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.

Miami injuries: Goran Dragic tears plantar fascia; Bam Adebayo tweaks shoulder

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The Lakers physically overwhelmed the Heat in Game 1 of the NBA Finals — and it led to some Miami injuries that could dramatically impact the rest of the series.

Heat starters Goran Dragic and Bam Adebayo both had to leave the game with injuries, not to return.

Dragic left the game in the first half not to return with what multiple reports have said is a torn plantar fascia. There is nothing official from the team, but this is a bad sign.

As Jeff Stotts wrote at In Street Clothes, it is possible to play through a torn plantar fascia but it is both very painful and limiting.

If he plays again this series, the Dragic that returns would be a shell of the Dragic that used his quickness to tear apart the Boston defense in the Eastern Conference Finals. Dragic’s ability to blow by his man in isolation and get into the paint helped make Miami’s offense a threat, and without this penetration they floundered against the Lakers’ length. Rookie Tyler Herro got the start in the second half for Miami Wednesday, and for the game he was -35 (tying the All-time NBA record for worst +/- with Kobe Bryant from Game 6 of the 2008 NBA Finals).

Another of the Miami injuries was to starting center Adebayo, who tweaked the shoulder that had bothered him in the Eastern Conference Finals against Miami.

There was no update from the team (as of this writing), but Tim Reynold of the Associated Press wrote Adebayo himself expects to play.

Adebayo is crucial for the Heat — he is their best defensive rebounder and the guy they will turn to in the crunch to cover Anthony Davis. He struggled against the length and physicality in

Having Dragic and/or Adebayo out will reduce the already-slim margin for error for Miami in this series to almost zero.

“We’re still expecting to win. We still know that we can,” Jimmy Butler said of the Heat mindset after the game. “Like I said earlier, we want [Dragic] out there with us. He’s a big part of what we’re trying to do, but until we can have him back, we got to go out there and we got to fight even harder. We got to try to cover up what he gives us and make up for it. We’re capable of it. We have to be capable of it. Moving forward with or without Goran we better hurry up and tie it up 1-1.”

The NBA continues its fast pace of games in the Bubbe: Game 2 of the NBA Finals is Friday night. Less than 48 hours away

 

Lakers crush Heat with Anthony Davis only center on floor

Lakers star Anthony Davis
Jesse D. Garrabrant/NBAE via Getty Images
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Anthony Davis dislikes playing center.

The Heat let him get away with it.

The Lakers’ victory in Game 1 of the NBA Finals turned on the six minutes where Davis was the only center on the floor. No Dwight Howard, Markieff Morris or JaVale McGee for Los Angeles. No Bam Adebayo, Kelly Olynyk or Meyers Leonard for Miami.

The Lakers outscored the Heat by 18 points in those six minutes!

Davis dominated. He scored eight points on 4-of-5 shooting, blocked dunk-contest champion Derrick Jones Jr. at the rim and passed to a wide-open Alex Caruso for a 3-pointer during that first-half stretch.

Davis wasn’t too shabby the rest of the game, either. He finished with 34 points, nine rebounds, five assists and three blocks and was a team-high +23.

Davis’ 34 points rank among the among the highest-scoring NBA Finals debuts since the NBA-ABA merger:

  • 48 points by Allen Iverson in 2001
  • 36 points by Michael Jordan in 1991
  • 36 points by Kevin Durant in 2012
  • 34 points by Adrian Dantley in 1988
  • 34 points by Anthony Davis in 2020

Especially deep in the playoffs, teams have mastered using small lineups to flummox lumbering centers. But that’s not Davis. He’s mobile and skilled like a wing. And he still has size advantages at 6-foot-10.

Some shorter players can at least bother Davis, who prefers to avoid banging inside against stronger opponents. See de facto Rockets center P.J. Tucker. But a frontcourt featuring three of Jae Crowder, Andre Iguodala, Jimmy Butler, Solomon Hill and Jones lacks the brute force to compensate for its height shortcomings against Davis.

Adebayo’s lingering shoulder injury hangs over Miami’s ability to match up. Though he has size, Olynyk is far from an ideal defender. Leonard, who got a DNP-CD tonight, might have to play in Game 2 Friday.

Lakers go on 75-30 run, blow out Heat in Game 1 of NBA Finals

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All-season long, one of the first things opposing coaches would say after facing the Lakers was, “it was so hard to adjust to their length and physicality.”

The Miami Heat learned that lesson the hard way Wednesday.

The Heat raced out to a 13-point lead early in Game 1 of the NBA Finals as they forced the Lakers to become jump shooters. Then those shots started falling, Miami started missing, the Lakers started running, and everything came apart for the Heat. The Lakers closed the first quarter on a 19-3 run.

That run became 75-30.

“It’s been that way all year long, whenever we start to miss a couple shots, we don’t do what we’re supposed to do on the other end,” Jimmy Butler said.

That was the ballgame.

The Lakers were physically dominant, shot 15-of-38 from three (39.5%), and blew the Heat out of the building in Game 1 of the NBA Finals, 116-98. LeBron James finished with 25 points, 13 rebounds, and nine assists. Anthony Davis added 34 points and added three blocked shots — Miami had no answer for him inside.

The Lakers led by as many as 32 before some good garbage time play from Miami — 18 points from Kendrick Nunn — made the final score look more respectable than the game itself was.

Game 2 of the Lakers vs. Heat Finals is Friday night.

“You know, from that moment when it was 23-10, we started to play to our capabilities,” LeBron said. “We started flying around. We started getting defensive stops. We started sharing the ball a lot better offensively and just got into a really good groove.”

“The Lakers set the tenor, the tone, the force, the physicality for the majority of the game,” Heat coach Erik Spoelstra said afterward.

More disturbing for the Heat are the potential injuries to critical players.

Goran Dragic did not come out of the locker room for the second half and had X-rays on his foot. While there is nothing official, Adrian Wojnarowski of ESPN reports he tore his plantar fascia. He is officially TBD, but it will be a difficult injury to play through. It’s devastating blow for Miami.

With Dragic out Tyler Herro got the second-half start, and in Game 1 he tied an NBA Finals record being -35 for the game (Kobe Bryant, Game 6 of 2008 Finals against Boston).

In addition, Bam Adebayo went back to the locker room in the third quarter, appearing to have aggravated the shoulder issue he had against Boston. The team said X-rays were negative, but he did not return to the game.

This game turned on Adebayo. On media day Tuesday he said, “You got to be smart about ticky-tacky fouls.” He knew he couldn’t get in foul trouble, and yet he did, picking up a second foul in the first quarter, sending him to the bench. Up to that point the Heat were up three, but when he went to the bench the Laker run started.

“Our guys are just hustling their tails off, flying around on the defensive end, and then playing effort offense, as well,” Laker coach Frank Vogel said of the Lakers’ run through the second and third quarters. “Really pushing the tempo on the break, attacking the paint, and crashing the boards. Just the pace of the game really picked up in those two quarters, and obviously, they were the difference makers.”

The Lakers got 13 points from Kentavious Caldwell-Pope, and 11 from Danny Green (who hit three from beyond the arc).

Miami’s defensive game plan was to double LeBron when he drove, make him pass out, and dare the other Lakers shooters to beat them. The Lakers role players did and that was a key difference.

Miami got 23 points on 13 shots from Jimmy Butler, but he also tweaked his ankle during the game. Herro had 14 points but on 6-of-18 shooting, and as a team the usually sharp-shooting Heat shot 31.4% from three.

Because of the rapid pace of games in the bubble, the Heat have just two days to regroup and try to make this look more like a series — Game 1 looked like the varsity vs. the JV.

“We talk about how damn near perfect that we have to play, and that was nowhere near it,” Butler said. “There’s nothing to be said. We can watch all the film in the world, we understand, we know what we did not do, what we talked about we were going to do, we didn’t do. We didn’t rebound, we didn’t make them miss any shots, we didn’t get back, all of those things led to the deficit that we put ourselves in.”

Miami guard Goran Dragic doubtful to return to game with foot injury

Goran Dragic injury
Kevin C. Cox/Getty Images
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Goran Dragic, like seemingly every member of the Miami Heat, couldn’t find his rhythm in the first half — 3-of-8 shooting, three assists, but some missed defensive assignments as the Heat started to fall behind.

Part of that may have been a foot injury — Dragic did not come out for the second half and his return is doubtful with a left foot injury, the Heat announced.

There are no other details on the injury as of yet.

Tyler Herro started the second half for Miami in his place.

The Heat has struggled with the Lakers length — and Los Angeles can’t miss from three — with that has the Heat down 26 early in the third quarter.