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. Spoiler 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
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
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.
Some of these margins are crazy, 20-30% for a sports franchize. That's what monopoly will do for you.
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.
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.
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.
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.
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%)
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?
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.
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.
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.
I believe New York actually has three counting SNY (they mostly show the Mets and Islanders I believe)