What determines the Trail Blazers’ price tag? Sports attorney unpacks sale factors
Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, spoke to The Oregonian about the numerous factors that will play into the potential sale of the Portland Trail Blazers.
With respect to the price tag, the article reports that valuations of the Blazers ranged from $3.5 to $3.6 billion. “I think it establishes the proverbial ballpark, or a range,” Irwin said. “This is ultimately a treasured asset, hence the $3.6, $3.7 billion valuation,” said Irwin. “And it’s going to be simply supply and demand that’s going to dictate where it ultimately trades at.”
The article notes that it is common for new owners to pay more than the estimated valuation for professional franchises.
“If you look at it now and where they are today, I would tell you, notwithstanding all the money he’s put into it, it’s a pretty decent return,” Kishner said.
The article also reports that the Blazers play at the Moda Center, which "desperately needs a makeover." According to the article, Of the eight oldest arenas in the NBA, the Moda Center is the only one yet to undergo major renovations. Irwin stated that "reality and ownership of the arena will factor into negotiations."
“Arena deals, and they’re all unique, but it has a very profound impact on the valuation of any of these assets,” he said. “If the team owns it 365 days out of the year, the question is, what else can you put in your building to get further value? That’s a whole separate business that could often be quite lucrative.”
“Doing any kind of valuation analysis on this team and what’s ultimately going to have to be put into the building is going to have a significant impact on how much the asset is going to get or garner in a trade,” Irwin said.
The article also discusses how the sales process can differ if an estate is selling a team, rather than an individual. Irwin noted that "an estate selling a team can prove complicated when numerous heirs are involved. But ownership of the Blazers was never transferred to an Allen heir. The estate has specific instructions that the team will be liquidated, with proceeds going toward specific charitable causes." However, he said, "there is pressure on Allen’s sister, Jody Allen, the estate’s trustee and Blazers chair, to ensure that the estate receives fair value."
“If you’re a trustee for this sale, you’re going to want to make sure, and you want to be very comfortable, that you’re getting a fair market value,” Irwin said. “So, the fact that the money is going for philanthropic purposes is a nice thing. I don’t think that makes it harder.”
In discussing whether Jody Allen could put together an ownership group and attempt to buy the team herself, Irwin noted “[t]hat brings up a whole litany of other issues, like insider trading and being self-dealing, all surmountable. . . . All things that you could do. If she really wanted to be part of the process, you could devise a process where she could ultimately wind up being the purchaser. But it would have to be very, if you will, transparent, and there could be some further risks of litigation.”
Irwin also discussed the lack of market competition from other leagues, which he considered a plus since the team is not competing for the discretionary income of local sports fans.
“I think that helps since you’re always competing to put bodies in the seats,” he said. “And the less competition you have, I would argue, the better off, or the more likely you’ll be successful. So, if anything, that helps in this particular sale. I do think Portland is deserving of other professional sports franchises.”
While a new WNBA franchise is set to debut in 2026, Irwin indicated that this would not be a concern for a new Blazers owner. “They almost never compete against each other, and the tickets for the WNBA are typically significantly less than for the NBA, depending on how competitive the team is at a particular time,” he said. “I see that only as a positive because I think it will get more people interested in basketball in general.”
In addressing the potential of a new owner seeking to relocate the team, Irwin stated that it was highly unlikely. “That’s not my understanding of this,” Irwin said. “I don’t think that’s what’s happening here. At least the way I size it up.”
“It’s not like LA or Houston or New York, but it is a very important market,” Kishner said. “You can’t have a league unless you have teams like the Blazers, right? So, I think that the Blazers are loved by the local populace. I think they have a very strong following. I think the city itself deserves a franchise. It’s just all part of the picture of what you’re entering into.”
Read the full article in The Oregonian here. Access may require a subscription.