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

 

 

Watch Embiid score 47, lift 76ers past Jokic, Nuggets 126-119

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PHILADELPHIA (AP) — Joel Embiid won the battle of MVP candidates with 47 points and 18 rebounds as the Philadelphia 76ers extended their winning streak to seven games with a 126-119 win over Nikola Jokic and the Denver Nuggets on Saturday.

Jokic and Embiid have finished first and second in voting for the NBA’s Most Valuable Player award over the last two seasons. Both are among the top candidates for MVP as this season hits the halfway mark, although Embiid was not named among the All-Star starters from the Eastern Conference.

“I’m used to it and it’s not the first time,” Embiid said. “I think it’s more of a motivation to go out there and try to win the whole thing. That’s the only way that I’ll get that respect.”

Jokic gave Embiid a nod for his play.

“He’s really talented,” Jokic told the Denver Post of Embiid. “Really shifty.”

James Harden had 17 points and 13 assists, and Tobias Harris scored all 14 of his points in the second half after being shut down by Denver’s defense in the first half.

“We were able to figure some things out and get some stops,” Harris said. “Guys stepping up and making shots was huge for us to cut the deficit in the fourth quarter to try and make something happen.”

Jokic had 24 points, eight rebounds and nine assists for Denver, which has lost three of its last four games. Jamal Murray chipped in 22 points and Michael Porter added 20.

“We turned it over and they just turned up the pressure on us,” Nuggets coach Michael Malone said. “They got to the basket way too easy with their attack mentality. And we just got way too careless with the basketball.”

Embiid has scored 40 or more points nine times this season and 35 times in his career. In addition to the All-Star snub, Embiid was also given a $25,000 fine by the NBA on Friday for an on-court demonstration after-basket celebration during Wednesday night’s win over Brooklyn.

“Let’s keep offending Joel by fining him and not putting him among the All-Star starters,” Philadelphia coach Doc Rivers said sarcastically.

The Nuggets began the day with the second-best team field goal percentage at 50.7% and tops in 3-point percentage at 39.5%. In the first half, they overwhelmed Philadelphia’s perimeter defense, shooting 65.9% (29 for 44) from the floor and 10 of 17 (58.8%) from beyond the 3-point line. The hot shooting helped the Nuggets to a 73-58 lead at halftime.

Embiid started to take over toward the end of the third quarter, putting together a 16-point quarter on 5-of-6 shooting that keyed a 14-0 run that allowed the Sixers to close within 99-98 early in the fourth.

In the final quarter, Philadelphia wore down a Nuggets team playing the final game of a three-game, week-long trip. P.J. Tucker– who had switched defenively to Jokic and slowed him down in the second half- followed a Harden missed 3-pointer with a tip-in with over a minute left to stretch the lead to five. Embiid then hit a 3-pointer to restore an eight-point lead.

“I’ve always like to think I am a closer and I am,” Embiid said. “Taking the last shot or taking a last second shot with the clock ticking is fun for me. I love getting into those types of possession where you have to make the plays. That’s where you find out who is who and who is made up for those kinds of moments.”

Report: Myles Turner agrees to two-year, $60 million extension with Pacers

Indiana Pacers v Milwaukee Bucks
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Take Myles Turner off the trade market.

After months of negotiations, the Pacers and Turner have agreed to a contract extension, reports Adrian Wojnarowski of ESPN.

This has since been confirmed by other sources.

Turner — back playing his natural center spot this season with Domantas Sabonis in Sacramento — is having the best season of his career, averaging 17.5 points, 7.9 rebounds and 2.4 blocks a game. He has been one of the keys to a surprisingly good Pacers team this season.

That $60 million contract extension number can be a little misleading. Turner was already making $18 million this season, but because the Pacers are $24.4 million under the salary cap, they can do a re-negotiation and extension with the big man, giving him a $17.1 million bump right now (to a total of $35.1 million for this season) and extend off of that for two years, the first at $20.2 million and the second at $19.9 million, according to Shams Charania.

There had been a lot of trade interest in Turner, going back to last summer, most prominently with the Los Angeles Lakers in a swap that would have sent Buddy Hield and Turner to the West Coast for Russell Westbrook and two first-round picks. That draft pick compensation kept the deal from getting done (the Pacers wanted two unprotected first-rounders).

NBA refutes viral Reddit post claiming conspiracy to pad Jaren Jackson Jr.’s stats

Memphis Grizzlies v Golden State Warriors
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Jaren Jackson Jr. has been a defensive monster since coming back from foot surgery, something obvious by the eye test but backed up by impressive stats: 3.1 blocks and a steal a game, opposing players are shooting 44% on shots he contests and when he is on the court the Grizzlies have. 106.8 defensive rating (which would be best in the league by more than three points). He is the frontrunner for Defensive Player of the Year right now.

That led to a conspiracy theory post on Reddit about how the Memphis scorekeeper is padding Jackson’s stats, calling his numbers fraudulent. The post went viral — we all love to think we’re in on something nobody else knows — and has gotten to the point some Las Vegas sportsbooks have taken down Defensive Player of the Year betting.

The conspiracy theory does not hold water. At all.

The NBA pushed back on that theory by reminding people that all NBA stats are audited in real-time by someone watching the video in Secaucus (rebound or blocked shots being changed during a game is not uncommon because of this).

“In order to ensure the integrity of our game statistics, auditors, independent of the statisticians on-site, review all plays and stats decisions in real-time during NBA games,” NBA spokesman Tim Frank told NBC Sports. “If changes are necessary, they are made at that time or following a postgame review. All of the plays questioned in the post on Memphis games were scored consistently within the rules set forth by the NBA statisticians manual.”

Reddit has now labeled the post “Misleading.”

Another Reddit user compiled videos of the alleged stat padding incidents called out in the post, but watching them proves the NBA’s point that these were correctly assigned. For example, Jackson gets credit for steals on tipped balls, which is how steals are calculated. The video showed that many fans don’t understand the rules and definitions of what constitutes a steal or a block.

On a more fundamental level than that, the NBA now has gambling and fantasy sports partners — if there was stat padding, those entities would be on it and the first to call out the league. The league’s statistics are big business — you can bet on the number of blocks or rebounds that Jackson or other players will get — and those gambling and fantasy entities also watch the games closely.

But we’ll be talking about this conspiracy theory again when NBA awards season pops up, because people want to believe, even in the face of evidence proving they are wrong. Not that we needed basketball to teach us that lesson.

 

Report: Nuggets might consider Bones Hyland trade for defensive help

Denver Nuggets v Milwaukee Bucks
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A year ago, it felt like the Nuggets had found their long-term backup point guard in rookie Bones Hyland, a guy who could be part of the rotation when Jamal Murray returned. Except, in his second season, Hyland hasn’t taken a step forward — although his play has been better and more aggressive in recent weeks — and free agent Bruce Brown has shown he can play some backup one (even if he is more of a combo guard).

That has the Nuggets considering trading Hyland if they can get defensive help, reports Jake Fischer at Yahoo Sports.

After his name was discussed in trade conversations around last June’s NBA Draft, Denver begun gauging the trade value of second-year guard Bones Hyland, sources said…. While Hyland has two years remaining on his rookie deal, in anticipation of Brown’s next payday [Note: He is expected to opt out and test the market], plus Hyland’s upcoming second contract, has the tax-conscious Nuggets considering their options in the backcourt. Occasional clashes between Hyland and head coach Michael Malone’s old-school mentality have also been a factor in Denver’s trade dialogue, sources said.

In exchange for Hyland, the Nuggets have expressed an interest in defensive-minded frontcourt players, sources said, and will search for a player plus a first-round pick.

Brown has played his way to a bigger contract than the $6.8 million player option he has for next season, but the Nuggets are already big spenders and not looking to go deep into the tax (Nikola Jokic’s extension kicks in next season at about $46.9 million a year to start, and both Jamal Murray and Michael Porter Jr. will make north of $33 million next season). It is possible the Nuggets let Brown walk and keep Hyland, still on his rookie contract and set to make $2.3 million next season, partly for financial reasons. Hyland is averaging 12.4 points per game and shooting 38.5% from 3, but he struggles defensively (which is where the clashes with Malone come in).

Denver has a chance to win the West this season and defense is what will decide if that happens — if the Nuggets can land another wing/forward defender, they may jump at it and worry about the backup one spot next summer. However, finding that player in a high-priced seller’s market may prove the biggest challenge — several teams are looking for that same kind of defensive help.