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: Tobias Harris won’t play for Team USA in World Cup, either

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The theoretical lineup of players who’ve withdrawn from consideration for Team USA’s FIBA World Cup roster just gained frontcourt depth.

So far, we had:

Add Tobias Harris.

Keith Pompey of The Inquirer:

Harris is a real loss. He’s a good player whose ability to blend with other good players – as he showed with the 76ers last season – would’ve made him particularly helpful on Team USA.

The Americans still have other forwards available – Khris Middleton, Jayson Tatum, Harrison Barnes, Kyle Kuzma, Paul Millsap, P.J. Tucker. But none match Harris’ combination of talent and frontcourt versatility.

USA Basketball is down to just 14 players for its training camp next month:

The U.S. almost must add more players to the pool.

Wizards: We’ll offer Bradley Beal max contract extension, won’t trade him if he rejects it

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The Wizards will offer Bradley Beal a max contract extension when he’s eligible Friday, new general manager Tommy Sheppard confirmed to Adrian Wojnarowski of ESPN. Washington will give Beal his choice of length. The maxes:

  • One year, $34,502,129
  • Two years, $71,764,428
  • Three years, $111,786,897

But that’s less each season than Beal could get by playing out his current contract then re-signing. It’s even less each season than Beal could get by playing out his current contract then leaving. And it’s way less than Beal could get if he becomes eligible for a super-max deal (either an extension next offseason or re-signing in 2021) if he makes an All-NBA team either of the next two seasons.

Here are Beal’s max salaries on an extension and projected max salaries on a new contract:

Season Extension now Re-sign Leave Super-max*
2021-22 $34,502,129 $38M $38M $44M
2022-23 $37,262,299 $41M $39M $47M
2023-24 $40,022,469 $44M $41M $51M
2024-25 $111,786,897 $47M $54M
2025-26 $50M $58M
Total $111,786,897 $218M $118M $25M
Average $37,262,299 $44M $39M $51M

*Beal’s super-max amounts would be the same on an extension next offseason or fresh contract the following year.

So, it’s hard to see Beal accepting an extension.

He’d get financial security. There’s always risk in waiting – injury, unexpected decline or something else.

But Beal is so talented and just 26. The NBA is also short on quality shooting guards. He’s in tremendous position to secure a max contract in 2021 free agency.

So, how will the Wizards react if Beal doesn’t sign right now?

Wojnarowski:

If Beal passes on the extension, the Wizards have no plans to engage in trade talks with two years, $55.8 million left on his contract, Sheppard said.

“He’s got two years left on his deal, and he’s from Missouri and we are going to have to show him,” Sheppard told ESPN. “We need to show him that we are about building this the right way, that we aren’t going to have character-deficient guys around him. We are going to surround him with guys he wants to play with. He saw that right away in free agency with us bringing back Thomas Bryant.”

They’re really going to pitch him on playing with Thomas Bryant. Thomas Bryant! And I like Thomas Bryant. He was a breath of fresh air for the Wizards last season, and they re-signed him for $25 million over three years. But he’s also still just Thomas Bryant.

The NBA is full of star duos. Kawhi Leonard and Paul George. Kevin Durant and Kyrie Irving. LeBron James and Anthony Davis.

Bradley Beal and Thomas Bryant?

That’s supposed to tempt Beal to stay in Washington?

The Wizards will likely be bad next year. John Wall could miss the entire season, and his huge salary encumbered Washington’s ability to add other players. Beal has touted his loyalty to the Wizards. But after living through what will likely be a miserable season, how will he feel about Washington then?

Beal said the Wizards told him they wouldn’t trade him. Sheppard has now gone public with that message.

But Washington also pledged not to trade Otto Porter then dealt him to the Bulls a week later. Plans change. Sometimes, there’s posturing for negotiating position.

There’s still plenty left to unfold. Beal isn’t even yet eligible for an extension. Maybe he’ll shock me and sign one this summer.

If not, the Wizards likely face an uphill battle for keeping him happy enough to stay in 2021 free agency.

Rumor: Kawhi Leonard’s advisor and uncle, Dennis Robertson, asked teams for guaranteed sponsorship money

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Kawhi Leonard and the Clippers won the offseason.

Leonard got a max contract to play in Southern California, where he grew up and clearly wanted to return. He’ll also be joined by his desired co-star, Paul George.

The Clippers get both stars and early status as championship favorite.

But the process has left some bitterness with the teams that didn’t get Leonard.

The Raptors have spread word Leonard’s advisor and uncle, Dennis Robertson, made unreasonable requests. The Lakers reportedly feel they got played in their Leonard pursuit.

Stephen A. Smith of ESPN:

This is me putting on my reporter’s hat here. People in NBA circles are talking about this right now. Allegedly, the uncle, Uncle Dennis, was asking for a lot of stuff from the other teams. Houses, planes, sponsorship, guaranteed sponsorship money, just as an example. They’re throwing this stuff out there.

I have no idea whether this is true or not. I’m not trying to cast any aspersions on Uncle Dennis. But people in NBA circles are talking about this as we speak.

This chatter is designed to make both Robertson and the Clippers look bad.

Robertson is painted as greedy and preposterous. The Collective Bargaining Agreement prohibits teams from providing players with those types of special benefits. In fact, a team arranging a sponsorship for its player is specifically listed as salary-cap circumvention.

Still, I don’t have a huge problem with Robertson asking. There have been numerous suspicions of under-the-table payments. If that happens regularly, of course Leonard should want his cut. If that’s not really something that happens, it’s on the teams to say no.

But did teams say no?

This raises questions about what the Clippers did to lure Leonard. They reportedly looked into acquiring his logo from Nike so they could gift it to him contingent on him signing. (That didn’t happen, and lawsuits between Leonard and Nike are pending). They also previously got fined for arranging a sponsorship for DeAndre Jordan when he was a free agent.

If there’s credible suspicion or even just accusations from other teams, the NBA should investigate. But people should put their names behinds their accusations – at the very least to the league.

Without that, this just looks like sour grapes.

Bradley Beal not playing for Team USA in World Cup

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How would this lineup fare in the 2019 FIBA World Cup?

Though undersized, that unit has a ton of talent. With even an average bench, that group could medal.

It’s a tribute to the United States’ depth of talent.

Those five players have all reversed plans to attend USA Basketball’s training camp next month. Beal is the latest to withdraw.

Brian Windhorst of ESPN:

Washington Wizards star Bradley Beal has pulled out of playing with Team USA in the World Cup this summer, agent Mark Bartelstein told ESPN.

Beal is awaiting the birth of his second son during World Cup preparation and competition, which led to the decision.

That’s a joyous reason for Beal not to play.

It also leaves the Americans in a bind. They’re down to just 15 players listed as in consideration for the World Cup roster:

And Lowry is dealing with a thumb injury.

Donovan Mitchell is the only shooting guard on that list. Beal, McCollum and Gordon pulling out zapped the depth at that position. Team USA can use two-point guard lineups or play bigger wings like Khris Middleton at the two. But I wouldn’t be surprised if more players get added to the training-camp roster.