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Should Team’s Prices Become a Factor in Next CBA?

06 Jul

I can’t discuss matters with the NBA or research financial health of the league better than Nate Silver but what I can do is… present some more tables and ask questions ;-) Because when you collect a lot of data about one topic like ownership history… you really should have some fun with it, right?

If you prefer picture than tables… well, that’s your lucky day because it will be the first one on this blog! ;-)

Known Team's Prices in the NBA Since 1962

This graph and table below have basically the same content as yesterday’s data but it’s focus is on a different piece of the puzzle… Here’s detailed version of League-Wide Picture of Team’s Prices.
BTW, I adjusted numbers not only for inflation but also to the full 100% [when possible].
For example, if someone bought 25% of any team for 10M$ I listed it as 40M$.

Team’s name at the time Owner or ownership group Date of Price (M$) Adj. For
Inflation
Detroit Pistons Tom Gores 2011 400 400,0
Golden State Warriors Peter Guber and Joe Lacob 2010 450 450,0
New Jersey Nets Mikhail Prokhorov 2010 250 250,0
New Orleans Hornets NBA 2010 300 300,0
Washington Wizards Ted Leonsis 2010 550 550,0
Charlotte Bobcats Michael Jordan 2009 275 279,5
Oklahoma City Clay Bennett 2006 325 351,5
Cleveland Cavaliers Dan Gilbert 2005 375 418,7
Atlanta Hawks Atlanta Spirit, LLC (9 partners) 2004 208 240,1
New Jersey Nets group headed by Bruce Ratner 2004 300 346,3
Phoenix Suns Robert Sarver 2004 401 462,9
Boston Celtics Wycliffe Grousbeck, Stephen Pagliuca, H. Irving Grousbeck 2002 360 436,4
Seattle SuperSonics Howard Schultz 2001 200 246,3
Dallas Mavericks Mark Cuban 2000 285 360,9
Denver Nuggets Stan Kroenke 2000 202 255,8
Memphis Grizzlies Michael Heisley 2000 160 202,6
Vancouver Grizzlies Bill & Nancy Laurie 1999 200 261,8
New Jersey Nets Finn Wentworth, Stanley Gale, Raymond Chambers 1998 150 200,7
Sacramento Kings Joe Maloof & Gavin Maloof 1998 156 208,7
Toronto Raptors Maple Leaf 1998 125 167,2
New York Knicks Cablevision and ITT Corporation 1997 300 407,6
Dallas Mavericks Ross Perot, Jr. 1996 125 173,7
Philadelphia 76ers Comcast 1996 130 180,7
Toronto Raptors Allan Slaight 1996 167 232,1
Golden State Warriors Christopher Cohan 1995 126,66 181,2
Minnesota Timberwolves Glen Taylor 1995 89 127,3
Houston Rockets Leslie Alexander 1993 85 128,3
San Antonio Spurs Peter Holt 1993 75 113,2
Denver Nuggets Comsat Video 1992 215 334,2
Golden State Warriors Christopher Cohan 1992 84 130,6
Sacramento Kings Jim Thomas 1992 140 217,6
Orlando Magic Richard DeVos 1991 85 136,1
Denver Nuggets Comsat Video Enterprises 1989 66,6 117,1
Portland Trail Blazers Paul Allen 1988 70 129,0
San Antonio Spurs B.J. ‘Red’ McCombs 1988 50 92,2
Phoenix Suns Jerry Colangelo 1987 44,5 85,4
Utah Jazz Larry Miller 1986 22 43,8
Chicago Bulls Jerry Reinsdorf 1985 16,1 32,6
Denver Nuggets Sidney Schlenker and Allen Becker 1985 20 40,5
Milwaukee Bucks Herb Kohl 1985 19 38,5
Boston Celtics Don Gaston, Alan N. Cohen, Paul Dupee 1983 17 37,2
Cleveland Cavaliers George and Gordon Gund 1983 20 43,8
Indiana Pacers Herb Simon 1983 11 24,1
Seattle SuperSonics Barry Ackerley 1983 21 46,0
Kansas City Kings Joseph Benvenuti, Frank Lukenbill, Gregg Lukenbill, Robert A. Cook, Stephen H. Cippa, Frank McCormack 1983 10,5 23,0
Houston Rockets Charlie Thomas 1982 9,8 22,1
Los Angeles Clippers Donald Sterling 1981 13 31,2
Philadelphia 76ers Harold Katz 1981 12 28,8
Cleveland Cavaliers Ted Stepien 1980 5,4 14,3
Los Angeles Lakers Jerry Buss 1979 20 60,1
Denver Nuggets Red McCombs 1978 2 6,7
Philadelphia 76ers Fitz Dixon 1976 8 30,7
Detroit Pistons William Davidson 1974 8 35,4
Boston Celtics Robert Schmertz 1972 4 20,9
Chicago Bulls ownership group that included Arthur Wirtz 1972 5,1 26,6
San Diego Rockets Billy Goldberg, Wayne Duddlesten, Mickey Herskowitz 1971 5,6 30,2
New York Nets Roy Boe 1970 1,1 6,2
Atlanta Hawks Tom Cousins and Carl Sanders 1968 2 12,5
Boston Celtics Ballantine Brewery with Trans-National Communications in 1970 1968 6 37,6
Denver Rockets Bill Ringsby 1967 0,25 1,6
Boston Celtics Marvin Kratter 1965 3 20,8
Los Angeles Lakers Jack Kent Cooke 1965 5,175 35,8
Baltimore Bullets Abe Pollin, Arnold Heft, Earl Foreman 1964 1,1 7,7
San Francisco Warriors Franklin Mieuli along with 32 other local investors 1962 0,85 6,1

Finally, table about Expansion Team’s Fees:

Team’s name
at the time
Owner or ownership group Date of Cost (M$) Adj. for
Inflation
Charlotte Bobcats Robert Johnson 2003 300 355,6
Vancouver Grizzlies Arthur Griffiths 1996 125 173,7
Toronto Raptors John Bitove Jr. 1996 125 173,7
Orlando Magic William duPont III, James and Robert Hewitt, Pat Williams 1989 32,5 57,2
Minnesota Timberwolves Marv Wolfenson, Harvey Ratner 1989 32,5 57,2
Charlotte Hornets George Shinn 1989 32,5 57,2
Miami Heat Billy Cunningham, Lewis Schaffel and Ted Arison 1989 32,5 57,2
Dallas Mavericks Donald Carter and Norm Sonju 1980 12 31,8
New Orleans Jazz 9-man group headed by Fred Rosenfield 1974 6,15 27,2
Buffalo Braves Paul Snyder 1971 3,7 19,9
Portland Trail Blazers Larry Weinberg, Herman Sarkowsky, Robert Schmertz 1971 3,7 19,9
Cleveland Cavaliers Nick Mileti and others 1971 3,7 19,9
Phoenix Suns Richard Bloch and Karl Eller, Don Pitt, Don Diamond, Bhavik Darji, Marvin Meyer 1969 2 11,9
Milwaukee Bucks Wes Pavalon 1969 2 11,9
San Diego Rockets Robert Breitbard 1967 1,75 11,4
Seattle SuperSonics Sam Schulman 1967 1,75 11,4
Chicago Bulls Dick Klein 1966 1,6 10,8

OK, that was fun and all but I think there’s a point to be made here… and yes, that means a new table with new information [numbers are from insidehoops.com and are adjusted for inflation to average for 2010]…

Years Number of Sales With Known Prices Avg Price per Team Avg Total TV
Revenue for NBA
Avg TV Revenue
per Team
1960-69 7 17,5 9,7 0,69
1970-79 8 27,1 35,7 1,62
1980-89 17 50,0 72,3 2,89
1990-99 16 202,2 403,8 14,95
2000-09 16 346,9 828,7 28,58

So here’s my question: Why Rising Franchise’s Values aren’t more of a Factor in CBA Discussion?
If we assume slight early losses, and then sizable profit with a sale after X number of years that was still a very good investment, right? Obviously, it brings a question “how long will those prices rise?” and I have no idea but considering that next TV contract is coming up and supply of wealthy people isn’t exactly thin…
I just think it should be discussed more…

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7 Comments

Posted by on July 6, 2011 in Unanswered Questions

 

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7 responses to “Should Team’s Prices Become a Factor in Next CBA?

  1. Leszczur

    July 7, 2011 at 08:39

    Franchise Values are not a factor in CBA discussion probably because players are not participating in profits sharing after the team is sold.
    And secondly there probably is no simple formula to translate franchise value to revenues on a yearly basis.
    That’s why it’s not fair to ask players to finance teams’ purchase as it currently is being proposed.

     
    • wiLQ

      July 7, 2011 at 12:23

      > Franchise Values are not a factor in CBA discussion probably because players are not
      > participating in profits sharing after the team is sold.

      But it should be their argument, right? “Either let us participate in those profits or stop with those paper losses created because of ownership’s change”.

       
  2. Lifetime Fan

    August 7, 2011 at 17:24

    It shouldn’t be too difficult to calculate the value of a franchise. Ticket revenue + merchandise sales, etc minus costs like player salaries, facilties, etc. From that create a soft cap, similar to team salary caps. If an owner purchases a franchise over the the soft cap, he pays a luxury tax, just like they do for player salaries. All luxury tax money from team sales, is divided among the players. This will help hold team purchases in line and protect salaries.

    Yes, team purchases should be part of the CBA. They affect a teams abiility to turn a profit and as a result can affect player salaries.

     
    • wiLQ

      August 7, 2011 at 20:51

      “It shouldn’t be too difficult to calculate the value of a franchise. Ticket revenue + merchandise sales, etc minus costs like player salaries, facilties, etc.”
      In this scenario aren’t you assuming that all those things are predictable from year to year?

      Also again I’m not sure that owners will even talk about a solution where they take an additional financial hit.

       

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