NBA Franchise Values Soar as Warriors Claim Top Spot at $7.7B
According to Forbes’ annual list ranking NBA teams by financial valuation, the overall value of NBA franchises has seen a significant increase. The average NBA team is now worth $3.85 billion, a 35% spike from the previous year’s average of $2.86 billion.
Unsurprisingly, the Golden State Warriors top the charts as the most valuable NBA franchise, with a staggering value of $7.7 billion. The New York Knicks follow closely behind in second place, boasting a value of $6.6 billion, while the Los Angeles Lakers claim third place at $6.4 billion. Other noteworthy high-value franchises include the Boston Celtics ($4.7 billion), Los Angeles Clippers ($4.65 billion), and Chicago Bulls ($4.6 billion).
Two teams, in particular, experienced remarkable year-over-year valuation increases. The Charlotte Hornets, previously owned by Michael Jordan until its sale in June for $3 billion, witnessed a 76% surge in franchise valuation. The Denver Nuggets, reigning NBA champions, closely followed with a 75% increase, now valued at $3.38 billion, ranking 15th among all NBA teams.
In terms of the Cleveland Cavaliers’ franchise value, Forbes ranks them as the 16th most valuable NBA team, with a valuation of $3.35 billion. This represents a substantial 63% year-over-year increase from their previous value of $2.05 billion. In addition, Forbes reports that the Cavs generated revenues of $348 million and achieved an annual operating income of $78 million during the 2022-23 NBA season.
Since purchasing the Cavaliers for $375 million in 2005, owner Dan Gilbert has seen the franchise’s value increase almost nine-fold over his 18-year ownership. Forbes breaks down the Cavs’ valuation into four revenue categories: Sport, Market, Stadium, and Brand. The Sport category, accounting for revenue shared among all teams, contributes $1.396 billion (41.7%) to the franchise value. Market value, reflecting the team’s city and market size, adds $1.02 billion (30.4%). Stadium value amounts to $602 million (18%), representing the franchise’s arena, while Brand value contributes the remaining $333 million (9.9%).
Forbes’ complete list of NBA franchise valuations for 2023 can be found online.
