Total Value: The sum of the market value of an NBA franchise combined with the value of team-related businesses and real estate holdings.

Team Value: NBA franchise valuation, derived from metrics by which basketball-team transactions occur, including aggregating local and national revenues and factoring in a team-specific multiplier. This represents the market value of the team itself, excluding related businesses held by its owners.

Team-Related Businesses and Real Estate Holdings: The value of a franchise or franchise owner's equity in team-related businesses—that is, both those on the team's balance sheet and held in distinct corporate entities—as well as government-assessed real estate related to venue, practice facilities and adjacent developments. Examples include: the Boston Celtics' 20% interest in NBC Sports Boston, a regional sports network; and the Dallas Mavericks' four subsidiaries, which own 11 parcels of land. Also included are WNBA franchises for the seven teams that share common ownership with an NBA club. For franchises that do not own their arenas, the value of a team's lease—often with advantageous terms negotiated with municipal or state authorities—is captured in the Team Value category.

Total Team Revenue: Cumulative amount of National Revenue and Local Revenue for the last three seasons: 2021-22, 2022-23 and 2023-24. Business was still disrupted during the 2020-21 season by the COVID-19 pandemic. The business of the NBA was largely back to normal for the 2021-22 season, although the concert business continued to be impacted. The Toronto Raptors remained the most affected franchise by COVID-19 and played 12 games at Scotiabank Arena with no fans in the building. All revenue figures are net of revenue sharing.

National Revenue: Each franchise's equal proportion of league-shared revenue, derived predominantly from NBA contracts with media and advertising partners. This consists of:

(i.) National media (broadcast deals with SiriusXM Radio, Walt Disney Company and WarnerMedia; distributions related to NBA League Pass pay-per-view; sum-total of international and other broadcast agreements).

(ii.) League sponsorship (e.g., AT&T, American Express, Emirates, Google and Nike) and licensed merchandise royalties (through league subsidiary NBA Properties).

(iii.) Distributions and dividends related to NBA Media Ventures (the league's digital media arm, which incorporates some retail operations), NBA TV (a cable television channel owned by the league and operated by WarnerMedia), NBA China and NBA Africa.

Local Revenue: Revenue generated by each franchise independent of league distributions. This is composed of:

(i.) Arena, which includes: ticket sales; premium seating (luxury suite leases and club seating); parking; team's share of concessions; and non-basketball ("third-party" or "marquee") events when venue is controlled by team.

(ii.) Sponsorship, which includes: naming rights, advertising, corporate partnerships and local merchandising (distinct from league licensing royalties in National Revenue).

(iii.) Media, which includes local TV and radio (e.g., for the Brooklyn Nets: YES Network and WFAN-AM/FM).

Full Transparency

Sportico is committed to transparency, including provision of detailed methodology and sourcing information below. For any additional questions, please contact sports valuations reporter Kurt Badenhausen at kbadenhausen@sportico.com.


Fair Market Franchise Valuations

To derive the market value of the 30 NBA franchises, Sportico calculated each team's revenue relying on publicly available information and financial records—as well as interviews with those knowledgeable of team finances, including sports bankers and attorneys who actively work on NBA transactions. In the interest of accuracy, we traded candor for anonymity. This information was vetted by multiple owners, along with team or parent company CEOs, presidents, chief financial officers, media relations personnel, industry experts and investors.

Revenue totals were then subject to a team-specific multiplier, which, based on interviews with multiple sports bankers, remains the only reliable manner by which transactions occur, due to dramatic fluctuations of earnings before interest, taxes, depreciation and amortization (EBITDA), year-over-year, based on salary cap spending and special expenses.

The team-specific multipliers were based on several factors, including: historical sales, market (size, saturation and interest by prospective owners), strength of brand, on-court performance (historical and recent), terms of facility lease, debt burden and expected future team and league economics. Multiples averaged a new high of 11.9 ahead of the league's new $77 billion kicking in for the 2025-26 season. In 2020, the Utah Jazz sold for roughly six times revenue, while the three team sales completed in 2023 were at an average of 11 times revenue.

Revenue was calculated based on analyses of data from industry sources and reports, as well as interviews with experts and those with knowledge of team and league finances (detailed below); together, this comprised hundreds of inputs of confirmed and estimated information from dozens of sources, which were amalgamated and presented to each team for review and comment.

Sportico's revenues and valuations take into account league revenue sharing. In the NBA, 10 teams pay into revenue sharing to be distributed to low-revenue clubs under a complicated formula that boosted revenue at those clubs by nearly $400 million for the 2023-24 season. The pool is supplemented with 50% of luxury-tax payments. High payroll teams paid more than $500 million in taxes for the 2023-24 season. The increased luxury tax contribution helped offset the revenue-sharing bill for some teams like the Warriors and New York Knicks.


NBA Franchise Review and Comments

Among the 30 NBA franchises, 10 teams participated with Sportico by providing or validating financial information; in total, 20 teams responded to our inquiries.


Financial and Industry Sources

Team and league financial information was derived from the following sources: NBA bond ratings by Fitch Ratings (including for the NBA itself, as well as affiliates Basketball Funding LLC and Hardwood Funding LLC); Security and Exchange Commission filings for Madison Square Garden Sports Corp. (multiple 10-Ks), as well as those of related entities of Madison Square Garden Entertainment; the 2017 and 2023 NBA-NBPA Collective Bargaining Agreements; and analyses of historical team sales from 1999 to 2023, based on Sportico research.

Industry data sources include: the Association of Luxury Suite Directors (for club and luxury suite capacity, occupancy and pricing); Team Marketing Report (fan spending and ticket pricing information); individual team and sponsor websites; Chris Bigelow of the Bigelow Companies (per capita spending on stadium concessions); S&P Global Market Intelligence (subscriber, revenue and cash flow data pertaining to regional sports networks); the Canadian Radio-television and Telecommunications Commission's Discretionary and On-Demand Service data (pertaining to two separate TV outlets owned or partially owned by Toronto Raptors' parent entities).


Government Sources

Sportico included government property appraisals to assess team-owned real estate with consistency.. Sources included: City and County of Denver Property Appraisal System (Colorado); City of Milwaukee, Property Assessment Database (Wisconsin); City and County of San Francisco, Office of Assessor-Recorder (California); Cook County Assessor's Office (Illinois); Dallas Central Appraisal System (Texas); District of Columbia Office of Tax and Revenue; Fulton County Board of Assessors (Georgia); Hennepin County Property Information (Minnesota); Los Angeles County Property Assessment Informational System (California); Multnomah County Property Value and Tax Graphs (Oregon); Salt Lake County Assessor (Utah); Toronto Real Estate Board (Ontario); and Maricopa County Assessor's Office (Arizona).

Many of the NBA-related business values are for ownership stakes in arenas, practice facilities and surrounding real estate. Below are notes on nine teams with caveats.

• Brooklyn Nets: Valuation includes the Barclays Center's operating company, BSE Global, which team owner Joseph Tsai purchased in tandem with the franchise in a two-tranche transaction from 2018 to 2019, along with the WNBA's New York Liberty.

• Chicago Bulls: The Bulls and MLB's Chicago White Sox share common ownership, which, in turn, owns a stake in Chicago Sports Network, a regional sports network that airs many of those teams' games. For purposes of this valuation, that 50% allotment was ascribed a 30:20 attribution in the White Sox' favor, given that there is more inventory dedicated to baseball games over the course of a broadcast year.

• Denver Nuggets: Stan Kroenke and his family own both the Nuggets and NHL's Colorado Avalanche. The team's related business value is largely derived from a 50% interest in Ball Arena and its real estate. Sportico did not attribute any value to Kroenke Sports & Entertainment's money-losing RSN, Altitude Sports & Entertainment.

• Golden State Warriors: The value of the Warriors-owned Chase Center, as assessed by the City and County of San Francisco, has been included within the team-related business category. The Warriors, as sole owners of the venue, have the authority to sell it at their discretion. The valuation also includes the real estate outside Chase Center that is owned by the team. Other related businesses include Golden State Entertainment and the team's WNBA expansion franchise.

• Los Angeles Clippers: The Clippers moved into the Intuit Dome for the 2024-25 season, which will increase revenue dramatically for the team. Sportico included a partial valuation of the arena in the Clippers' related business value, and a full government assessment should be available next year.

• Philadelphia 76ers: The 76ers and the NHL's New Jersey Devils share common ownership. Unlike five other teams with shared NBA-NHL ownership, however, all ancillary businesses that affect valuation are in this case on a single team's book—the 76ers. As a result, the value of these entities is not split among the two teams and is instead allocated as basketball-related businesses. This includes stakes in Dignitas eSports, Elevate Sports Partners (a sports management company in partnership with the NFL's San Francisco 49ers), the Harris Blitzer Sports & Entertainment Venture Fund I, Harris Blitzer's Innovation Lab and real estate.

• Toronto Raptors: The valuation of the team's interest in regional sports media includes two components: Equity ownership of NBATV Canada (formerly Raptors NBA TV, solely owned by the Raptors' parent entity, Maple Leaf Sports and Entertainment); and the value that the Raptors represent to team co-owner Rogers Communications' cable TV network, Sportsnet One, based on analyses of financial and programming data. Team-related property (split where applicable with a sister entity, the NHL's Toronto Maple Leafs, and two real estate development joint-venturers, Cadillac Fairview Corporation and Lanterra Developments) were assessed using the currency exchange rate as of Dec. 8, 2023.

• Washington Wizards: The valuation of the team's interest in regional sports media includes two components: ownership's stake in the recently rebranded Monumental Sports Network, which was fully acquired by Monumental Sports & Entertainment in 2022; and to a far lesser extent, the value of the streaming platform Monumental Sports Network that is attributable to the Wizards. The value of Capital One Arena was split equally with a sister entity, the NHL's Washington Capitals. The city owns the land on which the arena was built. The WNBA's Washington Mystics are also part of this valuation.