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 Kobe Bryant’s ‘Dear Basketball’ short film (video)

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Kobe Bryant announced his retirement in a letter called “Dear Basketball,” which was made into a short film.

Now, on the day the Lakers retire his Nos. 8 and 24, you can watch it. It’s quite beautiful:

Double number retirement fitting for Kobe Bryant

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Kobe Bryant’s career truly occurred in two acts.

He was Shaquille O’Neal’s super sidekick for three championships. Then, Kobe led the Lakers to another two titles himself after Shaq departed.

He was an athletic, high-flying slam-dunk-contest champion. Then, he became known for his cerebral play and footwork.

He faced trial for rape in Colorado (the case was ultimately dismissed, and he settled civilly), blame for Shaq getting traded and criticism for being too selfish when the Lakers struggled in the aftermath of Shaq’s departure. Then, Kobe – still beloved by his fans – again became a socially acceptable marketing force.

His 2007 trade request serves as the more accurate intermission point, but his 2006 jersey change from No. 8 to No. 24 works well enough. He had a Hall of Fame career in No. 8 then a borderline Hall of Fame career in No. 24. Think Tracy Mcgrady’s career followed by Bernard King’s – but it was just Kobe followed by Kobe and with far more postseason success.

Here are the win-share leaders with a single franchise during Kobe’s career:

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So much about Kobe is excessive – his accolades, his shot selection, his reputation as clutch. He had an all-time great career, but the myth outpaces reality.

Yet, Kobe becoming the first player with two numbers retired by the same team – which the Lakers will do at halftime tonight – feels incredibly appropriate. In his 20-year career with the Lakers, Kobe had time to succeed then succeed again in an extravagant way only he could manage.

He was dedicated and disciplined, flashy and fastidious, No. 8 and No. 24

Warriors will watch Kobe Bryant’s numbers get retired, Lakers might not

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The Lakers will retire Kobe Bryant’s No. 8 and No. 24 at halftime of their game against Warriors tonight.

The road team won’t miss it. The home team might.

Golden State coach Steve Kerr, via Monte Poole of NBC Sports Bay Area:

“I want our guys to see it,” Kerr said Saturday. “It’ll be a pretty cool moment.

“Just to experience of one of the greatest players in the history of the game getting his jersey retired and we happen to be there? I’m not going to keep them in the locker room watching tape from the first half. The players would look at me like I was nuts.”

Lakers coach Luke Walton, via Harrison Faigen of Lakers Nation:

“I hadn’t thought much about [watching the ceremony],” Walton said Sunday. “We’re still deciding how we’ll approach halftime.

“Our first priority is still the job that we have. I’m sure there’s going to be some halftime adjustments we need to make against the Warriors. We’re toying with a couple different ideas to let guys at least see part of it.”

Kerr seems like a pretty cool guy, someone who understands what truly matters. This will be a historic moment, and that can take priority over watching video for one night in a long season.

But he also has the luxury of coaching an all-time great team. Even with Stephen Curry, Draymond Green, Zaza Pachulia and Shaun Livingston injured, the Warriors are favored.

Walton has a young team that needs every break it can get. But he too should embrace the significance of the ceremony. His franchise is.

After reportedly initially being scheduled for pregame, the ceremony will occur at halftime. The NBA implemented a hard 15-minute limit on halftimes this season. Any team not ready will be assessed a delay-of-game penalty. So, lengthy speeches tonight could hinder the current team on the court. And that’s well worth the cost of doing business.

In the same regard, current Lakers watching Kobe’s ceremony would gain pride in being a Laker. There’s real value in that, probably more than in going over adjustments for a December game during a season very likely to end outside the playoffs regardless.

George Hill nails half-court buzzer-beater with less than a second to shoot (video)

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I bet this made George Hill happier.

The Kings still losing to the Raptors, 108-93, probably didn’t, though.