While it would make sense to expect Atlanta to be in the same ranking as the previous year, this is not actually the case, as they fell from the 23rd-most valuable to the 24th-most valuable team - it was Denver (24th to 21st) and Milwaukee (26th to 22nd) jumping above Atlanta while Cleveland (15th to 25th) fell behind. The average valuation of an NBA team increased by 13% year over year and the Atlanta Hawks had that same increase, from $1.15 billion last year to $1.3 billion this year. While these factors lead to league-wide increases, we are an Atlanta Hawks-centric site and we are going to dive into the finances related to Atlanta specifically. In terms of the Forbes methodology, they do not release much in their methods aside from noting that they use a revenue multiple. In addition, labor costs have been reduced from a share of around 55 percent of Basketball Related Income (BRI) in 1998 to now between 49 and 51 percent of BRI, based upon the most recent Collective Bargaining Agreement (CBA). Teams are also now able to earn income through digital distribution of games and jersey patch sponsors, streams that were not previously available. The television deal in 1998 paid out $274 million, while the most recent season paid $2.225 billion. With the most recent iteration, the average valuation is now at an all-time high of $1.868 billion and the New York Knicks have the highest-valued team ($4 billion) for the fourth year in a row.Ī few obvious factors have led to the increase in franchise valuations over the years: large increases in television revenues, new streams of revenue, tempered labor costs, lower interest rates, and 25 new or renovated arenas. Forbes has undertaken the task of providing estimates of financial performance for NBA teams every season since 1998, when the average of NBA team valuation was $167 million. Forbes released their 2019 NBA Franchise Valuations in early February of this year, which provides the best publicly-available data on the finances of NBA teams.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |