In a recent article, Mark Cuban commented how media revenues will push NBA valuations far higher than they are currently.
“If we do this right, it’s not inconceivable that every NBA franchise will be worth more than $1 billion within ten years”, he said.
While that observation could be on the money, it’s not the only engine that drives NBA team values. The undergirding economics of these teams are complex and nuanced. The values are primarily by three different factors, some that cannot be controlled by owners and their advisory teams, but others that can be.