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

 

 

Mavericks will have Dirk Nowitzki logo on court this season (PHOTO)

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Many teams had decided to get nostalgic this season. The Portland Trail Blazers have a special 50th anniversary court, the Denver Nuggets have some cool new jerseys, and the Memphis Grizzlies are kicking it back to their days in Vancouver.

But the Dallas Mavericks are winding the clock back to just last year.

It appears that Dallas will have a Dirk Nowitzki-shaped logo on their court next season. The logo looks like a watermark in the shape of Nowitzki’s famous one-legged fadeaway.

Via Twitter:

It looks like Mavericks players are already having fun at the expense of Nowitzki, and this is a great tribute that Dallas fans are sure to love.

Marc Gasol completes historic double, Spain wins World Cup

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BEIJING (AP) — Marc Gasol looked to the sky as confetti fell, some sticking to his massive shoulders, and then cradled and kissed the giant golden chalice that goes to the World Cup champions.

He’s getting good at hoisting trophies.

Gasol got to bask in a championship celebration for the second time in three months — and this time, he did it for his country. Tournament MVP Ricky Rubio scored 20 points, Sergio Llull added 15 and Spain won the World Cup for the second time by topping Argentina 95-75 on Sunday.

“We weren’t the most talented team,” Rubio said. “We weren’t the bigger team. Put anything you want, but we were the team with the biggest heart and we showed it tonight and we showed it during the whole tournament.”

Gasol scored 14 for the winners, who never trailed and added this crown to the one it claimed in 2006. And for him, 2019 will go down as a year the likes of which few others have enjoyed.

The Toronto Raptors center becomes the second player to win an NBA title and a FIBA world gold medal in the same year, joining Lamar Odom — who did it for the Los Angeles Lakers and USA Basketball in 2010. Gasol also became the 19th to win either an NBA or WNBA crown along with a gold medal, either of the Olympic or World Cup variety, in the same year.

The first 18 all did it for the U.S.

This time, Vamos España!

“NBA champion and a World Cup champion as well,” Gasol said. “What can I say? How does it sound to you? I feel very fortunate to be in this position and be able to play this game and help these guys be part of history of Spanish basketball.”

Llull and Rudy Fernandez — the team captain, the one who initially got to accept the Naismith Trophy — went to cut down the nets shortly after the final buzzer. Gasol carried the game ball to the gold-medal ceremony, and Spanish fans wept in the stands during the national anthem.

Gabriel Deck scored 24 points for Argentina (8-1), which got off to a slow start and played uphill the rest of the way. Luis Scola was held to eight points, shooting 1 for 10 from the floor.

“We’re sad right now. We’re very sad,” Scola said. “But I feel confident, in hours, we’ll be able to look back and be very proud. They just played better than us. They were better. They deserved to win. They were the better team in the game and the tournament.”

Spain led 43-31 at intermission, after putting together a 14-2 run to open the game and a 17-1 run later in the half.

“This is basketball,” Argentina coach Sergio Hernandez said. “If you play better than the other team, you win the game. And Spain was the best team today.”

Scola, even at 39 years old still Argentina’s best player throughout the tournament, didn’t get on the scoresheet until he made a pair of free throws with 2:57 left in the third quarter. But they only cut the Spain lead to 19, and by then the Argentinian fans who stood, sang and chanted for much of the game were relatively quiet.

The day belonged to Spain.

And the year belongs to Gasol.

“It’s unbelievable,” Gasol said.

Watch highlights from France taking bronze at World Cup, beating Australia 67-59

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Just as they did five years ago at the last World Cup, France has come away with the bronze medal.

The French came from 15 down at one point to beat Australia 67-59 and win the third-place game at the FIBA World Cup in China. Former Spur Nando De Colo led the way for France with 19 points, Orlando’s Evan Fournier added 16 but on a rough shooting night (5-of–17), and Charlotte’s Nicolas Batum added nine points and six assists. You can see the game’s highlights above.

After the game, Fournier was talkative, including slamming the travel and schedule of this World Cup, spread all across China.

Utah was led by 17 points from Utah’s Joe Ingles and 15 from San Antonio’s Patty Mills.

Michael Jordan sells portion of Hornets to two new partners

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CHARLOTTE, N.C. (AP) — Michael Jordan is adding two partners to the Charlotte Hornets’ ownership group, selling them each a portion of the NBA franchise.

Gabe Plotkin, founder and chief investment officer of Melvin Capital, and Daniel Sundheim, founder and chief investment officer of D1 Capital, have joined the Hornets as partners, pending NBA approval.

Jordan, a six-time NBA champion, will remain the majority owner.

Jordan said in a statement released by the team Saturday that he’ll continue to be the man making decisions about the direction of the Hornets.

“I’m excited to welcome Gabe and Dan as my partners in Hornets Sports & Entertainment,” Jordan said. “While I will continue to run the Charlotte Hornets, make all decisions related to the team and organization, and remain the team’s NBA Governor, Gabe and Dan’s investment in the franchise is invaluable, as we continue to modernize, add new technology and strive to compete with the best in the NBA. Both Gabe and Dan are industry standard-setters and proven leaders, with a belief in philanthropy and a passion for the game of basketball. They share my commitment to Charlotte and the Carolinas, and I look forward to working with and learning from them.”