As it does every year, Forbes released its annual valuation of the 30 NBA teams and this year's numbers show that the NBA is doing better than ever. Thanks to the big increase in sale prices over the past few years (starting with Sacramento going for $535 million and topped off by the Clippers selling for $2 billion) as well as a lucrative new national television deal coming, NBA valuations have jumped an average of 72.3% from 2014.
Compared to last year's rankings when the Kings came in 16th at $550 million (only slightly higher than Vivek Ranadivé's purchase price), Sacramento has fallen to 24th overall in terms of franchise value. Of course, that still came with a 45.4% increase in valuation to a whopping $800 million. Sacramento's new arena as well as the $700 million local television deal they signed this summer are the biggest reasons for the increase.
As we all know, these valuations mean little in terms of real world value, as a team will go for as much as someone is willing to pay. Just three years ago, Forbes valued the Kings at just $300 million and the Clippers only slightly higher at $324 million.
Regardless, it seems like Vivek Ranadivé's gamble on the Kings is paying off nicely. Now about that on-court product...