Saturday, September 6, 2014

Greg Crawford Basketball, For September 6th, 2014

By Gregory Crawford----COO of Kiyokawa Crawford Sports Management  @wchoops @kcsportsmgmt @crawssportsbiz

The Battle Of L.A.----In the past couple of years, there is no question that the Los Angeles Clippers have been a better team than the Los Angeles Lakers. Of course, the Clippers have gotten all the attention as of late, sometimes for the wrong reasons as well.

But a look at the business side, what professional team really does own the city?

The Lakers have the largest local TV deal in not only the NBA, but all of sports in the United States. In the 2012-13 season, the Lakers started a 20 year contract with Time Warner Sports, which brings them in annually $200 million per year. That figure helps the Lakers attain an estimated valuation of its franchise at just over $1.4 billion per the Crawford Sports Biz Index.

When Steve Ballmer recently bought the Clippers for close to $2 billion, the Crawford Sports Biz Index had the team valued at $610 million. The Clipper's sale is the perfect snapshot of why many times the sale of sports team are often "personal attraction" buys, rather than solid business decisions, but with that said, sometimes they can be great investments, but it takes years. For the record the Clippers do not even rank in the top 20 of the NBA at present for local TV deals.

Some other NBA TV deals of note:

New York Knicks------Annual deal with MSG Sports, $39 million per year.

Cleveland Cavaliers----Annual deal with Fox Sports Ohio, $25 million per year, set to expire in 2015-16 and now with LeBron in the fold, let the bidding begin.

Miami Heat----The Heat TV deal expires in 2018 with Sun Sports, at present it is $20 million.

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