The average NBA team is "now worth $1.1 billion," an increase of 74% from the '13-14 season, which marks the "biggest one-year gain since Forbes began valuing teams in the four major U.S. sports leagues" in '98, according to Kurt Badenhausen of FORBES. There are now 11 teams "worth at least $1 billion." The Lakers "lead the way" at $2.6B, up 93% over last year. The Lakers finished with their second-worst record in franchise history at 27-55 last season and are "faring even worse this year, but the team has the richest local TV deal in the sport" with a 20-year, $4B contract with Time Warner that began in '12. The Lakers last season had the NBA’s "highest revenue at $293 million, net of revenue sharing." The value of the Knicks "shot up" 79% to $2.5B, ranking the team second overall. Rounding out the top five are the Bulls at $2B, Celtics at $1.7B and the Clippers at $1.6B. But "one red flag in the NBA’s road to riches is a potential work stoppage that many insiders think is a fait accompli," as NBPA Exec Dir Michele Roberts "has dialed up the rhetoric" (FORBES, 2/9 issue).
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FORBES NBA TEAM VALUATIONS
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RANK
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TEAM
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TEAM
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VALUE
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Lakers
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Suns
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Knicks
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Wizards
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Bulls
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Magic
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Celtics
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Nuggets
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Clippers
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Jazz
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Nets
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Pacers
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Warriors
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Hawks
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Rockets
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Pistons
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Heat
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Kings
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Mavericks
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Grizzlies
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Spurs
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Bobcats
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Trail Blazers
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76ers
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Thunder
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Pelicans
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Raptors
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T'Wolves
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Cavaliers
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Bucks
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GREAT LAKES: In California, Bill Oram wrote the Lakers’ "titanium brand appears impervious to backlash from their on-court performance." USC Sports Business Institute Exec Dir David Carter: “It’s the combination of the Lakers being a trophy asset and the team being a historically strong and competitive brand in a big market" (
ORANGE COUNTY REGISTER, 1/22). The Lakers (12-31) currently have the
NBA's fourth-worst record, but coach Byron Scott said "the brand is still very popular." He added late Owner Jerry Buss "did an unbelievable job of getting this brand to where it is today and that's why it's still as popular as it is." Scott: "And I think the market also helps. You're in Los Angeles, so it's one of the best markets in the world." In L.A., Mike Bresnahan noted the Lakers' operating income last season was an "
NBA-record" $104M despite G Kobe Bryant playing only six games. The franchise "could have profited more but had to pony up" $50M to the league's revenue-sharing pool (
L.A. TIMES, 1/22).
AROUND THE LEAGUE: In Atlanta, Christopher Seward noted Forbes values the Hawks as now worth $825M, "double its value" from last year's report. With the club being up for sale, this year's valuation "suggests what may be a starting point for negotiations." The Hawks’ value has been "on the rise in recent years." Forbes "ranked the team" No. 28 both in '12 and '13, with values of $270M and $316M, respectively; and No. 27 in '14 with a value of $425M (AJC.com, 1/21). The DALLAS MORNING NEWS noted the Mavericks have $30M in "operating income in the past year," on top of the $38M profit "made the previous year." According to Forbes' year-by-year figures, the Mavericks "lost more than" $180M during Owner Mark Cuban's first 12 year of ownership (DALLASNEWS.com, 1/21).
