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Forbes Franchise Values

Discussion in 'NBA Dish' started by J.R., Feb 15, 2017.

  1. J.R.

    J.R. Contributing Member

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    • The hardwood might as well be paved with gold: The average National Basketball Association franchise is now worth $1.36 billion, a 3.5-fold increase over the last five years. Fueling the gains are the NBA’s $24 billion media deal with ESPN and TNT that kicked off this season, a new collective bargaining agreement ensuring seven years of labor peace and massive international opportunities.

    • Operating profits are at a record high—an average of $31 million per team. Owners, meanwhile, are salivating at what’s on the immediate horizon: a new seven-year collective bargaining agreement that secures labor peace through the 2023–24 season, and the start of a nine-year, $24 billion national TV deal this season with ESPN and TNT worth triple the previous annual amount. Operating profits could double this season.

    • Only three teams lost money last season -- the Cavaliers, Los Angeles Clippers and Oklahoma City Thunder -- and all three were in the red as a result of excessive payrolls that triggered nearly $90 million in luxury tax payments cumulatively.

      The Cavs led by LeBron James nabbed their first NBA Championship in franchise history, but the team lost $40 million in operating income and even more on a net income basis. Blame a $54 million luxury tax that pushed total player costs to $185 million. The $40 million loss was the fifth biggest in the history of the NBA.
    • NBA owners will reap the rewards of their new TV deal for the next nine seasons, but they are also pushing into new revenue-generating opportunities. On Monday, the Utah Jazz became the fifth NBA team to sign a jersey sponsorship deal as part of an NBA pilot program starting next season (the Cavs and Goodyear also reportedly have reached a deal, but no announcement has been made). Each of the sponsor deals is worth at least $4 million a year with marquee teams like the Golden State Warriors looking for deals in the $15 million range.

    https://www.forbes.com/sites/kurtba...e-nbas-most-valuable-teams-2017/#352905667966

    https://www.forbes.com/pictures/mli45fhhid/1-new-york-knicks/#26258e8c48ae

    *Revenue & income are for the 2015-16 season

    1. New York
    Current Value: $3.3B
    Revenue: $376M
    Operating income: $141M

    2. Los Angeles Lakers
    Current Value: $3.0B
    Revenue: $333M
    Operating income: $119M

    3. Golden State Warriors
    Current Value: $2.6B
    Revenue: $305M
    Operating income: $74.2M

    4. Chicago Bulls
    Current Value: $2.5B
    Revenue: $232M
    Operating income: $45.5M

    5. Boston Celtics
    Current Value: $2.2B
    Revenue: $200M
    Operating income: $60.1M

    6. LA Clippers
    Current Value: $2.0B
    Revenue: $185M
    Operating income: -$11.8M

    7. Brooklyn Nets
    Current Value: $1.8B
    Revenue: $223M
    Operating income: $15.7M

    8. Houston Rockets
    Current Value: $1.65B
    Revenue: $244M
    Operating income: $62.7M

    9. Dallas Mavericks
    Current Value: $1.45B
    Revenue: $194M
    Operating income: $40.3M

    10. Miami Heat
    Current Value: $1.35B
    Revenue: $210M
    Operating income: $21.1M

    11. Cleveland Cavaliers
    Current Value: $1.2B
    Revenue: $233M
    Operating income: -$40.2M

    12. San Antonio Spurs
    Current Value: $1.175B
    Revenue: $187M
    Operating income: $18.4M

    13. Toronto Raptors
    Current Value: $1.125B
    Revenue: $193M
    Operating income: $46.1M

    14. Phoenix Suns
    Current Value: $1.1B
    Revenue: $173M
    Operating income: $26.3M

    15. Sacramento Kings
    Current Value: $1.075B
    Revenue: $164M
    Operating income: $18.4M

    16. Portland Trail Blazers
    Current Value: $1.05B
    Revenue: $178M
    Operating income: $41.2M

    17. Oklahoma City Thunder
    Current Value: $1.025B
    Revenue: $187M
    Operating income: -$8.4M

    18. Washington Wizards
    Current Value: $1.0B
    Revenue: $155M
    Operating income: $6.6M

    19. Orlando Magic
    Current Value: $920M
    Revenue: $166M
    Operating income: $44.7M

    20. Utah Jazz
    Current Value: $910M
    Revenue: $164M
    Operating income: $36M

    21. Detroit Pistons
    Current Value: $900M
    Revenue: $172M
    Operating income: $21.8M

    22. Denver Nuggets
    Current Value: $890M
    Revenue: $157M
    Operating income: $21.2M

    23. Atlanta Hawks
    Current Value: $885M
    Revenue: $169M
    Operating income: $19.8M

    24. Indiana Pacers
    Current Value: $880M
    Revenue: $157M
    Operating income: $23.9M

    25. Philadelphia Sixers
    Current Value: $800M
    Revenue: $140M
    Operating income: $18.2M

    26. Memphis Grizzlies
    Current Value: $790M
    Revenue: $155M
    Operating income: $0.2M

    27. Milwaukee Bucks
    Current Value: $785M
    Revenue: $146M
    Operating income: $24M

    28. Charlotte Hornets
    Current Value: $780M
    Revenue: $158M
    Operating income: $9.4M

    29. Minnesota Timberwolves
    Current Value: $770M
    Revenue: $154M
    Operating income: $25.9M

    30. New Orleans Pelicans
    Current Value: $750M
    Revenue: $156M
    Operating income: $16.7M
     
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  2. HayesIsBack

    HayesIsBack Member

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    Maury ... 4th highest op income in the NBA
     
  3. larsv8

    larsv8 Contributing Member

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    Worth more than the Mavericks, thats really all that matters.

    And lol at the arena always being empty, but we still made a cool 62m
     
  4. kevC

    kevC Contributing Member

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    Arena is empty because people don't show up, not because tickets aren't sold. I find this to be a source of pride that our city is well off.
     
  5. ilias

    ilias Member

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    Some of these margins are crazy, 20-30% for a sports franchize. That's what monopoly will do for you.
     
  6. Air Langhi

    Air Langhi Contributing Member

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    http://www.espn.com/nba/attendance

    There are roughly 1000 (1082) tickets not sold for each game. I would say the number of people who show up is 70% of tickets sold sometimes less.

    Houston is not doing that well right now either.
     
  7. kevC

    kevC Contributing Member

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    I was being facetious. 92% attendance isn't that bad though, for a sprawling city where the arena is located in a difficult to get to place.
     
  8. Newlin

    Newlin Member

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    I'd really like to see the Rockets balance sheet and income statement to see exactly where the money is coming from and where it's going. That would be interesting.
     
  9. sealclubber1016

    Supporting Member

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    How is our revenue 4th highest in the league?

    We are only behind the glamour city franchises Lakers and Knicks, and the juggernaut Warriors. I figured we were doing fine on the income front but damn.
     
  10. TheRealist137

    TheRealist137 Member

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    two words, CHY NA

    [​IMG]
     
  11. CometsWin

    CometsWin Honorary 99’er
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    Philly at 25. Trust that process. o_O
     
  12. J.R.

    J.R. Contributing Member

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    https://www.forbes.com/sites/forbes...20th-annual-nba-team-valuations/#21d06d6734e6

    The league’s 30 teams generated $7.4 billion in revenue last season, up 25% from 2017 and another record high for the league. The average NBA franchise is now worth a record $1.65 billion, up 22% over last year, and more than triple the figure of five years ago. Every NBA team is valued at $1 billion and up for the first time ever.

    The average franchise earned $52 million, a 68% increase, as the league enjoys the new $24 billion TV deal with ESPN and TNT that kicked off during the 2016-17 season. Three teams, New York Knicks, Los Angeles Lakers and Golden State Warriors, earned more than $100 million, while the Cleveland Cavaliers (No. 15) was the only franchise to lose money on an operating basis due to its significant payroll and luxury tax bill.

    Rank: 7
    Team: Houston Rockets
    Owner(s): Tilman Fertitta
    Current Value($bil): $2.2B
    1-Year Value Change(%): 33%
    Revenue ($mil): $296M
    Operating Income($mil): $95M

    1. Knicks: $3.6 billion (+9%)
    2. Lakers: $3.3 billion (+10%)
    3. Warriors: $3.1 billion (+19%)
    4. Bulls: $2.6 billion (+4%)
    5. Celtics: $2.5 billion (+14%)
    6. Nets: $2.3 billion (+28%)
    7. Rockets: $2.2 billion (+33%)
    8. Clippers: $2.15 billion (+7%)
    9. Mavericks: $1.9 billion (+31%)
    10. Heat: $1.7 billion (+26%)
    11. Spurs: $1.55 billion (+32%)
    12. Raptors: $1.4 billion (+24%)
    13. Kings: $1.375 billion (+28%)
    14. Wizards: $1.35 billion (+35%)
    15. Cavaliers: $1.325 billion (+10%)
    16. Blazers: $1.3 billion (+24%)
    17. Suns: $1.28 billion (+16%)
    18. Thunder: $1.25 billion (+22%)
    19. Magic: $1.225 billion (+33%)
    20. Jazz: $1.2 billion (+32%)
    21. 76ers: $1.18 billion (+48%)
    22. Pacers: $1.175 billion (+34%)
    23. Hawks: $1.15 billion (+30%)
    24. Nuggets: $1.125 billion (+26%)
    25. Pistons: $1.1 billion (+22%)
    26. Bucks: $1.075 billion (+37%)
    27. Wolves: $1.06 billion (+38%)
    28. Hornets: $1.05 billion (+35%)
    29. Grizzlies: $1.025 billion (+30%)
    30. Pelicans: $1 billion (+33%)​
     
  13. Juxtaposed Jolt

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    Should I be surprised by the Bulls, being so high? They haven't exactly done much in the postseason, the past couple of years.

    Die hard fans + big market effect, I supposed?
     
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  14. bleedroxred79

    bleedroxred79 Member

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    I would love to see the top 5 P&L's in the league...
     
  15. Swiss Roll

    Swiss Roll Member

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    I'm more surprised by the Nets, they have been awful for years, at least the bulls were good and have made the playoffs all but one year in this decade.
     
  16. BamBam

    BamBam Contributing Member

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    Mavchicks AND the Spurschicks!!!
    .......
    .......
    .......
     
  17. Fyreball

    Fyreball Contributing Member

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    Being in Brooklyn, and playing in that arena goes a long way towards valuation. Winning honestly has very little to do with it if you're in a big market.
     
  18. Swiss Roll

    Swiss Roll Member

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    I guess much of the value comes from TV contracts, and NYC has TWO full time local sports TV networks, YES and MSG, with actual programming, talk shows, etc...

    New York Sports are a world amongst themselves.
     
  19. da_juice

    da_juice Member

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    I believe New York actually has three counting SNY (they mostly show the Mets and Islanders I believe)
     
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  20. Swiss Roll

    Swiss Roll Member

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    Dang I forgot about them
     
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