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.

Worst dunks in All-Star Dunk Contest history? We got that video.

at Verizon Center on February 5, 2016 in Washington, DC. 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.
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The All-Star Saturday Dunk Contest has brought some memorable moments — Dr. J and Michael Jordan gliding through the air, Dwight Howard in a Superman cape, Nate Robinson showing off serious hops, through last season and Zach LaVine re-energizing the event with his athletic throw downs.

But there have been some duds, too — and from some elite dunkers. Here is a highlight mix of the worst, which is almost as much fun as the best. Enjoy, then tune in for hopefully more good than bad from Toronto Saturday night on TNT when LaVine and the dunk contest return.

Reports: Cavaliers look to trade for shooters such as Ben McLemore, Kyle Korver

NEW ORLEANS, LA - JANUARY 28:  Ben McLemore #23 of the Sacramento Kings shoots a free throw during a game against the New Orleans Pelicans at the Smoothie King Center on January 28, 2016 in New Orleans, Louisiana. The Pelicans defeated the Kings 114-105. 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 Stacy Revere/Getty Images)
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The Cleveland Cavaliers have looked at their roster, have seen the Golden State Warriors up close, and are thinking they would like to add a shooter on the wing at the trade deadline.

Multiple reports have the Cavaliers actively looking around on the trade market, although whether they can get anything done before the Feb. 18 deadline remains to be seen. At the top of the list is Sacramento’s Ben McLemore, reports Chris Haynes of the Cleveland Plain Dealer.

The Cavaliers, among with a handful of other Eastern Conference teams, have strong interest in trading for Sacramento Kings guard Ben McLemore, league sources told cleveland.com…

The Kings have declined overtures for their young 3-point marksman. But with the direction and state of the organization, external pressure could come into play when it comes to potentially moving talent. It’s widely known within league circles that agents have been pushing to get their clients out of Sacramento with the franchise embroiled in dysfunction and turmoil.

This sounds like a leak from an agent more than something the Kings are open to. McLemore swings between showing promise and being disappointing nightly. He’s athletic, he can defend well, he’s shooting 37.2 percent from three this season, but he also takes mental vacations during games (especially on defense), and he can be a turnover machine. The Cavaliers feel if they can get him in their system they can provide a better environment for development than Sacramento.

There are other options, but they may be just as unlikely.

Houston’s Trevor Ariza, Atlanta’s Kyle Korver and Washington’s Jared Dudley are all on the Cavaliers’ radar, but landing one of those three is highly unlikely.

If Joe Johnson secures a buyout in Brooklyn, league sources are adamant Cleveland would “snatch him up” for the veteran minimum.

The first three would be good fits, but the price for them will be higher than the Cavs want to pay. The Johnson buyout is a possibility (no way they will move that salary at the deadline), but the buyout is not a sure thing — will Johnson leave money on the table just to get out of Brooklyn?

ESPN’s Brian Windhorst threw out interesting names recently.

Tyreke Evans made some sense until his recent injury ended his season and that idea. Omer Asik makes zero sense. He’s a slower, less athletic, far more expensive version of Timofey Mozgov — why would the Cavaliers want him?

John Wall bangs knee in loss to Bucks, puts All-Star Game in jeopardy

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It was early in the Bucks’ win over the Wizards in the final game before the All-Star break for both teams, John Wall was pushing the ball in transition, and he collided with O.J. Mayo and drew the foul.

He also hurt his knee. Wall played through the pain the rest of the game on his way to 15 points (on 5-of-19 shooting) and 10 assists, but after the game questioned whether he could go in Sunday’s All-Star Game, where he is slated to be a reserve. From Jorge Castillo of the Washington Post.

That said, our own J. Michael of CSNMidAtlantic.com says things may not be that bad.

Wall was voted in by the coaches, if he couldn’t go the league would pick a last-minute replacement. But it’s big for Wall’s brand to be seen on that stage, coach Tyronn Lue can limit his minutes if needed, so I would bet on him being in the game.

Thunder beat Pelicans; teams mourn Ingrid Williams’ death

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OKLAHOMA CITY (AP) — Basketball didn’t matter much to Kevin Durant on Thursday night.

Thunder assistant coach Monty Williams’ wife, Ingrid, was involved in a car crash Tuesday night in Oklahoma City and died Wednesday. Monty Williams coached the Pelicans last season before coming to Oklahoma City to help new coach Billy Donovan, so as his two most recent teams met, both played with heavy hearts. A moment of silence was observed before the Thunder’s 121-95 victory.

Durant was distraught earlier in the day while discussing the situation after the team’s shootaround, and he said it remained fresh in his mind after the game.

“We love the game so much, but that’s not really what’s important,” Durant said. “It’s definitely something that we love to do, but relationships, family – those things – that’s what’s most important in life, not the latest trends or the fashion world or all that stuff. It’s cool and all that stuff, but the stuff that lasts forever is relationships, family and love.”

Donovan wasn’t sure how his team would deal with all that happened. Durant scored 23 points, Russell Westbrook had 23 points, 10 assists and nine rebounds, and Serge Ibaka added 18 points.

“I really appreciated all of our guys, the way they all have handled a really difficult situation these past 24 hours and being able to go out and play,” Donovan said.

Anthony Davis and Jrue Holiday each scored 23 points for the Pelicans. Davis, who was emotional on Twitter after learning of the death, still was disappointed in the way the Pelicans played.

“We’ve got to go out there and still compete,” he said. “Go out there and play. We had a job to do tonight.”

Oklahoma City has won 14 of 16 heading into the All-Star break to join Golden State and San Antonio as the only teams with at least 40 wins. The Thunder don’t feel much needs to change to compete for the title.

“No switch-up, just enhance and get better at what we do.”

The Thunder led 62-53 at halftime behind 18 points from Westbrook and 17 from Durant.

Westbrook got his 10th assist on Ibaka’s 3-pointer that gave the Thunder a 79-65 lead. He had his ninth rebound with just under 3 minutes to go in the third quarter before heading to the bench for his usual rest and the Thunder ahead 86-68. Oklahoma City led 95-74 at the end of the third quarter.

Oklahoma City’s backups expanded the lead early in the fourth quarter, and Westbrook didn’t return.

“I don’t know what we can take out of it other than we competed like crazy in the first half,” New Orleans coach Alvin Gentry said. “Tried like crazy in the second half, but when they got separation, it was really difficult.”

The Thunder found an escape from pain through playing.

“Basketball, the effect it has, it allows you to forget about things a little bit, and it also brings you together as a group,” Durant said. “Thankful for that.”

 

TIP-INS

Pelicans: Shot 53.5 percent from the field in the first half, but just 43.2 percent for the game. … Were outrebounded 50-31 … Committed just nine turnovers. … Norris Cole scored 15 points.

Thunder: Shot 52.3 percent from the field. … Thunder G Andre Roberson remained out with a right knee sprain. … Anthony Morrow scored 10 points. … Enes Kanter finished with 11 points and 12 rebounds.