Ka-Boom!! Adam Silver hammers Sterling

[Tugg Speedman]

Fair enough.  Comes down to the markets

A house here might sell for $1M...if you took that EXACT same house and dropped it in Wauwatosa, it might sell for $350K.  Insanity looms, no different on the valuations of other things.

Yes, but that's why I purposely said "same league, same TV contract [national] same salary cap, same players."

Wauwatosa does not have the economic opportunity as LA so yes their should be a wide difference in home prices.  But the Clippers are the distance step-child of the Lakers in LA and everything else (i.e., same league) is the same.  The difference should not be 3x.

Milwaukee was undervalued.

The market for the Clippers will include Magic's group with the Guggenheim partners and anyone else with money out west.  The Clippers value also includes the location.  The TV market in LA for the Clips will be huge.  Not sure about 1.5 Billion but I would not be surprised at $1 Billion.  Not sure any owner has lost money on a franchise in the last 30 years.

Yes the Clippers should be worth more than the Bucks $550m agreed to last week.  But are the Clippers worth nearly 3x the bucks price?  This sounds absurdly high.

Keep this in mine, the Jacksonville Jaguars sold for $770 million in 2012.  Make the case to me that the Clippers in 2014 are worth 2x the Jaguars in 2012?  Make the case they are worth more than any NFL franchise.  That a second rate NBA franchise is worth 2x ANY NFL franchise is laughable.

[Tugg Speedman]

Milwaukee was undervalued.

The market for the Clippers will include Magic's group with the Guggenheim partners and anyone else with money out west.  The Clippers value also includes the location.  The TV market in LA for the Clips will be huge.  Not sure about 1.5 Billion but I would not be surprised at $1 Billion.  Not sure any owner has lost money on a franchise in the last 30 years.

I read a story yesterday that as many as 5 groups are interested in the Clippers.  If multiple groups are interested, I'll bet Magic/Guggenheim do NOT get it.  Sterling will not sell to Magic Johnson because he is at the center of this mess (in Sterling's mind).  Yes, the old man will spite Magic.

(again, this will be the case if multiple bidders show up)

[Aughnanure]

How can the NBA ban an owner from attending games?    I mean, if he said, FU, I'm sitting here, who is going to enforce that rule?   

The police can't do it, he's not breaking any criminal laws.  Building security?  I'd imagine they work for Sterling.

Special NBA SWAT team?

He owns a team, a franchise. Not the NBA.

[LegalEagle15]

Local media contracts are where the numbers are really different. A sponsorship agreement for the viewing area of greater LA is worth a lot more than one for greater Milwaukee. These teams can shop their local TV spots for a lot of money, heck even radio spots will go for a fair chunk of change. Don't know about 3x the value, but remember the Jaguars are one of the poorest performing teams in the NFL, are in a small media market, and have to put tarps over seating areas of the stadium. A deal for an NBA team in a market many times the size is enticing to sponsors. I could see the Clippers going for north of a billion, but that's based upon their projected future value, current popularity, and current cost of these sponsorship deals.

[Aughnanure]

If Silver was in charge at the time would he have had such a large punishment for Tim Hardaway and his comments on hating gay people? Equality, right? http://sports.espn.go.com/nba/news/story?id=2766213

Keywords in your link are "Former Miami Heat guard."

[JWags85]

 That a second rate NBA franchise is worth 2x ANY NFL franchise is laughable.

Second rate?  This isn't the Darius Odom/Quentin Richardson LA Clippers anymore.  They're close to a top 5 team in the league, with a well known, respected and very popular superstar as their leader in Chris Paul and one of the most marketable and popular young stars in Blake Griffin, coached by one of the most respected and notable coaches in the league, in the second largest media market in the country.  If they are second rate, then the Heat are second rate cause they used to suck before Wade and Shaq too.   They are a sleeping giant, and a large reason they stayed sleeping until recently was because of incompetent and stingy ownership.

[Tugg Speedman]

Second rate?  This isn't the Darius Odom/Quentin Richardson LA Clippers anymore.  They're close to a top 5 team in the league, with a well known, respected and very popular superstar as their leader in Chris Paul and one of the most marketable and popular young stars in Blake Griffin, coached by one of the most respected and notable coaches in the league, in the second largest media market in the country.  If they are second rate, then the Heat are second rate cause they used to suck before Wade and Shaq too.   They are a sleeping giant, and a large reason they stayed sleeping until recently was because of incompetent and stingy ownership.

Next owner will own the team for decades (presumably). Chris Paul, Blake Griffin and Doc Rivers will only be their a few more years (assuming the don't bolt next week after getting bounced from the playoffs).  When they leave, will they go right back into the Crapper?

Using your logic, the Bulls are also a top 5 team because of the legacy of Jordan.  OKC is a top 5 franchise because of Durant.  That's three ... So the "storied" 76s, Celtics, Knicks and Lakers are probably not top 5 merely because this year's roster is poor.

Point is you cannot judge a franchise's long-term value by who happens to be on the team this season or who was on the team 15 years ago.  That is transitory.

The question; is the next ownership group competent enough to keep turning over their roster every 3 to 4 years and produce winners?  On this score, let's be blunt, teams run by former superstars (Jordan, Isaiah, Bird) usually suck.  Superstars are no qualification to be an executive and they prove it over and over.

I do not expect Magic to get the team.  But if he does, I suspect the Clippers will, in the long-term, continue as a second rate franchise.  See the Bobcats.

[kryza]

Correct on part one.  On the billion, we'll see.  They have to monetize that somehow, and television deal makers are in no mood to do those deals anymore because it is driving television consumer bills up too much. How do they pay for the $1B is the question.  Interesting times.

End of the day, likely a win win for some, just like Frank McCourt with the Dodgers.  Sterling is going to make a ton, sad as that is to say.  The NBA will probably be able to exert enough pressure to get him out.  The fans, they could be on the outs like the Dodgers fans are today. 

In a related story.  The LA Times here has been on the rampage the last few days about this, understandably so.  Yet they are still accepting Sterling's advertising $$ (he's a big advertiser every week) so they're now being pulled into this.

Packaging channels is an outdated business model that will be over soon. Sports programming is a top priority for cable companies as it's now the only programming that people still watch live, which increases the value for advertisers. Prices will continue to go up until one of the big cable companies switches to al la carte.

When that happens, the bubble will burst, and all this craziness associated with advertising money (conference realignment, franchise valuations, etc...), will take a sharp dive.

Here's an good article that talks about this in more detail; http://www.sportsonearth.com/article/73639340/baseball-football-basketball-american-sports-dependent-on-cable-television-money

[MU82]

I would tend to agree they are not comparable, but certainly are in the same universe.  Degrees to everything.  Are we stamping out racism, or not?  Interesting conversations about this today.  One sports attorney felt that the league will have no choice but to clamp down on that behavior as well.  Not lifetime banishments, but if stuff is on tape, tweeted, etc, racism of any kind, the league will have no choice but to come down hard and not just pretend it isn't there.  As he said, it becomes a credibility argument and also one of following through on the promise that there is zero tolerance.

I agree that this kind of language will and should be punished in the future. The NFL already does it. Maybe it will make these guys think before they tweet the first effen things that pop into their heads.

I still think bringing up Hardaway in context with Sterling was ridiculous. One guy said something stupid. The other has a decades-long history of racism, sexism and numerous other isms. Degrees to everything.

[MU82]

Yes they do, question is whether the would vote for it.  As one veteran in the industry said to us last night, lots of owners out there have girlfriends, mistresses, etc and they don't know what they've said, what has been recorded, etc, so they might not be too keen on that slipper slope.  Mark Cuban made that argument yesterday as well. 

Cuban did make the slippery-slope argument yesterday. Today, he tweeted that he is 100% behind the commissioner and thinks the entire punishment is deserved. In other words, Sterling has zero chance.

[Tugg Speedman]

I agree that this kind of language will and should be punished in the future. The NFL already does it. Maybe it will make these guys think before they tweet the first effen things that pop into their heads.

I still think bringing up Hardaway in context with Sterling was ridiculous. One guy said something stupid. The other has a decades-long history of racism, sexism and numerous other isms. Degrees to everything.

But until Saturday Hardaway and Sterling had one thing in common ... Neither was sanction, fined, reprimanded or punished for anything regarding hateful speech by the NBA.

They both had clean records until 3 days ago.  So, I'm not buying the argument Sterling was a habitual offender.  Show me his punishment before today?

[ChicosBailBonds]

Yes, but that's why I purposely said "same league, same TV contract [national] same salary cap, same players."

Wauwatosa does not have the economic opportunity as LA so yes their should be a wide difference in home prices.  But the Clippers are the distance step-child of the Lakers in LA and everything else (i.e., same league) is the same.  The difference should not be 3x.

Yes the Clippers should be worth more than the Bucks $550m agreed to last week.  But are the Clippers worth nearly 3x the bucks price?  This sounds absurdly high.

Keep this in mine, the Jacksonville Jaguars sold for $770 million in 2012.  Make the case to me that the Clippers in 2014 are worth 2x the Jaguars in 2012?  Make the case they are worth more than any NFL franchise.  That a second rate NBA franchise is worth 2x ANY NFL franchise is laughable.

But you can't put those limiters on there.  The value of something is based on what someone is willing to pay for it.  If you have a bunch of big dicks out here that throw money around like it is no one's business, they are going to drive up that value.  I realize it is the same league, same cap, etc, but just like the Cowboys were billions more than the Jags or Bills. 

Maybe a lot of folks were reading Scoop when you were arguing how devalued football would become due to concussions and that is lifting the Clips value over a NFL team.   

[Tugg Speedman]

But you can't put those limiters on there.  The value of something is based on what someone is willing to pay for it.  If you have a bunch of big dicks out here that throw money around like it is no one's business, they are going to drive up that value.  I realize it is the same league, same cap, etc, but just like the Cowboys were billions more than the Jags or Bills.  

Maybe a lot of folks were reading Scoop when you were arguing how devalued football would become due to concussions and that is lifting the Clips value over a NFL team.  

Again, I think the Clippers are worth more than the Bucks, a lot more.  I'm question Bill Simmons claim of $1.5 billion (3x the Bucks). I'll take it you're not.

So the three highest sales of sports franchises will be ...

Dodgers at $2 billion
Clippers at $1.5 billion
Manchester United $1.47 billion

... Because everyone knows the clippers should be mentioned in the same breath as the Dodgers and Man U

[Fullodds]

"The question; is the next ownership group competent enough to keep turning over their roster every 3 to 4 years and produce winners?  On this score, let's be blunt, teams run by former superstars (Jordan, Isaiah, Bird) usually suck.  Superstars are no qualification to be an executive and they prove it over and over."


I agree with Jordan and Isaiah.  Larry Bird has built a fine team with the Pacers and should not be on the list.  Other former players have done well including Danny Ainge, Mitch Kupchak, Pat Riley, and even John Paxson.  I think what you mean is playing experience does not equate to player evaluation or management.  If so, I agree.  

p.s.  I would not let Isaiah run a lemonade stand

[Fullodds]

But until Saturday Hardaway and Sterling had one thing in common ... Neither was sanction, fined, reprimanded or punished for anything regarding hateful speech by the NBA.

They both had clean records until 3 days ago.  So, I'm not buying the argument Sterling was a habitual offender.  Show me his punishment before today?

Here is an article with good links to Sterling's past nonsense:

http://www.washingtonpost.com/news/post-nation/wp/2014/04/28/why-the-world-finally-noticed-donald-sterlings-appalling-history/

[willie warrior]

Sterling is a huge douche, and deserves whatever he gets. But this is a huge example of the lawyers and Sterling walking away with bundles of cash. The bimbo will be sued, the NBA will be sued, the Players Assoc. will be suing, Doc will walk away from his contract with a suit, and Sterling's wife will walk away with half of everything, because California is the Pioneer of equal property rights.

All from a recording made in private.

As some would say "Respect the Due Process. And then the PC Police will start to sue for all others offended by other comments.

[willie warrior]

But the owners do.  They need a 3/4 vote that he violated their constitution's requirement to conduct business in a reasonable and ethical manner.

The owners would be crazy to support this, but they will, because they do not want the headache of the protests/boycotts against them if they do not. Think of the turmoil and precedents this will set. The guy has conducted his NBA business in a reasonable and ethical manner. This whole thing is a cave to PC. It was a private conversation in which he said stupid things. Sterling is a senile douche who will walk away with bundles of cash, as his wife will--more than him. This is all about cash.

Barkley and Jamie Fox will need to shut their mouths (which they won't) because of the offensive comments they make and the law suits that follow.

[79Warrior]

Again, I think the Clippers are worth more than the Bucks, a lot more.  I'm question Bill Simmons claim of $1.5 billion (3x the Bucks). I'll take it you're not.

So the three highest sales of sports franchises will be ...

Dodgers at $2 billion
Clippers at $1.5 billion
Manchester United $1.47 billion

... Because everyone knows the clippers should be mentioned in the same breath as the Dodgers and Man U

The Clippers are not worth close to $1 Billion. That is beyond absurd. A Billion, please. Maybe the Lakers, the Clippers will always be second banana in LA.

[brandx]

The owners would be crazy to support this, but they will, because they do not want the headache of the protests/boycotts against them if they do not. Think of the turmoil and precedents this will set. The guy has conducted his NBA business in a reasonable and ethical manner. This whole thing is a cave to PC. It was a private conversation in which he said stupid things. Sterling is a senile douche who will walk away with bundles of cash, as his wife will--more than him. This is all about cash.

Barkley and Jamie Fox will need to shut their mouths (which they won't) because of the offensive comments they make and the law suits that follow.

Reasonable and ethical? Really?

And your answer is for the black guys to shut up? That is truly priceless. Where do you really stand on the issue 

[mu_hilltopper]

He owns a team, a franchise. Not the NBA.

I don't understand your point.  The NBA doesn't own the building they want him to not visit during games.   Perhaps if he's sitting court-side a ref may try to eject him, but again, what security team does physically remove him?     Arena security doesn't work for the NBA, they work for who pays their salary.  Admittedly, that could be some municipality.

[ChicosBailBonds]

Packaging channels is an outdated business model that will be over soon. Sports programming is a top priority for cable companies as it's now the only programming that people still watch live, which increases the value for advertisers. Prices will continue to go up until one of the big cable companies switches to al la carte.

When that happens, the bubble will burst, and all this craziness associated with advertising money (conference realignment, franchise valuations, etc...), will take a sharp dive.

Here's an good article that talks about this in more detail; http://www.sportsonearth.com/article/73639340/baseball-football-basketball-american-sports-dependent-on-cable-television-money

I enjoy Will Leitch as much as anyone, but he'll have to convince these types of people. 

http://www.forbes.com/sites/jeffbercovici/2013/08/08/21st-century-foxs-chase-carey-a-la-carte-is-a-fantasy/

http://www.thewrap.com/fox-coo-chase-carey-la-carte-cable-farce/

The other thing that Mr. Leitch is not factoring in the rights.  Most of the major sports rights are tied up into the 2020's...some as far as 2027.  You'll see some new announcements if I were a betting man in the next few months on some other sports extensions. 

His timing for his view of the bubble I suspect is really short, the industry thinks it is 10 years out.  "That will play out over the next 10-plus years, not the next three," Carey said.  He’s also unfazed by rising sports costs. “It’s the most important content on television, period….It is the content that binds a community.”

If they can't get the dollars from other sources, it isn't happening any time soon.  Mr. Leitch is free to offer a solution, many have tried.

[MU82]

But until Saturday Hardaway and Sterling had one thing in common ... Neither was sanction, fined, reprimanded or punished for anything regarding hateful speech by the NBA.

They both had clean records until 3 days ago.  So, I'm not buying the argument Sterling was a habitual offender.  Show me his punishment before today?

Just because Sterling wasn't punished doesn't mean he wasn't a serial racist. One of our fellow commenters just provided a few links referring to his past transgressions.

The NFL just adopted a policy saying they aren't going to tolerate this stuff from players, coaches, owners, anybody. The NBA will, too. Obviously, nobody can legislate how somebody thinks, but if a person is going to go public with his crapola, he knows he'll get nailed. And, in a case like Sterling, even if he doesn't know he's going public, he'd better think twice.

The only bad part about that for me is that I like to know who the racists are. Fortunately, many are so stupid and believe they are above everybody else, so they'll still come out of the woodwork to spew their hate.

[ChicosBailBonds]

The Clippers are not worth close to $1 Billion. That is beyond absurd. A Billion, please. Maybe the Lakers, the Clippers will always be second banana in LA.

All it takes is one person to say they are worth a billion.  I don't disagree with you, but $2.4billion for the Doyers was preposterous, until someone paid $2.4billion.  Then Time Warner bailed them out.

[LegalEagle15]

The NBA may not own the building but they can regulate who attends the games. He's a owner of a team and agreed to be governed by the NBA constitution, its rules, and its by-laws. Additionally the Clippers don't own the Staples Center and neither does he, the Anschutz group does. But back to the original point, the NBA can ban individuals from games including owners. It's a private organization he voluntarily joined and agreed to be bound by its rules.

As for the owners voting him out, that's tough to say. I doubt many of them are comfortable with the idea of being held accountable for everything they say in private. Although one would hope most NBA owners don't have the same antiquated and ignorant views on society that he does. It does set some interesting precedent regardless of the outcome.

[Fullodds]

Theoretically, if Sterling ignored the commissioner's decree and showed up to the games he would open himself up to further fines.  Silver can fine up to $2.5M and this would be a separate action.