Despite winning the 2020 NBA championship, becoming the biggest show in the league after a magical season, the Los Angeles Lakers were seized by the Golden State Warriors as the second most valuable team in the league this year.
In contrast, the Warriors aren't having a good season, struggling to get the results that can take them to the postseason. Losing Klay Thompson affected the team but having Stephen Curry helps the team to remain competitive. Still, Kurt Badenhausen and Mike Ozanian of Forbes broke down the list of the most valuable teams in the NBA for this year and the Dubs have surpassed the purple and gold for the 2nd position.
To see the allure of an investment in the NBA, look at downtown San Francisco. That’s where the Golden State Warriors opened the $1 billion Chase Center, after nearly a decade of anticipation. The arena, which opened five months ahead of a debilitating pandemic, was also just in time for the team’s worst season since 2000-01: After five straight visits to the NBA Finals, the Warriors delivered the league’s worst record in 2020 while two-time MVP Stephen Curry missed all but five games with injuries.
Venture capitalist Joe Lacob led an investment group that paid $450 million in 2010 for the team, which posted an NBA-record $474 million in revenue last season, net of arena debt and revenue-sharing payments, with only 34 home games. In a normal season, including one round of playoff games and a sold-out arena, that figure will top $700 million.
The Warriors are the first team since the 1999 Chicago Bulls to break the chokehold the New York Knicks and the Los Angeles Lakers have held at the top of the ranking of the NBA’s most valuable teams. The Warriors jumped one place to No. 2 with an enterprise value of $4.7 billion, knocking the $4.6 billion Lakers to third. The Knicks, at $5 billion, take the No. 1 spot for the sixth straight year.
The New York Knicks remain at the top of the list, being one the only team in the association worth $5 Billion, while the Warriors ($4.7B), Lakers ($4.6B), Chicago Bulls ($3.3B) and Boston Celtics ($3.2B) close the top 5.
Golden State comes from the worst season in their recent history last season but you can say that ended up being beneficial for them, while the Lakers climbed all the way to the top and are 3rd on the list now. Badenhausen and Ozanian explained their procedure and how they came up with this list:
Revenue and operating income are for the 2019-20 season and net of revenue sharing and arena debt service. We use revenue multiples to calculate our team values (equity plus net debt) based on the economics of each team’s current arena deal. Our appraisals are what we think the team would sell for. So while Tsai paid $3.2 billion for the Nets, we think the team is worth more like $2.65 billion because he paid around $1 billion for a money-losing arena business. If a team has a new arena, media deal or sponsorship agreement set to kick in after the 2019-20 season, we estimate its impact on the enterprise value. Our estimated income statements and franchise values include revenue that team owners get from non-NBA events at their arena.
The complete list:
1. New York Knicks $5 billion
2. Golden State Warriors $4.7 billion
3. Los Angeles Lakers $4.6 billion
4. Chicago Bulls $3.3 billion
5. Boston Celtics $3.2 billion
6. Los Angeles Clippers $2.75 billion
7. Brooklyn Nets $2.65 billion
8. Houston Rockets $2.5 billion
9. Dallas Mavericks $2.45 billion
10. Toronto Raptors $2.15 billion
11. Philadelphia 76ers $2.075 billion
12. Miami Heat $2 billion
13. Portland Trail Blazers $1.9 billion
14. San Antonio Spurs $1.85 billion
15. Sacramento Kings $1.825 billion
16. Washington Wizards $1.8 billion
17. Phoenix Suns $1.7 billion
18. Utah Jazz $1.66 billion
19. Denver Nuggets $1.65 billion
20. Milwaukee Bucks $1.625 billion
21. Oklahoma City Thunder $1.575 billion
22. Cleveland Cavaliers $1.56 billion
23. Indiana Pacers $1.55 billion
24. Atlanta Hawks $1.52 billion
25. Charlotte Hornets $1.5 billion
26. Orlando Magic $1.46 billion
27. Detroit Pistons $1.45 billion
28. Minnesota Timberwolves $1.4 billion
29. New Orleans Pelicans $1.35 billion
30. Memphis Grizzlies $1.3 billion
This season things could be back to normal if things are handled the right way. The Lakers could increase their value, as well as the rest of the teams considered contenders for the championship this season.