In October 2025, Mark Walter agreed to buy the Los Angeles Lakers for $10 billion. Ten billion dollars for a basketball team. That’s 16 times the Lakers’ annual revenue, more than double what Mat Ishbia paid for the Phoenix Suns just two years earlier, and roughly the same amount Jeff Bezos would need to spend if he bought the entire Memphis Grizzlies franchise 2,500 times over.
Walter’s purchase wasn’t an anomaly. Three months earlier, Bill Chisholm bought the Boston Celtics for $6.1 billion in an initial transaction with a blended valuation reaching $6.7 billion when the full sale completes in 2028. In November, Tom Dundon agreed to buy the Portland Trail Blazers for $4.25 billion, a team that finished 27-55 last season and ranks in the bottom third of league revenue.
NBA Team Valuation Explosion (2022-2025):
- Average NBA team value in 2022: $2.58 billion
- Average NBA team value in October 2025: $5.51 billion
- Growth in three years: 113%
- Lowest valued team (Memphis Grizzlies): $4 billion
- Highest valued team (Golden State Warriors): $11.33 billion
- Lakers purchase price: $10 billion (16x revenue multiple)
- Celtics blended valuation: $6.7 billion (14.6x revenue)
- Total collective NBA value: $165 billion
Every single NBA franchise is now worth at least $4 billion. The average team valuation increased 20% in 2024 alone, the steepest single-year jump in league history outside of expansion announcements. The Warriors, Lakers, and Knicks are each worth more than Manchester United, Real Madrid, or any European football club except a handful.
This isn’t a bubble. It’s the result of three converging forces that fundamentally transformed basketball economics: a $76 billion media rights deal that tripled broadcast revenue per team, global expansion turning the NBA into a truly worldwide product, and arena ownership models generating $800+ million annually for elite franchises.
Let’s examine how basketball became the world’s most valuable sports investment and why billionaires are paying astronomical prices that make zero sense by traditional valuation metrics yet somehow represent smart long-term bets.
The $76 Billion Media Deal That Changed Everything
On July 24, 2024, the NBA announced new media rights agreements with NBC, ESPN/ABC, and Amazon Prime Video totaling $76 billion over 11 years. That’s $6.9 billion annually, compared to the previous deal’s $2.66 billion per year with ESPN/ABC and Turner Sports.
New NBA Media Rights Breakdown (2025-2036)
ESPN/ABC Deal:
- Annual payment: $2.6 billion
- 11 years total: $28.6 billion
- 100 regular season games per year on ABC, ESPN, ESPN2
- NBA Finals exclusive through entire contract
- Conference Finals coverage (rotating with NBC)
- Exclusive rights to stream all ABC and ESPN games on ESPN+
NBC Deal:
- Annual payment: $2.5 billion
- 11 years total: $27.5 billion
- Approximately 100 regular season games per year
- Sunday night showcase games
- Conference Finals coverage (rotating with ESPN)
- Peacock streaming integration for all NBC games
Amazon Prime Video Deal:
- Annual payment: $1.8 billion
- 11 years total: $19.8 billion
- Thursday night NBA package (similar to Thursday Night Football)
- Approximately 66 regular season games annually
- First streaming-exclusive package in NBA history
- Global distribution across 240+ countries
Per-Team Revenue Impact:
Under the previous deal (2016-2025), each NBA team received approximately $103 million annually from national TV rights. Starting with the 2025-26 season, that jumps to $143 million per team, with 7% annual increases built into the contract through 2036.
By 2036, the final year of these deals, each team will receive approximately $264 million annually from media rights alone. That’s a guaranteed revenue stream independent of wins, losses, playoff qualification, or market size. The Memphis Grizzlies receive the same national TV money as the Lakers.
Why Broadcasters Paid $76 Billion
Live sports remain the only programming that viewers watch in real time, making it DVR-proof and advertiser-friendly. The NBA delivers:
- 1,230 regular season games annually (82 games x 30 teams Ă· 2)
- Guaranteed October-June programming filling seven months
- Younger demographic than NFL, MLB, or NHL (average viewer age 42)
- Global audience exceeding 2 billion people across 200+ countries
- Social media engagement dwarfing other leagues (NBA has 2.3 billion social media followers)
NBC specifically wanted the NBA to fill the programming gap left when they lost the NFL to FOX in 1998. The network spent 26 years without a major live sports property beyond the Olympics and Sunday Night Football. Getting NBA basketball back fills primetime slots, drives Peacock subscriptions, and justifies higher advertising rates.
Amazon’s $1.8 billion annual investment follows their Thursday Night Football playbook: use live sports to drive Prime memberships. The company calculated that exclusive NBA games would add 10+ million Prime subscribers at $139 annual memberships, generating $1.4+ billion in recurring revenue that offsets the rights fees.
For NBA teams, the media deal represents pure profit. Unlike player salaries tied to Basketball Related Income (BRI), national TV revenue flows directly to team treasuries with minimal associated costs. A team like the Grizzlies generates $301 million in total annual revenue, and $143 million comes from media rights they do nothing to earn beyond existing.
The Arena Revolution: How Owning Buildings Creates $800 Million Franchises
The Golden State Warriors generate $833 million in annual revenue, nearly double the league average of $408 million. The primary reason? They own Chase Center, a $1.6 billion arena opened in 2019 that hosts 200+ events annually beyond Warriors games.
Chase Center Revenue Model
Warriors Basketball (41 Home Games):
- Ticket sales: $150-200 million
- Concessions and merchandise: $40-50 million
- Suite and premium seating: $80-100 million
- Sponsorship allocations: $50-60 million
Total Basketball Revenue: ~$350 million
Non-Basketball Events (200+ Events):
- Concerts (60-80 annually): $150-180 million
- Corporate events and conventions: $80-100 million
- College basketball tournaments: $15-20 million
- WWE, UFC, and other live entertainment: $30-40 million
- Restaurants, bars, and retail (year-round): $50-60 million
Total Non-Basketball Revenue: ~$350 million
The Warriors’ Chase Center model proves that modern NBA arenas are entertainment complexes that happen to host basketball rather than basketball venues that occasionally hold concerts. The arena operates 365 days per year generating revenue.
Contrast With Teams That Don’t Own Arenas:
The Los Angeles Lakers play at Crypto.com Arena (owned by AEG) where they’re tenants. The New York Knicks play at Madison Square Garden (owned by MSG Sports & Entertainment). The Boston Celtics play at TD Garden (owned by Delaware North).
Tenant teams pay rent, receive reduced revenue shares from non-basketball events, and have no control over booking. The Lakers’ $10 billion valuation occurred despite this disadvantage, purely on brand strength and market size.
The Clippers’ Arena Impact:
The Los Angeles Clippers spent 25 years sharing Crypto.com Arena with the Lakers as secondary tenants. Owner Steve Ballmer (former Microsoft CEO and worth $145 billion personally) invested $2 billion building Intuit Dome in Inglewood, which opened for the 2024-25 season.
Clippers Revenue Before and After Intuit Dome:
- 2023-24 season (at Crypto.com Arena): Estimated $350-380 million revenue
- 2024-25 season (at Intuit Dome): Estimated $610+ million revenue
- Revenue increase: 61% in one year
- Valuation increase: 36% (from $5.68 billion to $7.5 billion)
Ballmer’s $2 billion arena investment added $1.8 billion in franchise value in year one. The arena pays for itself within five years through increased revenue, then generates pure profit for decades.
Why Arena Ownership Matters for Valuations
When investors buy NBA teams, they’re evaluating 20-30 year returns. A team with arena control projects:
- $300-500 million annual revenue from non-basketball events
- Appreciation in real estate value (Chase Center site worth $3+ billion)
- Naming rights deals ($15-30 million annually for 20+ years)
- Complete control over fan experience and premium seating revenue
A team without arena control generates $250-350 million total revenue with limited upside. This explains why the Warriors command an $11.33 billion valuation while equally successful teams like the Miami Heat (5 championships since 2006) are worth $5.4 billion despite not owning their arena.
Global Expansion: The NBA’s $10 Billion International Opportunity
The NBA generates approximately $2 billion annually in international revenue from media rights, sponsorships, merchandise, and events outside North America. By 2030, the league projects that figure will exceed $4 billion as basketball becomes the world’s second-most popular sport behind soccer.
NBA International Revenue Streams
International Media Rights:
- Current annual value: $800-900 million
- Major markets: China ($500M annually), Europe ($200M), Latin America ($100M), Africa/Middle East ($100M)
- New deals in negotiation for 2026-2030 cycle projected at $1.5+ billion annually
Global Merchandise and Licensing:
- Current annual revenue: $400-500 million
- LeBron James and Stephen Curry jerseys outsell all European football players in Asia
- NBA Store locations in 15+ countries generating direct retail revenue
International Games and Events:
- NBA Paris Games, Mexico City Games, London Games
- Preseason games in China, Japan, India, Middle East
- Basketball Without Borders youth programs
- NBA Academy training centers in 10 countries
NBA China Partnership:
- Joint venture valued at $5 billion
- Tencent streaming deal worth $700 million (2020-2025)
- 800 million basketball fans in China (more than U.S. and Canada combined)
- Yao Ming’s Hall of Fame career created generational fandom
The European League Project
In 2025, the NBA and FIBA announced plans to launch a European basketball league by fall 2027. The structure would feature 16 teams across major European cities, with NBA teams sharing expansion proceeds and potentially owning stakes in European franchises.
Projected European League Economics:
- 16 teams across London, Paris, Berlin, Madrid, Barcelona, Milan, Athens, Istanbul, others
- $500 million expansion fee per team = $8 billion total raised
- NBA’s 30 teams split $8 billion = $267 million per team
- European league generates additional $1-1.5 billion annually in media rights
- NBA receives revenue share for licensing brand and providing operational support
This European expansion alone could add $300-400 million to each NBA team’s valuation through direct payments and future revenue shares. Investors buying NBA teams today are betting the European league succeeds and creates an entirely new profit center.
India’s Emerging Market
India’s 1.4 billion population represents the NBA’s biggest growth opportunity. The league signed a multi-year deal with Viacom18 and Fancode for streaming rights, broadcasts games live at 6:30 AM local time (matching U.S. primetime), and operates NBA Academy India training the next generation of players.
If just 2% of India’s population becomes active NBA fans (28 million people), that audience exceeds Canada’s entire population. Even modest merchandise and media revenue per fan generates hundreds of millions annually.
Why Traditional Valuation Metrics Don’t Apply
Mark Walter paid 16 times annual revenue for the Lakers. That multiple is unprecedented in professional sports. For context:
- NFL teams trade at 8-10x revenue
- MLB teams trade at 6-8x revenue
- English Premier League clubs trade at 4-6x revenue
- Most businesses sell for 1-3x revenue
Yet Walter, who also owns the Dodgers and is a sophisticated investor with Guggenheim Partners, wasn’t making an emotional purchase. He was betting on five factors that make NBA valuations unique:
Factor 1: Guaranteed Revenue Growth
The $76 billion media deal provides certainty that each team’s annual TV revenue grows 7% through 2036. Factor in international growth, arena revenue increases, and sponsorship inflation, and NBA teams project 8-10% annual revenue growth for the next decade.
At 10% annual growth, the Lakers’ $550 million current revenue becomes $1.4 billion by 2036. Suddenly, a 16x revenue multiple in 2025 becomes a 6.5x multiple in 2036, perfectly normal for stable businesses.
Factor 2: Artificial Scarcity
Only 30 NBA teams exist. The league hasn’t expanded since 2004 when Charlotte joined. With billionaires globally seeking trophy assets, demand dramatically exceeds supply.
When the Celtics went up for auction, 15+ bidders submitted offers. For the Suns, Mat Ishbia competed against multiple bidders. Scarcity drives premium pricing in any asset class, and NBA teams represent the ultimate scarce asset.
Factor 3: Non-Depreciating Assets
Unlike tech companies or real estate vulnerable to disruption, NBA franchises don’t depreciate. The Lakers were worth $268 million in 1979 when Jerry Buss bought them. They’re worth $10 billion in 2025. That’s a 3,630% return over 46 years, or 8.3% compounded annually, without including dividends (profit distributions) Buss received.
Sports franchises historically appreciate 8-12% annually long-term, outperforming S&P 500 stocks and commercial real estate while providing prestige, community standing, and access to elite social networks.
Factor 4: Tax Advantages
NBA team owners benefit from unique tax structures:
- Depreciation of player contracts reduces taxable income
- Arena depreciation shields revenue from taxes
- Team losses (paper losses, not actual cash losses) offset personal income
- Sale proceeds taxed as capital gains (20% federal) rather than ordinary income (37%)
Wealthy individuals buy NBA teams partially as tax shelters. The team can show accounting losses while owner receives cash distributions tax-free, then sells for massive capital gains taxed at half the rate of normal income.
Factor 5: The Billionaire Ego Premium
Owning an NBA team provides status no other asset delivers. It grants access to exclusive events, relationships with global celebrities, influence in entertainment and business circles, and permanent legacy. Cities name arenas after owners. Fans thank them for championships. Media covers their every move.
Mark Cuban paid $285 million for the Dallas Mavericks in 2000. He became a global celebrity through team ownership, leveraged it into “Shark Tank” and other opportunities, and sold majority stake for $3.5 billion in 2023 while retaining control. Cuban made billions personally from the platform NBA ownership provided beyond the team’s returns.
These intangible benefits justify paying premiums that don’t make sense purely on cash flow analysis. Walter’s $10 billion Lakers purchase includes $2-3 billion in “ego premium” for owning basketball’s most famous franchise.
The Three Tiers of NBA Franchise Values
Not all NBA teams trade at equal multiples. The league has effectively segregated into three distinct valuation tiers based on market size, arena control, and brand strength.
Tier 1: Global Icon Franchises ($9-11 Billion)
Golden State Warriors: $11.33 billion
- Own Chase Center generating $833 million annually
- Four championships (2015, 2017, 2018, 2022) created dynasty brand
- Bay Area tech wealth supports highest ticket prices in league
- Stephen Curry’s global popularity (one of five most marketable athletes worldwide)
- WNBA’s Golden State Valkyries add $500 million in value
Los Angeles Lakers: $10 billion
- 17 NBA championships (tied with Celtics for most all-time)
- Hollywood connection and celebrity fanbase
- Richest local TV deal ($200 million annually from Spectrum)
- LeBron James and Anthony Davis star power
- Global brand recognition rivaling any sports franchise
New York Knicks: $9.85 billion
- Madison Square Garden location in Manhattan
- Largest media market in United States (20 million people)
- Haven’t won championship since 1973 yet maintain elite valuation through market alone
- Passionate fanbase pays premium ticket prices despite losing
Tier 2: Elite Market Teams ($6-8 Billion)
Los Angeles Clippers: $7.5 billion
- Intuit Dome ownership generating 61% revenue increase
- Share Lakers’ market but emerging as legitimate alternative
- Steve Ballmer’s $2 billion arena investment paying immediate dividends
Chicago Bulls: $6.8 billion
- Third-largest U.S. market
- Michael Jordan legacy maintains global brand strength
- United Center ownership (shared with NHL Blackhawks)
Brooklyn Nets: $5.7 billion
- Barclays Center location in Brooklyn
- New York market access despite Knicks’ dominance
- Struggled on court but market size supports valuation
Boston Celtics: $6.7 billion
- Record 18 championships (including 2024 title)
- Historic franchise with 60+ year legacy
- Don’t own arena, limiting revenue ceiling
- Bill Chisholm’s $6.7 billion blended valuation validates tier
Tier 3: Standard Market Teams ($4-5.5 Billion)
This includes the remaining 22 NBA franchises ranging from the Miami Heat ($5.4 billion) to the Memphis Grizzlies ($4 billion). These teams generate $300-400 million annually, lack either arena control or massive markets, and trade at 10-13x revenue multiples versus 15-18x for tier 1 teams.
The Milwaukee Bucks, despite back-to-back championships in 2021 and 2024, are worth $4.9 billion. The Phoenix Suns sold for $4 billion in 2023. The Portland Trail Blazers agreed to sell for $4.25 billion despite bottom-third revenue.
The $4-5.5 billion range represents the “floor” for NBA valuations. Even struggling small-market teams command these prices because:
- $143 million annual guaranteed TV revenue
- Share of $1+ billion annual NBA sponsorship pool
- Potential for European league expansion fees
- Future expansion (Seattle, Las Vegas) could bring $1.5-2 billion windfall to existing owners
What NBA Expansion Would Mean for Team Values
NBA Commissioner Adam Silver has stated expansion will happen after the new media deal and CBA were finalized. With both complete as of July 2024, expansion talk has intensified throughout 2025.
Most Likely Expansion Scenarios:
Seattle and Las Vegas (Two-Team Expansion):
- Expected expansion fee: $5-6 billion per team
- Total raised: $10-12 billion
- Distributed to existing 30 teams: $333-400 million each
Why $6 Billion Per Team
The Celtics sold for $6.7 billion as an established franchise with 18 championships. The Lakers sold for $10 billion with 17 championships and Hollywood cachet. Expansion teams start with zero history, no players, and must build fanbases from scratch.
Yet Seattle (former SuperSonics market that lost team in 2008) and Las Vegas (betting capital with growing population) both represent attractive markets with arena infrastructure ready. A $6 billion expansion fee prices them slightly below established franchises while accounting for startup risks.
Impact on Existing Team Values:
When the NFL expanded with Carolina Panthers and Jacksonville Jaguars in 1993, each existing team received $9.3 million (split of $140 million total fees). NFL team values increased 30% within two years as the expansion cash plus larger league increased prestige.
If the NBA expands with $12 billion in fees distributed to existing 30 teams, that’s an immediate $400 million payment. Teams also benefit from:
- Larger league increases sponsor values
- More playoff inventory
- Additional nationally televised games
- European expansion follows North American expansion
Financial analysts project expansion adds 8-12% to existing team valuations through direct payments and indirect benefits.
The Risks: Why NBA Values Could Plateau
Despite astronomical growth, several threats could slow or reverse NBA team valuations:
Risk 1: Cord-Cutting Disrupting TV Revenue
The $76 billion media deal depends on ESPN, NBC, and Amazon maintaining subscriber bases willing to pay for sports content. Younger generations increasingly reject traditional TV and streaming subscriptions, threatening long-term media revenue.
If cord-cutting accelerates beyond projections, the 2036 renegotiation could see flat or declining TV rights. That would immediately cut team valuations by 15-25%.
Risk 2: International Growth Disappoints
The NBA’s European league and Chinese expansion plans could fail if:
- FIBA blocks competitive European league
- China’s economic slowdown reduces spending
- Cultural differences prevent basketball from rivaling soccer globally
If international revenue grows 3% annually instead of projected 10%, team valuations lose their biggest upside driver.
Risk 3: Labor Disputes and Work Stoppages
The current CBA expires in 2030. If owners and players cannot agree on revenue splits, work stoppages (lockouts or strikes) could cancel seasons, void media deals, and collapse valuations.
The 1998-99 lockout shortened the season to 50 games and cost the league $1 billion. A similar stoppage in 2030 would be catastrophic given much higher financial stakes.
Risk 4: Over-Saturation and Declining Viewership
NBA regular season TV ratings have declined 15% since 2015 despite overall franchise value increases. Playoff ratings fluctuate based on star matchups. If casual fans continue losing interest in regular season games, networks could demand reduced rights fees in 2036.
The NBA’s load management (stars resting regularly), three-point shooting evolution (less variety in playing styles), and lack of parity (same teams dominating) all threaten long-term viewership.
Risk 5: Competing Leagues and Alternative Entertainment
Video games, esports, social media, and other entertainment compete for attention. Younger demographics prefer interactive entertainment over passive sports viewing. The NBA faces existential questions about relevance to Gen Z and Gen Alpha cohorts.
If basketball loses cultural primacy among youth, future fandom declines, eventually reducing willingness of future billionaires to pay premium prices for teams.
Why $5 Billion Per Team Is Actually Conservative
Despite these risks, most sports economists believe current NBA valuations remain conservative relative to long-term fundamentals.
Consider that the $5.51 billion average NBA franchise value represents 13.5x average revenue. Apple trades at 9.6x revenue. Amazon trades at 3.8x revenue. Alphabet (Google) trades at 7.5x revenue.
NBA teams trade at premiums to tech giants because they’re expected to grow revenue 8-10% annually for decades while those companies face 3-5% growth maturity. Sports franchises compound revenue growth through scarcity, international expansion, and media rights inflation unavailable to mature tech firms.
The Inflation-Adjusted Reality
The Lakers sold for $10 billion in 2025. In 2000, that same purchasing power would be approximately $6 billion. Jerry Buss’s family bought the Lakers for $268 million in 1979. Adjusted for inflation, that’s equivalent to $1.15 billion today.
So the Lakers went from $1.15 billion (inflation-adjusted 1979 price) to $10 billion today. That’s 8.7x growth in inflation-adjusted terms, or 4.7% compounded annual real returns beyond inflation.
Stock markets historically return 7% annually above inflation. NBA franchises have returned 4.7% above inflation while providing prestige, tax advantages, and ego benefits. That’s excellent for a “trophy asset” traditionally viewed as lifestyle purchase rather than investment.
The Bottom Line
NBA teams are worth $5+ billion each because billionaires recognize these franchises will be worth $8-12 billion in 2035. The math works at current prices assuming:
- 7-10% annual revenue growth (conservative given media deal guarantees 7%)
- Stable 13-15x revenue multiples (consistent with recent transactions)
- Expansion fees adding $400 million+ per team by 2028
- International growth contributing $50-100 million annually by 2030
Mark Walter’s $10 billion Lakers purchase looks insane today. It will look prescient in 2035 when the team is worth $15+ billion and Walter has collected $1+ billion in distributions while owning basketball royalty.
That’s why NBA teams are worth $5 billion each. And why they’ll be worth $8 billion soon.
