FEATURE: The Most Valuable Teams In The NBA! [KingpinTV.net]

The NBA is one of the more profitable sports organizations, but just how much are these franchises really worth? Forbes.com released a list of 11 NBA teams that are worth over a billion dollars. See if your team made it.

Forbes reports that the average NBA team is worth about $1.1 billion dollars, which is a 74% jump from just last year. In 2014, the NBA made $4.8b in revenue (that’s about $160 million per team) including $350m from international buyers. Teams averaged about $23.1m in operating profit, with the exclusion of teams like the Los Angeles Lakers with $104m. And with multi-billion dollar network contracts – national and local – the league and teams have cashed in regardless of records and standings.

The Lakers top this year’s list with an estimated $2.6b in worth; up 93% from last year. They brought in $293m in revenue and even with a not-so-great previous season, they still got a check for $125m from their contract with Time Warner. The New York Knicks slide in at number two with a value of $2.5b; up 79%. Their income fell 45% this year and paid a hefty luxury tax bill ($36m), but they remain the team with the largest TV audience in the NBA. The Chicago Bulls ($2b), Boston Celtics ($1.7b) and Los Angeles Clippers ($1.6b) conclude the Top 5. New Clippers owner, Steve Ballmer, overspent on the team but his buy shot them up 178% in worth within a year.

Following them are the Brooklyn Nets, who are up for sale this year after taking a record hit of a $99m loss due to salaries and a $91m luxury tax bill. The Nets are worth $1.5b. In seventh place are the Golden State Warriors at $1.3b, trailed by the Houston Rockets ($1.25b), Miami Heat ($1.175), Dallas Mavericks ($1.15b) and the San Antonio Spurs ($1b).

It’s no wonder players are going for more than a hundred million dollars. Team owners are seeing a huge percentage of these billions, while the people actually making them relevant are getting a fraction of it. And here I thought, the players were greedy. Forbes’ Kurt Badenhausen says there’s also a huge tax break in a team purchase. He writes, “Owners can deduct the value of the intangible assets in the deal over 15 years after a transaction.” In laymen’s terms, they can subtract any trademarks, patents, copyrights etc… from what they owe the government which is basically the team “because 90% or more of the (team) purchase price can typically be deemed an intangible asset with a sports team,” Badenhausen concludes.

I think I’m in the wrong business. (Kamela)

 

Sources Cited:

Lakers Top 2015 List Of NBA’s Most Valuable Teams; Average Franchise Is Now Worth Record $1.1 Billion: Kurt Badenhausen, Forbes.com

Forbes: Team Values Rose 72 percent: Darren Rovell, ESPN.com

 

Leave a comment

Filed under News, sports

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s