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

 

 

76ers rumored to be looking for new top man in basketball operations

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Two years ago, the Philadelphia 76ers kept Brett Brown as coach and searched for a new top man in basketball operations, someone who could work collaboratively with others. They settled on Elton Brand as GM, just a couple years after the end of his playing career.

That collaboration, that order of hiring — coach and then GM — did not work.

Philadelphia is now looking for a new coach after firing Brown. Still, while a coaching search goes on, the franchise is considering bringing in a new head of basketball operations, reports Keith Pompey of The Inquirer.

League sources have said the Sixers are inquiring about the possibility of hiring a president of basketball operations. One source said that Portland Trail Blazers president of basketball operations/ general manager Neil Olshey might have some interest in the Sixers, but that’s only if he has total power, as the president and general manager.

Former Atlanta Hawks president of basketball operation/GM Danny Ferry’s name keeps popping up as a possible candidate. But the Sixers keep shooting that down.

A source also believes the Sixers will attempt to inquire about Houston GM Morey and Indiana Pacers president of basketball operations Kevin Pritchard. The source, however, believes it’s unlikely that they would be interested.

As with everything 76ers the past couple of years, things seem a bit confused. The front office could use a shakeup, but the expectation had been Brand would have the power and there would be more voices to consult with him. Maybe a strong No. 2 who could bring a new voice and organizational skills to the table.

The names mentioned in this report — Olshey, Ferry, Morey, Prichard — are established top men who will demand complete authority. And, they will want to hire their own coach.

It’s unclear what direction the 76ers are going with their front office — and, by extension, coaching search — but there is not a lot of time to make a call. The 2020 NBA Draft is in two months and the 76ers will want their front office set well before that.

Lakers saw what happened to Jazz, Clippers, say they will not let up vs. Nuggets

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ASSOCIATED PRESS — With one comeback after another in the playoffs, the Denver Nuggets showed themselves to be a team that falls down but doesn’t stay down.

The Los Angeles Lakers noticed.

They watched the Nuggets repeatedly rally from big deficits against Utah and then the Los Angeles Clippers – and, obviously, are aware that the Jazz and the Clippers are no longer in the NBA bubble because of Denver’s comeback abilities.

So the Lakers knew that when it was their turn to face Denver, there would be no letting up no matter what the scoreboard said.

Game 2 is Sunday night. The Lakers know the job is far from over.

“No lead is safe with this team, in the game or in the series,” Lakers star Anthony Davis said. “They have proven that they are a second-half team, where they come out and just destroy teams in the second half and prove that even if they are down a series, they are a team that’s going to be resilient and keep fighting no matter what the score is, what the situation is.

“When we have a lead, we have to lock in even more.”

The Lakers did that in Game 1 of the Western Conference finals, turning an 11-point halftime lead into a 27-point bulge in the second half before easing to a 126-114 victory.

“That’s a historic type of resilient team,” Lakers coach Frank Vogel said. “We’ve got to understand that, both with the series lead 1-0 right now and wherever it goes, but also within games.”

Denver reached the Western Conference finals for the first time since 2009 by becoming the first team in NBA history to erase two 3-1 deficits in one postseason. The Nuggets trailed by 15 points in Game 5 against Utah in their first game facing elimination, then were down 16, 19, and 12 in the final three games against the Clippers.

The Nuggets are the first team with three 15-point comebacks while facing elimination in one postseason since play-by-play began being recorded digitally in 1997.

“This is an opponent we all greatly respect,” Vogel said. “Save for the comebacks, we respect what they are capable of doing on both ends of the floor.”

It won’t matter how resilient the Nuggets are if they don’t make things tougher for the Lakers defensively.

Davis shredded them so easily on his way to 37 points that the Lakers didn’t even need much scoring from LeBron James, who took only 11 shots and had 15 points and 12 assists. Los Angeles got plenty of opportunities in transition and in the paint, which were areas of emphasis for Denver.

“We were giving up layups after we scored baskets ourselves. So that indicates to me that our sense of urgency to get back was not anywhere remotely close to where it needed to be tonight,” Nuggets coach Michael Malone said after the game.

When the Nuggets do get back, they need to do a better job of defending without fouling. They sent the Lakers to the line 24 times in the second quarter – Denver shot only 28 for the entire game – and both Nikola Jokic and Jamal Murray had to go to the bench with three fouls in the period.

“We’ve just got to be better,” Murray said. “We’ve just got to be on point. We’ve got to talk more, talk earlier, point, whatever we’ve got to do.”

This is the first time in this postseason the Lakers will take the lead into Game 2, having dropped their opening games against both Portland and Houston. They didn’t lose again in either series.

Going into Sunday, the Lakers will have the second-best record in the postseason at 9-2, trailing only Miami. It’s a big turnaround for the Lakers, who struggled at times during the seeding games in the bubble – but, as James’ teams tend to do in the postseason, are hitting their best stride when the games matter most.

Denver is also used to playing from behind – much further behind. So even though things looked bad Friday, the Nuggets have been in much worse spots in the bubble and found their way out of them.

“We have proven it time and time again that we can learn from our losses and figure out what we need to do better going into the next game and give ourselves a much better chance to win,” Malone said.

Gordon Hayward does not plan to leave bubble for birth of son

Gordon Hayward birth of son
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When Boston first went to the NBA restart bubble in Orlando, Gordon Hayward was upfront: He was leaving the bubble for the birth of his fourth child.

Hayward ended up leaving the bubble for another reason — he severely sprained his ankle and was out for more than a month. During his rehab, Hayward left the bubble and spent time at home, returning a couple of weeks ago. Saturday he played his first game back for Boston, helping it to a win against the Heat.

Hayward’s wife, Robyn, has yet to have their son, but now Hayward does not plan to leave the bubble for the event, something first reported by Rachel Nichols of ESPN during Saturday’s game.

Hayward confirmed this after the game. So did Robyn in a social media post, adding the reports she was in labor already were not true.

I don’t envy the Hayward family having to make this choice. As a parent, I can’t imagine having missed the births of any of my children, but, like everything else in 2020, this is far from a typical decision at a typical time. The Haywards are making the best of it they can. They deserve support no matter what they choose.

LeBron James, Dion Waiters’ son engage in a little trash talk

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“Yeah, right.”

That was Dion Waiters Jr.’s response to pretty much everything LeBron James during the Lakers’ practice on Saturday before Game 2 of the Western Conference Finals.

LeBron was getting up some corner threes and told Waiters Jr. he would make 100 straight.

“Yeah, right.”

When LeBron missed one, “I missed that on purpose.” 

“Yeah, right.”

“I missed that on purpose, so you’d think I’m human,” LeBron joked.

Got to love Dion Waiters Jr. — he’s got some of his dad’s spunk.

Families have been allowed in the bubble for teams for a couple of weeks, although LeBron’s sons are not there, with LeBron saying it’s not a great place for kids (he’s right, for anyone over about 7 or 8, there would be little to do).