Oklahoma City Thunder v Los Angeles Clippers - Game Six

Are the Clippers really worth $2 billion? Five things that drove up the price.

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Any time you mentioned the Forbes Magazine NBA franchise valuations to some involved with the league, they scoffed at the numbers. They were seen as wildly inaccurate. (We in the media kept using them because outside of the occasional team sale there were no other good measures.)

Forbes estimated earlier this year that the Los Angeles Clippers were worth $575 million.

Thursday Shelly Sterling agreed to sell the Clippers to Steve Ballmer for $2 billion. (Whether that sale holds up legally remains to be seen.)

That sum raised a lot of eyebrows — are the Clippers really worth $2 billion? Everyone’s first reaction is that it seems high (and if the Clips are worth $2 billion, what are the Lakers worth?).

The easy capitalist answer is that a team is worth whatever someone is willing to pay for it. So, yes, that sense the Clippers are worth $2 billion.

But there are a series of factors that drove up the Clippers price to incredible heights.

• The team is in Los Angeles. L.A. is the second biggest media market in the United States with more than 13 million people in the metropolitan area. More importantly than that, the City of Angels has a whole lot of very rich people — Forbes estimates there are 30 billionaires in Los Angeles County alone, there are more than 200,000 millionaires — and those are the people that buy expensive seats near courtside. There are 14 Fortune 500 companies based in Los Angeles and countless more large corporations with offices there — the kind of companies that buy expensive luxury suites to impress clients. The bottom line is if you put a good product on the court you can sell the expensive seats that are the revenue fuel for professional sports teams in this era. Plus the Clippers have a string of 141 consecutive sell outs going. Yes, Los Angeles is a Lakers town first (that’s not changing soon) but there is more than enough market for a second team.

• New television deals are coming up. Right now the Clippers have a local television deal with Fox Sports West that pays them $20 million a season — which is less than teams like the Detroit Pistons and Cleveland Cavaliers make — but that deal is up after the 2016 season. Clippers broadcast rights are going to spark a bidding war as entities like Time Warner Cable are expected to try to poach the team while current rights holder Fox Sports desperately needs to keep the Clippers to have enough good content to justify the two regional sports network channels they have in Los Angeles (Fox Sports West and Fox Sports Prime Ticket). Fox lost the Lakers and Dodgers to gigantic Time Warner deals in recent years, they can’t afford to lose the Clippers, and the Clipper ownership will benefit from that. This isn’t going to be as big as the Lakers deal (Los Angeles is still a Lakers town) but it will be big.

Then there is the fact the NBA is in the process of negotiating a new national television deal that will be much bigger than the current deal (rights for sports broadcasting have been going through the roof in recent years because it’s must-watch programing — people don’t DVR games and fast forward through the commercials). Currently teams get $30 million a season in national television revenue, soon that number is going to make a big leap. It is rumored that as part of the new deal Fox Sports will enter the national broadcast picture (with TNT and ABC/ESPN) and broadcast at least a game a week (likely Saturday night). The national broadcast rights fees are divided up equally among the 30 teams, so a raise in revenue is coming.

• The lockout was good to the owners. Make no mistake about it, the NBA owners won big in the last lockout. (Some may say it wasn’t enough, but did you ever hear of a really rich person who said, “I’m making enough, I should distribute more of this money to my employees.” Exactly.) The players went from getting 57 percent of the league’s “basketball related income” (money from national television deals, merchandise sales, a percentage of ticket and concession revenues) down to 50 percent. That works out to an estimated $280,000 million a season. That’s nearly $10 million a season more per team going to the owners. With the more strict salary cap and other devises put in place, that CBA made the NBA a good investment for the rich, not just a toy.

• NBA franchise values are already skyrocketing. Since the new CBA went into effect and people who could afford it figured out the NBA was a good investment, the value of NBA franchises has gone through the roof. In 2010 (pre-lockout) Joe Lacob and Peter Guber set the record for money spent to buy a franchise at $450 million for the Golden State Warriors. Since then Vivek Ranadivé led a group that paid $534 million to buy the Sacramento Kings (and they are paying more to get a new stadium built). Just weeks ago hedge fund guys Marc Lasry and Wes Edens spent $550 million to buy the small market Milwaukee Bucks (and they are going to have to put up a lot of money for a new arena, too). Prices for NBA franchises have been going through the roof, and now here comes one on the market in one of the nation’s largest cities, and a team that has been run poorly for decades and has room for growth.

• The frenzied bidding process. We love to watch auctions because they are dramatic. People selling things like auctions because buyers get caught up in the competitive, exciting bidding process and spend more than they maybe should on the item up on the block. That would be the case here — this was a rushed, frenzied bidding process. There are a lot of one percenters who want to get into the NBA club and getting a bunch of them to bid against each other in a rushed process is a good way to get someone to overbid.

Gordon Hayward scores 30 points as Jazz beat Wizards 102-92

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WASHINGTON (AP) Gordon Hayward scored 30 points, Rudy Gobert added 15 points and 20 rebounds, and the Utah Jazz beat the Washington Wizards 102-92 on Sunday for their third straight victory.

Northwest Division-leading Utah led by as many as 24 points before Washington got within six with just over 2 minutes left. Hayward hit a pair of jumpers to seal the win.

George Hill added 21 points for Utah.

Washington, the Southeast Division leader, has lost two in a row for the first time since early January. John Wall led the Wizards with 23 points and 11 assists. Bradley Beal, who was scoreless in the first half, added 22 points.

Utah converted 23 of 32 free throws, while Washington made 10 of 13. The Jazz outrebounded the Wizards 52-27.

Utah led 49-39 at halftime and opened a 62-43 lead with 6:48 left in the third quarter on Derrick Favors‘ dunk off a feed from Gobert, necessitating Wizards coach Scott Brooks’ second timeout of the quarter.

Consecutive 3-pointers by Hill soon increased the lead to 24.

Bojan Bogdanovic‘s 33-footer capped a 14-3 Wizards run to end the quarter and Utah’s lead was 73-60 to start the fourth.

Washington trailed by 16 when Wall hit a 3 and Beal followed with five quick points to make it 93-85 with 3:11 remaining. Bogdanovic’s two free throws cut the deficit to six at the 2:01 mark, but Hayward sandwiched a 3-pointer and a long 2 around a Washington turnover to stall the rally.

The Jazz shot 50 percent from the field and hit 13 of 18 free throws in the first half to build a 10-point lead.

The margin could have been bigger but Utah turned the ball over 14 times, leading to 15 Washington points. The Wizards shot 36.7 percent (18 of 49) and made their only free throw attempt.

After scoring 40 points in his previous game, Beal went to the bench with 5:08 left in the first half with three fouls and no points.

TIP-INS:

Jazz: Gobert was fined $25,000 for making physical contact with an official in the third quarter of Utah’s 109-95 victory over the Milwaukee Bucks on Friday. . Rodney Hood, who had three points Friday night in his return after missing seven games with a bone contusion in his knee, had nine points in the first quarter. . It was Utah’s first win in Washington since Nov. 17, 2012.

Wizards: The 39 points were the team’s lowest first-half total of the season. . Washington had reached 100 points in 23 straight games. . It was Wall’s 37th double-double of the season. . Bogdanovic, in his second game with Washington, scored 15 points. . Washington last lost two in a row on Jan. 2-3 in back-to-back road games at Houston and Dallas.

UP NEXT

Jazz: Travel to Oklahoma City on Tuesday for the finale of a three-game road trip.

Wizards: Host the Warriors on Tuesday night.

Kawhi Leonard scores 25, leads Spurs to 119-98 rout of Lakers

SAN ANTONIO,TX - MAY 2: Kawhi Leonard #2 of the San Antonio Spurs reacts after a defensive stop against the Oklahoma City Thunder during game Two of the Western Conference Semifinals for the 2016 NBA Playoffs at AT&T Center on May 2, 2016 in San Antonio, Texas.  NOTE TO USER: User expressly acknowledges and agrees that , by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ronald Cortes/Getty Images)
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LOS ANGELES (AP) Kawhi Leonard scored 25 points and the San Antonio Spurs routed the Lakers 119-98 on Sunday in Los Angeles’ first home game since Magic Johnson took over the franchise’s basketball operations.

LaMarcus Aldridge had 16 points for the Spurs, who have won four straight and nine of 11.

Pau Gasol added 15 points against his former team, and the Southwest Division leaders had little trouble with the Lakers, who have lost four straight and 15 of 19.

Five days after owner Jeanie Buss put Johnson in charge of basketball operations, the Lakers’ dismal season still hasn’t changed much, although new Lakers acquisitions Corey Brewer and Tyler Ennis got limited playing time.

Rookie Brandon Ingram scored a season-high 22 points as the Lakers fell to 19-41, ensuring their fourth consecutive non-winning season.

One more defeat will clinch the Lakers’ longest stretch of losing seasons since 1961, the former Minneapolis Lakers’ first year on the West Coast.

Jordan Clarkson scored 19 points and D'Angelo Russell had 18 for the Lakers, who have lost their first two games since Buss dismissed general manager Mitch Kupchak and her brother, Jim.

Johnson made no pregame speech to the Staples Center fans who have watched the worst four years in franchise history. Jeanie Buss watched the game from her usual spot in the second row, while Kupchak’s normal seats were empty.

SPURRED ON

The Spurs have won eight straight over the Lakers, surpassing their 2004-06 run for their longest winning streak in the series between these longtime Western Conference rivals. San Antonio also has beaten the Lakers seven straight times at Staples Center.

Leonard, who grew up 60 miles east of Staples Center in Moreno Valley, scored 19 points in the first half while the Spurs streaked to a 21-point lead.

AFTER LOU

In the Lakers’ first home game since trading leading scorer Lou Williams to Houston for a draft pick, Clarkson excelled off the bench in Williams’ usual spot as the second unit’s offensive fuel. Brewer scored five points in his first home game, while Ennis played eight minutes and hit a late 3-pointer in his Lakers debut.

TIP-INS

Spurs: Gasol played 20 minutes in his second game back from a 15-game absence with a broken left hand. Gasol, who won two NBA titles in Los Angeles, got a warm ovation from Lakers fans. … USC product Dewayne Dedmon had 11 points and nine rebounds. The Spurs’ unlikely starting big man is another product of LA’s far-flung suburbs, growing up in Lancaster.

Lakers: Kareem Abdul-Jabbar received a standing ovation at halftime when the Lakers honored him for his social activism. … The game was just the Lakers’ second home game in February and their third home game in five weeks. After playing eight of their previous 10 on the road, they began a four-game homestand.

UP NEXT

Spurs: Host Pacers on Wednesday.

Lakers: Host Hornets on Tuesday.

Giannis Antetokounmpo scores 28, Bucks beat Suns 100-96

Giannis Antetokounmpo
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MILWAUKEE (AP) Giannis Antetokounmpo scored 28 points, Tony Snell made a clinching 3-pointer from the corner in the closing seconds and the Milwaukee Bucks held off the Phoenix Suns, 100-96 on Sunday.

Michael Beasley added 17 points and Malcolm Brogdon had 15 as the Bucks swept the two-game season series with the Suns. Greg Monroe finished with 14 points and Snell had 13.

TJ Warren led the Suns with 23 points. Alan Williams scored a career-high 17 points and tied his season high with 15 rebounds, while Devin Booker added 15 points and Eric Bledsoe had 11.

Clinging to a one-point lead, the Bucks came out of timeout with Monroe inbounding the ball to Antetokounmpo. He dribbled the clock down before passing to Brogdon, who whipped the ball to Snell in the corner. Snell hit a 3 with a defender flying at him.

Watch Pistons C Andre Drummond blow a fancy breakaway dunk (VIDEO)

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Andre Drummond had a breakaway on Sunday against the Boston Celtics. Fans in Detroit should have been in for a treat from their franchise center — a former NBA Dunk Contest participant — but instead they got something worth of Shaqtin’ A Fool.

Unfortunately for Drummond, the result of the one man fastbreak was a blown dunk, a ball that went sky high, and a sheepish look from the Pistons center.

Bummer.