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January 31, 2007
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Franchises

Knicks Again Top Forbes’ List Of NBA Franchise Valuations

The Knicks rank No. 1 for the second year in a row in FORBES’ annual review of NBA franchise valuations, with a value of $592M, up 9% from a year ago. The Nets saw the biggest gain in franchise value, up 20%, while the Bobcats were the only franchise to see a decrease in value, falling 8% from a year ago. The chart below details FORBES’ valuations, as well as revenues and operating income for the ’05-06 season. Also included is the one-year change in value. The valuations are based on current arena deals (unless a new arena is pending) without deduction for debt (except arena debt). Here, operating income is EBITDA for the ’05-06 season (FORBES, 2/12 issue).

FORBES' NBA TEAM VALUATIONS
RK
PREV. RK
TEAM
VALUE ($M)
1-YR %+/-
REV. ($M)
OPER. INC. ($M)
1
1
Knicks
$592
9%
$185
-$39.0
2
2
Lakers
$568
7%
$167
$33.3
3
5
Mavericks
$463
15%
$140
-$24.4
4
4
Bulls
$461
13%
$149
$48.5
5
3
Rockets
$439
4%
$142
$21.4
6
6
Pistons
$429
7%
$138
$21.8
7
7
Suns
$410
4%
$132
$34.5
8
8
Heat
$409
13%
$132
$20.5
9
12
Spurs
$390
11%
$122
$11.7
10
9
Cavaliers
$380
7%
$115
$23.9
11
13
Kings
$379
10%
$126
$16.4
12
11
76ers
$375
7%
$110
-$6.2
13
10
Celtics
$367
4%
$111
$15.7
14
14
Pacers
$340
5%
$110
-$12.5
15
15
Wizards
$334
5%
$108
$14.8
16
22
Nets
$325
20%
$93
-$8.0
17
20
Raptors
$315
13%
$105
$8.4
18
18
Grizzlies
$313
7%
$101
-$18.5
19
19
Nuggets
$309
9%
$100
$9.4
20
16
T'Wolves
$308
2%
$103
$4.6
21
21
Jazz
$297
8%
$96
$1.4
22
24
Clippers
$285
15%
$95
$15.7
23
25
Magic
$283
15%
$89
-$20.4
24
17
Bobcats
$277
-8%
$89
$11.9
25
23
Hawks
$275
5%
$92
$12.9
26
27
SuperSonics
$268
15%
$81
$3.6
27
26
Warriors
$267
10%
$89
$6.3
28
28
Bucks
$260
13%
$87
$1.5
29
30
Hornets
$248
10%
$83
$12.9
30
29
Trail Blazers
$230
1%
$77
-$15.2
LEAGUE AVERAGE
$353M
8.5%
$112M
$6.9M

SPURS: FORBES’ Kurt Badenhausen writes the Spurs “have become the model NBA franchise.” The team, which plays in the NBA’s third-smallest market, has won three titles in the past eight years and has “the highest winning percentage among major professional sports teams in the past decade.” Fans have filled the AT&T Center to 98% capacity over the past four seasons, versus 89% for the rest of the NBA, and the 60 luxury suites are sold out at prices ranging from $160,000-240,000 annually (FORBES, 2/12 issue).

BLAZERS: In Portland, John Canzano noted Portland Arena Management (PAM) collects an estimated $15M in revenue from the Rose Garden’s premium seats — courtside seats, club-level seats and luxury suites –- while the team controls the remainder of the seats, and that “is the sole reason Portland finds itself” last on the list. Team Owner Paul Allen should “buy the building back at market value, and make the model work again with a team that someday will fill the building again” (OREGONIAN, 1/28).


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