NBA’s Slam Dunk Valuations

Just look at the highest valued team in the NBA, the New York Knicks, and you'll realize it's not all about winning. Accounting considers the fanbases, arena draws, and household name players. Today we're looking at the factors making valuations grow despite smaller audiences and revenue declines due to Covid-19.

Forbes recently released the publisher's 2022 Business of Basketball ranking of the NBA team valuations, showing an overall increase of 13% across the board. We learned that NBA owners booked record deals in jersey patches (the brand logo on the team's jersey) and that media deals are expected to double in value because more people are turning to streaming services for their favorite team's games. The top three teams remain the same as last year, but those teams' valuations are up.

#1 New York Knicks: $5.8BN

#2 Golden State Warriors: $5.6BN

#3 Los Angeles Lakers: $5.5BN

New Recruits
Sponsorship deals from mattress wholesalers and office supply stores are behind us. A new crew of companies is snapping up real estate on jerseys and arena signage. One jersey patch deal, from the robo-investment app Webull, scored the Brooklyn Nets an NBA record of $30MM. The Staples Center, home base for the LA Clippers and Lakers, has been rebranded the Crypto.com arena. The Portland Trail Blazers are certainly making good on their name by being the first to sign a cryptocurrency jersey patch deal. They signed with the crypto platform StormX.

For more on sports teams of every stripe, check out our Entertainment Industry, keyword 'Sports.'