integral part of the Spurs staving off elimination against the reigning champs on Sunday. San Antonio beat the Warriors, 103-90, to put the series at 3-1.

The 40-year-old wingman scored 10 of his 16 points in the fourth quarter in San Antonio as Ettore Messina logged a playoff win at the helm of the team. Gregg Popovich, who sadly lost his wife this past week, did not coach.

Ginobili was 5-of-10 off the bench, adding five assists and three rebounds in the win. LaMarcus Aldridge led all Spurs scorers with 22, notching a double-double with 10 rebounds.

Meanwhile, the only Warriors player to score more than 12 points was Kevin Durant, who rose above all scorers with 34 points to go with 13 rebounds. Klay Thompson shot an embarrassing 25 percent from the field, scoring just 12 points.

Ginobili put the dagger on the Warriors with 90 seconds to go, hitting a spinning flip shot over Draymond Green to give San Antonio a 10-point lead.

The series heads back to Oakland for Game 5 with the Spurs trailing, 3-1.

Kevin Durant on Giannis Antetokounmpo: ‘I would tell him to play for himself’

Getty
5 Comments

Kevin Durant was once the big star in a little city. The former Oklahoma City Thunder star now plays for the Golden State Warriors, and has a championship ring to his name after making a switch in 2016.

So Durant has at least some experience similar to that of Milwaukee Bucks star Giannis Antetokounmpo. The Greek Freak is currently leading the charge for the Bucks against the Boston Celtics in the first round, and he’s seen as the future in Milwaukee. Antetokounmpo signed a 4-year, $100 million contract in the summer of 2016, so presumably he’ll be in Wisconsin for some time.

Meanwhile, Durant had some advice for Antetokounmpo, should he ask for it. In a feature on ESPN, Durant was quoted as saying he felt Antetokounmpo should be sure to have fun, and to play for himself.

Via ESPN:

What I would say to him, I would tell him to play for himself,” Durant said. “Because he’s the one out there putting in the work, he’s the one out there getting up in the morning staying committed to the game. Obviously [the comments about staying put] sounds good to the fans in Milwaukee and to the ownership, because he cares so much about wanting to please them and play well for them, and I get it. But his career is about him; it’s about whatever he wants to do and however he feels is right for him. And what type of basketball does he want to play? He’s not going to stay in Milwaukee if he’s not having fun playing the game.

That’s some pretty good advice, although factors surrounding Antetokounmpo will likely weigh the same as they did on Durant in OKC. The Bucks presumably need a new coach once their season ends. They’re currently helmed by interim coach Joe Prunty, who took over when Jason Kidd was fired earlier this year.

The Bucks also need to fill out their roster and find a way to stay healthy. The Thunder famously had roster issues (read: the James Harden trade) and eventually the lack of playoff success drove Durant to switch teams.

Milwaukee doesn’t seem close to that kind of juncture, although eventually things will flip for the young Bucks and fans and management will expect some kind of production in the postseason.

Giannis Antetokounmpo beats Celtics with late-game tip-in; series tied 2-2

7 Comments

It was an exciting finish in Milwaukee on Sunday, where the Bucks took home a win on their home court to level the series against the Boston Celtics, 2-2.

The game came down to the wire, with 2016-17 NBA Rookie of the Year Malcolm Brogdon giving the Bucks the lead after a corner 3-pointer with just 33.5 seconds left. The Celtics responded with a sideline out of bounds play that resulted in Al Horford tying the game with free throws.

On their final possession, the Bucks again went to Brogdon, who missed on a layup driving to the left side of the floor. Luckily, Giannis Antetokounmpo was there to follow with the tip-in with just five seconds left.

Via ESPN:

Boston was unable to convert on a final play, and Milwaukee grabbed the win, 104-102.

Game 5 will be in Boston on Tuesday.