'Business'에 해당되는 글 25건

  1. 2011.08.11 California Passes Texas by One Business Measure by CEOinIRVINE
  2. 2010.02.18 My New Fashion http://luxuryfashion.zlio.net by CEOinIRVINE
  3. 2009.04.16 Skype Unloved by CEOinIRVINE
  4. 2009.03.26 Copyright as Politics and Business by CEOinIRVINE
  5. 2009.03.22 Now Geithner Needs To Get Down To Business by CEOinIRVINE
  6. 2008.12.27 U.S. Business And The Economy by CEOinIRVINE
  7. 2008.12.24 Wipro to buy Citigroup's India-based IT business by CEOinIRVINE
  8. 2008.12.10 A Perfect Storm? No, a Failure of Leadership by CEOinIRVINE
  9. 2008.12.10 Businesses Move To Voice-Over-IP by CEOinIRVINE
  10. 2008.12.08 The Business Of Basketball by CEOinIRVINE

California Passes Texas by One Business Measure

California just beat Texas by one business measure.

That measure? Most valuable company in America.

In trading Tuesday, the value of Apple -- the California technology company -- surpassed that of the previous #1, Exxon Mobil, the Texas oil giant.

The markets now value Apple at $338 billion, and Exxon Mobil at $337 billion, according to the Associated Press.

This could change as soon as, well, Wednesday. So Californians should celebrate while they can.

Posted by CEOinIRVINE
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luxuryfashion.zlio.net

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Skype Unloved

IT 2009. 4. 16. 01:01

Having failed in its attempt to sell Skype, eBay is now poised to carve off the business via an initial public offering. That could be a gamble.

Market conditions allowing, the online-auction titan will float Skype next year, eBay ( EBAY - news - people ) chief executive John Donohoe said late on Tuesday. This suggests that eBay's apparent sale talks with Skype's Scandinavian founders, Niklas Zennstrom and Janus Friis, and three private equity groups, have broken down. The bidders had reportedly been offering eBay around $2.0 billion for the business, $600.0 million less than what the founders had sold it to eBay for in 2005. (See "Hype Over Skype.")

Donohoe's announcement could be a veiled attempt to find another bidder for the Skype; eBay has, of course, denied this. Trouble is the Internet telephony service is a tough sale. Skype might be a a popular communication tool, accounting for around 8.0% of the world's international calling according to Telegeography, but translating "eyeballs" into "revenue" has proved challenging.

Skype's customers only spend an average 11.3 cents a month on its service, compared with the typical spend of around $50 a month for a cellphone. Analysts have also doubted eBay's goal to double Skype's $551.0 million in revenue last year, to $1.0 billion. Taking Skype to the next level would require considerable capital investment, says Atlantic Equities analyst James Caldwell, and that could deter a buyer.

As if the cloudy revenue model weren't enough, Joltid, a firm which owns the intellectual property rights to the peer-to-peer technology that Skype uses, has been attempting to end its licensing deal with the firm. (Joltid is owned by none other than Zennstrom and Friis.) EBay has fought back in a London court, but the prospect of appeals and counter-appeals on an issue so core to Skype's success could be enough to put off investors already hesitant to open their purse strings.

With eBay struggling to find buyers in the technology and private equity spheres, the obvious question is whether ordinary investors will be convinced to buy shares. There are are plenty of tech IPO horror stories to put them off: back in 2000, 3Com's floatation of the hand-held computer maker Palm was so oversubscribed it sent the price soaring--and the stock has lost 98.0% of its value since.

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Copyright as Politics and Business

Are you picking up on a theme here? From the first copyright act of 1476 to the ruling in Donaldson v. Beckett three centuries later, copyright was primarily about business, ownership of intellectual content, and political maneuvering. It never really concerned itself much with authors' rights to control the dissemination of their intellectual property or to benefit financially from their published work. Furthermore, since the passage of the Statute of Anne over two centuries ago, it's been more and more of the same.

You don't need to know all the gruesome details of the history of copyright in the Western World. But if you're going to make sense of today's controversies, it helps to see the progression and understand the distinction between copyright and the right to copy.

Is the Recording Industry Association of America (RIAA) that much different from yesteryear's Royal Stationers Company? Are the software counterfeiters of China much different from the Scottish book bootleggers of 1700? Are authors who received a flat fee from their printers in Shakespeare's time much different from today's musicians who get royalties on their music only after promotion costs, marketing costs, printing costs, and innumerable administrative fees are deducted from revenues? Table 2-1, at the end of the chapter, offers up a smorgasbord of political shenanigans behind the history of copyright law.

Table 2-1. The Political History of Copyright
Date Event Outcome Political or Business Motivation
557 Columba copies Finnian's Psalter to use in his own monastery. King Diarmait orders him to return the copy to Finnian. There was previous bad blood between Columba and Diarmait; after the ruling, Columba supports an uprising in which Diarmait is killed.
1456 Gutenberg invents the printing press. Control of content moves from religious houses and individual authors or their patrons to owners of printing presses (which were scarce and expensive). The printing press creates a radical change in the price of making copies and in their quality, and shifts financial rewards from publishing to printers from authors (such as there were).
1476 First English copyright law Printers have to register what books or pamphlets they produce. The Crown wants to prevent the distribution of information unfavorable to the government and to obtain revenues from selling licenses.
1557 Company of Stationers of London incorporated under Queen Mary A long-time printer's guild gets royal sanction for an official monopoly on printing and begins controlling prices and distribution via a system of Stationers' Copyrights that could be bought, sold, or traded. Copyrights were perpetual (lasting for eternity). A Catholic monarchy gains additional control of content through prior censorship (the register) from a guild/company headed by a Roman Catholic.
1624 Statute of Monopolies Parliament abolishes guilds and assumes the responsibility of regulation in their market areas—the Stationers Company excepted. The Statute helps erode the power of the Crown (and increases that of Parliament) as the Crown makes money selling monopoly rights; now Parliament assumes the mantle of censor.
1695 Lapse of the licensing acts Parliament lets the last of the licensing acts which governed the rights of publication lapse, essentially abolishing prepublication censorship. However, under no copyright constraint, booksellers and printers in Scotland retypeset popular books from England and resell them at a lower price. Under pressure from vocal intellectuals such as John Milton and John Locke, Parliament lets the licensing acts lapse, but in practice nothing changes. The Stationers Company becomes a cartel, copyrights remain with publishers, and authors sell their material to the Stationers Company members for a flat fee. The increasing piracy from Scotland seems to be an unintended consequence.
1710 Statute of Queen Anne A new copyright law is created to prevent future bookseller monopolies, granting some rights to authors, and encouraging production of more work. The Queen brokers the treaty with Scotland, giving them some of the book trade in return for coming under the copyright law, and to ensure support against potential invasions from France or an uprising of Jacobites; the Stationers Company trades some market control for the ability to continue as a monopoly.
1769 Millar v. Taylor In a challenge to the Statute of Queen Anne, Taylor reprints a book published by Millar after the copyright runs out. Millar sues, claiming a perpetual copyright under common law. The court finds for Millar and for the first time asserts copyright under common law, clearly a promonopoly, probusiness, pro-Stationers' Company ruling.
1774 Donaldson v. Beckett A Scottish printer republishes the same book involved in Millar v. Taylor, challenging the ruling of Millar v. Taylor. This case goes to the full House of Lords, which is less inclined to support the Stationers Company monopoly and more inclined to assert the power of government. Donaldson wins, and copyright is determined to be a state-granted right or license, not a right given to authors by God.
1787 U.S. Constitution Article 1, Section 8 gives Congress the power to promote "science and the useful arts" through laws protecting intellectual property, but for limited time only. This is a compromise between promoting business (the exclusive rights), a position favored by James Madison, and guarding against the power of monopolies, a position favored by Thomas Jefferson.
1790 U.S. Copyright Act Act puts into law the intent of the Constitution and extends copyright to maps and charts. The term length is 14 years, renewable for another 14, for a total of 28. As a descendent of the Statute of Anne, U.S. copyright still favors publishers over authors.
1802 Extension to the Copyright Act Adds designs, engravings, etchings, and prints to copyright protection. Allows U.S. artists and engravers to make prints of classic works of art and resell them in the U.S. under copyright protection; encourages the distribution of cheaper European art in the States.
1804 Napoleonic Code Codifies post-French Revolution rule for business, including copyright. Introduces the concept of "moral rights" for authors. Splits author's rights into (1) economic rights and (2) moral rights. The former could be sold, licensed, etc. while the latter gives the author rights beyond the sale of economic rights in how the work can be displayed, edited, resold, etc.
1831 Extension to the Copyright Act Coverage for sheet music is added and the copyright period extended another 14 years (total of 42). Longer period of copyright favors owners (mostly publishers).
1834 Wheaton v. Peters Peters wants to publish a condensed version of his predecessor's reports, recordings, and notes of court proceedings, Wheaton sues. The court finds for Peters because Wheaton hadn't filed the right paperwork. In this decision the court establishes that the U.S. recognizes no "common law" rights for authors and that copyright is a monopoly granted by the state.
1841 Folsom v. Marsh Marsh republishes as excerpts 350 pages of a collection of George Washington's letters first published by Folsom; the courts find for Folsom. Establishes that there is a right to "fair use" of another's work—but that taking 350 pages verbatim is not fair use.
1853 Stowe v. Thomas A German publisher translates Harriet Beecher Stowe's Uncle Tom's Cabin into German and sells it in the U.S.; Stowe sues, but the courts find for Thomas. Although this keeps intact the idea that you can copyright expressions of ideas, but not the ideas themselves, it galvanizes American authors into pressuring Congress to add foreign translation to the copyright laws in 1870.
1856 Extension to the Copyright Act Right of performance of dramatic works.  
1865 Extension to the Copyright Act Photographs.  
1870 Copyright Act of 1870 Paintings, statues, fine arts, and translations are included. Codifies that U.S. copyright is a right granted by the state, not a right by natural law. Puts into law the concept established in Wheaton that no common law right to copyright exists.
1886 Berne Convention Extends copyright to authors outside the country of origin. Eventually offers protection of life plus 75 years, but also promotes concept of author's "moral rights." U.S. doesn't sign, preferring the shorter copyright span of the Copyright Act because of the freedom from author control of derivative or follow-on works.
1891 International Copyright Act (Chace Act) Copyright granted to non-U.S. citizens if reciprocated. Eastern publishers and printers finally support authors with Congress to protect business from lower-price Midwestern publishers.
1909 Copyright Act of 1909 First time all copyright laws are put into one bill. First sale doctrine codified. Also allows corporate copyright and work for hire. Extends copyright to 28 years, renewable for another 28, for a total of 56. Helps newspapers and later motion picture companies to get copyright protection, giving them the rights of persons. Also establishes rules for when authors are "work for hire" employees. This is the first time companies get the same rights as people.
1912 Extension of Copyright Act Gives copyright coverage to motion pictures after years of lawsuits under the 1870 Act. Blurs the separation of copyright protection for "expression" not "ideas." Even a "treatment" could be copyrighted. Screenwriters become employees and contract workers.
1955 Universal Copyright Convention Substitutes for signing the Berne Convention and covers only 28 years of protection (for foreign authors selling books in the U.S.). Enables the U.S. to offer minimal protection of foreign works without signing onto all the conditions of the Berne Convention.
1976 Copyright Act of 1976 Extends copyright to life of author plus 50 years; for anonymous works for hire, 75 years from publication, 100 years from year of creation. Sets the stage for signing the Berne Convention later and makes it easier for the U.S. to have reciprocal copyright agreements—important since the U.S. is not a net exporter of content.
1984 Betamax case Universal Studios and Disney sue Sony, maker of the Betamax video tape recorder. The case begins in 1979 with a ruling that home taping was "fair use," then is reversed on appeal in 1981 and reversed again in 1984 by a 5–4 majority of the Supreme Court. Public opinion was largely against the concept (jokes about "video police"), and experts thought enforcement would be difficult. Many countries, however, impose a tax on VCRs and blank tapes and pay the proceeds to the movie industry.
1988 U.S. signs Berne Convention. Extends U.S. copyright to life plus 50 years. U.S. signs in order to extend international copyright to life plus 70 years without major debate. Mickey Mouse is 60 years old at the time.
1998 Sonny Bono Copyright Term Extension Act Extends the copyright coverage to life plus 70 years, mirroring many countries that are signatories to the Berne Convention. Gives U.S. publishers and authors reciprocal rights for those countries that also have 70-year copyrights; the Disney Corporation, whose copyright on Mickey Mouse in the cartoon Steamboat Willy is set to expire in 2003, spearheads lobbying Congress.
1998 Digital Millennium Copyright Act The DMCA amends the Copyright Act by outlawing the use of techniques to prevent unauthorized copying and penalties for circumventing those techniques. The law mandates that hardware manufacturers build machines capable of recognizing copyright protection systems and sets the content industry against the MP3, VCR, CDR, and DVR industries.


The progression is not pretty, nor is it pure. But it is a progression. After a millennium and a half, it is a little easier for those who create intellectual work to reap some financial rewards from that work. A little.


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Posted by CEOinIRVINE
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"Very aggressive policy."

Over dinner on Tuesday night, that's what New York University economics professor Nouriel Roubini told me was required for a "U" shaped economic recovery "rather than a Japanese-like 'L' into oblivion. He puts the odds of a "U" at two-thirds and an "L" at only one-third, if these further policy actions take place. Such a voluble bear coming down in favor of a "U" should be welcome news to the crushed investment community.


Federal Reserve Chairman Ben Bernanke must have been eavesdropping on our conversation. The very next day, Bernanke did promulgate some "very aggressive action" indeed--another trillion dollars or so to be poured into the mortgage-backed and Treasury securities in a bold attempt to free the credit markets. Wall Street loved Bernanke's move, extending the stock market gains here and abroad and driving interest rates on Treasury securities and mortgage-backed bonds lower. Hope alights again for housing as mortgage interest rates have been driven down to 4.79%, which should help to thin the gargantuan inventory of unsold homes.

Biogen and DirecTv are two "Focus List" buys from Dow Theory Forecasts. Click here for more, along with regular portfolio adjustments from Dow Theory Forecasts.

Now it is time for Aggressive Action II from Treasury Secretary Timothy Geithner. It must be a decisive and clear creation of a "good bank/bad bank" arrangement to get rid of the albatross around the necks of Citigroup (nyse: C - news - people ), Wells Fargo (nyse: WFC - news - people ), JPMorgan Chase (nyse: JPM - news - people ) and Bank of America (nyse: BAC - news - people ), for starters.

Roubini believes it is crucial to break up the big banks into three or four parts each, so that they can be better managed. "If you're too big to fail," he says, "then you're too big, period." If Geithner comes through with a clear, aggressive, bold and easy-to-understand program for the banks, his star will rise, and so will the bank share-led rally in this bear market. All eyes are on Uncle Sam.

There is a wonderful precedent of how a "good bank/bad bank" solution can rebuild debilitated capital structures in financial institutions. In 1988, John Vogelstein, a brilliant partner at E.M. Warburg Pincus & Co., together with Wachtell Lipton law partner Martin Lipton, was able to restore stability to Mellon Bank and make a profit of $1 billion by separating the terrible assets from the promising ones. It was the first non-assisted recapitalization of a major commercial bank, and out of it grew one of the nation's top 25 bank holding companies. Mellon's bad assets were put into a bad bank at a discount of 25% to 30%, and over an extended period of time, the stream of income net of interest from these assets brought exactly the value that Vogelstein had predicted. Warburg Pincus made $1 billion on its 20% interest from a bank that was losing $300 million on a balance sheet of only $750 million.

Mr. Geithner, please note that Mr. Vogelstein is still affiliated with Warburg Pincus and can be reached at (212) 878-0601.




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Forbes editors and writers take a look ahead at U.S. business and the economy in 2009. Click on the authors to read what they think will be the big trend, hear their unconventional wisdom, be cautioned against misplaced assumptions, check the watch list and get a bold prediction

VICTORIA BARRETAccelerated change is everywhere. Industry shifts that would have taken years had the economy kept humming along will now occur in months
RICH KARLGAARDThe unevenness of U.S. prosperity will smooth out for individuals as the rich and upper-middle classes are socked by higher taxes on top of their recent asset losses, but will get more jagged by region.

ROBERT LENZNERDe-leveraging requires an extended period when credit market debt is 350% of gross domestic product. This will require the Fed to expand its balance sheets (and other central banks to follow suit).




MICHAEL NOERExpect the beginnings of a green tech bubble by mid-2010.

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Wipro Technologies Ltd. plans to buy Citigroup Inc.'s India-based information technology business for $127 million in cash, the companies said Tuesday.

The deal comes amid a broad restructuring at Citigroup (nyse: C - news - people ) as the New York financial giant struggles through the worst banking crisis in decades.


The company avoided collapse in November by securing another $20 billion lifeline from the government and has also announced plans to sell banking units in Japan and Germany.

Citi Technology Services Ltd., based in Mumbai, provides IT services for Citigroup's operations in more than 32 countries, Citigroup said.

As part of the deal, Citi will award Wipro (nyse: WIT - news - people ) a contract worth at least $500 million in revenue over the next six years to provide technology infrastructure and application development services. The companies expect the deal to close by March 2009.


Citigroup said the business has about 1,650 employees and is projected to generate $80 million in revenue for 2008.

Wipro shares added 32 cents, or 4 percent, to $8.40 in midday trading, while Citigroup shares fell 18 cents, or 2.6 percent, to $6.57.

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A bit of unsolicited advice to business executives trying to explain why their company or their industry is suddenly in the soup:


Please spare us the "perfect storm" metaphor.

It's hackneyed, for starters. It doesn't square with the facts. And for people who fancy themselves leaders, it's downright unbecoming.

The reason the perfect storm is such an appealing metaphor for these shipwrecked captains of industry is that it appears to let them off the hook. After all, who can blame you if the ship goes down in one of those freak, once-in-a-century storms that result when three weather systems collide? It's an act of nature that nobody could have predicted -- or so the story goes.

The latest victim to offer the "perfect storm" defense is Sam Zell, the real estate tycoon who was smart enough to sell out at the top of the commercial real estate cycle, only to dive into the newspaper and broadcast business of the Tribune Co. just as circulation and advertising revenue were about to collapse.

Three weeks ago, it was the auto executives on their first visit to Washington who tried to convince us that the only reason they were running out of cash was a sharp drop in vehicle sales brought on by sky-high gas prices, a credit crunch and rising unemployment.

And in several recent interviews, Robert Rubin, the Treasury secretary turned boardroom consigliere, conjured up the perfect storm to explain how Citigroup and the rest of Wall Street nearly brought the global financial system to a grinding halt, vaporizing trillions of dollars in wealth and putting large swaths of the economy on government life support.

The first thing to understand about the perfect-storm defense is that these guys actually buy into this nonsense. The rest of us want desperately to believe that what brought us this economic crisis was some combination of greed, fraud and negligence -- and, no doubt, there was quite a bit of that. What the populist critique ignores, however, is that at the heart of any economic or financial mania is an epidemic of self-delusion that infects not only large numbers of unsophisticated investors but also many of the smartest, most experienced and sophisticated executives and bankers.

It's not that they don't see the excesses and dangers in front of them -- how could they not? But somehow they convince themselves that the world has changed, that the old rules no longer apply or that, because of competitive pressure, they had no choice but to run with the herd.

In recent months, I've had a chance to talk with half a dozen top business leaders whose companies have fallen into the soup and read published interviews with many more. And almost to a person, they say that they've been replaying the tape over and over in their minds and, even now, they still can't figure out what they might have done differently, given what they knew at the time and the various pressures they were under. Or put another way, they continue to think of themselves as victims of a perfect storm.

The second thing to understand is that, fundamentally, they're wrong.

It is useful to remember that in Sebastian Junger's gripping account of a shipwreck that popularized the notion of the perfect storm, Billy Tyne, the skipper of the Andrea Gail, received urgent and repeated warnings that he was heading into what could be a monster storm off the Grand Banks -- warnings that Tyne and his crew chose to ignore. After all, the weather immediately around them had been relatively calm, and the swordfish had been tantalizingly plentiful. And there were always worrywarts warning not to do this and not to do that. If Tyne had listened to them, the Andrea Gail would never have left port, let alone become one of the most successful sword boats in Gloucester, Mass.



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Skype and Vonage have made most of us aware of Voice over Internet Protocol (VoIP) phone services. Now VoIP solutions aimed at businesses have evolved into "unified communications" services that treat all communications--phone calls, faxes, voice mail, e-mail, Web conferences and more--as discrete units that can all be delivered via any means and to any handset, including cellphones. Two main sets of competitors are fighting it out-- one set is focused on VoIP for medium to large enterprises, while another is targeting the small-to-medium business (SMB) market.

In the latter group, Microsoft (nasdaq: MSFT - news - people ) introduced its Unified Communications line of Office Communicator servers and software in October 2007, and among other competitors is fighting with Cisco (nasdaq: CSCO - news - people ) over whether VoIP will be based on a set of software applications or based on a specific network. Meanwhile, good-enough services for SMBs have become quite good, with RingCentral's Digital Line service leading this pack. We wonder--is tiny start-up RingCentral better positioned for growth in the enterprise than Microsoft, which historically has owned the enterprise?

Winner: RingCentral Digital Line Microsoft's Unified Communications offers the ability to integrate a lot of features into existing Office software, including Web conferencing. Microsoft's positioning seems a little murky--they offer VoIP servers and software that will be interoperable with a company's existing PBX system to customers who don't want to replace robust hardware-based PBX services but want to extend those systems' capabilities. Microsoft also offers VoIP-only solutions that require the installation of Communicator servers.

Part of the murk around Microsoft's positioning is caused by the number of features offered--in addition to the basic call-handling and routing functions, Communicator also offers instant messaging with visual enhancements, e-mail, and audio- or videoconferencing. This desire to be all things to all enterprises can be partially attributed to the fact that Microsoft is fiercely competing to own this space. It's most fierce competition is with Cisco, described in a 2007 article: "[Cisco and Microsoft] agree on a future vision of networked software that will help users access information with the device of their choosing and share it in ever more useful ways. Cisco thinks the key is to build most of these smarts into the network. Microsoft executives believe the priority is still the programs people use to actually get things done."

In contrast, what makes RingCentral so potentially disruptive is that it offers an inexpensive ($99 per month per user), Web-only solution with no hardware to be installed at all, except for handsets which the customer supplies. Reportedly, with the right handset and a good enough Internet connection, RingCentral offers excellent quality. RingCentral enables small and midsize businesses to have what might otherwise be unaffordable smart-PBX features, including call control, extensions, Outlook integration for dialing and faxing, hold music, call logs, and rules-based call routing and answering.

RingCentral has actually seen its business grow in the recession--a Nov. 3 article reported record sales in October for the company. A company survey indicated many of the sales were from SMBs cutting costs due to the economic downturn--either getting rid of physical office space and thus needing a unified phone system not dependent on physical space, or SMBs discontinuing landline service and using RingCentral to send some calls to cellphones.

If RingCentral is able to get enough of a toehold into the SMB market for VoIP, it's possible the company could end up growing into the midsize enterprise market as businesses that use it grow and decide not to change. At that point, it would potentially be a threat to Microsoft, which runs a risk of overshooting the market, by producing features that add complexity and cost without really mattering to many companies.

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.
Last season was a rousing success for the National Basketball Association. The league's two marquee teams, the Boston Celtics and Los Angeles Lakers, met in the finals, and television ratings soared 51% over the prior year. The league's two biggest stars, Kobe Bryant and LeBron James, were on winning teams and getting a lot of prime-time exposure, wowing fans and sponsors.

League-wide revenues hit a record $3.8 billion during the 2007-08 season, 6% more than the prior campaign, and the average team posted a profit (in the sense of earnings before interest, taxes, depreciation and amortization) of $10.6 million, the highest amount since Forbes began tracking NBA finances 10 years ago.

The typical NBA franchise is now worth a record $379 million, 2% more than last year. The new eight-year agreements with ABC, ESPN and TNT that began with the 2008-09 season are worth $7.4 billion, 21% more than the prior deals on an annual basis.

By The Numbers: The NBA's Most Valuable Teams

Three teams experienced double-digit gains in value this year, led by the Portland Trail Blazers, whose value increased 21% to $307 million. Owner Paul Allen took control of the Rose Garden last year after he relinquished his stake in the arena during bankruptcy proceedings during 2004. The move gave Allen access to the arena's revenue streams, including luxury suites, concessions and ad signage.

The Celtics' NBA-record, 42-win regular season improvement and NBA title boasted the value of the franchise 14% to $447 million, ninth highest in the league. Meanwhile, Oklahoma City Thunder owner Clay Bennett resurrected the team formerly known as the Seattle SuperSonics, trading in a half-empty arena with a crummy lease in Seattle for a sold-out building in Oklahoma City where he keeps all of the revenues. The value of the Thunder is $300 million, 12% more than last year.

But troubles in the overall economy will make this year much more difficult for the NBA. Season ticket renewals and new sales are down this season. The NBA recently laid off 9% of its staff on concerns over the economy. Consider, too, some of the arena naming rights partners for teams around the league: American Airlines (nyse: AMR - news - people ), Conseco (nyse: CNOPRB - news - people ), Ford Motor (nyse: F - news - people ), United Airlines (nasdaq: UAUA - news - people ) and Wachovia (nyse: WB - news - people ).

Each of these companies saw its stock dive more than 80% at some point over the past 12 months, and some sponsors might look to back out of their deals. Many companies are scrutinizing every expense these days, and some teams are going to have problems when it comes to getting sponsors to sign on for next season.

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