Forbes' NBA Valuations Hit Record High; Lakers Return To Top Spot After One Year Hiatus

The average value of an NBA franchise is "a record $393 million, up 6.5% over last year," according to Kurt Badenhausen as part of FORBES' annual valuations. Those numbers are due in part to "blockbuster TV deals and a new" CBA. No team has "benefited more from the explosion in TV than the Los Angeles Lakers, who have unseated the New York Knicks as the league’s most valuable franchise." The Lakers "struck gold last year with a new 20-year television deal with Time Warner Cable worth an average of $200 million annually" beginning with the '12-13 season. The agreement "drives the value of the Lakers up an NBA-high 40% to $900 million." Additionally, the league's "bottom-feeders get a boost from a new revenue-sharing plan where the amount transferred from high-revenue to low-revenue teams is expected to triple" from the current $60M. However, the spread between the league's "haves and have-nots is only growing." The 15 most valuable NBA teams "are worth $485 million on average, up 10%." The value of teams in the bottom half "averages $300 million, down 0.4% from last year." Overall, 15 teams "lost money" last year, led by the Bobcats and Grizzlies, who "both were $25 million in the red." Below is Forbes' complete list of NBA valuations (FORBES.com, 1/25).

RK	TEAM	VALUE	1-YR % +/-	DEBT/ VALUE	REVENUE	OPERATING INCOME
1	Lakers	$900M	40%	13%	$208M	$24.3M
2	Knicks	$780M	19%	0%	$244M	$74.9M
3	Bulls	$600M	17%	9%	$185M	$59.4M
4	Mavericks	$497M	13%	40%	$166M	-$3.9M
5	Celtics	$482M	7%	37%	$146M	$7.7M
6	Heat	$457M	8%	34%	$158M	$26.0M
7	Rockets	$453M	2%	22%	$150M	$17.9M
8	Warriors	$450M	24%	33%	$139M	$22.2M
9	Spurs	$418M	3%	12%	$139M	$14.4M
10	Suns	$395M	-4%	47%	$136M	$13.1M
11	Magic	$385M	0%	31%	$140M	-$16M
12	Raptors	$382M	-4%	34%	$134M	$7.4M
13	Trail Blazers	$370M	4%	28%	$132M	-$8.1M
14	Nets	$357M	14%	79%	$89M	-$23.6M
15	Thunder	$348M	6%	40%	$126M	$24.5M
16	Jazz	$335M	-2%	3%	$120M	-$16.4M
17	Pistons	$332M	-8%	56%	$141M	$9.7M
18	Cavaliers	$329M	-7%	61%	$149M	$32.9M
19	Wizards	$328M	2%	40%	$109M	-$3.4M
20	Clippers	$324M	6%	0%	$108M	$9.4M
21	Nuggets	$316M	0%	8%	$113M	-$1.2M
22	76ers	$314M	-5%	48%	$116M	-$10.3M
23	Kings	$300M	2%	33%	$104M	$6.4M
24	Hornets	$285M	2%	105%	$109M	-$2.7M
25	Pacers	$283M	5%	53%	$101M	-$10.5M
26	Bobcats	$277M	-1%	54%	$101M	-$25.5M
27	T'Wolves	$272M	3%	28%	$97M	-$6.8M
28	Hawks	$270M	-8%	90%	$109	-$14.7M
29	Grizzlies	$269M	1%	56%	$99M	-$24.8M
30	Bucks	$268M	4%	21%	$92M	-$7.6M

GOLDEN OPPORTUNITY: FORBES' Tom Van Riper notes Peter Guber and Joe Lacob in November '10 bought the Warriors for $450M, "a record purchase price for an NBA franchise that doesn't own an arena." Lacob said, "People realize this team has been an underperforming asset. If it improves on the court it will be worth a lot more.” Van Riper notes the numbers "back him up: Despite comic ineptitude -- the team has logged only two winning seasons and one playoff appearance in the past 17 years -- the Warriors’ $450 million valuation places them eighth on Forbes’ franchise rankings, up four spots from last year." Some think the team "could jump even higher." SportsCorp President Marc Ganis said, "This could be one of the most valuable teams in the NBA. It’s a great sponsor and TV market." Guber said of the club's "beefed-up customer service operation, the 191 Wi-Fi spots scattered through the arena and a plan for cashless" concession stands: "The experience starts in the parking lot. There's uncertainty in winning, but there's no uncertainty in the experience." In 14 months at the helm, Lacob has "quickly jacked the revenues, renegotiating a local cable deal with Comcast SportsNet." That agreement "paid the Warriors approximately $50 million up front -- enough to take the sting off the purchase price -- and roughly tripled the annual rights fee to over $25 million from $9 million." The next "bonanza on the horizon: the arena." Lacob "gives San Francisco the early edge, citing AT&T Park and the surrounding area" (FORBES, 2/13 issue).