It’s a good time to become an NBA owner.
Franchises have skyrocketed in recent years, with sales of $1 billion now at their normal level.
But what is the most valuable franchise? And what determines how much each team is worth?
CNBC Senior Sports Reporter Michael Ozanian broke it all.
What is the most valuable NBA franchise?
According to Ozanian, the five most valuable NBA franchises are:
Golden State Warriors, $9.4 billion New York Knicks, $7.5 billion Los Angeles Lakers, $7 billion Chicago Bulls, $5.8 billion Houston Rocket, $5.7 billion
These five teams have achieved varying degrees of success in court in recent years, but they are all thriving financially. The keys are market size, stadium trading and local television partnerships. This is the best under Jora Cobb and Peter Gerber.
“They did a very great job of maximizing revenue from the new arena (Chase Centre),” Ozanian said. “And the timing was great for the warriors too. They moved when they became champions. They definitely had one of Steph Curry’s top NBA players. So, they I’ve done it. I sell season tickets, arena sponsorships, arena rights naming and more.”
Not only that, the warriors have done something unique to continue to increase their value these days.
“They were able to sell these sponsorships and season tickets on a multi-year agreement, so they guarantee a large portion of the arena’s revenue over the next five years,” Ozanian explained. “So, even if they stumbled like last year and didn’t make the playoffs, they didn’t see season ticket holders get away, and even if they wanted, they really couldn’t.
“The other smart move they did was that they sold a personal seat license to season ticket holders. That means they had to buy the right to buy season tickets. License, you It’s less likely that they’ll give up tickets for those seasons in a year or two. They’re $200 million more than any other NBA team, meaning they’re not evenly distributed among the 30 teams in the league.”
Their assessments make court finance a problem, but Ozanians consider their on-court success with these indicators. So, the Lakers trade with Luka Doncic could make one of the NBA’s glamour teams even more valuable.
“Star power drives fans and therefore affects ratings,” Ozanian said. “And the thing you want and the reason you bring a star to your team is that you want to win the championship, you want to at least be a competitor.
“In general, winning teams tend to drive more fans, but not always, and increase ticket prices. They can earn more sponsorship revenue. They price luxury suites You can get the higher. If you’re LA, as we’re talking to the Dallas Mavericks, you really want this to lead the Lakers to the championship.
“It’s very important for the Lakers, too, because they play at crypto.com arena. The Lakers… have no control over the economics of the arena. The building is owned by Phil Anschutz. He rules economics. The revenue from tickets to the Lakers games is very important in terms of the revenues of the Lakers as a whole.
What is the least valuable NBA franchise?
According to Ozanian, the five most unworthy NBA franchises are:
The Memphis Grizzlies, $3.2 billion Minnesota Timberwolves, $3.25 billion New Orleans Pelican, $3.3 billion Charlotte Hornets, $3.35 billion Indiana Pacers, $3.3 billion
Although these five teams are based in small markets, it is interesting to note that they have been successful in court recently.
The Grizzlies have made the playoffs over the past four years, with the Timberwolves and Pacer reaching the conference finals last season. Memphis and Minnesota have two of the NBA’s most popular young stars, Ja Morant and Anthony Edwards, respectively.
The Hornets were the last of these teams, with Rick Schnal and Gabe Plotkin buying a majority stake from Michael Jordan in 2023 at a $3 billion valuation. The Timberwolves sale is ongoing as Mark Roar and Alex Rodriguez try to gain control from Glen Taylor, which has become a nasty deal.
But how accurately did Ozanian and CNBC decide that these teams are the least worthwhile?
“Sports teams are valued based on double the revenue,” Ozanian said. “For example, NBA teams usually have a lower (valuable) multiple of revenue between 10-13 times and 13 times (valuable).
“The reason you look at the multiples of revenue, rather than saying multiples of revenue, is because it depends on the amount you pay to the player. For example, you can make a huge payment before a special player. It shakes up what the revenue is.
“So, at CNBC, we go back and see historic deals. We spend a lot of time and when the team is sold, what is the revenue of the team? And then the price value of the enterprise is What was the revenue ratio? And what were the details of those transactions, which markets on the team, what were the economics of the arena?
What was the most expensive NBA franchise sale?
The Phoenix Suns were sold to Matt Isbeer and Justin Ishbia in December 2022 for $4 billion. It was the most expensive franchise sale in league history, but it’s a record that could quickly break.
The Boston Celtics are on the market after owner Wyc Grousbeck announced last summer its intention to sell a majority stake in the real-life NBA champion. For multiple reasons, Ozanian believes the Celtics, ranked seventh on the list at a $5.5 billion valuation, will attract a lot of attention.
“The Boston Celtics are a great brand,” he explained. “They have won more NBA championships than any other team. They do great things when it comes to ticket revenue. They also have a very good local TV contract. They have It owns 20% of the regional sports network that broadcasts games (NBC Sports Boston).
“The challenge for the Celtics is that they don’t control the economics of the arena. The building is owned by the owners of the Boston Bruins, which means that the Celtics make money from non-NBA events like concerts. It means not. Go to the owner of the Bruins.
“They had an incredible season when they won the NBA Championship last year. They generated more than $100 million in revenue from the postseason. They’re a great team, a great brand, but when it comes to NBA economics, they actually have is not included in the top 3 or 4.”
The Celtics aren’t at the top of the Ozanian list, but he foresees a potential war of bidding depending on who the stakeholders are. But it can all change if the Celtics minority owners rush to take control.
“Well, it would be very interesting to see what the Celtics are being sold for,” he said. “A media report going back a few months ago said that bids would be hot. There will be at least four or five bidders.
“…The press also said that the team could sell for $6 billion. Every sports banker I spoke to when compiling this list of NBA ratings said the Celtics were $5 to $5. He says it’s worth $4.5 in dollars. billions.
“At this point, the one who likes to buy teams is Steve Pagliuca, who already owns just over 20% of the team. If so, Pagliuca has an easy path to buying teams. Pagliuca If there were other individuals or groups in addition, you simply buy the Grousbeck family. Known as Tag-Along Rights, if Grousbecks sells its shares, you have the right to sell the team’s shares. That means that.”
Complete list of NBA franchise values 2025
See the complete list of CNBCs with NBA franchise values from No. 1 to 30 below.
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