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.

LeBron James on surpassing Michael Jordan: “It’s a personal goal”

CLEVELAND, OH - SEPTEMBER 26: LeBron James #23 of the Cleveland Cavaliers during media day at Cleveland Clinic Courts on September 26, 2016 in Cleveland, Ohio. 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. Mandatory copyright notice. (Photo by Jason Miller/Getty Images)
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Since he was a teenager, LeBron James has been compared to Michael Jordan. That comparison has usually been used as a way to cut him down or explain why he’s not in the same class, but that’s changed since he won his third championship, and first in Cleveland, in June. Now, LeBron has started to be a lot more open about his desire to eventually surpass Jordan. He said so in an interview with the AP’s Tom Withers after practice on Tuesday:

Now that LeBron James has won a championship for the ages, he’s set a loftier goal:

Catching Michael Jordan.

Long flattered to be mentioned in the same company with Jordan and other NBA legends, James has been hesitant to publicly acknowledge that he wants to be remembered as the greatest in league history.

It’s time now.

“It’s a personal goal,” James told The Associated Press on Monday. “I just never brought it up. It’s my own personal goal to be able to be greater than great. I think that should be everybody’s personal goal.”

Now that James has indisputably cemented his legacy as one of the handful of greatest players ever to play the game, he has a lot less to lose by openly talking about these things. Five years ago, he would have gotten killed for bringing it up. Now? It just seems plausible more than anything else.

Kevin Durant says Nike didn’t influence his free-agency decision

OAKLAND, CA - SEPTEMBER 26:  Kevin Durant #35 of the Golden State Warriors poses for NBA team photographer Noah Graham during the Golden State Warriors Media Day at the Warriors Practice Facility on September 26, 2016 in Oakland, California.  (Photo by Ezra Shaw/Getty Images)
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Many different factors went into Kevin Durant‘s decision this summer to leave the Oklahoma City Thunder for the Golden State Warriors — basketball fit, location, his friendships with Andre Iguodala and Draymond Green, and more. But one thing he wants to make sure you know didn’t influence him is Nike. Durant told reporters this week that the shoe company, which he endorses, didn’t steer him one way or another in free agency, and they didn’t even know his plans beforehand.

It’s a little hard to believe that Nike had zero advance knowledge of Durant’s plans — if not a hard answer, at least a strong indication of which way he was leaning. Durant was one of the most popular players in the league in Oklahoma City, so Nike would have been fine either way. But his presence in Golden State, a much bigger market and the dominant story in the NBA this season, will only help them. It doesn’t hurt, either, that they now have one of their biggest athletes in the same market as Stephen Curry, who had been taking advantage of all the attention on the Warriors to raise Under Armour’s profile. Now, Nike can get some of that spotlight back in the Bay Area.

Barnes, Bogut highlight latest round of changes for Mavs

CLEVELAND, OH - JUNE 08:  Harrison Barnes #40 of the Golden State Warriors reacts in Game 3 of the 2016 NBA Finals against the Cleveland Cavaliers at Quicken Loans Arena on June 8, 2016 in Cleveland, Ohio. 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 Martinez/Getty Images)
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DALLAS (AP) Harrison Barnes and Andrew Bogut are in, Chandler Parsons and Zaza Pachulia are out and Dallas coach Rick Carlisle has a retooled roster for the sixth consecutive time since winning a championship.

“Well, we love it,” Carlisle said at media day this week as someone chuckled. “What’s more exciting than getting seven new guys? New blood. It’s fresh every year.

“Really, that wasn’t meant to be a joke,” he added. “If you view it as a negative, there’s a pretty good chance it’s going to be a negative. I don’t look at it that way.”

The Mavericks have made the playoffs all but one season since the constant turnover started after owner Mark Cuban chose salary cap flexibility over keeping a few key players when a new labor agreement was reached six months after his team won the title in 2011.

But Dallas still hasn’t won a postseason series since beating Miami in six games in those NBA Finals.

Repeated efforts to land big names in free agency failed, which this year led to the additions of Barnes and Bogut from 2015 champion Golden State after the Warriors lured Kevin Durant from Oklahoma City and had to unload both starters to make cap room for the four-time NBA scoring champion.

Barnes headlines the group of newcomers because he’ll be a top option on offense after signing a four-year, $94 million max contract. Over his four seasons with the Warriors, he was always a role player behind Stephen Curry and Klay Thompson.

“It’s going to be bigger expectations and I’m going to have a larger role on this team,” Barnes said. “I feel like we have a lot of pieces this year, either coming back off injury, guys who are motivated, have a lot to prove. So hopefully we can all come together and do something special.”

There’s actually some stability in the starting five because point guard Deron Williams is back for a second season with his hometown team.

Nowitzki, going into his 19th season at age 38, says Williams was the best player on the team at times last season, and the Mavericks missed him in their five-game loss to Oklahoma City. He was limited by a sports hernia injury that required offseason surgery.

Parsons signed a max deal with Memphis, and Pachulia went to the Warriors after the trade that landed Dallas the 7-footer Bogut, who should be a much stronger shot-blocking presence than his predecessor.

The changes fit the formula of at least two new starters each season going back to the title year.

“There are similarities to other years,” Carlisle said. “The ability to add Bogut and Barnes was huge for us. We caught some good luck on that.”

The other notable newcomer is Curry’s younger brother, Seth Curry, who is on his fifth team in his fourth season but finally had a more prominent role last season in Sacramento. Former Baylor standout Quincy Acy is in Dallas after bouncing around his first four years.

The Mavericks are deep at guard with holders J.J. Barea and Devin Harris behind Williams and Wes Matthews, in his second season as the shooting guard and now more than a year removed from tearing an Achilles tendon his final season in Portland.

Also returning are athletic young forwards Justin Anderson and Dwight Powell along with 7-2 Tunisian center Salah Mejri, a surprising shot-blocking presence last season as a 30-year-old rookie.

“They’re definitely athletes and we should be able to have a great defensive lineup once I’m out,” said Nowitzki, poking fun at his defensive skills. “I think we have a (backup) lineup out there that could be really, really good, and obviously youth and athleticism is a big part.”

Barnes wanted to be a part of it even though the Mavericks appear further from championship contention than other Western Conference teams.

“I think when you look at what this franchise has done year in, year out, stable on their ship,” Barnes said. “And be able to learn from a guy named Dirk who’s done it year in, year out. He’s pretty much built this place through his work ethic.”

And now Nowitzki is getting used to another new collection of teammates.

Follow Schuyler Dixon on Twitter at https://twitter.com/apschuyler

Jazz’s Dante Exum says his knee is completely healed from 2015 ACL tear

MIAMI, FL - DECEMBER 17:  Dante Exum #11 of the Utah Jazz drives to the lane during a game against the Miami Heat at American Airlines Arena on December 17, 2014 in Miami, Florida. 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. Mandatory copyright notice:  (Photo by Mike Ehrmann/Getty Images)
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After a promising rookie season, Dante Exum missed all of 2015-16 rehabbing a torn left ACL he suffered during an exhibition game with the Australian national team in summer 2015. As the Jazz kick off training camp, Exum says he’s fully recovered after his year off and he’s ready to go.

Via Jody Gennessy of the Deseret News:

“I was just excited to get back out there,” Exum said after the first of two practices Tuesday. “I was feeling good. … I was just ready to come out there, talk when I can and run between every drill.”

Both his attitude and his body were at 100 percent as he returned from a yearlong rehab that followed his September 2015 surgery on his left knee that had been injured in a friendly international game with the Australian team.

With the Jazz’s trade for George Hill over the summer, Exum won’t have to be the starting point guard, which will take some pressure off of him to get back to full strength right away. A torn ACL is something that usually takes time to return from, and having guard depth to ease his workload will help with the transition. If the Jazz get good production out of Exum, it will be a bonus for what looks to be one of the most exciting young teams in the Western Conference.