![]() ![]() The league’s revenue-sharing formula and salary cap help ensure the financial health of the league. The Clippers are now worth $3.9 billion, almost doubling in value over the eight years of his ownership. The Clippers finished handily in the black last season, and Ballmer is building a new arena that has a $500 million naming-rights deal. So it is real red ink.” Ballmer is no longer complaining. We’re sitting there looking at red ink, and it’s real red ink. A couple of years after buying the team, the former Microsoft CEO quipped: “I’m a new owner, and I’ve heard this is the golden age of basketball economics. For example, since buying the Houston Rockets in 2017, Tilman Fertitta has pulled out at least $60 million a year, except for the 2020-21 season (when the pandemic shortened the regular season to 72 games and greatly reduced attendance at games), according to sources.Ĭontrast that with Steve Ballmer’s purchase of the Los Angeles Clippers for $2 billion in 2014. In other words, buying a team today means an owner can quickly begin to pocket cash and never have to put in another dime. Only one team, the Brooklyn Nets, lost money last year, and the average debt/enterprise value of the 30 teams is just 10%. The average multiple for the 30 teams is 8.6, versus 7 pre-Covid. The NBA is back on its pre-Covid growth trajectory, led by aggregate record sponsorship and advertising revenue at the team and league level, which totaled $1.35 billion last season, also an all-time high.Īnother reason values rose: Valuation multiples (enterprise value/revenue) are up thanks to the league’s growth, profitability and pristine balance sheets. After arena debt service, league-wide revenue and operating income for the 2021-22 season were $10 billion and $2.7 billion, respectively-both record highs. The average NBA team is now worth $2.86 billion, 15% more than a year ago, an impressive feat considering the stock market is down more than 15% over the same span. ![]()
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