Forbes releases 2015 NBA franchise valuations, Lakers at $2.6 billion top the list

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The NBA’s owners cried poverty during the last round of collective bargaining agreement negotiations, and partly as a result, the league was able to get a much more favorable split of basketball related income in relation to what goes to the players.

After the latest round of franchise valuations that was released by Forbes, it’s going to be extremely difficult for them to try that tactic again.

The average team valuation jumped 74 percent from a season ago, and the average franchise value is now at $1.1 billion.

From Kurt Badenhausen of Forbes:

What do you get when you combine a massive new $24 billion television contract, a nearly six-year bull market in equities creating tremendous wealth, and cheap credit? You get a massive rise in sports franchise values, with the NBA serving as ground zero for the current boom.  The average NBA team is now worth $1.1 billion, 74% more than last year. It is the biggest one-year gain since Forbes began valuing teams in the four major U.S. sports leagues in 1998. …

There are now 11 NBA teams worth at least $1 billion, by our count, compared to three a year ago. The Los Angeles Lakers lead the way at $2.6 billion, up 93% over last year. The Lakers finished with their second worst record in franchise history at 27-55 last season and are faring even worse this year, but the team has the richest local TV deal in the sport: a 20-year, $4 billion contract with Time Warner that kicked off in 2012. …

The collective bargaining agreement signed between players and owners in 2011 has nearly eliminated money-losing teams, barring wild spending sprees on players (see Brooklyn Nets). Under the CBA, the players’ share of basketball related income was reduced from 57% to 50% (it is only around 47% of total revenue when you include all arena revenue streams). Revenue sharing to prop up the low revenue teams more than tripled from $55 million under the old CBA to $232 million last year. The result: the Nets were the only NBA team to lose money last season on an operating basis if you include all arena revenue.

One interesting thing to note, and that’s the fact that certain teams may draw bidding wars that drive the price up well past the current valuations. The Lakers and Knicks, for example, would be prime candidates to sell for hundreds of millions more than their already insanely-high price tag.

There’s a lot to digest, there, but the bottom line seems to be this: No matter what a team’s fiscal year balance sheet may look like (i.e., even if it shows a loss), there’s no denying that owners are making tons of money in the long run by hanging onto an NBA franchise. And don’t think the players won’t notice the next time it’s time to slice up the revenue-sharing pie.

Here’s the complete list, which, for the record, is fairly derided by many in the business each time it’s released.

Rank Team Current Value ($mil) 1-Yr Value Change (%) Debt/Value (%) Revenue ($mil) Operating Income ($mil)
1

Los Angeles Lakers

2,600 93 2 293 104.1
2

New York Knicks

2,500 79 0 278 53.4
3

Chicago Bulls

2,000 100 3 201 65.3
4

Boston Celtics

1,700 94 9 173 54.9
5

Los Angeles Clippers

1,600 178 0 146 20.1
6

Brooklyn Nets

1,500 92 19 212 -99.4
7

Golden State Warriors

1,300 73 12 168 44.9
8

Houston Rockets

1,250 61 8 175 38.0
9

Miami Heat

1,175 53 8 188 12.6
10

Dallas Mavericks

1,150 50 17 168 30.4
11

San Antonio Spurs

1,000 52 8 172 40.9
12

Portland Trail Blazers

940 60 11 153 11.7
13

Oklahoma City Thunder

930 58 15 152 30.8
14

Toronto Raptors

920 77 16 151 17.9
15

Cleveland Cavaliers

915 78 22 149 20.6
16

Phoenix Suns

910 61 20 145 28.2
17

Washington Wizards

900 86 14 143 10.1
18

Orlando Magic

875 56 17 143 20.9
19

Denver Nuggets

855 73 1 136 14.0
20

Utah Jazz

850 62 6 142 32.7
21

Indiana Pacers

830 75 18 139 25.0
22

Atlanta Hawks

825 94 21 133 14.8
23

Detroit Pistons

810 80 23 144 17.6
24

Sacramento Kings

800 45 29 125 8.9
25

Memphis Grizzlies

750 66 23 135 10.5
26

Charlotte Bobcats

725 77 21 130 1.2
27

Philadelphia 76ers

700 49 21 125 24.4
28

New Orleans Pelicans

650 55 19 131 19.0
29

Minnesota Timberwolves

625 45 16 128 6.9
30

Milwaukee Bucks

600 48 29 110 11.5

 

 

Report: FBI investigating Big Baller Brand co-founder Gregory Alan Foster

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It’s sad that people take advantage of athletes. A lot of people do it when these guys are very young and clearly talented, and Los Angeles Lakers point guard Lonzo Ball is no stranger to that.

Ball cut ties with his Big Baller Brand earlier this year, even covering up his “BBB” tattoo with a bad-looking pair of dice. This was because Gregory Alan Foster, one of his confidants and business partners, allegedly stole money from the company to the tune of several million dollars.

Now the FBI is reportedly investigating Foster for his involvement in bilking money from Ball.

Via LA Times:

The FBI is now investigating whether Foster defrauded the Ball family out of millions of dollars, according to two law enforcement sources. While it’s unclear when exactly the official investigation began, one of those sources said it is at least two months old.

Lonzo Ball and the family’s shoe and clothing business recently accused Foster in a lawsuit of taking more than $1.5 million out of the company’s bank accounts and accepting “substantial undisclosed referral fees” from at least eight loans he arranged on behalf of the company.

“[Foster is] like my second dad,” Lonzo replied. “So when he came to me, I just talked to him and I didn’t think there was anything wrong with it. He just gave me his story. Now, looking back at it, obviously I wish we would have jumped at it back in October.”

According to the Times, Foster’s whereabouts are currently unknown. Hopefully Ball will be able to recover some kind of financial damages from all of this.

Spurs’ smart defense, veterans force Game 7 with 120-103 win over Nuggets

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Nikola Jokic had a career night — 43 points, a personal and franchise playoff best, plus 12 rebounds and nine assists. Once again the two-man game, the pick-and-roll with him and Jamal Murray got into the lane and carved up San Antonio.

The Spurs lived with that. What they did, however, was not collapse off Denver’s shooters to help in the paint — to try to contest twos but give up good-look threes. Denver got its buckets inside — they won the points in the paint battle 72-36 — but shot just 8-of-31 outside the paint on the night.

The Nuggets stars took the shots they were given — Jokic and Murray combined to take 51 percent of Denver’s shots, up from 34.6 percent and 40.5 percent in the previous two wins — but the ball movement and transition buckets that characterize the Nuggets were missing. The Spurs took that away.

Combine that with veterans LaMarcus Aldridge (26 points on 10-of-18 shooting), DeMar DeRozan (25 points on 12-of-16 shooting), and Rudy Gay (19 points on 7-of-11 shooting) stepping up and you end up with the Spurs pulling away for a 120-103 Game 6 win on their home court.

It forces Game 7 Saturday in Denver. The winner advances to take on Portland in the second round.

“We didn’t defend tonight, from the jump ball,” Nuggets coach Mike Malone said. “They came out and scored 34 points in the first quarter, shot 70 percent or close to it [66.7 percent in first], and to give up 120 points in a potential elimination game, 57 [percent shooting]. It just wasn’t good enough.”

The game was decided by a 22-4 San Antonio run that spanned the end of the third and into the start of the fourth quarter, when the Nuggets pulled away.

“It was turnovers for us, it was offensive rebounds for them, and just no defense,” Malone said of the run.

The other difference in the game was the three-point shooting, an area where the Nuggets have dominated through the first five games. Thursday both teams took 24 shots from three, but the Spurs made 10 and the Nuggets six. That’s a dozen points to San Antonio in an area Denver needs to win.

It was like that all night.

San Antonio came out playing like the desperate team on the brink of elimination, playing with energy and staring out 7-of-10 from the floor. The Spurs built up a 10-point point first-quarter lead behind Aldridge, who had 13 points in the first quarter, 6-of-9 from the floor, plus the team shot 65.4 percent for the quarter.

Denver was not phased (this was the fifth time in six games they lost the first quarter), and after shooting 0-of-7 in the first quarter hit 4-of-5 to start the second. The Nuggets got back to playing the kind of ball-movement hoops — with a lot of Murray and Jokic playing off each other and scoring — and the Nuggets grabbed the lead back in the quarter. However, after a DeRozan putback bucket off his own missed free throw at the buzzer gave the Spurs a 64-60 lead at the half. That hustle play seemed to signify the Spurs night.

The game was close through much of the third, but the trends favored San Antonio.

Then the late-quarter run started, and Denver faded. Now they need to find their mojo on the plane home, because Saturday is win-or-go-home for everybody.

Chris Paul doesn’t like anyone touching the top of his head (VIDEO)

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Chris Paul is listed at six feet tall, and he’s definitely not any shorter than that. Nope, no sir. To even suggest as much would be ridiculous!

In any case, Paul is shorter than most of his teammates because he plays in the NBA. As such, Paul has probably had a lifetime of everyone towering over him despite his obvious incredible talent surpassing those of his compatriots.

So maybe being touched on the top of the head is a weird “thing” for him? At least, that’s what it appeared to be from this video.

Via Twitter:

You know somebody has a trigger when they are ready to turn around and fight you after a playoff series win, especially when they’re your own teammate.

Note to everybody: don’t touch the top of Chris Paul’s head.

Hall of Famer and Celtics hero John Havlicek dies at 79

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Hall of Famer and Boston Celtics Legend John Havlicek has died.

According to the team, the 13-time All-Star passed away peacefully in his home in Jupiter, Fla. The Celtics released an announcement on their website marking Havlicek contribution to the team.

Via Boston Celtics:

John Havlicek is one of the most accomplished players in Boston Celtics history, and the face of many of the franchise’s signature moments. He was a great champion both on the court and in the community, winning 8 NBA championships and an NBA Finals MVP, while holding Celtics career records for points scored and games played. Named one of the 50 Greatest Players in NBA History, he is enshrined in the Basketball Hall of Fame and his retired #17 hangs in the Garden rafters. His defining traits as a player were his relentless hustle and wholehearted commitment to team over self. He was extraordinarily thoughtful and generous, both on a personal level and for those in need, as illustrated by his commitment to raising money for The Genesis Foundation for Children for over three decades through his fishing tournament. John was kind and considerate, humble and gracious. He was a champion in every sense, and as we join his family, friends, and fans in mourning his loss, we are thankful for all the joy and inspiration he brought to us.

NBA Commissioner Adam Silver released this statement:

“John Havlicek was a wonderful friend who represented the best of the NBA.  He described himself as a man of routine and discipline – a humble approach that produced extraordinary results, including eight NBA championships with the Boston Celtics, 13 All-Star selections and some of the most iconic moments in league history.  A trusted teammate who prioritized winning, John’s passion and energy endeared him to basketball fans and made him a model for generations of NBA players.  We send our deepest sympathies to John’s wife, Beth, his son, Chris, and his daughter, Jill, as well as the entire Celtics organization.”

No matter what kind of basketball fan you are, if you know anything about the history of the game you at least have the phrase “Havlicek stole the ball!” burned into the folds of your brain.

That famous steal came in the 1965 Eastern Conference Finals to seal a Game 7 win against Wilt Chamberlain and the Philadelphia 76ers. Boston would go on to beat the Los Angeles Lakers in five games in the Finals that season.

Thoughts are with Havlicek family and Celtics fans, who of course will remember him in their own special way today.