The Briefing
- Because of the global pandemic, NBA teams missed out on approximately 20% of their regular-season home games in 2019-20
- Despite this, average team profits in 2020 fell by less than 12% compared to the year prior, and team values are up 4% in 2021
- The New York Knicks are once again the most valuable team, for the sixth year in a row
A Decade of NBA Profit: How Did The League Fare in 2020?
The NBA has gained undeniable traction over the last decade, at least from a financial standpoint.
In 2011, 22 of the 30 teams were losing money, and the average operating income per team sat at $6 million. But, fast forward to 2020, and every team in the league was profitable, with average operating income surging to $62 million.
Here’s a look at team profitability since 2011, according to Forbes:
| Year | Average Operating Income | YOY Change |
|---|---|---|
| 2011 | $6M | — |
| 2012 | $12M | 100% |
| 2013 | $24M | 100% |
| 2014 | $23M | -4.2% |
| 2015 | $30M | 30.4% |
| 2016 | $31M | 3.3% |
| 2017 | $52M | 67.7% |
| 2018 | $61M | 17.3% |
| 2019 | $70M | 14.8% |
| 2020 | $62M | -11.4% |
Despite years of momentum, the NBA was not immune to the impacts of COVID-19 last year. However, thanks to hefty TV contracts and player salary cuts, average operating income only fell by 11.4%, from $70 million to $62 million.
The Most Valuable NBA Teams
Despite a decrease in NBA profit per team last year, team values are up 4%—from $2.1 billion in 2020 to $2.2 billion this year.
Here’s a look at the top five most valuable teams in 2021:
| Rank | Team | 2021 Valuation | 1-Year Change |
|---|---|---|---|
| 1 | New York Knicks | $5.0B | 9% |
| 2 | Golden State Warriors | $4.7B | 9% |
| 3 | Los Angeles Lakers | $4.6B | 6% |
| 4 | Chicago Bulls | $3.3B | 3% |
| 5 | Boston Celtics | $3.2B | 3% |
The Knicks took the top spot for the sixth consecutive year, but the Lakers lost their long-standing second place ranking to the Warriors. It’s the first time another team has made the top two since 1999.
» Interested in sports investing? Then you might enjoy this article Investing in the Beautiful Game of Football
Where does this data come from?
Source: Forbes
Details: Team values are measured using 4 metrics—overall sport revenue, market size, area revenue, and brand.
