The Clippers come in 25th in Forbes’ annual NBA team valuation rankings at $297 million. Donald T. Sterling paid about $13 million for the franchise in 1981. Forbes’ takeaway:
The Los Angeles Clippers lease at the Staples Center sums up owner Donald Sterling’s philosophy of running the franchise: maximize profits by keeping fixed costs low. The Clippers pull in less revenue from premium seating and arena advertising than the typical NBA team. But they pay only $1.5 million a season in rent at the arena, which is owned and operated by AEG, owner of the Los Angeles Kings and a minority stake in the Los Angeles Lakers. The Clippers have posted more than $9 million in operating profits the past five seasons despite fielding one of the worst teams in the league. In 2004 the Clippers extended their lease at Staples for 10 years.
Sterling’s monetary handprint can be seen in the data. Only three teams in the league are operating without debt: the Knicks, Pistons, and the Clippers. Whereas other perennial losers like New Jersey, Charlotte, and Memphis are leveraged to the hilt, Sterling milks his cash cow with a sweetheart lease deal and low overhead costs. He paid for the new facility in Playa out of his own pocket, and secured the Clippers a quality radio deal.
Sterling’s temperament, self-awareness, menschkeit, and ethics are all fair game to critics, but his grasp of the NBA’s macroeconomic issues is unassailable.
21 Responses
I thought those numbers were private. This is just a guess right? Last 5 years he made money, but the attendence is way down this year from the past 5. They are averaging 14.4k this year. Last 5 years they averaged about 17k.
http://sports.espn.go.com/nba/attendance
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FireDunleavy.com Reply:
December 4th, 2008 at 9:39 am
Actually 41 * the 3k difference * $50 a ticket is over 6mil lost this year because of the Dunce, plus any consessions cuts.
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Posted on December 4th, 2008 at 9:27 am
Kevin,
Solid post as usual — though I think I’d disagree somewhat — he’s basically capping his upside without investing in R&D when he is in one of the biggest markets in the country. And he still has exposure cause at some point, like in any business, you can only field an inferior product for so long before revenue drops (even in a larger market).
-John S.
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Posted on December 4th, 2008 at 10:52 am
I think our seats will be full if we go into the NBA Draft and make the #1 Pick. If we had Danny Granger we would become 1 step up now instead of drafting Korolev he was not productive nor consistent.
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Stian Reply:
December 5th, 2008 at 2:43 am
Livingston instead of Harris and Korolev instead of Granger is the main reason why we are where we are.
If you are in the bottom 1/3rd in the NBA you simply cannot afford to waste lottery picks like they’re going out of style, which the Clippers have been doing for years. When you go back the last 5 years all the Clippers have to show for draft-wise is Kaman, Thornton and Paul Davis (and now this year’s rookies). That is a horrible, horrible ratio.
When you compare that to the Lakers who turned their only recent lottery pick into Bynum, picked up solid youngsters like Farmar, Vujacic, Walton and Turiaf between 25 and 40, and turned other picks like Cook, Crittenton and Marc Gasol into Pau Gasol and Trevor Ariza without touching any of their rotation players you can see why that franchise is at the top and the Clippers are once again at the very bottom.
Smart decisions have consequences. Stupid decisions definitely have consequences.
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Posted on December 4th, 2008 at 11:11 am
Interesting article. What all us Clips fans have to know is that under the misguided DTS, no matter if Dunleavy is fired or Baron traded, DTS will still be steering the ship (right into the rocks).
With DTS, the bottom line is profit (I’m a tenant of his), at any cost-family, ethics, morals. I’m not expecting any changes as long as he’s the owner of the Clip show.
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Posted on December 4th, 2008 at 12:02 pm
Could be DTS’s Karma of why the Clipper’s keep losing despite having a descent talented team.
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Posted on December 4th, 2008 at 12:43 pm
I love what Ty Lawson and Stephen Curry bring to the table I think they can help us improve next season if we go dead last in the NBA Standings improving our chances with the top 3 picks in the NBA Draft.
Draft Projection: Lottery
Notes: He’s the son of former NBA player Dell Curry, who averaged 11.7 ppg from 1986-2002.
Positives:
Stephen Curry
Curry brings a good hoops pedigree to the court.
(Willis Glassgow/US Presswire)
# One of the best scorers in the country
# Amazing shooter with deep, deep range
# Excellent at putting the ball on the floor and drawing fouls
# Deadeye from the foul line
# Good rebounder for his size
# Excellent basketball IQ, solid passer
# Clutch scorer
# Picks up steals
Negatives:
# A tweener
# Lacks size at his natural position
# Needs to add strength, slight frame
# Just a decent athlete
# Not particularly quick or explosive
Summary: For the second straight year, a thrilling performance in the NCAA tournament is causing NBA scouts to reconsider Curry’s limitations. He doesn’t fit the prototype of what they’re looking for … but his production is undeniable. Now that he’s moving to the point at Davidson, he has a chance to boost his stock into the lottery in 2009.
Ty Lawson
Draft Projection: Lottery to mid-first round
Similarities: Raymond Felton
Notes: Lawson declared for the 2008 NBA draft, but then withdrew after not getting a first-round commitment.
Positives:
Ty Lawson
Lawson has elevated his game for the Tar Heels.
(AP photo/John Raoux)
# Super-quick point guard
# Good athlete with explosive leaping ability
# Excellent penetrator and finisher around the basket
# Good court vision
# Solid perimeter shooter, though streaky
# Quick defender gets a lot of steals
# Keeps turnovers to a minimum
Negatives:
# Undersized for his position
# So-so free-throw shooter
# Lacks a real midrange game
# Streaky from the perimeter
# Not much of a scorer
# Can he play at more than one speed?
Summary: Lawson led the charge on one of the best teams in the country as a sophomore. His speed, athleticism and floor leadership have put him in the lottery conversation in the past. However, his lack of height and so-so offensive instincts have others doubting. A great junior year could push him into the late lottery next season.
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neiljphx Reply:
December 4th, 2008 at 9:44 pm
Curry was great last March and I’m anxious to see him again this year.
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VH Reply:
December 5th, 2008 at 10:30 am
Curry is good but he fills the same need as Eric Gordon. I think we need another big like Griffin, Mullens or Thabeet. Way to early for that though, there is still time to turn this around and make a respectable showing.
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Posted on December 4th, 2008 at 1:10 pm
Sterling has in recent years done some things he hadn’t done previously. He paid big bucks for a coach. He signed athletes to expensive contracts. He paid for a first class practice facility. None of which he had to do.
My issue is that I think he made the wrong call on the coach and needs a good, competent, independent GM to steer him in the right direction. He also needs more scouts, etc.
The next few months will be interesting indeed.
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Posted on December 4th, 2008 at 2:00 pm
I think the whole solution is simple sell the team and give it to an owner that is serious about winning and also hire a true GM and President and work your way down.
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Posted on December 4th, 2008 at 2:24 pm
clips shouldn’t draft lawson. curry could be a sweet lottery pick but if we get 1. we should pick ricky rubio and replace baron
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Posted on December 4th, 2008 at 2:34 pm
We can win with young talent in todays NBA so I have no doubts what you have said I think Baron is almost about to reach his prime.
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Posted on December 4th, 2008 at 2:59 pm
We need defense on our backcourt though that’s also been our main issue as well. We need to make players like Alston and Head take contestant shots and stay on em at all times and wear em out.
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Posted on December 4th, 2008 at 3:03 pm
rubio has a huge deal with his euro team so its very unlikely he plays in the nba for a few years.
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Posted on December 4th, 2008 at 4:57 pm
no way in hell we should be wasting a pick on curry or lawson with a top three pick…..
i think that the definite top two should be griffin and harden, with rubio coming in a distant third….
rubio has potential, but not sure how his game will translate to the nba…..
i think harden will be the best player coming into the draft….
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Posted on December 4th, 2008 at 5:08 pm
Eric Gordon is awesome. Draft a power forward. Sad, less than 20 games into the season we’re talking draft AGAIN!
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Posted on December 4th, 2008 at 8:12 pm
Seriously.
Talking draft. AGAIN?
The last thing this team needs is another player that will take 3-4 years to develop. The West is getting WEAK. With the right moves, a number of teams can take a jump.
(Not that I trust Dunleavy to make those moves)
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Posted on December 5th, 2008 at 12:53 am
If Rubio comes to the NBA he will be a star. I have no doubt. He has a feel for the game like few other players I have ever seen.
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Posted on December 5th, 2008 at 10:35 am
I got this information from ESPN only we can tell is keep up with the Draft Watch either if their stock is goin up or down and determine a decision by the end of the season it’s too early to tell at the moment.
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Posted on December 5th, 2008 at 10:40 am
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