HoopsHype Business rumors

June 6, 2014 Updates

Gatorade has apologized for tweets posted from the company's account after Miami Heat star LeBron James was forced to leave Game 1 of the NBA Finals. James was forced out of the game because of cramps, a sign of dehydration. Temperatures in the arena in San Antonio soared during the game because of an air conditioning outage, and the Spurs pulled away after James departed for a 110-95 win. USA Today Sports

The New York Knicks could now be worth $3 billion. So says Rich Tullo, an analyst at Albert Fried & Company, which made the comment as part of a note issued Friday morning to announce that the research company was revising its price target for Madison Square Garden stock upward to $85 a share. Tullo wrote that the Knicks, he believes, are now worth between $1.4 billion and $3 billion "based on percent premiums of recent sales prices paid for franchises such as the L.A. Clippers ($2 billion), the Bucks ($550 million) and New Orleans ($338 million)." ESPN.com

Tullo estimated that the Knicks generated more than $100 million in ticket sales this season, which he says was double what he estimates the Clippers did. The Knicks also get 100 percent of the money they make off suites, some leased at $1.8 million a year. Sources tell ESPN.com that the Clippers make no more than 10 percent of suite sales because of their lease with the Staples Center, which is owned by AEG. ESPN.com

May 23, 2014 Updates

What about the franchise turning a profit last year for the first time in its existence, according to a person familiar with the team's financials? What about the Grizzlies being named the best organization in professional sports by ESPN The Magazine? Whoopsy. The Grizzlies are in turmoil again, with Chris Wallace summoned to serve as interim GM after a two-year exile and coach Dave Joerger being granted permission to interview with the Minnesota Timberwolves. CBSSports.com

May 19, 2014 Updates

NBA Digital is rolling out a new responsive design for all 30 individual team websites, a move aimed at providing a consistent user experience across desktop and mobile platforms. Sports Business Daily

May 15, 2014 Updates

The NBA's most expensive roster fell short of its on-court goals Wednesday night, but the Brooklyn Nets are still big winners on the bottom line. Let's take a closer look at the business success the Nets have become since moving to Brooklyn: At the Barclays Center, ticket prices have risen significantly -- and fans paid them. In 2011-12, the team's last year in New Jersey, the team was 27th in the league in ticket revenue. This year, a league source pegs them at No. 5. ESPN.com

May 14, 2014 Updates

Carmelo Anthony could be the next John B. Stetson ... because the NBA superstar tells TMZ Sports he's gunning to start his very own HAT LINE ... and it's gonna be awesome. Anthony is a huge fan of fancy headgear ... from fedoras to berets and even baseball hats -- and most recently rocked a top hat to the Met Gala in NYC. TMZ.com

May 10, 2014 Updates

The NBA has banned L.A. Clippers owner Donald Sterling for life, but that's not good enough for many advertisers and sponsors. Nearly 20 brands suspended or terminated their sponsorships of the Clippers after the release of a recording in which Sterling, 80, scolded a female friend for associating with black people in public. The prospects for their return hit a major snag this week when Sterling's wife, Shelly Sterling, announced that she would fight to keep control of the team. Los Angeles Times

May 2, 2014 Updates

The Sacramento Kings announced today a new partnership with the Sacramento Metro Arts Commission (SMAC), which will result in the largest public art investment in City history. As part of a broader strategy to promote arts and culture at the downtown entertainment and sports center (ESC), the Kings will make several commitments through SMAC’s Art in Public Places program: The Kings will invest approximately $5.5 million of the construction budget for the downtown entertainment and sports center (ESC) to the program; The Kings and SMAC have jointly appointed a nine-member Public Art Selection Panel to develop an ESC Art Plan and recommend to SMAC for the acquisition, exhibition, and maintenance of artwork, including artist selection and artwork design approval; The Kings will donate existing works of art located in Downtown Plaza to SMAC, including the low relief panels and tiles created by designer/architect Al Sanchez. NBA.com

April 29, 2014 Updates
April 28, 2014 Updates

Advertisers are backing away from the Los Angeles Clippers after racist comments attributed to the NBA team's owner. Mercedes-Benz USA said Monday its dealerships are ending their sponsorship of the Clippers in the wake of comments allegedly made by the team's owner, Donald Sterling. Used car dealership chain CarMax, airline Virgin America, and the Chumash Casino Resort are doing the same. Oregonian

Major companies such as State Farm Insurance, Kia Motors America, Virgin America, Red Bull, CarMax, Amtrak, Yokohama Tires and Corona, have in rapid succession, either suspended or ended their sponsorship deals with the Clippers. Businesses do not want to continue their relationships with the team owned by Sterling, at least until Silver takes decisive action. Many of these companies also have sponsorship deals with individual Clippers players. Most notably is State Farm, which will continue to run advertisements with star point guard Chris Paul. The insurance company will still utilize the brands of Paul and the NBA, and only disassociate itself from the Clippers franchise. This strategy, which also could pertain to Red Bull and Kia, if either company continues to use Clippers forward Blake Griffin for its commercials, may place the league in a delicate position. The Fields of Green

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