Forbes Magazine has released their 2016 valuations of NBA franchises and nearly half the league, 13, are now worth at least a billion, yes with a ‘b,’ dollars. The New York Knicks sit atop the NBA rankings, being valued at $3 billion, up 20 percent from the year prior.
Overall, the average NBA franchise is worth $1.25B, thanks to record NBA television deals, sponsorship contracts and more.
Completing the highest five valuations behind the Knicks are the Los Angeles Lakers ($2.7B), Chicago Bulls ($2.3B), Boston Celtics ($2.1B) and Los Angeles Clippers ($2B).
The number of teams worth at least a billion is up two from 11 last year, which at the time was a record. The average worth is not only up 13 percent from from last year, but a whopping 74 percent from two seasons ago when the ESPN/NBA nine-year/$24 billion dollar TV deal went into place. Also of note was the new Nike/NBA apparel contract that pays the NBA a reportedly $1 billion dollars each year (which was $600 million greater than what Adidas was paying).
Overall, “The league’s 30 teams generated $5.2 billion in revenue last season and $900 million in operating profit (earnings before interest, taxes, depreciation and amortization). Both are records.” Those will continue to rise as “10 teams are expected to sign new deals or reset their existing TV contracts by the end of the 2017-18 season at big increases.” Due to the league’s revenue sharing, every team in the NBA made a profit but the Brooklyn Nets and billionaire owner Mikhail Prokhorov.