Pistons may sell for well below market value

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Thumbnail image for pistons_logo.pngLocation, location, location. Oh, and timing.

Golden State just sold for well above its value as estimated by Forbes, in part because the San Francisco Bay Area is one of the wealthiest areas of the nation.

The Detroit Pistons are estimated to be worth $479 million and have turned more than $40 million in profit the last three seasons. It as well run a franchise as there is in the NBA, with a fantastic brand name.

Yet the sale price may be $100 million or more below that estimated value, according to a report in Forbes today.

But location and timing are critical factors to consider.  As it relates to location, the Detroit MSA faced a 15.4 unemployment rate as of June 2010 compared to the national 9.5 rate.  This would cause any potential investor to seriously question whether fans would continue to support the team at the level of avidity they have historically, especially given that the team is in major rebuilding mode and not likely to challenge the current Beasts of the East (Orlando, Boston, Miami) anytime soon.

Furthermore, in light of the climate of ‘guilt’ that surrounds corporate spending on sports sponsorships (especially in a city whose main industry has been the beneficiary of significant TARP money), a prospective buyer would be justifiably anxious over the likelihood of short term corporate support (e.g. buying luxury suites, paying for facility signage, etc…).

Karen Davidson also owns the Palace at Auburn Hills, where the Pistons play. The team and the building may be sold as a package.

Still buyers are leery. Any investor coming is has to be wary of the almost-certain lockout coming next fall — you will be getting no income from the team next fall (and have reduced expenses, but still). The economics of the NBA may be friendlier to owners on the other side of that lockout, but the down time has to be taken into consideration.

Still, Bill Davidson bought the Pistons in 1974 for $8 million (Forbes says that counting for inflation that is $28 million in today’s market). Even if the team only sells for $350 million that is a tidy little profit.

Report: First-round draft prospect says Phil Jackson fell asleep during his workout

AP Photo/Frank Franklin II
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Like I said, there are better reasons to criticize Phil Jackson than him saying his priority was the Knicks and that he had discussed trading Kristaps Porzingis.

Jay Williams of ESPN:

A top-15 draft pick told me the other day, because we were involved in this out of this conversation about Phil Jackson and the Knicks, and he said, “Phil Jackson was falling in and out of sleep in my workout.”

Yes. “Falling in and out of sleep at my workout.” This is what this guy told me.

Especially given Jackson’s salary and reputation for not being a diligent worker, this story is too good to check out.

O.G. Anunoby invited to NBA draft, Harry Giles declines

AP Photo/Darron Cummings
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The NBA’s invitations to the draft are a good indicator of when players will get drafted. The league samples executives, who are more likely to be honest here than in leaks to the media, about how they rank players. So, the list is worth monitoring.

The players who will attend tonight’s draft nearly match the leaks – with one exception. O.G. Anunoby is going, and Harry Giles isn’t.

Here are the players who will be at the draft – a reasonable placeholder for the players most likely to get picked in the top 20 – via A. Sherrod Blakely of CSN New England:

Jonathan Givony of DraftExpress:

Harry Giles declined his invite sources told DraftExpress.

Did Giles decline his invite because, with his extensive injury history, he feared falling too far? Or did he just prefer to watch elsewhere?

Was Anunoby simply 21st on the NBA’s list of players to invite? Or was the league too unsure of his medical status to include him until getting a stronger grasp now?

I don’t know, but the possibility that Giles could slip or Anunoby is more secure alters my perception of their draft stock (Anunoby up, Giles down).

Report: Knicks’ asking price for Kristaps Porzingis ‘massive’

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What has Phil Jackson actually done? He discussed trading Kristaps Porzingis with other teams and called the Knicks, not Porzingis, his priority. That’s it.

At face value, this is fine. It’s what devoted executives, not always Jackson, should do.

Jackson hasn’t traded Porzingis for meager return. He hasn’t traded Porzingis at all.

Everyone up in arms should take a deep breath.

Adam Himmelsbach of The Boston Globe:

David Aldridge of NBA.com:

I wouldn’t rule out the Knicks trading Porzingis. The No. 1 pick got traded, after all. I wouldn’t rule out them trading Porzingis for too little return. Look at Jackson’s track record running the front office.

But wait until they do before bashing Jackson for not understanding Porzingis’ value.

There are plenty of better reasons to criticize Jackson, including overseeing the toxic culture that led to Porzingis skipping his exit interview and setting this latest “crisis” into motion. Publicly discussing trading Porzingis won’t endear Jackson to the budding star, but the problem is how it reached this point. Players in sound organizations can handle this. Jackson has engendered little confidence from his players, the distrust existed well before this round of trade talks.

Lonzo Ball recruits LeBron James to Lakers (video)

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Lonzo Ball doesn’t play for the Lakers. LeBron James isn’t a free agent.

But they’re headed that way – and Ball is already embracing it.

The Lakers are expected to draft Ball No. 2 tonight, and rumors are heating up about LeBron leaving the Cavaliers in 2018.

Why should LeBron join Ball in Los Angeles?

Ball on ESPN:

LeBron, I like to win. I know you like to win. I think our games can help each other out a lot. Any time you want the ball, just let me know. It’s going to be there.

Ball was asked to to pitch LeBron, so it’s not as if Ball is out here talking so brashly on his own. But answering the question was a rookie mistake.

Besides, I’m not sure Lonzo Ball can undo the bad blood between LeBron and LaVar Ball.