According to a new CNBC report, both the Lakers and the Clippers are ranked one of the 10 most valuable NBA franchises in early 2025.
The Lakers ranked third in a $7 billion valuation despite not owning their own arena.
Home to Lakers, Crypto.com Arena is owned by the Anschutz Entertainment Group. This means that the team is not generating revenue from the buildings outside the games they play there.
This is “are very important to Lakers games ticket revenues in terms of Lakers overall revenue,” according to CNBC senior sports reporter Michael Ozanian.
The Lakers also benefit from the recent jaw-dropping trade of Dallas Mavericks Slovenian superstar Luka Doncic. The team has lost fan favorites and key factors for Anthony Davis in the 2020s Championship Run, but Doncic is already crowded as an air to the Laker throne.
“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 be a competitor at least… Generally, the winning team is always “No, they tend to drive more fans and get higher ticket prices. They can earn more sponsorship income.”
Crosstown, despite much less praise for its name, rivals the Clippers, ranking eighth of the 30 NBA franchises at $5.4 billion.
At the heart of Clippers’ evaluation is the recently completed construction of The Intuit Dome, which is fully sponsored by owner Steve Balmer.
Unlike the Lakers, the Clippers generate revenue from every event and aspect of the stadium, making franchise money even during the offseason.
The dome is also the most refined in the world, featuring new facial recognition technology, the “Hello Board” jumbotron and an interactive fan wall experience.
How did Ozanian and CNBC decide on their ratings?
“Sports teams are valued based on double the revenue,” Ozanian said. “For example, NBA teams usually (worthy) between 10-13 times and 13 times (worthy) revenue. They have low NBA and NFL multiples.”
Ozanian said, “The reason you look at the multiple of revenue, not the multiple of revenue, depends on how much you pay the player. It may really shake up what your 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?
Both the Lakers and Clippers are preparing for the 2025 playoffs, where both intend to run deep. At the Western Conference, the Lakers are currently in fifth place and the Clippers are in sixth place.
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