Sports: 6 crazy figures in NBA, 10 billion dollar business

Posted January 19, 2023, 4:22 p.mUpdated January 19, 2023, 5:02 p.m

The NBA has never been more profitable. After two years of losses due to health restrictions imposed by Covid-19, the prestigious American basketball league returns to Paris with Olympic financial health. The NBA is set to generate more than $10 billion in revenue in 2022, a record.

For the second time, Accor Arena will host an NBA regular season game in France this Thursday. But apart from the sports problem between Detroit Pistons and Chicago Bulls, the biggest basketball league in the world came to the capital to be represented. A showcase for a cash register that continues to internationalize. Matches moved abroad, including a new game planned for Paris in 2024, match broadcasts and “highlights”, the best moments are almost always broadcast live on social networks… The league’s strategy to develop its influence abroad has increased in recent decades. Six figures to measure the size of CBA’s business.

1. $10 billion in revenue

In the 2021-22 season, the symbolic revenue line of ten billion dollars was passed by the NBA. The NBA holding company has quadrupled its revenue since 2001 ($2.5 billion) and tripled since 2012 ($3.7 billion).

In the American sports entertainment industry, the NBA is currently the second highest-grossing league, far behind the NFL’s (American football) $18.7 billion, but ahead of MLB (baseball) and its $9.6 billion. The NHL (ice hockey) ranks 4th at $5.7 billion, ahead of the most recent soccer market represented by MLS ($1.2 billion).

2. The average value of an NBA team is $2.86 billion

According to Forbes’ annual ranking, the average value of an NBA franchise is $2.86 billion, up 15% from the previous year. In 2001, this figure was about 200 million dollars. Over the past 20 years, the average value of a rising NBA franchise has increased 12 times.

The reigning NBA champions, the Golden State Warriors, are the league’s most valuable franchise at nearly $7 billion, dethroned by the New York Knicks ($6.1 billion), followed by the Lakers ($5.9 billion), Chicago Bulls ($4.1 billion) comes and the Boston Celtics ($4 billion).

3. $27 billion in TV rights

One of the NBA’s greatest resources is based on its very juicy TV rights deals. The current television rights deal, which binds the NBA to its broadcasters from 2016 and runs through 2025, was negotiated for $27 billion (about 24 billion euros). TNT, ABC and ESPN bring the NBA about $2.1 billion in revenue each season.

The deal, which is due to be renegotiated in the coming years, will be worth around $75 billion, and it appears that Amazon has decided to play this game against American TV networks. The NBA is exporting its show internationally, especially to China, where it brings together more than 500 million basketball fans. The league has a $1.5 billion-a-year deal with Tencent to broadcast its matches in the country through 2024-25.

4. Since 2010, sponsorship income has increased 3 times

For many brands, the NBA represents an opportunity to be broadcast on screens around the world. Sponsorship revenues have tripled since 2010, from $536 million to $1.6 billion in 2022. According to research firm IEG Research, jersey sponsorships bring the NBA and its 30 franchises 1.46 billion euros a year, an increase of 6. % compared to last season. The small comma stitched on the jerseys of the league’s 30 basketball teams brought in nearly $200 million in 2021. Since 2017, the NBA has allowed naming sponsors to appear on jerseys and courts. Many brands, such as Disney or PayPal, allow each franchise to monetize its audience for several million dollars a year. For the Lakers and Warriors, their revenues are close to $15 million a year thanks to their partnerships with Bibigo and Rakuten. In 2021, the Crypto.com platform, for example, paid about $700 million to present its logo on the floor of the Staple Center in Los Angeles.

5. Salary cap over $110 million

In the CBA, the “salary cap” is the allowable salary schedule for each franchise. In the conditions of stable inflation in recent years, the “salary cap” for the current season was set at 112.4 million dollars.

NBA franchises have the ability to waive this when extending their players or through “waivers.” For example, the envelope that allows you to pay for the services of Stephen Curry (Golden State Warriors), who is the most expensive player in the League this season, for $48 million.

6. A $1 billion private equity fund

At the end of 2022, the league officially opened an investment branch called “NBA Equity”. According to Bloomberg, there are about 20 companies in the NBA’s portfolio, their holdings are approaching $1 billion. Recent equity investments include French unicorn Sorare, clothing brand New Era, data analytics firm Sportradar, children’s social network Zigazoo, smart fabrics Nextiles and event management company QuintEvents.

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