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.

Watch Klay Thompson’s record 11 playoff three pointers

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Klay Thompson was ridiculous. His shooting was some of the most incredible shooting you will ever see.”

That was how Warrior coach Steve Kerr described Thompson’s night — a playoff record 11 three pointers on his way to 41 points, sparking Golden State’s Game 6 win on the road. It wasn’t just the threes, it was the degree of difficulty on some of those shots — he was just in the zone. Not the Blake Griffin commercial zone, the real one.

 

Klay Thompson shoots Warriors to comeback win in Oklahoma City, forces Game 7

OKLAHOMA CITY, OK - MAY 28:  Klay Thompson #11 of the Golden State Warriors handles the ball during the second half against the Oklahoma City Thunder in game six of the Western Conference Finals during the 2016 NBA Playoffs at Chesapeake Energy Arena on May 28, 2016 in Oklahoma City, Oklahoma. 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 Maddie Meyer/Getty Images)
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What. A. Game.

In the most intense game of these playoffs, Golden State came from eight down to start the fourth quarter behind the red-hot shooting of Klay Thompson — he set an NBA record with 11 threes in a playoff game and had 19 points in the fourth quarter — as the Warriors outscored the Thunder 16-4 in the final 4:40 of the game. Thompson had help with the defense of Andre Iguodala making plays on both Russell Westbrook and Kevin Durant, getting key steals and making plays down the stretch.

The result was a 108-101 Golden State win in Oklahoma City to even the series at 3-3 and force a Game 7 Monday night at Oracle Arena.

Which is just good for fans of basketball because this series has been thrilling.

It didn’t feel thrilling to OKC, this was a punch to the gut for the Thunder, who had a 13 point lead in the first half at seemed in complete control early of a game that could have sent them to the NBA Finals. However, as the game got tight late the Thunder reverted to bad habits — everyone standing around watching Durant and Westbrook go one-on-one. The result was the two Thunder stars combined for 12 points on 3-of-14 shooting with six turnovers in the fourth quarter alone, four turnovers in the final two minutes. For the game, the Thunder shot 13 percent from three.

Meanwhile, the Warriors’ Thompson wasn’t just making threes, he was making high degree of difficulty threes on his way to 41 points on the night.

“Klay Thompson was ridiculous,” Warriors coach Steve Kerr said. “His shooting was some of the most incredible shooting you will ever see. I think he set a record for threes (he did), but our defense was fantastic. We kept getting stops, but we couldn’t get the board, but we stayed with it.”

Stephen Curry, who had struggled again in the first half and still doesn’t look 100 percent except in flashes, had one of those flashes in the fourth quarter — six points which included a dagger driving layup and the steal that sealed the win. He finished with 31 points, 10 rebounds and nine assists on the night.

Curry and Thompson combined for 61 of the Warriors last 81 points in the game.

That finish was the opposite of how everything started for Golden State.

The Warriors opened the game 8-of-28 from the field and shot just 36 percent overall, plus had 10 turnovers in the first half. It was the Thunder defense that seemed to be back to form and under that pressure the Warriors reverted to some sloppy play — for example, Curry trying to make a playground pass to a shooter in the corner when a floater or layup was available (Kevin Durant stole that pass). Curry once again seemed hesitant early on in this game. Also, Steve Kerr oddly sat Thompson, Curry and Draymond Green all at the same time in the first half and that fueled a quick OKC run — and their building was rocking.

But they couldn’t sustain it.

“That hasn’t been us the last month and a half,” Thunder coach Billy Donovan said of his team’s performance in the fourth. “I thought we got a little stagnant coming down the stretch, and then I thought us defensively, we were a little bit late.”

For much of the game the Thunder played well — Steven Adams was a beast again, Serge Ibaka made plays — but they couldn’t put the Warriors away in the first half. Part of that was Durant, who started just 2-of-10 from the field and was shooting to quickly too often. He was 10-of-31 shooting for the game.

It was Westbrook who had the Thunder up by as many as 13 in the first half. Then Warriors got a few stops, and the three ball (Curry and Thompson were 6-of-12 from deep in the first half) kept it close, it was just a five-point game at the break, 53-48.

Thompson drained a couple of threes to open the second half and with that the game was close through the third, however, Curry started to find his groove and scored 11 straight for the Warriors at one point. The Thunder made a push at the end of the quarter — with Anthony Morrow and Enes Kanter on the court — and led by eight heading into the fourth.

It wasn’t enough. There was the long Curry three over Adams to make it a one-point game with four minutes left. Westbrook hit a couple of free throws but on the next Thunder possession Durant called for a clear out that the Warriors doubled, got the steal, then got the Curry three in transition to tie it with 2:47 left.

In the end, it was too much of the shooting magic that got the Warriors 73 wins. And they got the Game 7 they needed.

“I don’t think there can be any more pressure on us in Game 7 than there was tonight,” Kerr said.

 

Steven Adams gets his revenge, dunks all over Draymond Green (VIDEO)

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That’s a piece of revenge.

Draymond Green twice kicked Steven Adams in the nether regions this series, but with the chance to close out the Warriors in Game 6 Adams got some revenge — he put Green in a poster and dunked all over him.

This came as part of a second quarter run when the Thunder stretched the lead out to double digits.

Jordan Clarkson says he wants to return to Lakers, play for Luke Walton

TORONTO, ON - FEBRUARY 13: Jordan Clarkson of the Los Angeles Lakers is introduced for the Taco Bell Skills Challenge during NBA All-Star Weekend 2016 at Air Canada Centre on February 13, 2016 in Toronto, Canada. 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 Elsa/Getty Images)
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Lakers guard Jordan Clarkson is a restricted free agent, and he is the kind of quality rotation player that teams with cash to burn may well try to poach. The Lakers have the right to match and likely will unless the offer is way over the top. But make no mistake, Clarkson will go with the team that offers him the most money.

That’s July, right now Clarkson is saying the right things about wanting to stay with the Lakers and play for new coach Luke Walton.

Clarkson was interviewed by Chris McGee of Time Warner Cable, as reported by lakersnation.com.

I want to stay in LA….I don’t really look at it as me being a free agent; I want to be here…

He (Luke) called me a few days after he got hired. We talked about the offensive system, what he sees in us young guys, where he sees the organization, the style we’re gonna play. I’m excited for him to come and work with us.

Most likely he gets a chance, the Lakers want to keep him. They see him as part of the future (or at least as an asset they can trade to get parts for their future). He’s saying all the right things to make Laker nation happy.

But it’s going to be about the money. It always is.