You may know that basketball is a popular sport. But do you know that the playing teams are earning buck load of money? Just take a look at these top 15 richest NBA teams.
If you ever wondered which the world’s richest NBA teams are, you have come ro the right place. We have your answer right here!
NBA players are known, among other things, for their wealth. But have you ever guessed how much their teams are actually worth? If you are thinking millions of dollars, scratch that thought.
According to Forbes, the average NBA franchise’s worth is around $1.25 billion. Yep, you read it right. Billions of dollars. And they are only getting higher and higher. In fact, that value has gone up 13% in 2015 compared to the previous year. We have only four more months to wait and see how much that percentage will grow this year.
NBA teams are owned mostly by successful businessmen who know how to greatly increase the value of their investments. So, let’s not waste any more time. Let’s take a look at the world’s richest NBA team according to their current business value.
15. Portland Trail Blazers – $975 million
We start the list off with Portland Trail Blazers. This team is owned by Paul Allen who purchased it for $70 million in 1988. The current value of the Trail Blazers is $975 million, which is 4% higher than the previous season’s value.
The majority of that value comes from the NBA itself ($346 million). And the rest is spread almost evenly among market, stadium, and brand.
During last season, the team generated $157 million of revenue. From that, the total operating income (before interest, tax, etc.) is $4.1 million. However, it still owes around 11% of debt.
Despite losing 80% of their starting lineup squad, fans are still rooting for the team. This is reflected by the level of ticket renewals which is 97%. That is the fifth highest among other NBA teams.
14. Toronto Raptors – $980 million
Bell Canada and Rogers Communications share the ownership of Toronto Raptors since 2012. They purchased the team for $400 million. And the actual value of the team is $980 million. That is good investment, right there.
The value has raised 7% since the last season. That is not all. Despite owing 12% of debt, the Raptors also generated $163 million of revenue and $23.5 million of operating income.
Even though it has not yet won any championships, the market seems to have good interest on the team. It is proven by the $300 million of its value which comes from the market.
The fans have even higher level of interest. Last year, the team’s season tickets were sold out. It is all because of its strong start in the beginning of the season. In addition to that, it also got new sponsors. That only means more money into the pocket.
13. Phoenix Suns – $1 billion
We touchdown to the first billion with the Phoenix Suns. The team’s current value is indeed $1 billion, 10% higher than last season’s. It comes from two major sources, NBA and market, splitting around $300 million each.
Robert Sarver bought the Suns for $404 million in 2004. During last season, the team generated $154 million of revenue and $21.8 million of operating income. This is actually lower than what the previous team has earned.
One of the reasons why is probably the amount of debt the team owes. Compared to its value, the debt is 18%. That number is the highest among all teams on our list.
In spite of those, the Phoenix Suns’ arena just got a new sponsor, Talking Stick, replacing the previous one.
12. Cleveland Cavaliers – $1.1 billion
When LeBron James came to Cleveland Cavaliers in 2014, he did not just bring his skills to help the team win. He also brought the money train along with him, especially sponsors, tickets revenue, and market’s interest.
Among the team’s $1.1 billion valuation, most of them comes from the market ($429 million). And without even raising the tickets’ price, the revenue was boosted up to 40% from pre-LeBron era.
The total revenue the team earned last season was $191 million. On top of that, there was also $24.8 million of operating income. After its success last season, those numbers will only get higher if the achievements can be maintained.
Dan Gilbert bought the Cleveland Cavaliers in 2005. He only paid $375 million for this billion-dollar team.
11. San Antonio Spurs – $1.15 billion
San Antonio Spurs has a value of $1.15 billion. Most of it comes from the market, which is $413 million. Despite the team’s success, winning the championship five times, the value of its brand is only $132 million.
Perhaps that is the only number disagreeing with the team’s success because the team’s television rating is the highest among any other team. In addition to that, it generated $170 million of revenue and $31.9 million of operating income.
Peter Holt should be satisfied by those numbers. Especially considering the fact that he only paid $76 million to purchase the team in 1996.
The team still owes 7% of debt, though. Perhaps they are not thinking to clear them out yet judging from the $110 million spent on renovating the arena recently.
10. Miami Heat – $1.3 billion
Miami Heat’s value temperature rose up 11% from previous season’s to $1.3 billion. Having won three championships and catchy awesome name, it should come as no surprise that this team’s biggest value is within the market.
Micky Arison, the team’s owner, probably had seen this coming. That could be why he decided to buy it in 1988. Back then, he only had to pay $33 million. Even after inflation, that is still way less that the team’s current value.
Last season, the Heat warmed a total of $180 million of revenue and $20.8 million of operating income. That is a little low considering its amount of revenue. Perhaps paying nearly $100 million for the players’ salary is one of the reasons why.
On the downside, the team owes 7% of debt. In addition to that, it is struggling after LeBron James left to Cleveland Cavaliers.
9. Dallas Mavericks – $1.4 billion
Mark Cuban was laughed at sixteen years ago when he decided to buy the Dallas Mavericks. He spent $280 million to own the team in the year of 2000. That purchase set NBA’s record for a team that hadn’t been successful in getting to the playoffs.
But who is laughing now? This team is worth a total of $1.4 billion today. Most of that value comes from the market ($481 million).
Despite owing 8% of debt, the team managed to generate $177 million of revenue last season with $24.3 million of operating income.
The Dallas Mavericks, also known as the Mavs, is also definitely one of the most stable franchises in the NBA world. In the last fifteen years, the team has always made it to the playoffs except for one season.
8. Houston Rockets – $1.5 billion
Next up on our list of richest NBA teams is the two times championship winner, Houston Rockets. With $1.5 billion of value, this Houston has got no problem.
The team has a staggering market value of $669 million. That is more than a third of its total value. Another big source of that is from the stadium (worth $408 million).
The owner of Houston Rockets is Leslie Alexander who bought it in 1993 for $237 million. Although, the team still owes 7% of debt.
Last season’s success boosted the team’s popularity especially on television rating and arena attendance. The tickets revenue increased 44% compared to the previous season. The average home attendance, 18,229, also set a new record for the team itself.
That is not the only success the team had last season. It managed to generate $237 million of revenue and bagged a sweet $74.6 million of operating income.
7. Brooklyn Nets – $1.7 billion
$611 million of market’s value and $554 of stadium’s value put Brooklyn Nets 7th on our list with $1.7 billion of team value. With $220 million revenue generated from last season, you would think that the team cashed in sweet profit.
It surprisingly did not.
In fact, the Nets has just lost $5.7 million of operating income. Its 15% debt might have something to do with it. However, the biggest factor comes with the team’s struggle in the competition.
The numbers of attendance drawn to their home arena is the NBA’s third lowest so far. Apparently, a little bit of boost in marketing is needed.
Mikhail Prokhorov, the owner of Brooklyn Nets, is certainly the one hoping for better revenue and income. Obviously, this is not what he had in mind when he bought the team for $365 million six years ago.
6. Golden State Warriors – $1.9 billion
Golden State Warriors might have won the championship for four times so far, but the latest one was the first in 40 years. With such success, it should come as no surprise that one of its players, Stephen Curry, is the current NBA Most Valuable Player (MVP).
For two seasons in a row, the home tickets for the team’s every game were sold out. Plus, there are more than 10,000 people on waiting list to get their hands on the season ticket.
With $201 million of revenue and $57.6 million of operating income those are just icing on the cake. Even 13% of debt will not ruin the party.
Joe Lacob and Peter Guber are the owners of Golden State Warriors. They bought it for a staggering $450 million in 2010. Well, it seems to be a good investment decision now considering its $1.9 billion value.
5. Los Angeles Clippers – $2 billion
Los Angeles Clippers, also known as Clippers or Lob City, was founded in 1970 as the Buffalo Braves.
In August 2014, former Microsoft CEO, Steve Ballmer, purchased the Clippers from Donald Sterling for $2 billion, which was the highest bid. The team also has the same amount of value today which is 25% higher than the previous season. Most of it comes from the market.
Last season, the Clippers managed to generate $176 million of revenue. That is quite low compared to others, especially with the fact that it is the fifth riches NBA team.
Nevertheless, it was successful in gaining $20.6 million of operating income. In addition to that, the team has zero percentage of debt.
4. Boston Celtics – $2.1 billion
Boston Celtics is currently owned by Boston Basketball Partners LLC. It is consists of four people: Wycliffe Grousbeck, Robert Epstein, Irving Grousbeck, and Stephen Pagliuca. They bought it for $360 million in 2002.
The team’s value has gone up 24% compared to the previous season. It is $2.1 billion now. Almost half of it is the market value.
The home arena, TD Garden, is a shared venue with the National Hockey League’s Boston Bruins. That could only mean less money for the rent, and more for the income.
Last season, the Celtics managed to generate $181 million of revenue. Along with that, it got $57.4 million of operating income. The only down part is the 8% of debt that the team still owes.
3. Chicago Bulls – $2.3 billion
Chicago Bulls was the home of the legendary Air Jordan‘s owner, Michael Jordan. Jerry Reinsdorf, the team’s owner, was there to witness his greatness all along since he bought it in 1985 with $16 million out of his pocket.
Today, the team has $2.3 billion of value. Most of it comes from the market ($954 million). That is 15% higher than the previous season.
During last season, the Bulls generated $228 million of revenue and $67.6 million of operating income. However, it still owes 2% of debt.
Founded in 1966, it had the greatest success during the 1990s. The 1996’s Chicago Bulls was arguably the best team ever competed in NBA. The team won six championships between 1991 and 1998, plus two three-peat. Also, it is the only team in NBA history to win 70 games or more in a single season.
2. Los Angeles Lakers – $2.7 billion
Based in Los Angeles, California, the LA Lakers is definitely the Hollywood of NBA. However, the team’s glamor does not come with nothing. The Lakers has won sixteen championships. No other team is even close to that achievement.
Today, the Lakers has $2.7 billion of team value. That is just slightly higher than the previous season. Surprisingly, the team’s sport value is only $38 million. The billions of dollars mostly come from the market ($1.6 billion).
Jerry Buss Family Trusts bought the Lakers for $20 million in 1979. Later on in 1998, he shared the ownership with Philip Anschutz for $268 million. That is another smart investment.
However, the team’s last two seasons did not support that idea. Two years ago, Lakers was the richest NBA team. After that, it has been Lakers’ worst franchise, especially after Kobe Bryant’s retirement. Nevertheless, there was a total of $304 million revenue and $133.4 million of operating income generated last season.
1. New York Knicks – $3 billion
And the richest NBA team is, drum roll please, the Knicks. The New York’s pride team is owned by Madison Square Garden Company that bought it for $300 million in 1997. Now, it has a staggering value of $3 billion. That is 20% more compared to previous season’s value. On top of that, the team has no debt to clear.
The majority of the team’s value, almost half of them, comes from the market. The ticket revenue itself doubled the brand income with almost $1 billion.
During the previous season, New York Knicks generated $307 million of revenue. Before tax, interest, and others, the operating income was $108.9 million. That is actually lower than LA Lakers’.
Here is a little bit of information about the team. It was established in 1946 by Ned Irish, one of the founding members of NBA (formerly known as BAA, Basketball Association of America, before 1949).
So, is your team one of the richest NBA teams in the world?
