Which is the most valuable NBA franchise? Looking at their history, revenue, player contracts, and more
The financial side of the game goes hand in hand with what goes on the court in the NBA, and fans are always curious to know the economic stature of their favorite franchise. A club's financial status is always related to the success accumulated throughout its history (ie. L.A. Lakers), but some teams are in an advantageous position solely because of the city they are based in.
Which team is the highest-valued franchise in the NBA?
According to a report published by Forbes on May 7th, 2021, the New York Knicks are the most valuable franchise in the league. The New York Knicks are reportedly worth $5 billion currently, just behind the Dallas Cowboys and New York Yankees. Bay-area-based Golden State Warriors and LA Lakers are the closest to the Knicks in terms of valuation, at $4.7 billion and $4.6 billion, respectively.
It is astounding that the New York Knicks have managed to top the list, considering their unsuccessful campaigns in the NBA year after year. The team has improved lately since the introduction of Tom Thibodeau as the head coach but still, remains an above-average side.
The New York Knicks were formed in 1946 by Ned Irish. The Knicks were in great shape in their initial years in the NBA, making 3 consecutive NBA finals in the 1950s. The team's best performances came in the 1970s when they won two NBA championships under Red Holzman. The 1980s saw them enjoy mixed form, while the 1990s were headlined by the gritty attitude of franchise talisman Patrick Ewing.
The New York Knicks have had a hard time in the league since the 2000s. They had a brief spell of success during the Carmelo Anthony era but missed the playoffs for 8 consecutive seasons in the 2010s. However, they did so last season under Tom Thibodeau's tutelage, and are expected to improve further in the upcoming season.
Taking a look at New York Knicks' revenue and player contracts
The New York Knicks were bought in 1997 by Madison Square Garden Sports group for $300 million, which is led by businessman James Dolan. It is safe to say that Dolan has made his fair share of profit since acquiring the team, as the revenue report projects that their recent five-year change in value is 67%.
The Lions' share of the New York Knicks' revenue comes from their venue, Madison Square Garden. Madison Square Garden is valued at $828 million and accounts for 23% of the Knicks' value. Back in 2013, the Garden underwent a $1 billion renovation and the NBA franchise is still profiting from it.
The franchise's decision to introduce suite seats in the arena and increased sponsorship in 2017 led to a 9% bump in revenue, and the organization's fixed revenues have also played a major role in giving them a financial boost. NBA's lucrative TV deal, which amounts to a nine-year, $24 billion national TV contract, also earns the New York Knicks $88.9 million per year.
Coming into player contracts, Julius Randle will command the highest figures going into the 2021-22 season. He will have a $21,780,000 hit on the New York Knicks' cap and is set to make $140 million over the next five years after signing a four-year, $117 million contract extension recently.
Here's how much each contracted player from the New York Knicks will make during the 2021-22 NBA season -
Julius Randle - $19,800,000
Evan Fournier - $17,142,857
Derrick Rose - $13,445,120
Alec Burks - $9,536,000
Nerlens Noel - $8,800,000
Kemba Walker - $8,729,020
RJ Barrett - $8,623,920
Joakim Noah - $6,431,666
Kevin Knox - $5,845,978
Obi Toppin - $5,105,160
Taj Gibson - $4,910,000
Luca Vildoza - $3,325,000
Immanuel Quickley - $2,210,640
Quentin Grimes - $2,168,640
Mitchell Robinson - $1,802,057
Dwayne Bacon - $1,669,178
Miles McBride - $925,258
Aamir Simms - $925,258
MJ Walker - $925,258
Jericho Sims - $462,629
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