NBA team’s valuations
reach new heights

More wholistically however, the league has experienced an impressive increase in average team valuations, soaring by 35% in just one year to an eyewatering $3.85 billion.

Forbes attributes this remarkable growth to the NBA’s strategic focus on sponsorship deals, witnessing “double-digit growth” as the 2023-24 season approaches. Franchises are capitalizing on jersey patch deals, and a groundbreaking in-season tournament, commencing this November, is carving a path for more new sponsorship opportunities.

The sale of the Phoenix Suns for $4 billion and Michael Jordan’s $3 billion deal for the Charlotte Hornets underscore this upward trend. Furthermore, the league’s revenue breakdown for 2022-23 reveals media as the major contributor, constituting over half (50.47%), while overall revenue has seen a 6% increase, averaging $353 million per team.

Despite a 22% dip in operating income due to expanding salary caps, the NBA’s growth trajectory remains robust. The league is gearing up for a game￾changing media rights renegotiation post 2024-25, with a reported valuation target of $50 billion to $75 billion, a 212% increase from the current $24 billion deal. If successful, this renegotiation could significantly boost team valuations, with Forbes estimating an average surge to a valuation of $4-5 billion. Adding to the excitement, reports suggest the NBA is eyeing expansion teams in Las Vegas and Seattle, promising a substantial entry fee windfall for existing franchises.

The NBA’s future looks bright, with lucrative media deals and potential expansion, ensuring a slam dunk for teams and investors alike.