The NBA is Gold. For the first time in more than two decades, when Forbes began valuing National Basketball Association teams, a team other than the New York Knicks or Los Angeles Lakers he is the most valuable in the league. This year, the Golden State Warriors take the top spot, worth $7 billion, up 25% from last year.
During the 2021-22 season, the Warriors have generated the most revenue ($765 million after paying his revenue sharing check) and the most operating income ($206 million) in NBA history as they have won their fourth title in eight years and played their first full season with fans at the new Chase Center.
The Warriors have made financial history in the league by raking in $150 million in sponsorships and stadium advertising, twice as much as any other team, and getting more than $250 million for seats. premiumby far the most in the league.
The Knicks, the league’s most valuable team in the last seven times Forbes compiled the list, have finished second. ($6.1 billion), followed by the Lakers ($5.9 billion), the Chicago Bulls ($4.1 billion) and the Boston Celtics ($4 billion).
The average NBA team is now worth $2.86 billion, up 15% from a year ago., an impressive feat considering the stock market is down more than 15% in the same span. After arena debt service, league-wide revenue and operating income for the 2021–22 season were $10 billion and $2.7 billion, respectively, both records. The NBA has returned to its pre-pandemic growth trajectory, led by record aggregate sponsorship and ad revenue at the team and league level, which totaled $1.35 billion last season, also an all-time high.
Another reason values rose: Valuation multiples (enterprise value/revenue) rose on the back of the league’s impeccable balance sheets, profitability and growth. The average multiple for the 30 teams is 8.6, up from 7 before covid. Only one team, the Brooklyn Nets, lost money last year.and the average debt/enterprise value of the 30 teams is only 10%.
In other words, buying equipment today means an owner can start pocketing money quickly. For example, since buying the Houston Rockets in 2017, Tilman Fertitta has pulled in at least $60 million a year, except for the 2020-21 season (when the pandemic shortened the regular season to 72 games and greatly reduced game attendance). , according to sources.
A couple of years after Steve Ballmer bought the Los Angeles Clippers for $2 billion in 2014, the former Microsoft CEO joked, “I’m a new owner and I’ve heard this is the golden age of basketball economics. You should tell that to our finance people. We’re sitting here looking at red ink, and it’s real red ink. I know, it shows up on my tax returns. So it’s real red ink.” Ballmer isn’t complaining anymore: The Clippers finished comfortably in the black last season, and Ballmer is building a new arena that has a $500 million naming rights deal. The Clippers are now worth $3.9 billion, nearly doubling in value during the eight years of his ownership..
Revenue sharing formula and league salary cap help ensure the financial health of the league. The formula saw low-income teams split nearly $500 million that was pooled from funds that came from a combination of high-income teams and luxury tax payments last season. Meanwhile, the floor limits player salaries to 44.74% of the league’s basketball-related revenue.
Future growth will come from the league’s next domestic media deal, which would start with the 2025-26 season and should be worth at least double his current deal. of 2.66 billion a year with ESPN and Turner Sports. In addition, there is the fledgling NBA Equity, a new initiative similar to 32 Equity, the venture capital arm of the NFL, which is worth more than 100 million per team. NBA Equity was created for the league to invest in existing or potential partners, from early-stage to growth-stage startups, who will help drive innovation and grow the NBA’s business.
Among his investments: Sportradar, a publicly traded data company for games, media and sports leagues; Nextiles, an NBA Launchpad program participant that is a smart fabrics company that captures data with technology embedded in clothing; Sorare, one of the leading NFT-based fantasy game companies; and New Era, a clothing and lifestyle brand. Sources familiar with NBA Equity say his portfolio has about 20 investments approaching an aggregate value of $1 billion. Given the tremendous value and reach of the NBA’s intellectual property and brand, NBA Equity will eventually be a much more valuable asset..
These are the most valuable teams:
1. Golden State Warriors – $7 billion
2. New York Nicks – $6.1 billion
3. Los Angeles Lakers – $5.9 billion
4. Chicago Bulls – $4.1 billion
5. Boston Celtics – $4 billion
6. Los Angeles Clippers – $6 billion
7. Brooklyn Nets – $3.5 billion
8. Fails Mavericks – $3.3 billion
9. Houston Rockets – $3.2 billion
10. Philadelphia 76ers – $3.15 billion
11. Toronto Raptors – $3.1 billion
12. Miami Heat – $3 billion
13. Phoenix Suns – $2.7 billion
14. Washington Wizards – $2.5 billion
15. Milwaukee Bucks – $2.3 billion
16. Portland Trail Blazers – $2.1 billion
17. Cleveland Cavaliers – $2.05 billion
18. Sacramento Kings – $2.03 billion
19. Utah Jazz – $2.025 billion
20. San Antonio Spurs – $2 billion
21. Atlanta Hawks – $1.975 billion
22. Denver Nuggets – $1.93 billion
23. Detroit Pistons – $1.9 billion
24 – Oklahoma City Thunder – $1.875 billion
25. Orlando Magic – $1.85 billion
26. Indiana Pacers – $1.8 billion
27. Charlotte Hornets – $1.7 billion
28. Minnesota Timberwolves – $1.67 billion
29. Memphis Grizzlies – $1.65 billion
30. New Orleans Pelicans – $1.6 billion
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Forbes List | Neither the Lakers nor the Knicks: this is the most valuable team in the NBA – Forbes Spain