How much are the Jazz worth?

[JAZZGASM]

The problem is the Forbes value do not take into account the upcoming renegotiation of television contracts. The NBA made over $5B last year up 20% from the year before. I imagine that # increased this year. Right now the LA broadcasters pay the team $18M. It is estimated that the new contract will bring $60M a year. Additionally, the league will be renegotiating the national tv rights as well. Right now each team gets approximately $30M a year from National TV rights. It is estimated to go up at least 50%. This is due to the league becoming more popular and getting a larger share of viewership (and the current rights have been in place for years). The league is about to get paid.

So the the average team is bringing in $166M a year ($5B/30 teams based on last years revenue according to David Stern). Even with revenue sharing, the clippers will be above that being one of the bigger markets. I'd guess their current revenue is 20% higher than the average ($199M). Add in another $55M/year in increased tv rights and that is revenue of $254M per year. Even after expenses that is a pretty good profit. Probably at least 150M per year and will only increase over time as the league becomes more popular. Not sure if the $5B takes into account concessions, which I'm sure are a nice revenue creator as well.

So perhaps $2B was a bit high, but the other two bids were both well over a Billion. Generally an investment group is not going to try and buy such a large asset if they business valuations don't fall within the bidding range.

 

[Coach Ellis]

According to a business analyst i saw on fox news, it actually does have an effect. They estimated the bucks are now worth a billion.

If so, then that record price for a crap team was a helluva investment. 300 million in a matter of months? Wish my investments were that good.

 

[JAZZGASM]

If so, then that record price for a crap team was a helluva investment. 300 million in a matter of months? Wish my investments were that good.

Essentially the analyst was saying (similar to what I mentioned in my last post), that the new tv rights will be a huge increase in revenue and value to each team. I'm guessing the Bucks transaction did not take them into account. I have had a few investments that increased 50% in under a year. I have had many do much worse too.

 

[akirac73]

No they wouldn't. The Clippers sale isn't going to bump up the sales of smaller market teams that much.

I disagree, if a small market team like OKC or San Antonio was placed for sale today, I'd imagine they'd fetch close to or around a billion.

 

[Fabtrey]

No they wouldn't. The Clippers sale isn't going to bump up the sales of smaller market teams that much.

why not? that's still not even 50% of 2 bil. let's not act like clippers are lakers. lakers would be sold at 3 bil easy if someone paid 2 bil for friggin clippers

 

[kabenac]

From what local L.A. news media stated, the Clippers are worth 1.6 billion and the dude overpaid by roughly 400 million. So if the Clippers are worth 1.6 billion I would value the Jazz at around 1.1 - 1.2 billion.

Clippers were #7 in attendance at 19,212 per game.
Jazz were #12 in attendance at 18,175 per game.
Bucks were at 13,487 and Cuban stated their $550 million sell tag is a 'bargain'.