<span class="bsf-rt-reading-time"><span class="bsf-rt-display-label" prefix="Reading Time"></span> <span class="bsf-rt-display-time" reading_time="2"></span> <span class="bsf-rt-display-postfix" postfix="mins"></span></span><!-- .bsf-rt-reading-time -->A Decade of NBA Profit: How Did the League Fare in 2020?

A Decade of NBA Profit: How Did the League Fare in 2020?


A Decade of NBA Profit

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The Briefing

  • Because of the global pandemic, NBA teams missed out on approximately 20% of their regular-season home games in 2019-20
  • Despite this, average team profits in 2020 fell by less than 12% compared to the year prior, and team values are up 4% in 2021
  • The New York Knicks are once again the most valuable team, for the sixth year in a row

A Decade of NBA Profit: How Did The League Fare in 2020?

The NBA has gained undeniable traction over the last decade, at least from a financial standpoint.

In 2011, 22 of the 30 teams were losing money, and the average operating income per team sat at $6 million. But, fast forward to 2020, and every team in the league was profitable, with average operating income surging to $62 million.

Here’s a look at team profitability since 2011, according to Forbes:

Year Average Operating Income YOY Change
2011 $6M
2012 $12M 100%
2013 $24M 100%
2014 $23M -4.2%
2015 $30M 30.4%
2016 $31M 3.3%
2017 $52M 67.7%
2018 $61M 17.3%
2019 $70M 14.8%
2020 $62M -11.4%

Despite years of momentum, the NBA was not immune to the impacts of COVID-19 last year. However, thanks to hefty TV contracts and player salary cuts, average operating income only fell by 11.4%, from $70 million to $62 million.

The Most Valuable NBA Teams

Despite a decrease in NBA profit per team last year, team values are up 4%—from $2.1 billion in 2020 to $2.2 billion this year.

Here’s a look at the top five most valuable teams in 2021:

Rank Team 2021 Valuation 1-Year Change
1 New York Knicks $5.0B 9%
2 Golden State Warriors $4.7B 9%
3 Los Angeles Lakers $4.6B 6%
4 Chicago Bulls $3.3B 3%
5 Boston Celtics $3.2B 3%

The Knicks took the top spot for the sixth consecutive year, but the Lakers lost their long-standing second place ranking to the Warriors. It’s the first time another team has made the top two since 1999.

» Interested in sports investing? Then you might enjoy this article Investing in the Beautiful Game of Football

Where does this data come from?

Source: Forbes
Details: Team values are measured using 4 metrics—overall sport revenue, market size, area revenue, and brand.

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The post A Decade of NBA Profit: How Did the League Fare in 2020? appeared first on Visual Capitalist.



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