The NBA is often regarded as one of the most competitive leagues in the world. Not only that, but the league spends a fortune on player contracts. As a result, it is not surprising that some of the richest athletes in the world are from the NBA.
While the financial might of soccer (football) teams in Europe, America, and other areas of the world is widely recognized, there is little media coverage of NBA teams’ fortunes. In this regard, Forbes has published a list of the most valued NBA franchises. It announced the list for this year on Thursday.
The NBA league is expected to earn $13 billion this season, according to American Business magazine. In addition, the average NBA club is worth $3.85 billion, up 35% from a year ago and 75% from 2019.
According to Forbes, one of the NBA’s development areas is sponsorships, which might expand by double digits during the 2023-24 season.
The Golden State Warriors, one of the most valued NBA teams, were named the league’s most valuable team for the second year in a row, with a valuation of $7.7 billion, up 10% from the previous year.
Forbes reports that the team earned $765 million in income (net of stadium debt repayment and revenue sharing) during the 2022-23 season, 48% more than any other team. The other teams worth more than $6 billion are the New York Knicks ($6.6 billion) and the Los Angeles Lakers ($6.4 billion).
Below are the 10 most valuable teams in the NBA:
1. The Golden State Warriors – $7.7 billion
2. New York Knicks – $6.6 billion
3. Los Angeles Lakers – $6.4 billion
4. Boston Celtics – $4.7 billion
5. Los Angeles Clippers – $4.67 billion
6. Chicago Bulls – $4.6 billion
7. Dallas Mavericks – $4.5 billion
8. Houston Rockets – $4.4 billion
9. Philadelphia 76ers – $4.3 billion
10. Toronto Raptors – $4.1 billion
According to Fobes, the formula employed is as follows: revenue and operational income (profits before interest, taxes, depreciation, and amortization) are for the 2022-23 season and are net of revenue sharing and arena debt service, as well as money from non-NBA events at club owners’ arenas.
Forbes calculates team values (equity + net debt) using revenue multiples based on previous transaction multiples for controlling holdings in teams. All statistics are in US dollars and are based on average US-Canadian exchange rates for the 2022-23 season. Our estimations were mostly based on interviews with teams, sports bankers, and media consultants, as well as public papers such as arena lease agreements and bond documents.