In Billions: What Is The Average Worth Of NBA Teams?

For once in over two decades since Forbes began valuing NBA teams, neither New York Knicks nor Los Angeles Lakers are the most valuable teams in the league. This year, the Golden State Warriors are the most valuable NBA team. Forbes values the team at $7 billion, a 25% increase from last year.

The Warriors generated the highest revenue - $765 million after they had paid their revenue-sharing check. It also registered the most operating income ($206 million) in the history of the NBA as it clinched the fourth title in eight years. Moreover, it was the first full season they hosted fans in their new Chase Center.

The Warriors fans are also hopeful that their team will keep up the excellent performances. It will also be a team of interest for NBA betting fans. If you are new to NBA wagering, read betting on NBA 101 pieces to get some helpful tips. On the other hand, The Warriors generated $150 million from arena sponsorships and advertising which is twice any other NBA team managed.

Knicks Came in Second

The Knicks have been the most valuable NBA team in the last seven years Forbes has compiled the list. This year, they came in second with a $6.1 billion valuation. The Lakers were ranked third with a $5.9 billion valuation.

Chicago Bulls are the fourth most valuable NBA team with a valuation of $4.1 billion, while Boston Celtics complete the top five with a $4 billion valuation.

What’s The Value of the Average NBA Team?

The average NBA team is valued at $2.86 billion, a 15% increase from the previous valuation about 12 months ago. That’s an impressive statistic now that the stock market slumped over 15% during the same period.

The league-wide revenue and operating income after arena debt were $10 billion and $2.7 billion during the 2021/22 season. Additionally, the two were record highs. This signifies that the NBA has returned to its pre-Covid growth trend, led by cumulative record advertising and sponsorship revenue at the league and team levels. The revenue totaled $1.35 billion, which was also a record high.

Additionally, valuation multiples such as revenue and enterprise values went up because of the profitability, growth, and perfect balance sheets. The average multiple for the 30 NBA teams is 8.6, up from 7 during the Covid season.

The Brooklyn Nets were the only team that lost money last year. Additionally, the average debt/enterprise value of the 30 teams is 10%. This means that if you buy an NBA team today, you can start to pocket cash without having to invest a dime.

For example, since Tilman Fertitta bought the Houston Rockets in 2017, he has taken home at least $60 million annually, except in the 2020-21 season.

Additionally, Steve Ballmer bought the Los Angeles Clippers in 2014 for $2 billion.

At the time, he was complaining about the team’s financial situation. However, he is no longer complaining, as the team’s book finished in black instead of red ink last season. Moreover, he is building a new arena with a $500 million naming-rights pact. The Clippers are now valued at $3.9 billion, nearly double what it was worth eight years ago.

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