Portland Trail Blazers 14th most valuable team NBA

[HailBlazers]

Our stock is continually rising despite the adversity.

Canzano with some good perspective on the Franchise and a blurb on a Paul Allen Book, should be interesting.

http://www.oregonlive.com/sports/or...sf/2011/01/canzano_trail_blazers_winning.html

http://www.forbes.com/lists/2011/32/basketball-valuations-11_land.html

 

[Nate Dogg]

He's got value here as an owner and a solid fan base. Why would he sell the team?

 

[HailBlazers]

He wouldn't he's finally recouping some of his investment, but it's interesting to see who ranks above us. Detroit and G.State?!?!

 

[e_blazer]

Neither the Forbes piece nor Canzano's column give the big picture of the Blazers' situation going forward. The Forbes article is a snapshot of team value based upon the 2009-10 season's operating expenses and income. The critical factor to realize there is that last season was prior to Roy's and Aldridge's big pay increase. The $64 million, decade-low, salary that Canzano talks about is at $74 million for the current season. That's $4 million into the luxury tax. That's a fact that has gone without comment around here or in the media coverage of the Blazers. Dumping Webster for the rights to Babbitt and trading Bayless for a draft pick were primarily about getting the Blazers closer to the luxury tax threshold. Paul Allen is a very wealthy man, but he doesn't enjoy writing checks to the league to be distributed to other owners. I wouldn't be surprised to see another move prior to the deadline to dump salary to get under the luxury tax threshold.

With the new CBA likely to either have a hard cap or to move the luxury tax threshold closer to the cap, Cho is going to have to weigh roster moves as much for salary implications as for talent.

 

[BlazerCaravan]

It's a funny coincidence that the difference in value between the Blazers and Clippers is basically Baron Davis's salary.

 

[e_blazer]

He wouldn't he's finally recouping some of his investment, but it's interesting to see who ranks above us. Detroit and G.State?!?!

It's primarily about market size, not basketball talent. There's a reason that NY, LA, and Chicago have the top positions...they're the three largest markets.

 

[HailBlazers]

That's $4 million into the luxury tax. That's a fact that has gone without comment around here or in the media coverage of the Blazers.

You make some good points that the article doesn't, but overall "Allen's basketball team is valued today at $103 million more than it was in 2007," is what jumped out at me.

 

[e_blazer]

One thing that jumps out at me from the Forbes piece is that the Hornets are valued at $280 mil yet the NBA bought them for $310 mil last fall. Ouch. The future buyer of that team had better have a plan for moving to a good market and a sweet arena deal.

 

[jlprk]

I questioned the Forbes rankings, so I found the method.

http://blogs.forbes.com/mikeozanian/2011/01/26/the-nbas-most-valuable-teams-2/

Our valuations sometimes differ from the amount teams have recently sold for. Our estimations are based on the team’s current economics (unless ground has been broken for a new building) and do not include the value of real estate. For example, we value the Warriors, who negotiated a more lucrative cable deal soon after Peter Guber and Joe Lacob bought the team, at $363 million. One reason the new owners paid $450 million is their lease at the antiquated Oracle Arena expires in 2017 and the building is likely to be renovated, with the team getting a more lucrative lease or a new building entirely.

In June, Ted Leonsis purchased the 56% of the Washington Wizards and Verizon Center that he did not already own, plus the Baltimore-Washington D.C. Ticketmaster franchise, in a deal that put a value on the whole enterprise of $551 million. We value the Wizards at $322 million because we only include the revenue the team gets from the Verizon Center, not the value of the real estate itself.

The bad economy and a few suspect markets (Minnesota, Sacramento, Indiana among others) drained profitability during the 2009-10 season due to lower ticket receipts. Operating income (earnings before interest, taxes, depreciation and amortization) fell to an average of $6.1 million, 22% lower than the previous season and the lowest figure since the 2002-03 season. Worse, 17 teams lost money, the most since the lockout-shortened 1998-99 season. Several franchises like the Detroit Pistons and the New Orleans Hornets are on the market, but can’t find buyers at the right price.

However, if NBA commissioner David Stern gets his way, an imbecile would be able to make money running a team. Stern wants to lop $750 million off of player costs, lowering the portion of basketball-related revenue that goes to players from 57% to around 40%. If Stern succeeds, even teams like the Hornets, who were thought to be headed for bankruptcy before the NBA rescued the franchise, would immediately rise at least 30% in value because potential buyers would know they don’t run the risk of writing checks to cover operating losses.

So the league bought the Hornets so they can change the rules and sell it at a profit. I'd like to see more detail. How about a paragraph on how each team's contract with its local city compares to the average team contract. For each team, tell us exactly how much it is subsidized by government, which deeply affects team worth.

 

[HailBlazers]

'Operating income fell to an average of $6.1 million, 22% lower than the previous season and the lowest figure since the 2002-03 season. Worse, 17 teams lost money, the most since the lockout-shortened 1998-99 season.'


Oh man, this CBA is going to be brutal. The writing is on the wall.