Valuations of NBA teams have been skyrocketing, and TV revenue is a major reason why.
We can thank rising sports rights fees — now at $75.9 billion over 11 years, up more than two and a half
times of the previous contracts — by way of major TV advertising and sponsorship revenue.
A collective $637 million in regular-season TV advertising for the 2024-25 NBA season was pulled in,
according to EDO Ad EnGage, followed by $845 million for all post-season media buys. The big three advertising categories are quick-service restaurants, automotive and insurance (auto and home).
The broader picture shows that for this season alone — the 2025-26 — total league wide revenue will grow 12% to $14.3 billion. Higher rates and fees had a lot to do with it, stemming from rising
ad revenue. This has given about $142 million to each team from those current TV partners — Walt Disney, NBCUniversal, and Amazon.
The average revenue the previous season per team was at $416
million — nearly 7% more than 2023-24.
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This has pushed team valuations — including new ownership deals for some teams — to a level where three teams have valuations of more than $10 billion, according to CNBC.
This includes the Golden State Warriors ($10.8 billion), the New York Knicks ($10.1 billion) and the Los Angeles Lakers ($10.0 billion).
The biggest valuation change — year-over-year —
was with the Lakers, due to a controlling interest purchase by Mark Walter, at nearly 20 times that of the team’s 2024-25 revenue of $565 million.
Overall local TV revenue from cable TV
channels and/or streaming TV platforms for the biggest markets — such as New York and Los Angeles — figure big time here. The Lakers and the Knicks grab the most — around $185 million and $140
million respectively, according to Sports Business Journal.
Still everyone is benefiting — all 30 NBA teams. The average value of an NBA team is up 18% versus a year ago to $5.52
billion.
As far as downside, that may be subscription fatigue on the streaming side — Disney’s ESPN streamer, NBCU’s Peacock and Amazon Prime Video.
Another downside is
that high rights fees from regional sports cable TV networks have evaporated. Much of what remains has shifted to over-the-air TV with one new exception — many teams now sell their local TV
advertising.
Seems teams in the future may need assists from financial teammates to come to keep up the big scores.