Saturday, June 15, 2019

NBA 2019: New York Knicks most valuable team, Lakers second most richest with $3.7 billion

NBA 2019 final results are out with the first ever win for Toronto Raptors, as the first trophy for a Canadian team. The final teams Golden State Warriors and Toronto Raptors got most from the NBA 2018-19 pool pot as prize money. The important thing to notice here is that the prize money is nothing compared to the team earnings from other sources.

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Revenues, Ads, Sponsorship, contracts, etc. are the major ways to earn, which reaches billions of dollars in earnings for NBA teams. The average earning of each NBA team in 2019 is about $1.9 billion with New York Knicks leading the way. Here is the full breakdown of NBA 2019 team valuations.

NBA 2019 Teams Valuations

New York Knicks

Even though the New York Knicks are not performing that good in the NBA tournaments, it doesn’t mean they are not earning money. NBA teams earn majorly through stadiums, tickets, merchandise and what not. Here is the earnings report of the top 10 NBA teams in terms of revenue:

  • New York Knicks – $4 Billion
  • Los Angeles Lakers – $3.7 Billion
  • Golden State Warriors – $3.5 Billion
  • Chicago Bulls – $2.9 Billion
  • Boston Celtics – $2.8 Billion
  • Brooklyn Nets – $2.4 Billion
  • Houston Rockets – $2.3 Billion
  • Dallas Mavericks – $2.3 Billion
  • Los Angeles Clippers – $2.2 Billion
  • Miami Heat – $1.8 Billion

Who is the most Profitable?

NBA 2019 value

Most earning doesn’t mean most profitable in any business field, both of them are totally different. While the New York Knicks made a huge sum of $4 Billion, it is not their net profit. Knicks had a very bad NBA season and had almost changed 12 coaches, and spend around a billion dollar on their new stadium. The actual winner of NBA 2019-19 season turns out to be Golden State Warriors as they are the most profitable team. Here are the Top 5 NBA 2019 teams in terms of net profit: (Source: Visualcapitalist.com)

  • Golden State Warriors – 367%
  • Los Angeles Clippers – 282%
  • Philadelphia 76ers – 252%
  • Milwaukee Bucks – 233%
  • Toronto Raptors – 222%

How much is the Fan contribution?

NBA 2019 net

Most of the earnings to NBA teams is through fans, whether it is the stadium ticket or the subscription charges to view the matches live. While it looks that the number of fans of a particular NBA team decided the earnings, it is actually much more complex. For popular teams, fans are ready to spend more, and it varies from region to region. Here are the top 5 NBA 2019 teams in terms of revenue per fan: (Source: Visualcapitalist.com)

  • Utah Jazz – $101
  • Cleveland Cavaliers – $93
  • OKC Thunder – $88
  • Chicago Bulls – $20
  • Brooklyn Nets – $19

Which team is in Debt?

Richest NBA team

Although the billions of dollars make us wonder all the teams are bathing in money, it is not true at all. It is very expensive to manage an NBA team in 2019 and there are lots of costs involved. The players are rising their fees more and more, along with the tax deductions. Team ranking and performance and the audience not attending the matches in the stadium had made several teams go in debt. Here are the top 5 NBA 2019 teams in terms of debt percentage: (Source: Visualcapitalist.com)

  • Sacramento Kings – 34%
  • Milwaukee Bucks – 31%
  • Memphis Grizzlies – 27%
  • Miami Heat – 23%
  • Golden State Warriors – 23%

How are the Calculations done?

NBA 2019 richest team

All the revenue calculations for NBA teams are done considering the debt and equity values in mind. Every major and minor deal, agreements, contracts, and sponsorship are considered in the analysis. Even the stadium and telecast deals are taken into consideration. A net estimate of all the income is done, and even the Non-NBA events are used in the calculations.

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