Hawks rank 27th in NBA in Team Value

[TheNorthCydeRises]

http://www.forbes.com/nba-valuations/

If the financial woes of the franchise haven't been highlighted enough, Forbes latest look at The Business of Basketball drives home the potential disadvantage we may have in building this team for the future. The numbers are not good.

The list cites 5 categories that shows what the current state of NBA franchises are right now.

- Current Value

- 1 yr % Change in Value

- Debt/Value %

- Revenue

- Operating Income

So let's look at where the Hawks rank in each category.

CURRENT VALUE - 27th

Our current value stands at 425 million, which is just ahead of New Orleans Pelicans, Charlotte Bobcats, and Milwaukee Bucks.

Honestly, this is disturbing as hell. Atlanta is NOT a small market franchise, yet, they have a value comparable to a small market. This tells me that the Hawks may not go anywhere near the Luxury Tax anytime soon. And that means that Ferry will continue to scour for "Diamond in the Rough" type players like a Demarre Carroll and Shelvin Mack, to see if the Hawks can get the most out of them.

And it's also an indication of how much the team is actually taking in. We'll get to that later.

Top 3 Value teams: NY Knicks, LA Lakers, Chicago Bulls . . . no surprise there.

1-Yr VALUE CHANGE % - 5th

With a 34% increase in value, the Hawks are tied for 5th with the LA Clippers.

I think this is directly due to the new CBA, and somewhat pointing to the departure of the Joe Johnson contracts falling off the books, while also not re-signing Josh Smith. When you sort this column, no team in the NBA saw a decline in value, and most teams' value increased by at least 20%.

The Hawks were one of 8 teams that saw at least a 30% increase in value. But that list is curious. Brooklyn ( by no surprise ) is #1, with a 47% change in value, while the Milwaukee Bucks and Charlotte Bobcats both saw a 30% change in value.

With Brooklyn, their increase in value has to do with them moving into a new location and arena, while Charlotte and Milwaukee may be beneficiaries of the new CBA. I think the Hawks may be in this group. The main article cites that collectively, the low revenue teams took in 120 million. This year, an estimated 200 million is expected to be distributed to those teams, which will probably include us.

Top 3 in Value Change: Brooklyn, Houston, and Golden State

DEBT/VALUE % - 30th

Not quite sure how to read this, but I think this is VERY BAD. Our Debt/Value % is at 55%.

When I sort this list in descending order, all of the high revenue and high value teams are at the bottom, with Debt/Value %'s of under 10%. But the top ( or bottom ) 5 in Debt/Value % are:

- Atlanta: 55%

- Sacramento: 43% . . ( which alarms me, seeing all the troubles they had the past 2 years )

- Detroit: 41%

- Memphis: 39%

- Cleveland: 39%

So this has to be a very bad number concerning the Hawks. Maybe Hawksfanatic can shed some light on this to whether this is a bad number, and why it is so bad?

Top 3 in Debt/Value % - New York, LA Clippers, and Denver

REVENUE - 24th

With 119 million in revenue, the Hawks rank 24th . . no surprise here.

We've been talking about this for years on this site. The inability for our franchise to draw more people to the arena is a killer, when it comes to revenue. Cite whatever reasons you want:

- Lack of a superstar

- Transients from all over the country who could care less about the Hawks

- Traffic

- Apathetic current or former Hawk fans who live and/or are from the Metro Atlanta area.

- Lack of a strong core Hawk fan base

- Ownership

- Poor marketing

- Lack of heavy corporate support

. . . or whatever you want to add to this list. The fact remains that the Hawks draw like a small market team at the box office. It's sad too, seeing that there are 5 million people in the Metro area, and Atlanta is the undisputed hub of the Southeast.

Top 3 Revenue teams - LA Lakers, New York, and Chicago

OPERATING INCOME - 28th

The Hawks were one of only 4 teams in the NBA last year that DID NOT MAKE MONEY, citing an Operating Income of -3.8 million.

Now I KNOW that the 55% Debt/Value % number was very bad. We LOST MONEY last year? Really? I guess not reaching the 2nd round of the playoffs really did play a factor in that. Those games are probably around a 2 million a game windfall for the owners. So not having those extra 2 or 3 games in the 2nd round really hurt them from an operating income standpoint.

If we're losing money, we can't expect these owners to make a big splash for anybody. It's one thing to lose money when you're winning. Totally different when you're losing. I mean, we lost money despite getting that extra money given to low revenue teams. This is bad folks. And unless attendance numbers don't turn around quickly, they might lose money again this year.

I hate to say this, but maybe this is why the Hawks didn't blow things up, and are CONTENT with simply making the playoffs. We may be in a financial situation in which we're losing so much money, that getting ANYTHING back in return in extra revenue, is a good thing in the eyes of the owners.

Top 3 in Operating Income - New York, LA Lakers, and Houston

[PSSSHHHRRR87]

Just adding another list to all of these reports...

http://espn.go.com/nba/attendance

[Randy]

One number that's really interesting is that while the Hawks lost $3 million and change, the value of the Franchise went up by more than $100 million by my math.. If even close to being true, the owners ain't doin bad. That gain probably wiped out years of losses that may (or may not) have happened so far.

[HawkItus]

Long On Money, Short On Success

None of the teams in the top five of Forbes' most-valuable NBA franchises list -- including Carmelo Anthony's No. 1 Knicks -- is over .500 this season.

Team Record Rank 1. Knicks 15-26 T-24th 2. Lakers 16-26 22nd 3. Bulls 20-20 T-12th 4. Celtics 14-29 T-26th 5. Nets 18-22 18th -- ESPN Stats & Information

Well seems like they are getting good value........

[TheNorthCydeRises]

Long On Money, Short On Success

None of the teams in the top five of Forbes' most-valuable NBA franchises list -- including Carmelo Anthony's No. 1 Knicks -- is over .500 this season.

Team Record Rank 1. Knicks 15-26 T-24th 2. Lakers 16-26 22nd 3. Bulls 20-20 T-12th 4. Celtics 14-29 T-26th 5. Nets 18-22 18th -- ESPN Stats & Information

Well seems like they are getting good value........

LOL . . this is true. Although it has to be noted that all 5 of those teams made the playoffs last year, and 2 of them have won 3 of the last 6 NBA Titles.

[yungsta]

hilarious we have more debt than the disastrous Sacramento Kings.

I hope ASG will be forced to sell the team soon.

[anxietyreigns]

Good Lawd.We Po!! Sent from my SCH-R950 using Tapatalk

[Vol4ever]

This is why we will never sign a star or compete for a championship with ASG holding the checkbook.

[gonzo]

well if the hawks keep signing international players, they will get more money from merchandise oversees. Thats a common thing among german soccer teams. They sign talents from places like south korea and make huge money from merchandises. I believe teams like San Antonio sell more jerseys in france then many more spectacular teams. Just as the Mavs sell more jerseys in germany than the lakers. If a guy like Schröder develops that could be some money in the bank from merchandise/sponsoring aswell. Remember Germany has a huge economy and loves sponsoring sport teams (Adidas, Puma, Mercedes or Volkswagen) Especially Volkswagen is very big in Schröders hometown so they will look closely at how he develops.

[MaceCase]

Hmm, Germany and Brazil. Two rising economic world powers. Gonzo may have discovered the ASG's plan especially if we see Lin signed or some Chinese player drafted.

[gonzo]

YAY, I might have contributed something useful...

[NBASupes]

Hmm, Germany and Brazil. Two rising economic world powers. Gonzo may have discovered the ASG's plan especially if we see Lin signed or some Chinese player drafted.

Those countries don't care about Basketball like that. Pero is the only one from a country where they care about Basketball.

[gonzo]

Those countries don't care about Basketball like that. Pero is the only one from a country where they care about Basketball.

Your definitly right about that, but if someone is successfull they will get recognized. If i recall correctly Formula 1 was considered boring until Michael Schumacher entered the scene. All of a sudden it was the next best thing behind soccer in germany. Same with bicycle riding and Lars Ulrich. After he won the tour de France, everyone cared about that sport and a huge amount of money was generated. I can't speak for Brazil, but if someone manages to succeed some in the NBA he will get a huge marketvalue in germany for sure. I mean there is this german dude playing American football for indianapolis colts. Hmmm i think American football is a pussysport (sorry, but i play rugby) but somehow i know that the team from Indianapolis is called Colts. I can describe the logo and the jersey, although i don't respect the sport. Thats thanks to media hyping the case that a german is on the team, even though i don't know if he plays at all. Or just use boxing the Klitschko bros are boring as f*** but they generate so much money in europe (especially germany) that they dont need the american market to generate a fortune.

And now the big plus for developing schröder: Germany already knows about basketball. So there is already a fanbase and when Dirk retires, it will mostlikely all concentrate on Dennis. 3rd largest economy in the world concentrating on 1 guy of a whole sport? That is a huge opurtunity.

1 more example. Maybe you guys know Bayern Munich. The problably economicly best sportsclub in the world. They bought some tier 3 iranian players and generated more money in a fan shop in teheran then in all the rest of europe except for germany combined. Its a bussiness afterall.

[Vol4ever]

Is there a worse franchise in the league? I think so. No? Name one worse. Hawks fans we are getting flat out screwed by this ownership group. Belkin was the basketball man and the rest of the ASG group is a bunch of fools that could care less about the Hawks. This whole thing irritates me so much because I am a diehard fan and I know with this ownership we will never sniff a ECF.

[NBASupes]

I don't know if I can blame ASG for the last three years. The BK years, sure but recently, they stayed out of the way and gave Danny as well as Rick his due. My problem was the Joe contract.

[nathan2331]

Is there a worse franchise in the league?  I think so.  No?  Name one worse.  Hawks fans we are getting flat out screwed by this ownership group.  Belkin was the basketball man and the rest of the ASG group is a bunch of fools that could care less about the Hawks.  This whole thing irritates me so much because I am a diehard fan and I know with this ownership we will never sniff a ECF.

Nets- they traded away their future yet their present is worse than ours. While they may not net us a lottery pick this year, they will be worse next year.Timberwolves-Their disgruntled star will be gone soon and they will be forced to rebuild around nothing but RubioKnicks-Timberwolves but worse, Carmelo will leaveThere are other teams like the Lakers, Bulls, Pelicans, Wizards and Cavs I would not want to be. I understand your frustration but a) we have a good 3 year window to squeak into the ECF due to the lack of talent in the East b) with our coach we can build a contending team with less talent.

[Vol4ever]

The point I think you miss is these team's ownership has money and as important they are willing to spend to win, they just need the right management group in place.

The Lakers, Celtics, and Bulls will be back in no time. Although we are in a larger market our team spends and acts like its a small market team.

[nathan2331]

The point I think you miss is these team's ownership has money and as important they are willing to spend to win, they just need the right management group in place. The Lakers, Celtics, and Bulls will be back in no time.   Although we are in a larger market our team spends and acts like its a small market team.

I know our ownership sucks but we don't have the bleakest future is my point. Additionally, I think the ASG will pay the tax when it's the right time (ie: building a contending team). If we want Melo in the off season we have a fair shot at getting him since the Lakers and Bulls at the moment aren't exactly desirable places to win the future.

[Vol4ever]

I know our ownership sucks but we don't have the bleakest future is my point. Additionally, I think the ASG will pay the tax when it's the right time (ie: building a contending team). If we want Melo in the off season we have a fair shot at getting him since the Lakers and Bulls at the moment aren't exactly desirable places to win the future.

I disagree and hope I am proved dead wrong. The Lakers and Bulls are very desired by star players, their record on attracting players is much better than ours.

[nathan2331]

I disagree and hope I am proved dead wrong. The Lakers and Bulls are very desired by star players, their record on attracting players is much better than ours.

Yes but when you look where they are today it's not pretty. They've both got 20+ mil tied up in players who may/will never reach their peak again (Derrick Rose and Kobe Bryant). One of the reasons why I believe in Ferry is that he's trying to restore credibility back into the franchise, something that will help immensely in free agency (same reason why I feel this off season was a success regardless of finish).