GLIAC Men's BasketballMar 7, 2016 by Brett Pickert
Which NBA Franchise Will Be Up for Sale Next?
Which NBA Franchise Will Be Up for Sale Next?
After numerous teams changing hands due to sales from previous owners, we take a look at which NBA Teams could be up for sale next.
By Mo Mooncey
Business is booming for the National Basketball Association of America. One of the major keys in charting the financial success of the league is the valuation of individual franchises. With 13 teams reportedly worth $1 billion or more, the league’s 30 teams generated $5.2 billion in revenue last season and $900 million in operating profit. One of the association’s least desirable franchises, the Milwaukee Bucks, sold for $550 million two years ago; and last year the then Eastern Conference leading Atlanta Hawks sold for $850 million.
[tweet url="https://twitter.com/thehoopgenius/status/706912567445295105" hide_media="0" hide_thread="1"]
Back in 2014 after the Donald Sterling fiasco, boxing champion Floyd “money” Mayweather proposed putting together a group, with himself as a majority owner, to purchase the Los Angeles Clippers. The Clippers went on to be sold to Microsoft CEO Steve Ballmer for a reported price of $2 billion, however last week Mayweather once again expressed his desire to purchase an NBA team. Whilst back-to-back courtside appearances at Washington Wizards games have sparked rumors, here are the NBA franchises most likely to be up for sale soon.
Brooklyn Nets
Owner: Mikhail Prokhorov
Year Purchased: 2010
Price Paid: $365 million
Estimated Current Value: $1.7 billion
When Russian billionaire Prokorov purchased the then New Jersey Nets back in 2010 he set a goal of winning a championship by 2014. It is now 2016, 2 years past his deadline, and not only do the Nets have 0 championships; they have 0 draft picks until 2021(if you don’t count the 2017 pick that the Celtics have the option to swap with.) The future doesn’t look bright at all for the franchise that relocated to a brand new arena in Brooklyn which Prokhorov also owns.
ESPN reported that the Nets asking price values the team at $1.2 billion and Barclays Center, which opened in 2012, at $1.1 billion.
Prokhorov’s “win now at all costs” mentality has thrown away the franchise’s future however being based in a brand new facility in Brooklyn, the most upcoming neighbourhood in New York City, and having the co-sign of rap mogul Jay-Z, the Nets who are currently ranked the 7th most valuable team in the league can still be a profitable franchise for an owner.
Chicago Bulls
Owner: Jerry Reinsdorf
Year Purchased: 1985
Price Paid: $16 million
Estimated Current Value: $2.3 billion
Thanks to Michel Jordan elevating the profile of the Bulls brand to an international level, they are currently the 3rd most valuable team in the league. Despite being ranked high in value, they are not producing on court. Owner Jerry Reinsdorf is already 80 years old, and having a net worth of just (yes, “just” compared to certain other NBA owners) $1.2 billion, it may be a good time to cash out and more than double his net worth.
The Bulls have to pay oft-injured point guard Derrick Rose $20 million per year for the next two seasons and Pau Gasol and Joakim Noah look set to leave in free agency. The team isn’t good enough to win a championship, yet isn’t bad enough to get a lottery pick in the draft. It’s set to be a tough future for the Bulls whilst they’re stuck in the NBA’s purgatory.
Detroit Pistons
Owner: Tom Gores
Year Purchased: 2011
Price Paid: $325 million
Estimated Current Value: $850 million
The Palace of Auburn Hills in Detroit has the highest capacity of any NBA arena (21,231) however consistently ranks amongst the lowest (around 15,000) attendance figures every season. Only four teams have averaged less than 15,000 fans over the past 4 years: the Bucks, Kings, Pistons, and Hawks. The Kings were sold in 2013, The Bucks in 2014, The Hawks in 2015: will The Pistons be next?
A young team coached by Stan van Gundy built around dominant centre Andre Drummond, who is still only 22, Detroit have the foundation to build a team that has the potential to compete in the future; they just need an owner who can turn around the branding of the franchise.
Minnesota Timberwolves
Owner: Glen Taylor
Year Purchased: 1995
Price Paid: $89 million
Estimated Current Value: $720 million
$720 million is no small amount of money however the Timberwolves rank amongst the least valuable franchises in the league. Glen Taylor has seen the Kevin Garnett era and the Kevin Love era pass by unsuccessfully and is hoping not to make the same mistake with the Karl-Anthony Towns era. Glen Taylor has already begun selling minority stakes in the Timberwolves organization and according to sources, is looking to sell a majority steak. Steve Kaplan, who also owns a steak in the Memphis Grizzlies, has expressed interest in buying the team, as has current NBA legend Kevin Garnett. If some serious money is on the table, it’ll be hard for Taylor to turn it down.
Business is booming for the National Basketball Association of America. One of the major keys in charting the financial success of the league is the valuation of individual franchises. With 13 teams reportedly worth $1 billion or more, the league’s 30 teams generated $5.2 billion in revenue last season and $900 million in operating profit. One of the association’s least desirable franchises, the Milwaukee Bucks, sold for $550 million two years ago; and last year the then Eastern Conference leading Atlanta Hawks sold for $850 million.
[tweet url="https://twitter.com/thehoopgenius/status/706912567445295105" hide_media="0" hide_thread="1"]
Back in 2014 after the Donald Sterling fiasco, boxing champion Floyd “money” Mayweather proposed putting together a group, with himself as a majority owner, to purchase the Los Angeles Clippers. The Clippers went on to be sold to Microsoft CEO Steve Ballmer for a reported price of $2 billion, however last week Mayweather once again expressed his desire to purchase an NBA team. Whilst back-to-back courtside appearances at Washington Wizards games have sparked rumors, here are the NBA franchises most likely to be up for sale soon.
Brooklyn Nets
Owner: Mikhail Prokhorov
Year Purchased: 2010
Price Paid: $365 million
Estimated Current Value: $1.7 billion
When Russian billionaire Prokorov purchased the then New Jersey Nets back in 2010 he set a goal of winning a championship by 2014. It is now 2016, 2 years past his deadline, and not only do the Nets have 0 championships; they have 0 draft picks until 2021(if you don’t count the 2017 pick that the Celtics have the option to swap with.) The future doesn’t look bright at all for the franchise that relocated to a brand new arena in Brooklyn which Prokhorov also owns.
ESPN reported that the Nets asking price values the team at $1.2 billion and Barclays Center, which opened in 2012, at $1.1 billion.
Prokhorov’s “win now at all costs” mentality has thrown away the franchise’s future however being based in a brand new facility in Brooklyn, the most upcoming neighbourhood in New York City, and having the co-sign of rap mogul Jay-Z, the Nets who are currently ranked the 7th most valuable team in the league can still be a profitable franchise for an owner.
Chicago Bulls
Owner: Jerry Reinsdorf
Year Purchased: 1985
Price Paid: $16 million
Estimated Current Value: $2.3 billion
Thanks to Michel Jordan elevating the profile of the Bulls brand to an international level, they are currently the 3rd most valuable team in the league. Despite being ranked high in value, they are not producing on court. Owner Jerry Reinsdorf is already 80 years old, and having a net worth of just (yes, “just” compared to certain other NBA owners) $1.2 billion, it may be a good time to cash out and more than double his net worth.
The Bulls have to pay oft-injured point guard Derrick Rose $20 million per year for the next two seasons and Pau Gasol and Joakim Noah look set to leave in free agency. The team isn’t good enough to win a championship, yet isn’t bad enough to get a lottery pick in the draft. It’s set to be a tough future for the Bulls whilst they’re stuck in the NBA’s purgatory.
Detroit Pistons
Owner: Tom Gores
Year Purchased: 2011
Price Paid: $325 million
Estimated Current Value: $850 million
The Palace of Auburn Hills in Detroit has the highest capacity of any NBA arena (21,231) however consistently ranks amongst the lowest (around 15,000) attendance figures every season. Only four teams have averaged less than 15,000 fans over the past 4 years: the Bucks, Kings, Pistons, and Hawks. The Kings were sold in 2013, The Bucks in 2014, The Hawks in 2015: will The Pistons be next?
A young team coached by Stan van Gundy built around dominant centre Andre Drummond, who is still only 22, Detroit have the foundation to build a team that has the potential to compete in the future; they just need an owner who can turn around the branding of the franchise.
Minnesota Timberwolves
Owner: Glen Taylor
Year Purchased: 1995
Price Paid: $89 million
Estimated Current Value: $720 million
$720 million is no small amount of money however the Timberwolves rank amongst the least valuable franchises in the league. Glen Taylor has seen the Kevin Garnett era and the Kevin Love era pass by unsuccessfully and is hoping not to make the same mistake with the Karl-Anthony Towns era. Glen Taylor has already begun selling minority stakes in the Timberwolves organization and according to sources, is looking to sell a majority steak. Steve Kaplan, who also owns a steak in the Memphis Grizzlies, has expressed interest in buying the team, as has current NBA legend Kevin Garnett. If some serious money is on the table, it’ll be hard for Taylor to turn it down.