NBA franchise value - additional information
The National Basketball Association is currently comprised of 30 franchises that, according to Forbes’ NBA Team Valuations, have an average value of around 1.1 million U.S. dollars in 2015. This constitutes an increase in average value of almost 75 percent compared to the Forbes’ 2014 valuations. Compared to the National Football League (NFL) and Major League Baseball (MLB), franchises in the NBA are ,on average, still worth less than the football teams but now worth more than the baseball teams. Teams of Major League Baseball had an average franchise value of 744 million U.S. dollars in 2013, while teams of the National Football League had an average value of more than one billion U.S. dollars.
With a value of 2.6 billion U.S. dollars, the Los Angeles Lakers are the most valuable franchise in the NBA according to Forbes. Compared to 2014 the number of teams valued at more than one billion U.S. dollars has risen from three to eleven. The least valuable franchise is the Milwaukee Bucks with a value of 600 million U.S. dollars, around one quarter of what the New York Knicks and Los Angeles Lakers are worth.
When a franchise is sold to new ownership, the sales price has a significant impact on the value of the franchise. In 2013, for example, billionaire Vivek Ranadive purchased a 65 percent majority stake of the Sacramento Kings for a reported 348 million U.S. dollars, bringing the total valuation of the franchise to 535 million U.S. dollars. Just one year earlier Forbes had estimated the value of the franchise at 300 million U.S. dollars. In 2015, the Sacramento Kings were ascribed a franchise value of 800 million U.S. dollars by Forbes. In 2014, the Los Angeles Clippers were sold for two billion U.S. dollars to Steve Ballmer, the highest amount paid for an NBA franchise to date.