warriors franchise value — Vivek, whose purchase of the Kings led to a setting of the Warriors true market value and Joe Lacob (Photo: US Presswire)
With the release of Forbes’ latest NBA Franchise evaluations came the news that the NBA’s value has jumped higher than ever. The Golden State Warriors, which Forbes estimated are worth $750 million, ranked 9th in the NBA.
Like many other top teams the Warriors saw the value jump nearly $200 million in a single year. When Forbes last valued the franchise, $555 million was all Joe Lacob‘s and Peter Guber‘s investment had returned.
Now, with the Sacramento Kings selling to Vivek Ranadive for a record price and the sale of his former share of the warriors setting a new high of its own, it seems the NBA is doing better than ever.
But Forbes’ rankings beg the question, why aren’t the Warriors higher on the list?
When Ranadive gave up his share of the Dubs in August, new investor Mark Stevens paid enough to set the Warriors value $800 million.
With Forbes’ steep increase in value around the league a clear reaction to the shocking number this summer, it’s a wonder the Warriors didn’t see an equal jump.
The team posted better profits ($43 million) than three teams ahead of them, and have managed to sell a record number of season tickets this year. With a new privately financed arena still on the way, the Warriors have more going for them than most teams financially.
The Miami Heat, despite their on-court success, have struggled to turn in large profit margins due to their smaller market. However, they rank 7th on Forbes’ list.
What likely accounts for the Warriors discrepancy is the fact that Golden State’s value has only begun to hit its potential. Forbes rankings are based off solely the 2012-13 season.
While that’s helpful for a one-year benchmark, Stevens paid more for the Warriors because they’re headed in the right direction. By the end of this season, they’ll surely be worth more than the $800 million they were value at in August.
In time, they could even crack the NBA’s top five, which includes exclusively big market teams, including the Chicago Bulls, New York Knicks and Los Angeles Lakers.
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