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 Kawhi Leonard dunk all over Giannis Antetokounmpo

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Kawhi Leonard and the Toronto Raptors took Game 4 against Giannis Antetokounmpo and the Milwaukee Bucks on Tuesday, 120-102.

Things started off okay for Milwaukee but started to peter off as the hometown Toronto crowd got behind their Raptors. The bench continued to show up for Leonard’s squad, and it was Kyle Lowry dueling it out with Antetokounmpo in the first quarter.

Leonard scored 19 points to go with seven rebounds and four steals, and perhaps his most impressive play of the night came early in the third quarter. Running a little two-man game with Marc Gasol, Leonard cut to the basket and wound up dunking all over the Milwaukee star.

Via Twitter:

Leonard appeared to hobble a little bit after his dunk, but he should be ready to go for Game 5 on a Thursday night. Meanwhile, the series heads back to Wisconsin all tied up at 2-2.

The victor of this series will get to take on the Golden State Warriors in the 2019 NBA Finals.

Andre Iguodala says Stephen Curry is the second-best PG ever

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The Golden State Warriors are moving on to the NBA Finals yet again, thanks in large part to the efforts of Stephen Curry. Golden State’s point guard is now heading to his fifth-straight finals, and without Kevin Durant he was a big reason why the Warriors were able to beat the Portland Trail Blazers in just four games.

Of course there is a real worry that Durant won’t be able to play in the NBA Finals, either partially or fully, thanks to a calf injury. If that’s the case, and the Warriors can take home another championship trophy, it could mean great things for Curry’s legacy.

Curry is currently chasing Magic Johnson as the best point guard ever in the eyes of many folks. What might help solidify Curry’s place in history would be an NBA Finals MVP, which he would likely wind up with if Durant is unable to impact the Finals the way he has.

At least for Andre Iguodala, Curry is already the second best point guard of all-time.

Via The Athletic:

“I think he’s the second best ever,” Iguodala said. “I always thought that about him. I knew but other people didn’t know. So I wasn’t surprised when he took over that series. But I always gave Tony Allen credit. Playing against him made you understand the grind of how hard it is to win. It’s supposed to be hard. You’re supposed to have to find another way. It’s supposed to be uncomfortable. He just embraced that. Just ingrained that into his system and it’s been there ever since.”

The real question is what Curry’s legacy will be after these Finals, particularly if they win without Durant. Some people aren’t keen to compare eras, and might never move off of Johnson for that spot. It seems reasonable to say that Curry is already the best shooter of all-time, but June could elevate him even further.

Raptors’ halfcourt defense, big games from Gasol, Lowry evens series with Bucks

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Slow your roll on “these Bucks can challenge Warriors” takes…

They are going to have to get out of the East, first. And that is proving to be more difficult than it looked after two games.

Back home in Toronto, the Raptors slowed the game’s pace down and used an impressive halfcourt defense — sure, Giannis Antetokounmpo had 25 points and 10 rebounds, while Khris Middleton had 30 points, but outside those two the Bucks shot 35.4 percent and had just 13 fast break points — to keep the Bucks offense relatively in check.

Relatively is good enough when everyone is hitting their shots.

Kawhi Leonard had a relatively quiet 19 points, although he did have the dunk of the playoffs all over Antetokounmpo.

Leonard didn’t have to carry the team because everyone in white seemed to be knocking down their shots. Kyle Lowry had 25 points on 11 shots, Marc Gasol had 17 (and his aggressive offense the last two games has stressed the Bucks defense), Nick Powell had 18, Serge Ibaka 17 points and 13 rebounds, and Fred VanVleet had 13 points on six shots.

All that led to a 120-102 Raptors win that wasn’t even that close.

The series is now tied 2-2 and heads back to Milwaukee where the best-of-three left starts.

Milwaukee and Mike Budenholzer have leaned on Nikola Mirotic more in recent games, and the Raptors are now attacking him.

Combine that with an aggressive Gasol — he has started taking the shots from three that he hesitated on in the first two games — and his 3-of-6 from deep has become a big problem for Toronto.

Toronto had this in hand much of the second half, so much so that Drake was helping Nick Nurse relax on the sidelines.

The Bucks will also need their other players — Eric Bledsoe, who had 5 points on 7 shots, and Brook Lopez, who had 8 points — to step up in the final games.

The Raptors have found a formula that works, it’s on the Bucks now to adjust.

Kyle Korver says the copier Nets bought with cash from his trade is broken

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Kyle Korver was taken by the New Jersey Nets with the 51st pick in the 2003 NBA Draft. He was traded on draft day by the Nets to the Philadelphia 76ers for cash considerations. The Nets famously — or infamously — used the cash from that trade to purchase an office copier.

More than a decade and a half later, Korver is still playing in the NBA at age 38. And now, thanks to Korver giving the commencement speech at his alma mater Creighton, we have an update on the status of that copier.

Via Twitter:

Kyle Korver does not have a depreciation expense method. He is timeless.