On the latest Sporticast episode, hosts Scott Soshnick and Eben Novy-Williams chat with Sportico valuations expert Kurt Badenhausen about his latest NBA rankings. The average NBA team is now worth $4 billion, up 33% from last year.
The Golden State Warriors top the list at $8.28 billion, followed by the New York Knicks ($7.43 billion), the Los Angeles Lakers ($7.34 billion) and the Boston Celtics ($5.12 billion). The New Orleans Pelicans are last at $2.72 billion.
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The trio talks about what’s driving valuations, including real estate opportunities and franchise scarcity. The big jumps have come amid a lot of uncertainty in media—the main driver of sports revenue over the past few decades—both at the local level, and at the national level. The NBA is currently negotiating its next round of national TV deals, which will be a good litmus test for the league’s financial health.
Mat Ishbia’s $4 billion purchase of the Phoenix Suns is widely considered to have reset the market for NBA team values, but Badenhausen makes the argument that a different NBA transaction was more impactful. Michael Jordan recently agreed to sell the Charlotte Hornets, one of the league’s least valuable franchises, in a $3 billion deal. That raised the floor for all the bottom teams, Badenhausen says. At the bottom of the league, the Pelicans value jumped 67% in the past year. The Timberwolves jumped 73%, while the Grizzlies jumped 69%.
Lastly, the trio talks about looming NBA expansion. The league will likely wait until after the new national TV deals to begin that process, which should maximize value. The two cities seem to have consensus—Las Vegas and Seattle—but the expansion price is likely rising by the day. Badenhausen says $4 billion is in the rearview mirror, and Soshnick says $5 billion is now realistic.
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