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

 

 

LeBron likes Instagram of Kyrie Irving in Lakers jersey, Internet goes berserk

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The Lakers landing Kyrie Irving in free agency this summer might be their best realistic option. It’s far, far from a lock — the Knicks, and yes Celtics, will make their pitch, too — but reuniting the pair that won a title in Cleveland is on the Lakers’ radar. (Insert your own, “you know who should coach this team” Tyronn Lue joke here.)

Fueling the speculation, LeBron James and Irving were seen hanging out together at a club in Los Angeles recently. Then Friday, this happened: Cuffthelegend posted this on Instagram and LeBron liked it.

View this post on Instagram

I like how this feels

A post shared by Savage Season 365 (@cuffsthelegend) on

(For the record, Cuffthelegend gets some stuff right, he’s not a guy who posts stuff out of nowhere.)

Of course, NBA Twitter and the web responded to this in its usual measured, thoughtful way. Some Lakers fans think the deal is done, others mock the idea altogether.

Two thoughts on Irving and the Lakers:

• Multiple reports say Irving is open to it. Irving also has a strong relationship with Kevin Durant, and Boston still plans to trade for Anthony Davis and then try to re-sign Irving (even if Boston fans are done with Kyrie). The only person who knows which way Irving is leaning right now is Irving, and there’s a good chance he changes his mind in the next five weeks anyway.

• If the Lakers are going to land a star free agent this summer, it will be because LeBron was an active recruiter. These elite players have options, and the Laker front office is not inspiring confidence of late, it will be on LeBron to win guys over.

 

Jeremy Lin: Milwaukee security guard asked for my pass to Raptors team bus

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Jeremy Lin has discussed people not believing he plays in the NBA.

It apparently still happens.

Lin, whose Raptors are playing the Bucks in the Eastern Conference finals, via Bill Michaels Sports Talk Network:

After Game 2 in Milwaukee, I was trying to get to the team bus and one of the dudes in the Milwaukee arena just screams at me. He’s like, “Where do you think you’re going?!” And I’m like, “Uh, I’m trying to get to the team bus.” He’s like, “What?! Where’s your pass?” I was like, “I don’t have a pass. I don’t know what you’re talking about. I don’t have a pass.”

This happens in a lot of arenas, so I just kind of go with the flow.

It’s a fine line. Lin shouldn’t be profiled as a non-athlete because he’s Asian-American. Arena staffers should keep everyone safe by stopping unauthorized people.

PBT Podcast: What’s next for Boston, Philadelphia, Denver? (And some playoff talk)

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Will Kyrie Irving stay in Boston? If not, what is Plan B?

Is Jimmy Butler back in Philadelphia next season? If he is will Tobias Harris be back?

What are the next steps to turn Denver into a contender?

I get into all of those things with the wise Keith Smith of Yahoo Sports (and Celtics Blog, and Real GM), we break down those three teams recently turned out of the playoffs. We also start off talking about teams actually in the playoffs, particularly Toronto’s comeback in the Eastern Conference Finals, and how those teams can take advantage against the Warriors with Kevin Durant out.

As always, you can check out the podcast below, listen and subscribe via iTunes at ApplePodcasts.com/PBTonNBC, subscribe via the fantastic Stitcher app, check us out on Google play, or check out the NBC Sports Podcast homepage and archive at Art19.

We want your questions for future podcasts, and your comments, so please email us at PBTpodcast@gmail.com.

Nikola Jokic’s All-NBA first-team selection shows his meteoric rise

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Just four years ago, Nikola Jokic was a second-round pick still playing in the Adriatic League. Just three years ago, he was battling a struggling Jusuf Nurkic to be the Nuggets’ main center.

Yesterday, Jokic made the All-NBA first team.

Jokic has risen incredibly quickly. Before this season, he had never even been an All-Star.

That makes Jokic the first non-rookie in NBA history to make an All-NBA first team without a prior All-Star season (including ABA All-Stars).

The No. 41 pick in the 2014 draft, Jokic is just the fourth second-rounder to make an All-NBA first team since the NBA-ABA merger. The others: DeAndre Jordan, Marc Gasol and Marc Price.

For most players not immediately deemed to hold first-round talent, it takes a while to build stature in the NBA. Jokic made the All-NBA first team in just his fourth season. That’s way sooner than Gasol (seventh season), Price (seventh season) and Jordan (eighth season):

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The Nuggets didn’t wait for this honor to make Jokic their franchise player. They gave him a near-max contract last summer, and by leading them into the second round of the playoffs, he triggered incentives to reach a max salary.

Denver has built a young supporting cast – mainly Jamal Murray and Gary Harris – to grow with Jokic. The Nuggets also signed veteran Paul Millsap, whose defense complements Jokic’s offensive-minded game.

So much is coming together so quickly for Denver, and Jokic’s honor is just the latest example.