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.

Patrick Beverley shuts down Westbrook on final play, bowls through own coach (VIDEO)

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Houston Rockets G Patrick Beverley is known around the NBA for being a dogged defender. His skill set was on full display on Friday night, where Beverley shut down Oklahoma City Thunder superstar Russell Westbrook on a potential game-winning 3-pointer in the closing seconds.

It all started early in the matchup, when Beverley — notorious for getting under the skin of both Westbrook and other NBA opponents — flopped with some serious gusto just 36 seconds into the first quarter.

Via Twitter:

The game continued like this, but the real highlight of Beverley’s defensive night was stopping Westbrook — who dropped his 7th straight triple-double — on an isolation play with six seconds left in the fourth quarter.

With the ball on the left garden spot, Westbrook gave a couple of dribble hesitation moves to Beverley, then tried to rise up for the go-ahead bucket.

Beverley was right up on him, and forced an airball from Westbrook:

The Rockets guard was so happy about the stop and the eventual win that he celebrated a little too enthusiastically with Houston coach Mike D’Antoni.

Going for a chest bump, Beverley wound up blasting through his own coach:

Kyle Lowry and DeMar DeRozan’s bromance continues after beating Celtics (VIDEO)

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Toronto Raptors stars Kyle Lowry and DeMar DeRozan are becoming one of the best duos in the NBA, on and off the court. They joked around in the locker room after their win over the Boston Celtics on Friday night, 101-94, but the comedy started before the two even left the floor.

In a postgame interview with CSNNE DeRozan was asked what the message was at halftime from coach Dewane Casey.

DeRozan — with Lowry looking devious in the background of the shot — was gracious.

“Just get [Lowry] the ball,” DeRozan smiled.

Pleased with the result, Lowry responded with a “That’s a good message right there!” before running off to the locker room.

The interview continued to be interrupted, with Raptors big man Jared Sullinger giving the camera a drive by “DeMar for President!”

New England Patriots RB LeGarrette Blount even showed up to show DeRozan some love.

Kevin Durant gets fouled by Stephen Curry, officials whistle Joe Johnson instead (VIDEO)

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The Golden State Warriors are so talented, perhaps the officials are predisposed to blowing whistles in their favor. At least, that’s the only explanation you could give to a Utah Jazz fan after seeing what happened between Stephen Curry, Kevin Durant, and Utah’s Joe Johnson on Thursday night.

As Durant came off a curl on the far side of the court, he used a screen set by Curry on Johnson.

With the ball in his hands, Durant rose to fire but found himself locked in arms with another player. Durant’s shot attempt helplessly bounced away as he shot, and officials whistled Johnson on the play.

Of course, a closer look reveals that the player Durant’s arms were tangled up with was … Curry.

Yes, Curry had arm locked what he thought was Johnson on the screen but was instead his teammate and MVP candidate.

It didn’t matter, as referees awarded Durant the free throws, of which he only made 1 of 2.

Perhaps that’s some solace?

Golden State beat Utah, 106-99.

DeMarcus Cousins trolls Joakim Noah on shooting form (VIDEO)

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New York Knicks C Joakim Noah has an awkward jumper and free throw technique, there’s no denying that. His two-handed, horizontal approach to shooting a basketball is ripe for criticism.

DeMarcus Cousins thinks so, at least.

During a game between the Sacramento Kings and the Knicks, Cousins decided to give Noah a little tongue-in-cheek trolling about his form.

Via Twitter:

Looks about right.