SAN FRANCISCO (KCBS RADIO) – Back in 2010, Joe Lacob and Peter Guber bought the Golden State Warriors for then-record $450 million. Twelve years later and the franchise has now appreciated to a valuation worth $7 billion, which is tops in the NBA, according to the new rankings published by Forbes Thursday.
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Buoyed by the success of their latest championship season, the Warriors have now surpassed the iconic New York Knicks ($6.1 billion) as the NBA's most valuable franchise. The Los Angeles Lakers ($5.9 billion) checked in at third on the list.
"The money part's great. It's a sense of value," Warriors president of basketball ops/GM Bob Myers told 95.7 The Game's 'Steiny & Guru'. "But I look at it more as far as our brand and how respected it is."
Even in today's big-money landscape of basketball, Golden State's 25 percent leap from last year's $5.6 billion valuation is remarkable, as they were No. 2 in the rankings behind the Knicks ($5.8 billion). This marks the first time in more than two decades that the Knicks or Lakers haven't occupied the top spot, so the Warriors might have popped some more champagne at Chase Center Thursday morning.
Led by superstar Steph Curry, Golden State is outpacing the league with four titles in eight years and also on another level when it comes to capitalizing on the team's marketable brand. According to Forbes, the Warriors led the league in revenue ($765 million) and operating profit ($206 million), buoyed by NBA-best sales in premium seating ($250 million) and advertising ($150 million) – which was double the next closest team.
"Steph got a piece of that?" Andre Iguodala asked reporters Thursday. "I would hope so."
The Warriors have invested in their product and are seeing gigantic returns, which has only boosted further interest and morale among the global fan base. Golden State finds itself in the financial cycle of success. Spend more money, get more money, spend more money, get more money. Chase Center is also a cash cow and the team recently launched Golden State Enterprises to further foray into the entertainment and music market.
The ownership group has been willing to dip deep into luxury tax penalties to win at all costs and keep their championship core together. Recent extensions to Jordan Poole (four years, $123 millIon) and Andrew Wiggins (four years, $109 million) put the framework in place for the Warriors to keep 12 players together for the next two seasons.
The 2023-24 player payroll could eventually top $500 million under the current CBA structure, though the Warriors have been vocal about their desire to get a tax break for homegrown, team-drafted players that stay with the franchise.
Not to mention the NBA is expected to have a new media deal in place before the 2025-26 season, which will give teams more money to spend. The current cap sits at $123.7 million and the luxury tax kicks in at $150.3 million. The 2025-26 cap could jump to $171 million, according to Forbes.
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