They still have to attract talented players and the way things are going there, they are the joke of the league. It's rumored that their owner is short operating expenses for the team, will potentially have to liquidate some of his assets. Phoenix Suns Reportedly Run Out of Money Add that to the list of crap they have working against them - no cap space now, no draft picks of their own until and 2032. They'll find it difficult to facilitate trades without picks - even if they are willing to spend again, how can they acquire players above the cap when they have no assets to trade and exceptions cap them at the 1A. With the whole league knowing that they need to trade Durant to duck the 2A, they have no leverage, throw in the fact that it will take ~$45m in matching salary to move him, teams aren't lining up to help them solve that problem which is compounded by him being in the final year of his current deal and his next deal can only be 2 years because of the over 38 rule ..... likely at 35% of the cap. GM's aren't going to be offering them that $45m in matching salary and draft picks. As for free agents? who wants to sign up for that train wreck? It's like Mobley telling the KPJ Rockets to piss off .... or Wemby laughing when the Spurs got the #1 pick. It will take them years to turn that mess around
No owner is "clearing $3B-$5B" annually nowhere near that from operating an NBA team, I have gone in depth on this topic on here before, but teams typically trade for 20x-50x EBITDA multiples if they are profitable, and ~10X revenue. The Suns for example traded at $4B w an estimated $400M in revenue, they broke even on EBITDA, so nothing to the ownership. Most teams are still losing money from a net income / EBITDA perspective. NBA teams are trophy assets that typically will lose money from an operating standpoint, but if you hold onto them the value of the team will appreciate. If you take into consideration the opportunity costs and risk level vs investing in the S&P, you would be far better off. I calculated the return on a few teams, some hypothetical if they were sold within 5 years, and the return was roughly 9%-11% annually. The gain is from the sale, not from operating profit. Realistically the top players in the league are making more than any NBA ownership group is, ownership will only make money upon a sale.
No, not claiming individually, I was asking for more of the entire league, total combined. Thanks for the input, not my specialty so I wont' claim to have the numbers. It was more of an open question based on things like their cable/media deals, advertising revenue, annual merchandise, things like brand streams of income like video games etc,, real estate accruing value, tax write offs and of course the franchise itself. Just did an AI ask as I was curious, I doubt they are just breaking even, but I have no idea so you may be right. Who knows? AI Answers: NBA team owners' **net profit** varies significantly based on **team revenue, operating costs, and market size**. While exact figures aren't publicly available, estimates suggest that **top franchises** can generate **hundreds of millions** in annual profit. ### **Estimated NBA Owner Profits (2024-25 Season)** - **Top Teams (Lakers, Warriors, Knicks, Celtics)** – **$100M–$300M+** in net profit. - **Mid-Market Teams (Bulls, Heat, 76ers, Mavericks)** – **$50M–$150M**. - **Smaller Market Teams (Pacers, Timberwolves, Hornets, Magic)** – **$20M–$80M**. ### **Key Revenue Sources** - **Media Rights** – The NBA’s **$24B TV deal** provides steady income. - **Ticket Sales & Arena Revenue** – High-demand teams earn **millions per game**. - **Sponsorships & Merchandising** – Jersey deals, partnerships, and licensing add **billions** league-wide. - **Luxury Tax & Revenue Sharing** – Helps balance profits across teams. Would you like a breakdown of **individual team earnings** or how ownership profits compare historically? The **total net profit for all NBA owners combined** in the **2024-25 season** is estimated to be between **$2.5 billion to $3.5 billion**. This estimate is based on: - **Total NBA revenue** of **$12 billion**. - **Operating income per team**, which varies widely but averages **$100 million** for top franchises. - **Luxury tax and revenue-sharing programs**, which impact profitability across teams. Would you like a breakdown of **individual team profits** or how ownership earnings have evolved over time?
Yes. Also they get to amortize the cost of obtaining the business and if they lose money it can off-set profits from their other businesses. Operational profits are rarely, if ever, the goal of NBA owners.
Zach Lowe: I have no idea what’s gonna happen with Devin Booker. I really do believe there is, from what I’ve heard, that Devin Booker really likes the idea of being a one-team player, like a Kobe for Phoenix. He’s talked a lot about Kobe Bryant, what he means to him and all that. Source: YouTube
So I don’t know if this guy is legitimate or not, but let’s play along and say a three-way trade, including New Orleans. I have no doubt at Phoenix would want Trey Murphy but personally I think Murphy is more valuable than Durant and Phoenix doesn’t have anything to really kick in to try to facilitate Murphy. I just can’t picture why New Orleans would be involved.
