The average NBA franchise is worth $634M, “up 25% over last year,” and collectively the league’s 30 teams are worth $19B compared to $400M in ‘84 "when there were 23 teams," according to Kurt Badenhausen of FORBES. Once a “struggling also-ran to other professional sports,” the NBA is now a “global money machine.” This is “in large part” due to Commissioner David Stern’s “leadership on labor relations, drug testing, team expansion and other issues.” NBA revenues, which were $118M for the ’82-83 season, hit $4.6B "for the league’s 30 teams last year.” The Knicks are the NBA’s “most valuable team for a second straight year,” as the franchise is now worth $1.4B, “up 27% from a year ago.” A three-year, $1B renovation of Madison Square Garden “pushed the Knicks’ revenue" to $287M, "net of revenue sharing.” The Knicks’ playoff run and arena renovation helped the franchise generate operating income of $96M -- “a record for an NBA franchise.” Profitability was “up across the board in the NBA’s first full season” since the lockout was settled. Operating income “doubled to an average” of $23.7M, the “highest since Forbes began calculating NBA valuations” in ’98. The CBA also “boosted revenue sharing from the NBA’s haves to have-nots.” Former “perennial money losers” such as the Bobcats, Bucks and Grizzlies “all turned a profit last season” thanks to at least $10M each in revenue sharing. Only four teams "lost money on an operating basis” (FORBES.com, 1/22).
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FORBES NBA TEAM VALUATIONS
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|
RANK
|
TEAM
|
VALUE
|
RANK
|
TEAM
|
VALUE
|
|
1
|
Knicks
|
$1.4B
|
16
|
Kings
|
$550M
|
|
2
|
Lakers
|
$1.35B
|
17
|
Jazz
|
$525M
|
|
3
|
Bulls
|
$1B
|
18
|
Raptors
|
$520M
|
|
4
|
Celtics
|
$875M
|
19
|
Cavaliers
|
$515M
|
|
5
|
Nets
|
$780M
|
20
|
Nuggets
|
$495M
|
|
6
|
Rockets
|
$775M
|
21
|
Wizards
|
$485M
|
|
7
|
Heat
|
$770M
|
22
|
Pacers
|
$475M
|
|
8
|
Mavericks
|
$765M
|
23
|
76ers
|
$469M
|
|
9
|
Warriors
|
$750M
|
24
|
Grizzlies
|
$453M
|
|
10
|
Spurs
|
$660M
|
25
|
Pistons
|
$450M
|
|
11
|
Thunder
|
$590M
|
26
|
T'Wolves
|
$430M
|
|
12
|
Trail Blazers
|
$587M
|
27
|
Hawks
|
$420M
|
|
13
|
Clippers
|
$575M
|
28
|
Pelicans
|
$420M
|
|
14
|
Suns
|
$565M
|
29
|
Bobcats
|
$410M
|
|
15
|
Magic
|
$560M
|
30
|
Bucks
|
$405M
|
|
|
|
|
|
|
AROUND THE LEAGUE: In L.A., Mike Bresnahan noted the Lakers are “losers in the standings but financial winners in a big way” with the franchise valued at $1.35B, which is “up 35% from the previous year, thanks mainly to their new television contract with Time Warner Cable.” Forbes’ data showed that the Lakers earned $122M last season from TWC, “more than 20 times” what the Bobcats and Bucks received from their TV partners (
L.A. TIMES, 1/23). In Dallas, Eddie Sefko noted Mavericks Owner Mark Cuban thinks his team's $765M valuation is "a low-ball number." Cuban said, "We’re worth well over a billion. I think within the next five years, and this is just a guess, if the economy continues to get a little better and sports still stays in demand, every NBA franchise will be worth at least a billion dollars” (
DALLASNEWS.com, 1/22). In Charlotte, Rick Bonnell noted the Bobcats are “worth 30 percent more than they were a year ago.” If the Bobcats are “now in the black, that probably has a lot to do with the new collective bargaining agreement, which includes a more aggressive revenue-sharing system between big-market and small-market teams.” It “can’t be a coincidence Forbes raised the value” of the Bobcats and Bucks by 30% each (
CHARLOTTEOBSERVER.com, 1/22). In Detroit, Brian Manzullo noted being ranked the No. 25on Forbes' list “isn’t exactly a good look” for the Pistons. Manzullo: “Then again, it hasn’t been for a while” (
DETROIT FREE PRESS, 1/22).
