Something that stuck out like a sore thumb has to be the Brooklyn Nets debt being 16% of its value. They are a large market time and even the smaller market teams like Memphis are only 10%. Everyone else is around 5 to 6%
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40 sats \ 5 replies \ @Undisciplined 14 Feb
I'm not sure the Nets should be considered a large market team, since they have no fans. Same for the Clippers.
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36 sats \ 4 replies \ @Cje95 OP 14 Feb
The Clippers have the best stadium in the NBA hands down. I am pretty sure that is why they have a negative number because the team itself built it. They will be able to continue to sell out and since they own the stadium will be able to make sweet sweet cash renting it out in the off season
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10 sats \ 3 replies \ @Undisciplined 14 Feb
They may become a big market team, but they have the best stadium because Balmer is crazy rich and wants to build up the brand.
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38 sats \ 2 replies \ @Cje95 OP 14 Feb
I mean that all goes into the value of the team though which has enough to fill the stadium plus everything else
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10 sats \ 1 reply \ @Undisciplined 14 Feb
Historically, they've only been able to fill their stadium by charging much less than the Lakers. We'll see if the new stadium changes that, but any city can fill a basketball stadium with cheap enough tickets.
Big markets usually mean lots of merch sales and tv sponsorships. The Clippers aren't exactly known for either.
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25 sats \ 0 replies \ @Cje95 OP 15 Feb
The cut of the TV rev though is what’s insane. I mean those contracts are what’s led to the evaluations skyrocketing
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10 sats \ 10 replies \ @grayruby 14 Feb
They don’t make a lot of EBITDA considering the valuations.
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40 sats \ 9 replies \ @Cje95 OP 14 Feb
I was really surprised by that.... I am not sure what the cause is because TV revenue is crazy high now. I know the players are earning a hell of a lot more but to me it still doesnt make sense.
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40 sats \ 7 replies \ @SimpleStacker 14 Feb
It's for the prestige. Heck if I had the money I'd buy an nba team even if the rate of return was close to 0%, I just need it to fund its own operations I don't need a profit
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30 sats \ 6 replies \ @grayruby 14 Feb
Yeah, a lot of vanity premium in there.
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40 sats \ 5 replies \ @Cje95 OP 14 Feb
Is it vanity or is it that the expansion cost would easily be $5 billion plus. I mean Arizona's possible hockey team is going to cost a billy that why the owner got that much in the sale. Even WNBA teams are getting $500-600 million expansion fees
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0 sats \ 4 replies \ @grayruby 14 Feb
Toronto paid 115M for an expansion wnba team, which is still completely ridiculous.
Not sure what an expansion nba team would go for. I would guess if the avg team value is 4B, probably somewhere around there. Maybe a bit less.
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0 sats \ 0 replies \ @grayruby 14 Feb
EBITDA/revenue isn’t bad considering players get 50% but teams valued at 40-50 times earnings is quite the premium.
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