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.

Raptors’ Bismack Biyombo given after-the-fact Flagrant 2 for elbow to Pacers’ Turner, no suspension

TORONTO, ON - APRIL 26:  Bismack Biyombo #8 of the Toronto Raptors celebrates a dunk late in the second half of Game Five of the Eastern Conference Quarterfinals against the Indiana Pacers during the 2016 NBA Playoffs at the Air Canada Centre on April 26, 2016 in Toronto, Ontario, 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 Vaughn Ridley/Getty Images)
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Bismack Biyombo is going to be key for Toronto in their second round series against Miami. The Raptors will need his rim protection when Goran Dragic and Dwyane Wade start to drive.

Which is why the Raptors are lucky he did not get suspended for this blow from Game 7 vs. the Pacers (watch Biyombo elbow Myles Turner in the face in the middle of the key):

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At the time there was no call — as bad a miss as anything from the end of the Thunder/Spurs game — but after the fact the NBA has assessed a flagrant 2 foul on Biyombo.

However, no mention of a suspension for this incident alone. The Raptors catch a break there, as Biyombo should have been tossed from the game and/or given a suspension for that elbow. That said, one more flagrant and he does get a suspension.

NBA’s Basketball Without Borders to host first event in Australia

MELBOURNE, AUSTRALIA - JANUARY 21:  A general view is seen of the city skyline over Melbourne Park during day three of the 2015 Australian Open at Melbourne Park on January 21, 2015 in Melbourne, Australia.  (Photo by Clive Brunskill/Getty Images)
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Andrew Bogut. Dante Exum. Matthew Dellavedova. Patty Mills. Joe Ingles. Technically Kyrie Irving (he was born there but plays internationally for the USA).

Australia has brought a fair amount of talent — and scrappy players — to the NBA, and now the NBA is taking one of its outreach programs there.

Yesterday the NBA, FIBA, and Australia’s National Basketball League announced a Basketball without Borders event June 23-26 at Dandenong Basketball Stadium in Melbourne. It’s the first time the community outreach program will come to the island nation of Australia.

“We are pleased to partner with FIBA and the NBL to bring the first Basketball without Borders camp to Australia,” NBA Asia Managing Director Scott Levy said in a statement. “The league has seen a surge of Australian talent in recent years, and we look forward to supporting the next generation by giving them a platform to showcase their skills alongside their peers from throughout the region.”

These events bring in youth basketball players and work with them, both giving young players highest quality instruction and raising the profile of the sport in the nation with a little star power. Basketball Without Borders will celebrate 15 years this summer and has been all over the globe with similar events.

Now they can check Australia off the list.

Free agent Nicolas Batum sounds like a guy who wants to return to Charlotte

MIAMI, FL - APRIL 17: Nicolas Batum #5 of the Charlotte Hornets  looks on during Game One of the Eastern Conference Quarterfinals against the Miami Heat during the 2016 NBA Playoffs  at American Airlines Arena on April 17, 2016 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.  (Photo by Mike Ehrmann/Getty Images)
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Let’s not pretend it’s about anything else — it’s about the money.

Nicolas Batum is a free agent this summer, right after the best season of his career averaging 14.9 points a game and shooting 34.8 percent from beyond the arc. The last couple years quality “3&D” guys such as DeMarre Carroll have gotten paid bit money, and Batum is next on that list.

But all things being equal, he sounds like a player who would love to stay with Charlotte. Look at what he said the day of exit interviews to Rick Bonnell of the Charlotte Observer:

“We should be playing tomorrow (in the Eastern Conference semifinals) and we’re pretty mad about that,” Batum said of Sunday’s Game 7 loss to the Miami Heat.

“So this is unfinished business.”

“It was a pretty cool year. First time I got to play like I want to in eight years in the NBA.”

Batum went on to say the Hornets will be the first team he speaks with July 1. If the Hornets want to keep him, they will get their chance.

The Hornets have some difficult decisions to make this summer. In addition to Batum, their most coveted free agent around the league, the Hornets also have Jeremy Lin (who will opt out), Al Jefferson, Marvin Williams, and Courtney Lee. Keeping all of them may not be possible in a market where teams are flush with cap space thanks to the new television deal and overspending.

It may take a max or at least near max deal to keep Batum — GMs across the league saw what he could do this season and want him. That fifth year that only Charlotte can offer may be key for a guy who will be on the other side of 30 when he tries to get his next contract. Which is overpaying some, but that’s what the market will be like this summer. The Hornets have to decide their priorities on bringing their current core of free agents back, and what price tag they are willing to pay for each guy.

But if they are willing to pay, Batum would like to be back.

Kevin Love says he’s fine after leg, shoulder injuries in Game 1 vs. Hawks

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Kevin Love was hobbling off the court more like he just played a football game than a basketball game. He took a few hits during the game.

The most notable was to his surgically repaired shoulder left when the Hawks’ Kent Bazemore bought a pump fake and ended up landing on that shoulder (video above). Love came off the court holding his shoulder after that one, which was a little too reminiscent of last year for Cavs fans. Then there was the leg injury when he landed awkwardly trying to tip out a rebound.

So how is Love doing? He said after the game he’s just fine, as reported by Ken Berger of CBSSports.com.

“I’m fine,” Love said. “It was just one of those plays. You’ve always got to watch those plays when you pump fake on the 3-point line or on a jump shot and you’re leaning in and get hit, but I feel good.”

Love also came up limping later in the quarter when he landed awkwardly on his toe. He was weight-bearing in a vulnerable position for his knee momentarily, but appeared to catch himself before coming out of the game. A team source said it was more of a precaution than a necessity, as the game was well in hand by that point.

Love will be on the court for Game 2 Wednesday night. He had 17 points (but on 4-of-17 shooting) and 11 rebounds in Game 1, finishing a +15 on a night when the Cavaliers starters did their jobs, and the bench showed its flaws. I thought this could be a breakout big playoff series for Love, and his shooting certainly did not live up to that billing, but he did draw Kent Bazemore on him (keeping him off LeBron), which is a good thing. Also, he did a solid job defensively matched up on Al Horford (4-of-13 shooting) and if he can continue that the Cavs path to the next round is easier.