Forbes released their NBA franchise values for 2021 and the list looks a little bit different this year.
The Knicks still hold onto the No. 1 spot for the sixth straight year despite what occurs on the court, but the No. 2 spot belongs to someone other than the Los Angeles Lakers for the first time since 1999.
The Golden State Warriors have jumped up to the No. 2 most valuable franchise in the NBA, worth an estimated $4.7 billion, becoming the first team to claim that spot since the Chicago Bulls.
According to Forbes, team values (equity plus net debt) were calculated based on the economics of each team’s current arena deal. If a team has a new arena, media deal or sponsorships agreement set to kick in after the 2019-20 season, it estimated its impact on the enterprise value. Income statements and franchise values included revenue that team owners received from non-NBA events at their arena.
While revenue dropped league-wide due to the pandemic, many teams still found themselves with rather successful years, with every team delivering a positive operating income, per Forbes.
Here is how the list shaped out.
New York Knicks, $5 billion
The Knicks may not put the best product on the court, but James Dolan certainly knows how to make money. The Knicks had a revenue of $421 million and operating income of $178 million, both of which were the second-highest of all NBA teams, as well as a nine percent year-over-year increase from last year’s $4.6 billion valuation.
The $5 billion valuation also makes the Knicks just the third team, joining the Dallas Cowboys and New York Yankees, to reach the $5 billion threshold. How are the Knicks so successful? Their lucrative local TV deal plus Madison Square Garden recently underwent a $1 billion renovation.
Golden State Warriors, $4.7 billion
Owner and venture capitalist Joe Lacob has led an incredible transformation of the Golden State Warriors since purchasing a stake in the team for $450 million in 2010. The team opened a new $1 billion arena in the Chase Center last year, and despite only playing 34 games in their new home, the Warriors had an NBA-record $474 million in revenue last season.
Forbes estimates that in a normal season, including one series of playoff games, that revenue figure could top $700 million.
Los Angeles Lakers, $4.6 billion
Despite winning the NBA Finals last year, the team’s value falls a tad short of holding onto the No. 2 spot. Still, the Lakers had an operating income of $155 million and their $200 million local TV deal certainly goes a long way and will continue to keep Los Angeles toward the top of the list.
Chicago Bulls, $3.3 billion
The Bulls join the Lakers, Warriors and Knicks as the only team to have an estimated operating income north of $100 million – approximately $115 million, per Forbes. While the franchise has not been able to quite recapture the magic from the Michael Jordan years, owner Jerry Reinsdorf has kept the Bulls a money-making machine since he bought the franchise for $16.2 million in 1985.
Boston Celtics, $3.2 billion
The Celtics made a modest 3% year-over-year increase from their $3.1 billion valuation last year, where they also ranked fifth. Last summer, minority owner Jim Pallota sold his 8% stake of the team in a deal that valued the franchise at $2.8 billion. The Celtics were also one of the first teams to ink a jersey patch deal. They currently have a multi-year deal with e-commerce firm Vistaprint. On the court, Boston remains a perennial playoff contender and one of the most storied franchises in the NBA.
Los Angeles Clippers, $2.75 billion
The Clippers continue to rise above the $2 billion mark ever since former Microsoft CEO Steve Ballmer bought the team for that price in 2014. Last spring, Ballmer purchased The Forum in Inglewood for $400 million, which cleared him from a legal battle with Knicks owner James Dolan, whose Madison Square Garden Company owned The Forum.
The purchase will allow Ballmer to build a new billion-dollar arena for the Clippers targeted for a 2024 opening, which would give them their own home and space away from the Lakers, whom they currently share the Staples Center with, along with the NHL’s Los Angeles Kings.
Brooklyn Nets, $2.65 billion
Joseph Tsai may have bought the Nets for $3.2 billion, but Forbes estimates their value at $2.65 because Tsai paid nearly $1 billion for a money-losing arena business. The Nets have brought in big-time stars such as Kyrie Irving, Kevin Durant and James Harden, which has the team with the second-highest payroll playing in a season with no fans.
The Nets’ operating income was the lowest of all Forbes’ teams in the top 10 at $44 million. They do continue have a strong local TV deal with the YES Network, though, where ratings are up due to the infusion of talent.
Houston Rockets, $2.5 billion
The Rockets underwent some significant changes in personnel on the court and in the front office recently, but owner Tilman Fertitta still has a strong brand for the team he paid $2.2 billion for in 2017. Their valuation is up slightly from $2.475 billion that Forbes estimated last year. The Rockets were hurt last year not just from the pandemic, but also after China suspended business with the Rockets, refusing to televise their games due to former GM Daryl Morey’s tweet.
Dallas Mavericks, $2.45 billion
The Mavericks have not won a playoffs series since 2011 when they won the NBA Finals, but that is not stopping people from coming out to support the team. Per Forbes, Dallas led the NBA with the highest attendance total during the 2019-20 season (682,096) and set a record 815 sellouts last February.
The limited fan attendance in 2021 may hurt the Mavericks more than most other teams, but gate receipts were still only $53 million of the $295 million revenue the team brought in last year.
Toronto Raptors, $2.15 billion
The Raptors are in a unique situation where they actually are not playing their games in Toronto, but rather Amalie Arena in Tampa, Fla. due to Canada’s COVID-19 restrictions. This is good news for players like Fred Van Vleet, who signed an $85 million deal and will now get an income tax break.
Toronto has been valued above $2 billion since winning an NBA Finals championship in 2019, and their 20-year, $640 million sponsorship deal with Scotiabank for their arena’s naming rights has their sponsorship revenue near the top of the league, according to Forbes.
Philadelphia 76ers, $2.075 billion
Miami Heat, $2 billion
Portland Trail Blazers, $1.9 billion
San Antonio Spurts, $1.85 billion
Sacramento Kings, $1.825 billion
Washington Wizards, $1.8 billion
Phoenix Suns, $1.7 billion
Utah Jazz, $1.8 billion
Denver Nuggets, $1.65 billion
Milwaukee Bucks, $1.625 billion
Oklahoma City Thunder, $1.575 billion
Cleveland Cavaliers, $1.56 billion
Indiana Pacers, $1.55 billion
Atlanta Hawks, $1.52 billion
Charlotte Hornets, $1.5 billion
Orlando Magic, $1.46 billion
Detroit Pistons, $1.45 billion
Minnesota Timberwolves, $1.4 billion
New Orleans Pelicans, $1.35 billion
Memphis Grizzlies, $1.3 billion
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