At its core, the NBA is a business. The league brings in a ton of revenue each year, most of which is generated by individual franchises. However, not all of those franchises are equal. Some are worth much more than others.
There are many factors that impact a team’s worth, including market size, brand strength, on-court success, and fan base. The more a team wins or the bigger the area they represent, the more tickets they sell, more TV rights they leverage, and more merchandise they can make.
Such numbers are important to understanding the landscape of the NBA. The more valuable teams tend to be the ones that win more often, but that’s not always the case. There are several influencing factors, and all of them have built the current league in one way or another.
1. Golden State Warriors ($7.7 Billion)
Currently, no NBA team is worth more than the Golden State Warriors. The franchise underwent a huge shift over the last decade, taking them from one of the lowest value teams with one of the smallest markets to the wealthiest in just ten short years.
That shift is due to many reasons, but the biggest is without a doubt their recent success. The dynasty of Stephen Curry, Klay Thompson, and Draymond Green transformed a weak team into a strong franchise that brought home multiple championships.
That, combined with the fact that they represent fans throughout one of the largest and most important city centers in the United States (the Bay Area), made them likable to a huge number of fans all across the state.
2. New York Knicks (6.6 Billion)
No team shows the importance of a large market like the Knicks. The franchise does not have a history of sustained success, nor do they have many iconic players. Even so, they have the heart and soul of New York City.
That gives them one of the largest markets in all of sports, which then leads to the second highest revenue in all of basketball. The Knicks always pack their stadiums and bring in tons of TV viewers, both of which then directly translate to higher revenue on the back end.
They have also rebuilt their team from the ground up, which has paid off huge dividends. They always sell out big games, but they now pack Madison Square Garden unlike ever before.
3. Los Angeles Lakers ($6.4 Billion)
While they are currently third on this list, few franchises have been worth more over their entire existence than the Lakers. Los Angeles is one of the biggest sports cities on Earth, is a major urban center, and acts as the heart of the entertainment industry.
That trifecta creates large media deals and an extremely wide fan base. There is a prestige to the Lakers’ brand, which in turn makes them likable on a much bigger scale far beyond the city in which they play.
They are one of the few teams with true global appeal due to signing some of the biggest stars in NBA history including Magic Johnson, Kobe Bryan, Shaquille O’Neal, and LeBron James. Such moves have also brought in fans of other franchises as well.
4. Boston Celtics ($4.7 Billion)
Another classically great franchise, the Boston Celtics are a strong team with some of the richest history in sports. They’re one of the oldest teams in the NBA, have the most championships in the league, and are extremely popular throughout their entire state.
Boston is a die-hard sports region, which gives the Celtics one of the largest markets around. As with so many other top teams, they also have had a lot of playoff success. Not only do they have plenty or rings, but they make the postseason almost every year.
That long term success is a big reason their fans are so passionate about the team and why they continue to support them even when things get rough.
5. Los Angeles Clippers ($4.65 Billion)
With the Lakers dominating the Los Angeles market, the Clippers were often forgotten about and down towards the bottom of the most valuable NBA teams of all time. However, things have shifted over the past few years.
Rather than settle for mediocrity, the team brought in big prospects and began to win games. That on-court success skyrocketed the team’s value, selling out games and merchandise like never before.
By being in the championship conversation, the franchise built up a much stronger presence throughout the city. That then translated to a better brand and extended their already large market to new cities around the U.S.
6. Chicago Bulls ($4.6 Billion)
The Bulls came up slowly, and they have not had much recent success. Even so, the franchise surged onto the world stage during the Michael Jordan era and never looked back. Jordan is the biggest player of all time, which solidified the Bulls brand forever.
Chicago has always been a large market, but they grew to unprecedented proportions during the 90’s. The reason they are only sixth despite their large market and incredible branding is that they have not done much since Jordan left in the late 90’s.
Despite that, they still make big trades and have a strong fan base who will sell out their stadiums. Ownership isn’t afraid to try new things, which makes the Bulls exciting in a way that still generates a ton of revenue each season.
7. Dallas Mavericks ($4.5 Billion)
There are a few teams in Texas, but the Mavericks currently have the largest valuation out of all them. There are several reasons for that, but the biggest is that they are currently one of the best teams in the league due to their smart drafts and free agent signings.
The Dallas ownership has always tried to put a winning team on the court, which has led to sold out stadiums and large viewerships. They dominate their local market, and have fans all across both the United States and world due to Luka Doncic. That gives them unmatched reach.
8. Houston Rockets ($4.4 Billion)
Texas teams have to split the market, but the Rockets hold strong as a result of their ability to draw in huge free agents. Some of the biggest players of all time, including James Harden, Hakeem Olajuwan, and Dwight Howard, have worn the red and white.
Management’s propensity to go for big talent, mixed with an already large and sprawling market, allows the Rockets to be one of the more valuable NBA franchises. Though they haven’t had a lot of success in the past few years, they want to win. That’s good enough for their fans.
9. Philadelphia 76ers ($4.3 Billion)
The 76ers have long been one of the most valuable NBA franchises due to the fact that they have a large fan base backed up by an strong brand and winning history. They have one of the strongest markets in the league, which directly translates to ticket and merchandise sales.
On top of that, the 76ers have a history of making big signings, bringing in free agents, and striving to win. They make the playoffs quite often, which makes their fans more engaged and further builds their brand.
While it has been decades since their last championship, they are in the conversation each and every year. That then creates a strong base who is willing to support their team knowing that it won’t be long before their back in big games.
10. Toronto Raptors ($4.1 Billion)
The Raptors round out the top wealthy NBA teams due to the fact that they represent, not just one city, but an entire country. Toronto is the only team in Canada, meaning that almost all basketball fans throughout the country follow them.
That alone gives them a significant market share. However, they have also seen large recent increases due to their championship win back in 2019, as well as the fact that celebrities like Drake have pushed their brand.
Being relevant on the world basketball stage launched them into the public sphere, creating plenty of new fans throughout America as well. Toronto has its market cornered, and it likely won’t go anywhere anytime soon.
Factors Influencing Valuations
There are many aspects that dictate whether or not a team is worth a lot, and they’re all important to consider when looking at the above franchises. Out of all of the factors, however, none are more important than market size.
If a team has a large number of fans, is in a big city or generally wealthy metropolitan area, and is somewhere athletes want to play, it is typically considered “big market.”
In that way, those franchises get better free agents, which in turn generates more hype for the team and brings in more fans. It’s a critical cycle that allows the top teams to create a lot of revenue from big cities or important signings.
It’s also important to note a team’s brand strength. The more popular a franchise, the stronger their brand. They can sell more merchandise, pack more stadiums, and bring in additional revenue over the course of a season.
Teams with high brand strength typically have a rich history, iconic players, and plenty of fans. The more popular a logo or mascot might be outside of the core area also dictates just how many people might pay attention to a specific franchise.
Of course, actually bringing fans to the stadium matters as well. There is a lot of money to be made in ticket sales and TV revenue, but only if people want to watch the team play. That’s why on-court success is so important. The better a team, the more fans they tend to have.One of the best ways for a team to earn value is to get better. Big free agent signings, strong draft picks, and smart trades all increase revenue streams like merchandise, sponsorships, ticket sales, and media rights.
All of that is then backed up by smart ownership and strong management. If those at the top of a franchise make the right moves and expand any of the above traits, as was the case with the Warriors, they can add value to the team and make it more profitable over time.
Conclusion
There are many reasons some NBA teams are more valuable than others, ranging from TV deals and merchandise to popularity and general markets. Even so, winning and historical success are two of the most important factors when looking at the top teams.
Though some fans may not like the business side of the sport, the revenue streams and various side contracts make the NBA much more engaging and are big reasons basketball has become so popular all around the world.
If the league continues to grow financially, it can grow in other ways as well. The top big market teams may all seem like they’ll be there forever, but there’s no telling what franchise might make new moves and increase their own worth down the line.
