Forbes has released their annual report on the valuation of NBA franchises, and with a third team entering the $4 billion club, 2020 looks to continue to trend of teams skyrocketing in value over the last decade.
The newest report highlights the Golden State Warriors hitting a valuation of $4.3 billion, joining the Los Angeles Lakers at $4.4 billion and New York Knicks at $4.6 billion as the three most valuable teams in the NBA and the only teams above $4 billion.
The Warriors were second to the Toronto Raptors in largest percentage growth from 2018 to 2019, with a 23 percent increase in valuation for the Warriors and a 25 percent increase for the Raptors. Toronto’s large valuation increase bumped them into the top 10 and is in some part due to their recent championship and passionate fan base.
Overall, the average NBA team value in 2020 is $2.1 billion with a 14 percent increase over the last year. However, 20 of the 30 teams fall under this number, suggesting the valuation of NBA teams is still top-heavy. Teams in big cities with larger markets and fan bases tend to grow faster and be more highly valued.
The value of NBA teams has soared in the last decade for many reasons. Some of the primary reasons include increased viewership and an increase in global expansion, with the sport reaching across the world to new countries and markets. The surging basketball league has attracted numerous billionaires and investors over the last decade as well, with multiple teams sold over the last 10 years to owners with a focus on revenue and growth.