When considering in the benefits of a substantial up-front payment from the expansion fees (including factoring in the time value of money) and the threat of bubble in relation to team values, it would behoove the owners to reincarnate the Sonics and a second franchise. Read More. Written by Neema Hodjat on Jul 23, 2014
The Los Angeles Lakers have still not hired a head coach and two sources disputed the notion that they are potentially waiting to see if Doc Rivers becomes available with the Donald Sterling situation dragging out.
Rivers would not be expected to remain head coach of the Los Angeles Clippers if the sale of the franchise to Steve Ballmer is overturned.
The Lakers haven't interviewed any candidates since free agency began with the exception of Byron Scott. The Lakers also have not currently scheduled any future interviews and Scott is considered the favorite.
Steve Ballmer severely overbid for the Los Angeles Clippers based on the expected 2014 revenues of the franchise.
Ballmer's $2 billion bid is 12.1 times the expected 2014 revenues.
The book, called "Project Claret" so as not to give away on the cover sheet that these numbers are indeed the financials of the Clippers, reveals that the team is projected to finish the year with $62.3 million in revenues from ticket sales, $25.8 million from its local cable contract and $24.1 million in additional team revenue. The Clippers are also projected to receive $52.7 million on the season in shared national league revenue, according to the document. After taking away player payroll costs, total operating revenue for the 2013-14 season is projected to be $100 million.
Valuation multiples are usually based on total revenues, so the $164.9 million before player costs are extracted equals more than 12 times less than the $2 billion sale price.
"No team in the history of sports has sold for six times total revenues, so that should give you an idea of how crazy this purchase price is," said a sports banker who was not involved in the transaction.
The document cites a five-year mean of teams that have been purchased during that time at a sales price of 3.4 times total revenue.
Donald Sterling testified earlier this month that he could have gotten at least $2.5 billion for the team.
Donald Sterling filed a suit in Superior Court on Tuesday afternoon seeking damages from the NBA, Adam Silver and Shelly Sterling, alleging they defrauded him and violated corporate law in attempting to sell the franchise to Steve Ballmer.
Sterling asked for an injunction to freeze the $2 billion sale, arguing that his wife had no authority to sell the franchise because he is the sole owner and shareholder of the corporation which owns the Clippers, after he revoked the Sterling Family Trust on June 9.
"The new lawsuit states the seller of the team is not Donald, and it's not Shelly -- the seller of the team is the corporation that owns the team, and that's LAC Basketball Club Inc.," Donald Sterling's attorney, Bobby Samini, said Tuesday. "When Donald bought the team, the shares of the corporation are only in Donald's name. They were only issued to Donald, so Donald owns the shares of the corporation. He's the sole shareholder. He put the shares up into the trust in 1989, and when we revoked the trust, the shares go back down to him."
Sterling is attempting to undo the sale in order to fight the NBA in court.
Free agent Anthony Tolliver has been in substantial conversations with six NBA teams – including the Los Angeles Clippers and Cleveland Cavaliers – as a stretch-forward addition, league sources told RealGM.
Tolliver has also received interest from the Detroit Pistons, Washington Wizards, San Antonio Spurs and Charlotte Hornets among other organizations, sources said, and teams expect a possible signing next week.
For a playoff team in Charlotte, Tolliver averaged 6.1 points and 2.6 rebounds while shooting 41.3 percent from three-point range. He developed a strong relationship with coach Steve Clifford and a leadership role within the Hornets’ locker room.
Tolliver, 29, has averaged 6.1 points and 3.7 rebounds over six NBA seasons with the Spurs, Golden State Warriors, Portland Trail Blazers, Minnesota Timberwolves, Atlanta Hawks and Hornets. After four collegiate years at Creighton, Tolliver broke into the NBA through the Development League, solidified a niche as a shooter and earned a position in the players’ union.
Tolliver once scored 12.3 points and grabbed 7.3 rebounds per game for the Warriors in 2009-10.
The Brooklyn Nets are in negotiations to retain Paul Pierce amid speculation of interest from other teams and sign-and-trade possibilities.
“We’re in the process," Billy King said on ESPN Radio. "I think we know the number we want to get to and they know the number they want to get to and we’re just trying to get to the part that we’re all comfortable.
“It’s just a negotiation process.
“We have the ability to pay him more than anybody else but we are going to be a little bit more financially responsible at this point in time.”
The Los Angeles Clippers have inquired about receiving Pierce in a sign-and-trade.
“They made a call and inquired, but there’s nothing at this point that makes sense for us,” King said.