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For The First Time In Two Decades, The Top Spot Goes To A Franchise That’s Not The Knicks Or Lakers

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.


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 took 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 start pocketing 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 $62 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

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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 bill

GOLDEN STATE WARRIORS

1-YEAR CHANGE: 25% | OPERATING INCOME: $206 million

OWNERS: Joe Lacob, Peter Guber


#2. $6.1 billion

NEW YORK KNICKS

1-YEAR CHANGE: 5% | OPERATING INCOME: $155 million

OWNER: Madison Square Garden Sports


#3. $5.9 billion

LOS ANGELES LAKERS

1-YEAR CHANGE: 7% | OPERATING INCOME: $115 million

OWNERS: Jerry Buss Family Trusts, Mark Walter, Todd Boehly



#4. $4.1 billion

CHICAGO BULLS

1-YEAR CHANGE: 12% | OPERATING INCOME: $135 million

OWNER: Jerry Reinsdorf


#5. $4 bill

BOSTON CELTICS

1-YEAR CHANGE: 13% | OPERATING INCOME: $137 million

OWNERS: Wycliffe Grousbeck, Irving Grousbeck, Stephen Pagliuca, Robert Epstein


#6. $3.9 billion

LOS ANGELES CLIPPERS

1-YEAR CHANGE: 18% | OPERATING INCOME: $12 million

OWNER: Steve Ballmer


#7. $3.5 billion

BROOKLYN NETS

1-YEAR CHANGE: 9% | OPERATING LOSS: -$34 million

OWNER: Joseph Tsai


#8. $3.3 billion

DALLAS MAVERICKS

1-YEAR CHANGE: 22% | OPERATING INCOME: $143 million

OWNER: Mark Cuban


#9. $3.2 billion

HOUSTON ROCKETS

1-YEAR CHANGE: 16% | OPERATING INCOME: $113 million

OWNER: Tilman Fertitta



#10. $3.15 billion

PHILADELPHIA 76ERS

1-YEAR CHANGE: 29% | OPERATING INCOME: $87 million

OWNERS: Joshua Harris, David Blitzer


#11. $3.1 billion

TORONTO RAPTORS

1-YEAR CHANGE: 25% | OPERATING INCOME: $87 million

OWNERS: Bell Canada, Rogers Communications, Larry Tanenbaum


#12. $3 bill

MIAMI HEAT

1-YEAR CHANGE: 30% | OPERATING INCOME: $83 million

OWNER: Micky Arison


#13. $2.7 billion

PHOENIX SUNS

1-YEAR CHANGE: 50% | OPERATING INCOME: $87 million

OWNER: Robert Sarver


#14. $2.5 billion

WASHINGTON WIZARDS

1-YEAR CHANGE: 30% | OPERATING INCOME: $90 million

OWNER: Ted Leonsis


#15. $2.3 billion

MILWAUKEE BUCKS

1-YEAR CHANGE: 21% | OPERATING INCOME: $51 million

OWNERS: Wes Edens, Marc Lasry



#16. $2.1 billion

PORTLAND TRAIL BLAZERS

1-YEAR CHANGE: 2% | OPERATING INCOME: $81 million

OWNER: Paul G. Allen Trust


#17. $2.05 bil

CLEVELAND CAVALIERS

1-YEAR CHANGE: 24% | OPERATING INCOME: $74 million

OWNER: Dan Gilbert


#18. $2.03 bil

SACRAMENTO KINGS

1-YEAR CHANGE: 2% | OPERATING INCOME: $29 million

OWNER: Vivek Ranadive


#19. $2,025 billion

UTAH JAZZ

1-YEAR CHANGE: 16% | OPERATING INCOME: $58 million

OWNERS: Ryan and Ashley Smith


#20. $2 bill

SAN ANTONIO SPURS

1-YEAR CHANGE: 1% | OPERATING INCOME: $99 million

OWNERS: Peter J. Holt, Sixth Street Partners



#21. $1,975 bil

ATLANTA HAWKS

1-YEAR CHANGE: 18% | OPERATING INCOME: $84 million

OWNER: Tony Ressler


#22. $1.93 bil

DENVER NUGGETS

1-YEAR CHANGE: 12% | OPERATING INCOME: $67 million

OWNER: E. Stanley Kroenke


#23. $1.9 billion

DETROIT PISTONS

1-YEAR CHANGE: 20% | OPERATING INCOME: $93 million

OWNER: Tom Gores


#24. $1,875 billion

OKLAHOMA CITY THUNDER

1-YEAR CHANGE: 15% | OPERATING INCOME: $129 million

OWNERS: Clayton Bennett, George Kaiser, Aubrey McClendon estate


#25. $1.85 bill

ORLANDO MAGIC

1-YEAR CHANGE: 13% | OPERATING INCOME: $98 million

OWNER: DeVos family



#26. $1.8 billion

INDIANA PACERS

1-YEAR CHANGE: 8% | OPERATING INCOME: $65 million

OWNERS: Herbert Simon, Stephen Simon


#27. $1.7 billion

CHARLOTTE HORNETS

1-YEAR CHANGE: 8% | OPERATING INCOME: $94 million

OWNER: Michael Jordan


#28. $1.67 billion

MINNESOTA TIMBERWOLVES

1-YEAR CHANGE: 8% | OPERATING INCOME: $87 million

OWNERS: Glen Taylor, Marc Lore, Alex Rodriguez


#29. $1.65 billion

MEMPHIS GRIZZLIES

1-YEAR CHANGE: 10% | OPERATING INCOME: $107 million

OWNER: Robert Pera


#30. $1.6 billion

NEW ORLEANS PELICANS

1-YEAR CHANGE: 5% | OPERATING INCOME: $94 million

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 to their respective lease agreements for each team. All figures are in US dollars based on the average US-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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