Oklahoma City Thunder v Los Angeles Clippers - Game Six

Are the Clippers really worth $2 billion? Five things that drove up the price.


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.

In the East, it’s the Cavs and then everyone else – again

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The Cleveland Cavaliers know what it feels like to enter the season as Eastern Conference favorites.

They begin this one with an entirely unfamiliar label – defending champions.

The rest of the East has spent the last six years unsuccessfully trying to unseat LeBron James from the throne. Whether he has been in Cleveland or Miami, James has led his team to the NBA Finals every year since 2011. But his crowning achievement came last season, when his Cavaliers captured the city’s first pro sports championship in 52 years by defeating the record-breaking Golden State Warriors.

Now the Cavaliers are wearing an even bigger target on their backs.

“It’s the same mindset: Let’s win a championship,” James said. “We just want to be able to put ourselves in position to do that. We have the ability, we have the personnel, but we have to work now. We can’t expect for it to happen just like we didn’t expect for it to happen last year. We put the time into it.”

The Boston Celtics finally found a star in Al Horford to team with a lunch pail group that has overachieved under coach Brad Stevens. The Toronto Raptors are back for more after falling to the Cavs in the Eastern Conference finals and Chicago and New York brought in aging stars in a desperate attempt to change the balance of power in the league’s weaker conference.

James’ reply: Bring it on.

“We can’t be entitled to anything we’ve got to go out and get it and work for it,” he said. “We’re a team that’s very driven and we look forward to all the challenges the season holds.”

A look at the East:


1. Cleveland – Championship hangover? No one expects that with the Cavs. There is one certainty in the NBA: LeBron will make it to the finals.

2. Boston – Horford and Stevens appear to be the perfect match.

3. Toronto – Keep doubting the Raptors. Kyle Lowry wants you to. Should be nip and tuck with the Celtics all season.

4. Washington – Here’s where it starts to get dicey. Wiz are betting Scott Brooks will be able to push the buttons Randy Wittman couldn’t.

5. Atlanta – The Hawks took a step back last season, then swapped Horford for Dwight Howard. Things could go either way in Hotlanta this season.

6. Charlotte – Mostly stood pat this summer after a surprising sixth-place finish last year. A healthy Michael Kidd-Gilchrist sure could make a difference.

7. Detroit – Would have picked them higher, but Reggie Jackson‘s injury is a concern.

8. Indiana – Pacers swapped out the underrated George Hill for Jeff Teague, traded Frank Vogel for Nate McMillan and brought in Thaddeus Young and Al Jefferson to funk things up.


9. Chicago – Dwyane Wade‘s homecoming is a great story. But the severe lack of shooting figures to hold the Bulls back.

10. Miami – With Wade and Chris Bosh gone, it’s rebuilding time. Don’t expect Pat Riley and Erik Spoelstra to be down long, though.

11. New York – Manhattan is all excited about the star power that Phil Jackson brought in. The reality is Derrick Rose and Joakim Noah have not been completely healthy for years.

12. Milwaukee – Khris Middleton‘s injury is a killer that prompted scrambling for wing help. The Greek Freak at point guard, thought? That will be appointment viewing.


13. Orlando – Vogel landed with the Magic and he has all kinds of defensive weapons at his disposal. That will be essential because scoring may be difficult to come by.

14. Philadelphia – You have to be kidding us with the Ben Simmons injury. Hey, at least Joel Embiid is healthy. Please keep it that way.

15. Brooklyn – Move over Philly, there’s a new basement dweller in the East! Sean Marks and Kenny Atkinson are well thought of, but it’s going to take time to get this thing turned around.


LEBRON’S LEGACY: The last time James did not appear in the NBA Finals was 2010 when the Los Angeles Lakers beat the Celtics. James’ Cavaliers were eliminated in the East semifinals by the Celtics, and he signed with the Heat that summer.

WALL AND BEAL: Much has been made of the chemistry, or lack thereof, in Washington’s backcourt. If John Wall and Bradley Beal are on the same page, the Wizards are dangerous. If they can’t find a way to harmonize, Washington could plummet down the standings.

NEW FACES: Brooks in Washington, McMillan in Indiana, Vogel in Orlando, Atkinson in Brooklyn and Jeff Hornacek in New York start their first seasons as coaches after a summer of upheaval in the conference.

SCHRODER TIME: The Hawks traded Teague to Indiana to open the door for Schroder’s slashing game. He’s been waiting for this chance, and his ability to run the team, play defense and knock down the occasional jumper will be critical to Atlanta’s chances.

ROOKIE WATCH: Only three of the top nine picks in the draft went to teams in the East. Youngsters to keep an eye on include Jaylen Brown in Boston, Jakob Poeltl for Toronto, Thon Maker in Milwaukee and Denzel Valentine in Chicago.

AP Sports Writer Tom Withers in Cleveland contributed to this report.

Follow Jon Krawczynski on Twitter: http://www.twitter.com/APKrawczynski

Wade, Rondo bring intrigue if not title hopes to Bulls

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Associated Press

CHICAGO (AP) No matter how this season plays out, this much is clear about the Chicago Bulls: They’re worth watching.

They jettisoned one hometown superstar and welcomed another when they traded former MVP Derrick Rose and signed three-time NBA champion Dwyane Wade.

They also handed the keys to an All-Star guard in Jimmy Butler who called out his coach last season. And on top of that, they added mercurial point guard Rajon Rondo to the mix.

Coming off a flat season that ended with them missing the playoffs for the first time since 2008, the Bulls at least spiced things up in the offseason. Now, it’s time to see if interesting also means better.

“I love the vibe of this group,” Hoiberg said. “I love the competitiveness of this group.”

The Bulls clearly had to do something after a year that began with high expectations ended with a 42-40 record, a fractured locker room and all sorts of questions about team leadership.

Gone is Chicago native Rose – derailed by injuries after leading the Bulls to heights they hadn’t reached since the Michael Jordan Era – after being dealt to New York for center Robin Lopez and guard Jerian Grant. So is Joakim Noah, who signed with Knicks not long after the big trade. Pau Gasol went to San Antonio as a free agent.

Wade shocked Miami when he chose to come home to Chicago and accept a two-year deal worth about $47 million.

Here are some things to look for this season from the Bulls, who open at home against Boston on Oct. 27:


The Bulls thought Hoiberg’s fast-paced tempo and soft-spoken style were just what the team needed when he was hired. They just didn’t think the learning curve would be as steep as it was. Hoiberg got called out by Butler last season for not coaching the team hard enough. The system and the roster did not mesh.

So does Year 2 bring a better Hoiberg?

Executive vice president of basketball operations John Paxson said he expects it. So does Hoiberg, who came to the Bulls after a successful five-year run at Iowa State.

But is this the right roster for him? After all, Wade and Rondo are both in their 30s. And if the Bulls struggle, who takes the fall?


Who knows what might have happened had Wade signed with the Bulls six years ago rather than form a superstar triumvirate with LeBron James and Chris Bosh in Miami? But he’s here now, coming off a strong season and being counted on at age 34 to set the tone for the Bulls’ younger players. The 12-time All-Star has been doing just that, speaking up in practice and meetings.


It’s been a steep climb for Butler from low first-round draft pick to bench warmer to two-time All-Star with an Olympic gold medal. But his success hasn’t translated to team success. Butler’s first All-Star season ended with Tom Thibodeau’s firing. Last year, the Bulls dropped into the lottery. And while Wade and Rondo have said the Bulls are Butler’s team, it’s not clear exactly how far he can lead them.

“I can learn from (Wade and Rondo), the winning culture they’ve built,” Butler said. “I’m excited because there’s so much growth I can handle in that aspect of the game. You look at what Wade has done for his career, a future Hall of Famer. I think that I can model the way I do things around him.’


While the Bulls added scoring punch and the reigning assists-per-game leader in Wade and Rondo, they still lack a starting guard who can consistently hit from long range. That was a problem last season with Rose and Butler, who moves to small forward.

Spacing could be a problem when Rondo, Wade and Butler are on the court together, though the Bulls do have solid shooters in Nikola Mirotic and Doug McDermott. Gasol’s departure also creates a scoring hole in the paint.


Rondo is coming off a resurgent season with Sacramento that saw him average 11.9 points and a league-leading 11.7 assists. It was the fourth time he averaged a double-double in a season and the first for him since the 2012-13 season. The four-time All-Star has clashed with coaches, most notably Dallas’ Rick Carlisle, and his relationship with Hoiberg could be one to watch.

Damian Lillard drops first rap album “The Letter O”

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Damian Lillard via Twitter
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Damian Lillard keeps hearing the calls from fans on social media to work harder in the gym instead of rapping. This summer, it looks like he did both.

Lillard announced on Thursday that he would be dropping his first album, titled “The Letter O”, with features from artists like Lil’ Wayne and Jamie Foxx.

The Portland Trail Blazers point guard has come out with a few songs here and there, but this is the first full-featured album of his career. The album comes after Lillard performed at the Crystal Ballroom in July, a premiere concert hall in downtown Portland.

Oh, and about that whole “stay in the gym” thing? Lillard answered that too.

Via TrailBlazers.com:

“I recorded the entire album in L.A. and it took me one week,” said Lillard. “So I was there for five days and from 12 noon to 12 midnight I was in the studio. I’d workout at 8 am and then I’d go lift and then I’d go to the studio, 12 to 12, five days straight.”

The Letter O is a tribute to Lillard’s heritage — Oakland, Ogden, and Oregon — the three places that are the mileposts of his basketball career. During lineups, Lillard is announced as “Wearing the letter O” before every Blazers game.

You can The Letter O on Spotify, Apple Music, and iTunes.

Horford’s addition gives Celtics high hopes for new year

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Associated Press
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BOSTON (AP) From afar, Al Horford has always had respect for the history of the Boston Celtics.

He made his first visit to the Garden as a rookie in 2007 and found himself drawn to the championship banners that hung above the court.

That was the same season that Kevin Garnett and Ray Allen joined Paul Pierce to form the Big 3 and went on to win Boston’s 17th NBA championship.

As the Celtics biggest free agent signing since then, Horford – with his four-year, $113 million contract – is now the centerpiece of the franchise as it chases banner No. 18.

He enters the 2016-17 campaign no longer the wide-eyed rookie that arrived in Atlanta nine years ago. He’s now a veteran four-time All-Star that team president Danny Ainge believes can provide leadership to a young core led by Isaiah Thomas, Avery Bradley and Jae Crowder. The immediate goal is to help Boston advance past the first round of the playoffs for first time since 2012.

“I know that I’m gonna help our team be better,” Horford said. “I’m gonna try to come in and try to gel as fast as I can and just make sure that we’re playing at a high level, and that we’re working every day. And we’ll see what happens.”

There’s no denying that Horford joins a team that has been on the upswing under coach Brad Stevens. Boston won just 25 games his first season in 2013-14 but have improved to 40 and 48 wins the past two, which have included back-to-back playoff berths.

But each of those postseason appearances ended in first-round exits, including a 4-2 loss to Horford’s Hawks last season.

That loss was marred by a hamstring injury to Bradley in Game 1, as well as nagging injuries which dogged Crowder and center Kelly Olynyk.

With all of that behind them, Thomas is anxious to see what this group can accomplish when healthy and with some extra star power.

Aside from providing some help defending the rim and rebounding, Horford’s shooting ability also should open up the floor more for a scoring point guard like Thomas, and improved shooter like Bradley.

The expectation is that Crowder will also be freer to operate with Horford drawing attention in the paint.

There is also No. 3 overall draft pick Jaylen Brown, whose athleticism should fit right in with a group that loves to run the floor.

“We have a pretty good team, a team that could make some noise – some legitimate noise,” Thomas said. “If we put it together and play the right way, we can make a lot happen this season. You don’t ever want to put a ceiling on it, but we have a really good team I know that.”


Probably the Celtics’ biggest loss this offseason was the departure of swingman Evan Turner to Portland in free agency. Aside from being a productive sixth man, he also at times triggered their half-court sets when he was in the game. “That’s a big loss,” Stevens said. “A big loss because of the way he handled the ball, the big shots that he made late in the game, his positional versatility defensively, his everyday workman-like attitude in the gym.”


The Celtics were dealt a small blow to their second unit when Marcus Smart suffered a left ankle sprain in their preseason finale. The silver lining is that while he’s out, it will almost certainly mean increased playing time for second-year point guard Terry Rozier. Rozier had his best moments as a rookie on the defensive end, but showed a lot of improvement in his shooting during the preseason. “He works hard at the game and it’s no surprise that he’s having success,” Stevens said. “We’re going to rely on him.”


Olynyk sat out the entire preseason recovering from arthroscopic surgery on his right shoulder in May. After not being cleared for contact in time to appear in any preseason games, it’s possible he could miss a good chunk of games early in the season. It will mean one less body to relieve Horford, but will give the Celtics opportunities to play smaller at times.


The Celtics have a fairly balanced schedule over the first full month of the season, but will play 10 of their first 18 games on the road. Horford will play his former Hawks team three times this season, beginning Jan. 13 in Atlanta.

Follow Kyle Hightower on Twitter at http://www.twitter.com/khightower