The NBA is arguably one of the most competitive leagues in the world. Not only that, the league also spends a fortune on the contracts of players. It, therefore, comes as no surprise when some of the richest athletes in the world come from the NBA.
While the financial might of soccer (football) teams in Europe, America, and other parts of the world is largely known, there is not much media buzz about the fortune of NBA teams. In this regard, Forbes has been releasing the list of the most valuable NBA teams. It released this year’s list on Thursday.
According to the American Business magazine, the NBA league is set to rake in $13 billion this season. Also, the average NBA team is worth $3.85 billion, an increase of 35% from a year ago and 75% higher than in 2019.
Forbes noted that one of the NBA’s growth areas is sponsorships which could see double-digit growth during the 2023-24 campaign.
One of the most valuable NBA teams, The Golden State Warriors, emerged as the league’s most valuable team for the second consecutive year at $7.7 billion, up 10% from a year ago. According to Forbes, the team made $765 million in revenue (net of arena debt service and revenue sharing during the 2022-23 season), 48% more than any other team. The Knicks ($6.6 billion) and the Los Angeles Lakers ($6.4 billion) are the other teams worth more than $6 billion.
On the methodology used, Fobes noted: “Revenue and operating income (earnings before interest, taxes, depreciation and amortization) are for the 2022-23 season and are net of revenue sharing and arena debt service and include revenue that team owners get from non-NBA events at their arena. Forbes uses revenue multiples to calculate team values (equity plus net debt) based on historical transaction multiples for controlling stakes in teams. All figures are in U.S. dollars based on the average U.S.-Canada exchange rates during the 2022-23 season. The information used to compile our valuations primarily came from interviews with teams, sports bankers and media consultants, as well as public documents, such as arena lease agreements and bond documents.”
Below are the 10 most valuable teams in the NBA:
The Golden State Warriors
Value: $7.7 billion
New York Knicks
Value: $6.6 billion
Los Angeles Lakers
Value: $6.4 billion
Value: $4.7 billion
Los Angeles Clippers
Value: $4.67 billion
Value: $4.6 billion
Value: $4.5 billion
Value: $4.4 billion
Value: $4.3 billion
Value: $4.1 billion