Donald Sterling Should Learn from the Cavaliers
by Akram47 on Mar 28, 2011 4:56 PM PDT
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PrintIts no surprise to hear that David Geffen was eager to speak to Donald Sterling about acquiring the Clippers. The future is bright and we are on the rise. But will Donald Sterling have the foresight that he may mess this opportunity up? Or the foresight that his team's value may be at an all time high in a couple years? Will Sterling's business acumen kick in and drive him to sell the team to some one like a David Geffen a man that Lebron would have played for? Maybe Sterling can use the Cleveland Cavaliers to answer his coming decisions...
Assessing the Clippers adjusted net worth with Blake Griffin and Eric Gordon anchoring the future for the next 4-5 years can be compared to the Cleveland Cavaliers. Pre-Lebron James the Cleveland Cavaliers were among the worst NBA franchises. The team wanted Lebron James so bad that some say it tanked during the 2002-2003 season with a 17-65 by benching players and firing coach John Lucas. When the Cavs drafted drafted Lebron James it went form being a worthless NBA team operating in the red to a profitable team that operated in the black whose value nearly doubled! Then Cavs owner, Gordon Gund saw his team's value flirt with the half billion mark and knew this wasn't going to last forever. Gund seized the opportunity to sell his team to the highest bidder which came in the form of Quicken Loans founder Dan Gilbert for $375 million. Gund became part of a minority ownership group and cashed out while the team was on top .
In the 2006-2007 season, Dan Gilbert was on top of the world. His small market team was in the NBA finals and his team value was at an all time high value and basketball wise He had fans at home and on the road wearing Lebron James jerseys. When Lebron James was successful so were the Cavaliers. Every MVP, Gold Medal and playoff run made that many more people Cavalier fans.
All good things come to an end... By late 2009, Dan Gilbert saw the writing on the wall. Lebron wanted out of a team that didn't do much in the playoffs and didn't want to wait any longer for a roster change. Dan Gilbert made "the real decision" in 2009 when he sold a good part of the team to a group of Chinese investors under the guise that he wanted to "expand Lebron James and the Cavaliers in Asia." Only what was really going on was that Dan Gilbert knew the Cavaliers reign wasn't going to last with out Lebron. When Lebron James finally left, the team was left in shambles talent wise. The biggest byproduct of Lebron leaving wasn't only a losing record but a team that would be losing its value. One article that Forbes magazine published in June of 2010 claims that Lebron James would impact the Cavaliers value by $100 million dollars. Now, the Cavaliers are back where they were in it's 2002-2003 season trying to tank and get that prize in the draft, Kyrie Irving. Only Kyrie Irving is no Lebron James or Blake Griffin.
...In the coming years the Donald Sterling may need an introspection. They'll need some answers and the sooner he realizes the inevitable Blake Griffin departure, the better he'll come out.
Los Angeles Clippers = Cleveland Cavaliers?
The Cavaliers are a classic small market team. The Clippers are basically in the same situation playing second fiddle in a large market to the Los Angeles Lakers. I think it would be safe to say that at the very worst both teams are close in value. One Forbes website has 2011 adjusted team values here:
Los Angeles Clippers = $305 million
Cleveland Cavaliers= $355 million
( I think the cavaliers are worth this much because they forced season ticket holders to put a down payment and commit before Lebron James left. I'm already paying for my next season tickets!)
Lebron James = Blake Griffin/ Eric Gordon?
Lebron single handedly carried his team in to the playoffs year after year essentially putting fans in the seats. Blake Griffin and Eric Gordon may not have the winning part down but the foundation is there. Its no secret that Blake Griffin's dunks are putting fans in the seats. I haven't seen this many sell out games ever.
Will Blake Griffin leave like Lebron James?
Lebron James left his home state in favor of an upgraded roster and better climate. We should ask ourselves why would Blake Griffin leave? Being that he's in Los Angeles, climate and a bigger stage wouldn't be a factor. Maybe he would prefer to go back to Oklahoma? Chances are Blake Griffin will ask himself the same question that all other franchise changing players asked themselves when they left, "Where can I win?" Kareem did it. Lebron did it. So could Blake? If we don't win Blake will surely walk. That may be the biggest factor playing in a future Blake Griffin/Clipper split.
Will Donald Sterling spend over the salary cap?
The top 3 seated teams in the east and west that don't have stars playing under a rookie contract are over the salary cap. In this day and age if you don't spend over the salary cap your message is clear. "WE ARE MORE INTERESTED IN MAKING MONEY THAN WINNING." The Cavaliers made some bad personnel moves but still took on contracts and tried to surround Lebron James with talent by taking on or signing multiple players with $10 million plus contracts like Antawn Jamison, Shaquille O'neal, Wally Szczerbiak, Zydrunas Ilgauskas, and Larry Hughes. While some of the Cavaliers acquisitions and signings may have been questionable, the fact remains that in order to win you have to surround your stars with talent that will cost money.
....Sell Donald sell.
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Arguemnts don't appear valid
So because Blake Griffin might leave in 5 years, he should sell the team? Even if Blake was leaving, I’m sure he would wait in the next 4 years to sell high when the Clips will potentially go deep in the playoffs. He has no reason to sell…he lives comfortably, he’s not in “need” of money, the Clippers are on an uptick in popularity, the team is popular. it’s similar to the early 2000’s. I’m sure the guy wants to win an NBA championship also. Whether he’s a good person, etc, is a different argument. He has no reason to sell right now.
This is going to be my team, and we're going to rise together.
-Clipper Darrell
I disagree on most of the points
for one even being the second team in LA is way way way way way better than being the best team in Cleveland, not to mention that basketball is the main sport in LA while in Cleveland loyalty is generally spread between the sports.
Also circumstances are most likely to become more owner friendly in terms of holding onto talent in the new CBA, with possible additions of a hard cap and possibly a franchise tag making a Big 3 type move much more difficult.
"It's better to be an optimist who is sometimes wrong than a pessimist who is always right"unknown
Even though basketball is bigger in LA Cleveland Cavaliers are worth more than the Clippers.
LAKERS OWN LOS ANGELES BASKETBALL. (period)
we get the left overs.
The Cavs value will drop in few years
as they continue to suck and fans give up on the team.
"It's better to be an optimist who is sometimes wrong than a pessimist who is always right"unknown
I actually kinda agree
obviously a new CBA might change a few things, but if looking at the clippers completely as a business, I’m not sure the value of the Clippers will ever be as high in DTS’s lifetime, as it will be in a few years when Blake is still cheap, and selling out arenas across the league. If DTS isn’t willing to put in the money to pay Griffin/Gordon, while paying the pieces around them they need to be a contender, it might be the best time to sell the team.
that being said, I think even though Sterling is noted (good and bad) for his business acumen, he still thoroughly enjoys the status and notoriety that comes with being a sports franchise owner. I’d be shocked if he sold the team.
About the only thing that DTS probably learned from the Cleveland fiasco is that you should trade your stars if there’s a chance that they may leave you high and dry. As for the issues that you raised in the post…mostly not applicable to the Clippers. The Clippers generally make a nice profit regardless of their record. And DTS is a business man. Why would he sell a profitable business that he really doesn’t need to put that much money into? Clippers are a huge market team with a small market payroll. Why change that if you’re Sterling. One playoff appearance per decade seems to be enough to keep Clipper Nation around. It’s actually hard work and costly to compete for a title every year. We Clipper fans need to realize that this team has found it’s niche in the market and it’s probably not going to change. I want to believe Olshey and Roeser when they talk about changing the culture and forging a new path ahead but so far it’s the same old song and dance. The only difference between now and any other middling 30 win Clipper team is that we lucked into Blake Griffin in the lottery 2 years ago. Bottom line…DTS is making money (off of us) without really trying and there is no incentive for him to sell the team.
by lbclips on Mar 28, 2011 7:38 PM PDT reply actions 1 recs
The problem here is CAVS had LBJ, We have Must-See-BG.
BG and LA are far superior to a Ring-less LBJ and a Scrub City like Cleveland.
Everything starts out New, Gets Old and Dies or is Destroyed.
by HVYDRT007 on Mar 28, 2011 7:43 PM PDT reply actions 1 recs
Have you seen staples lately?
The arena is selling out almost every time with a team with 29 wins and to make it even
better they are selling out visiting arenas. That right there makes this team worth more
money and the Donald has more money than even Jerry Buss of the Lakers because
he practically owns everything in the Wilshire area in Korea town. I think he sees the
potential of Blake bringing in other All stars to the other L A team. which would mean
even more sell outs. The only bad thing about all of this is that when teams win the
ticket prices are higher.
by ENCUEROMAN on Mar 28, 2011 7:47 PM PDT reply actions 1 recs
My biggest fear is Donald Sterling gets complacent and sees 4 sellout winless years as no reason to over spend... End result:
Blake Griffin walks and we’re back to square one.
Say what you want about DTS
but he isn’t stupid, even he can tell that BG is the source of the sell outs and that keeping BG and spending money to make a team that BG will be willing to stay on. Which would include extending or resigning EJ and DJ.
"It's better to be an optimist who is sometimes wrong than a pessimist who is always right"unknown
HAHA you think im worried about Sterling giving them an extension....
Im worried about Blake Griffin and Eric Gordon accepting anything after there first extension.
by Akram47 on Mar 28, 2011 10:27 PM PDT up reply actions 1 recs
That is a long time from now
lots of factors to consider, new CBA might make it virtually impossible for them to leave and by then we might have won enough for them to want to stay.
"It's better to be an optimist who is sometimes wrong than a pessimist who is always right"unknown
by bestclipfan on Mar 28, 2011 11:58 PM PDT up reply actions
sterling
for 1, never sells anything…ever…any thought of sterling selling the clips are “pipe dreams”…the only way that the clips changes hands would be upon sterling passing and there are tax consequences to his heirs….also, sterling operates in the black and the new collective bargaining agreement will help the clips not hinder…as an example, the maloofs are broke…their casino is defaulting on debt…to move to anaheim they will need a $50 mil loan from the guy that they will be renting from…it doesnt take a genius to figure out that their days as owners are numbered…for all of his flaws which are so numerous that its boring to read them, the clips are in a position of strength measured against any other team.
I am kind hearted
so it is okay if DTS passes “peacefully”. Steve P. told me once Donald has sons as heirs but does anybody know if they have any interest or involvement in the team or if they would sell? Frankly, I never see DTS selling as it is too much of a toy for him.
If David Geffen backed by a sports entertainment marketing group got a hold of this team they could give the aging Lakers a run for their money. Until then, we will be stuck with an amused owner watching over another piece of property that produces income for him.
Sorry but I feel he looks more like a plantation owner sitting at the games than a true fan.
Not many owners look like true fans
There’s only one Mark Cuban.
by ClipCat on Mar 29, 2011 9:31 AM PDT up reply actions 1 recs
what you have said makes a lot of sense...
in fact, i am ready to sell the team i do not own.
but, donald sterling thought elgin baylor was some guy who managed a mail order business:
http://sports.espn.go.com/los-angeles/nba/news/story?id=6225692
so, i wouldnt exactly aim for ‘making sense’. it’s like bringing a knife to a gun fight.
No gang...... Independent....
"donald sterling thought elgin baylor was some guy who managed a mail order business"
Yeah, but before that he was a future NBA hall of famer. Look, im not defending the guy. But, at the time it probably did make sense. Bayor was a winner in the NBA thru out his career.
We give DTS too much credit (or not enough, it would seem) to think he's ACTUALLY this ignorant.
Sterling is lying when he says he didn’t know he Baylor was/is. Just like he’s lying when he says he’ll do anything to win.
DTS is not an idiot. He makes his own reality.
"Buckle your seat belts, folks. This one's going down to the wire." -The inimitable Ralph Lawler.
by Gordon for President on Mar 29, 2011 2:00 PM PDT up reply actions
who*
"Buckle your seat belts, folks. This one's going down to the wire." -The inimitable Ralph Lawler.
by Gordon for President on Mar 29, 2011 2:00 PM PDT up reply actions
a clips fan's only hope
is that he is arrested for some kind of racism, human slavery or kitty pron scandal.
(file this under bringing a gun to a gunfight)
you can have the team… after you pry it from his cold dead hands…
moohua!
No gang...... Independent....
by Clipochistic on Mar 29, 2011 11:05 PM PDT up reply actions
My question is, if DTS does not and wont spend any money on the Clips
Then why in the hell did he build a brand new state of the art practice facility? Im sure he was saving shit loads of money having them practice in that health club he had them in for so many years. Also, from what I understand. That practice facility is open to the team 24/7. I am sure it costs a pretty penny to keep that place running and maintained all year round. Utilities, staff etc.
So, for everyone to say he won’t spend. Then building that practice facility don’t make sense. I think he really wants to win but has always had people make bad basketball decisions (Baylor). When Dunleavy came in he must have had some pull. Because all of a sudden DTS opened his wallet. Lets be honest, ever since the Clips matched Brand’s offer sheet the team has been trying to get something done.
It’s just that crummy rep that just can’t get them over the hump (signing quality free agents).
I agree.
This summer is make or break. If we sign some actual player, or even trade for them, we will know DTS wants to win.
"Buckle your seat belts, folks. This one's going down to the wire." -The inimitable Ralph Lawler.
by Gordon for President on Mar 29, 2011 2:02 PM PDT up reply actions
I agree...
But I’m still keeping my fingers crossed regardless
Timing of sale
Sterling would maximize value from selling the team once the league has negotiated a new CBA with the players union but before he allows EJ to walk. Allowing EJ to walk will convey a message to BG that the organization isn’t willing to pay the price to win, thereby reducing the value of the franchise. So, we have a couple of years before DTS is finally exposed and/or sells at top dollar.
A lot can happen during that time
A lot can happen between now and the time EJ becomes a free agent, but assuming EJ continues to play at the level we’re used to seeing him play at and doesn’t suffer any career endangering injuries, I’m pretty sure DTS will spend the money on EJ to keep him.
by DangerCurtis on Mar 29, 2011 5:08 PM PDT up reply actions
On Blake leaving...
I think it comes down to personality types. LeBron was absolutely coddled since Day 1 and everything was given to him, therefore, he had no problem with taking the easiest road to the championship by joining the Heat.
Griffin, however, has had nothing given to him. He missed his entire rookie season in the NBA due to injuries, for starters. This offseason, he had to work twice as hard to come back ready to play AND prove that he wouldn’t be another Greg Oden. You think he’s going to be as willing to take the easy way out as LeBron was?
I’m not saying there’s no chance of Griffin leaving, but I think the rumors are WAY too over-amplified by jealous fans hoping he’ll go to their team.
Clippers // Chargers // Rays // Gators // Boise State
"The Lakers do win games. But things can change." - Blake Griffin
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