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ILLUSTRATION BY STEPHANIE JONES FOR FORBES; PHOTOS BY GETTY IMAGES (FROM LEFT:)
Ezra Shaw, Kunjiang, PATRICK T. FALLON/AFP, Ezra Shaw, Tim Nwachukwu
SportsMoney
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NBA TEAM VALUES 2022: FOR THE FIRST TIME IN TWO DECADES, THE TOP SPOT GOES TO A
FRANCHISE THAT’S NOT THE KNICKS OR LAKERS
Mike Ozanian
Forbes Staff
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LED BY THE EYE-POPPING $7 BILLION GOLDEN STATE WARRIORS, THE AVERAGE NBA TEAM IS
NOW WORTH $2.86 BILLION, 15% MORE THAN A YEAR AGO, AN IMPRESSIVE FEAT
CONSIDERING THE STOCK MARKET IS DOWN MORE THAN 15% OVER THE SAME SPAN.
By Mike Ozanian and Justin Teitelbaum
--------------------------------------------------------------------------------
The NBA is Golden.
For the first time in more than two decades, when Forbes began valuing National
Basketball Association teams, a team other than the New York Knicks or the Los
Angeles Lakers is the league’s most valuable. This year, the Golden State
Warriors take the top spot, worth $7 billion, 25% more than last year. (The full
list of NBA team valuations can be found here.) During the 2021-22 season, the
Warriors generated the most revenue ($765 million after paying their
revenue-sharing check) and the most operating income ($206 million) in NBA
history as they won their fourth title in eight years and played their first
full season with fans in the new Chase Center.
The Warriors made league financial history by raking in $150 million from arena
sponsorships and advertising, double any other team, and by pulling in more than
$250 million from premium seating, by far the most in the league.
The Knicks, the league’s most valuable team the past seven times Forbes has
compiled the list, finished second ($6.1 billion), followed by the Lakers ($5.9
billion), the Chicago Bulls ($4.1 billion) and the Boston Celtics ($4 billion).
The average NBA team is now worth $2.86 billion, 15% more than a year ago, an
impressive feat considering the stock market is down more than 15% over the same
span. After arena debt service, league-wide revenue and operating income for the
2021-22 season were $10 billion and $2.7 billion, respectively—both record
highs. The NBA is back on its pre-Covid growth trajectory, led by aggregate
record sponsorship and advertising revenue at the team and league level, which
totaled $1.35 billion last season, also an all-time high.
Another reason values rose: Valuation multiples (enterprise value/revenue) are
up thanks to the league’s growth, profitability and pristine balance sheets. The
average multiple for the 30 teams is 8.6, versus 7 pre-Covid. Only one team, the
Brooklyn Nets, lost money last year, and the average debt/enterprise value of
the 30 teams is just 10%. In other words, buying a team today means an owner can
quickly begin to pocket cash and never have to put in another dime. For example,
since buying the Houston Rockets in 2017, Tilman Fertitta has pulled out at
least $60 million a year, except for the 2020-21 season (when the pandemic
shortened the regular season to 72 games and greatly reduced attendance at
games), according to sources.
Contrast that with Steve Ballmer’s purchase of the Los Angeles Clippers for $2
billion in 2014. A couple of years after buying the team, the former Microsoft
CEO quipped: “I’m a new owner, and I’ve heard this is the golden age of
basketball economics. You should tell our finance people that. We’re sitting
there looking at red ink, and it’s real red ink. I know, it shows up on my tax
returns. So it is real red ink.” Ballmer is no longer complaining. The Clippers
finished handily in the black last season, and Ballmer is building a new arena
that has a $500 million naming-rights deal. The Clippers are now worth $3.9
billion, almost doubling in value over the eight years of his ownership.
GALLERY: THE NBA'S HIGHEST-PAID PLAYERS 2022
11 images
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The league’s revenue-sharing formula and salary cap help ensure the financial
health of the league. The formula had low-revenue teams split nearly $500
million that was pooled from funds that came from a combination of high-revenue
teams and luxury-tax payments last season. Meanwhile, the soft cap limits player
salaries to 44.74% of the league’s basketball-related income.
Future growth will come from the league’s next national media deal, which would
begin with the 2025-26 season and should be worth at least double its current
$2.66 billion-a-year agreement with ESPN and Turner Sports. In addition, there’s
the fledgling NBA Equity, a new initiative akin to 32 Equity, the NFL’s venture
capital arm, which is worth over $100 million per team. NBA Equity was created
in order for the league to invest in existing or potential partners, from
early-stage to growth-stage startups, that will help drive innovation and expand
the NBA’s business. Among its investments: Sportradar, a publicly listed data
company for gaming, media and sports leagues; Nextiles, a participant in the NBA
Launchpad program that is a smart fabrics company, capturing data with
technology built into clothing; Sorare, a premier NFT-based fantasy gaming
company; and New Era, a lifestyle and apparel brand. Sources familiar with NBA
Equity say its portfolio has about 20 investments that are closing in on an
aggregate value of $1 billion. Given the tremendous value and reach of the NBA’s
intellectual property and brand, NBA Equity will eventually be a much more
valuable asset.
> 2022 NBA VALUES
--------------------------------------------------------------------------------
#1. $7 BIL
GOLDEN STATE WARRIORS
1-YEAR CHANGE: 25% | OPERATING INCOME: $206 MIL
OWNERS: JOE LACOB, PETER GUBER
Golden State Warriors Andre Iguodala, Draymond Green, Klay Thompson and Stephen
Curry
Adam Glanzman/Getty Images
--------------------------------------------------------------------------------
#2. $6.1 BIL
NEW YORK KNICKS
1-YEAR CHANGE: 5% | OPERATING INCOME: $155 MIL
OWNER: MADISON SQUARE GARDEN SPORTS
New York Knicks' Derrick Rose
Dustin Satloff/Getty Images
--------------------------------------------------------------------------------
#3. $5.9 BIL
LOS ANGELES LAKERS
1-YEAR CHANGE: 7% | OPERATING INCOME: $115 MIL
OWNERS: JERRY BUSS FAMILY TRUSTS, MARK WALTER, TODD BOEHLY
Los Angeles Lakers' Lonnie Walker
Jae C Hong/AP
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
#4. $4.1 BIL
CHICAGO BULLS
1-YEAR CHANGE: 12% | OPERATING INCOME: $135 MIL
OWNER: JERRY REINSDORF
Chicago Bulls' Ayo Dosunmu
Marta Lavandier/AP
--------------------------------------------------------------------------------
#5. $4 BIL
BOSTON CELTICS
1-YEAR CHANGE: 13% | OPERATING INCOME: $137 MIL
OWNERS: WYCLIFFE GROUSBECK, IRVING GROUSBECK, STEPHEN PAGLIUCA, ROBERT EPSTEIN
Boston Celtics' Jayson Tatum
Michael Reaves/Getty Images
--------------------------------------------------------------------------------
#6. $3.9 BIL
LOS ANGELES CLIPPERS
1-YEAR CHANGE: 18% | OPERATING INCOME: $12 MIL
OWNER: STEVE BALLMER
--------------------------------------------------------------------------------
#7. $3.5 BIL
BROOKLYN NETS
1-YEAR CHANGE: 9% | OPERATING LOSS: -$34 MIL
OWNER: JOSEPH TSAI
--------------------------------------------------------------------------------
#8. $3.3 BIL
DALLAS MAVERICKS
1-YEAR CHANGE: 22% | OPERATING INCOME: $143 MIL
OWNER: MARK CUBAN
--------------------------------------------------------------------------------
#9. $3.2 BIL
HOUSTON ROCKETS
1-YEAR CHANGE: 16% | OPERATING INCOME: $113 MIL
OWNER: TILMAN FERTITTA
Houston Rockets' Jalen Green
Michael Wyke/AP
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
#10. $3.15 BIL
PHILADELPHIA 76ERS
1-YEAR CHANGE: 29% | OPERATING INCOME: $87 MIL
OWNERS: JOSHUA HARRIS, DAVID BLITZER
--------------------------------------------------------------------------------
#11. $3.1 BIL
TORONTO RAPTORS
1-YEAR CHANGE: 25% | OPERATING INCOME: $87 MIL
OWNERS: BELL CANADA, ROGERS COMMUNICATIONS, LARRY TANENBAUM
--------------------------------------------------------------------------------
#12. $3 BIL
MIAMI HEAT
1-YEAR CHANGE: 30% | OPERATING INCOME: $83 MIL
OWNER: MICKY ARISON
--------------------------------------------------------------------------------
#13. $2.7 BIL
PHOENIX SUNS
1-YEAR CHANGE: 50% | OPERATING INCOME: $87 MIL
OWNER: ROBERT SARVER
Phoenix Suns' Mikal Bridges, Devin Booker, Chris Paul and Cameron Johnson
Christian Petersen/Getty Images
--------------------------------------------------------------------------------
#14. $2.5 BIL
WASHINGTON WIZARDS
1-YEAR CHANGE: 30% | OPERATING INCOME: $90 MIL
OWNER: TED LEONSIS
--------------------------------------------------------------------------------
#15. $2.3 BIL
MILWAUKEE BUCKS
1-YEAR CHANGE: 21% | OPERATING INCOME: $51 MIL
OWNERS: WES EDENS, MARC LASRY
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
#16. $2.1 BIL
PORTLAND TRAIL BLAZERS
1-YEAR CHANGE: 2% | OPERATING INCOME: $81 MIL
OWNER: PAUL G. ALLEN TRUST
--------------------------------------------------------------------------------
#17. $2.05 BIL
CLEVELAND CAVALIERS
1-YEAR CHANGE: 24% | OPERATING INCOME: $74 MIL
OWNER: DAN GILBERT
--------------------------------------------------------------------------------
#18. $2.03 BIL
SACRAMENTO KINGS
1-YEAR CHANGE: 2% | OPERATING INCOME: $29 MIL
OWNER: VIVEK RANADIVE
Sacramento Kings' Harrison Barnes
Thearon W. Henderson/Getty Images
--------------------------------------------------------------------------------
#19. $2.025 BIL
UTAH JAZZ
1-YEAR CHANGE: 16% | OPERATING INCOME: $58 MIL
OWNERS: RYAN AND ASHLEY SMITH
--------------------------------------------------------------------------------
#20. $2 BIL
SAN ANTONIO SPURS
1-YEAR CHANGE: 1% | OPERATING INCOME: $99 MIL
OWNERS: PETER J. HOLT, SIXTH STREET PARTNERS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
#21. $1.975 BIL
ATLANTA HAWKS
1-YEAR CHANGE: 18% | OPERATING INCOME: $84 MIL
OWNER: TONY RESSLER
Atlanta Hawks' Deandre Hunter
Todd Kirkland/Getty Images
--------------------------------------------------------------------------------
#22. $1.93 BIL
DENVER NUGGETS
1-YEAR CHANGE: 12% | OPERATING INCOME: $67 MIL
OWNER: E. STANLEY KROENKE
--------------------------------------------------------------------------------
#23. $1.9 BIL
DETROIT PISTONS
1-YEAR CHANGE: 20% | OPERATING INCOME: $93 MIL
OWNER: TOM GORES
--------------------------------------------------------------------------------
#24. $1.875 BIL
OKLAHOMA CITY THUNDER
1-YEAR CHANGE: 15% | OPERATING INCOME: $129 MIL
OWNERS: CLAYTON BENNETT, GEORGE KAISER, AUBREY MCCLENDON ESTATE
--------------------------------------------------------------------------------
#25. $1.85 BIL
ORLANDO MAGIC
1-YEAR CHANGE: 13% | OPERATING INCOME: $98 MIL
OWNER: DEVOS FAMILY
Orlando Magic's Paolo Banchero
Todd Kirkland/Getty Images
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
#26. $1.8 BIL
INDIANA PACERS
1-YEAR CHANGE: 8% | OPERATING INCOME: $65 MIL
OWNERS: HERBERT SIMON, STEPHEN SIMON
--------------------------------------------------------------------------------
#27. $1.7 BIL
CHARLOTTE HORNETS
1-YEAR CHANGE: 8% | OPERATING INCOME: $94 MIL
OWNER: MICHAEL JORDAN
--------------------------------------------------------------------------------
#28. $1.67 BIL
MINNESOTA TIMBERWOLVES
1-YEAR CHANGE: 8% | OPERATING INCOME: $87 MIL
OWNERS: GLEN TAYLOR, MARC LORE, ALEX RODRIGUEZ
--------------------------------------------------------------------------------
#29. $1.65 BIL
MEMPHIS GRIZZLIES
1-YEAR CHANGE: 10% | OPERATING INCOME: $107 MIL
OWNER: ROBERT PERA
Memphis Grizzlies' Ja Morant
Justin Ford/Getty Images
--------------------------------------------------------------------------------
#30. $1.6 BIL
NEW ORLEANS PELICANS
1-YEAR CHANGE: 5% | OPERATING INCOME: $94 MIL
OWNER: GAYLE BENSON
--------------------------------------------------------------------------------
METHODOLOGY: Revenue and operating income (earnings before interest, taxes,
depreciation and amortization) are for the 2021-22 season and are net of revenue
sharing and arena debt service. We use revenue multiples to calculate our team
values (equity plus net debt) based on the economics of each team’s current
arena deal. Our figures include revenue that team owners get from non-NBA events
at their arena. For example, the Warriors and the Nets control their arenas, so
our figures combine P&L statements. In contrast, the Knicks and the Lakers are
tenants in their arenas, so we attribute the revenue and expenses their
respective lease agreements allot for each team. All figures are in U.S. dollars
based on the average U.S.-Canada exchange rates during the 2021-22 season. The
information used to compile our valuations primarily came from the teams, sports
bankers, media consultants and public documents, such as arena lease agreements
and bond documents.
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Mike Ozanian
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My mentors were James Walker Michaels, Geoffrey N. Smith and William Baldwin. I
started out in the statistics department of Forbes in the mid-'80s then
transitioned to writing. I
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Justin Teitelbaum
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I am a Sports Data Analyst working closely with Mike Ozanian on team valuations
and various other projects. I studied at St. John's University, obtaining a
Bachelor's degree in Sport
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