Rockets rank No. 7 among NBA teams with $2.77 billion valuation
The coronavirus (COVID-19) pandemic may have caused NBA owners to take a hit on gate revenues throughout 2020 and into the new 2020-21 season, but values for the league’s franchises continue to climb, nonetheless. On Monday, Sportico released its valuations for every NBA franchise in 2021, and according to their numbers, nearly half (14) of the league’s 30 teams are now worth more than $2 billion.
Three teams — the New York Knicks, Golden State Warriors and Los Angeles Lakers — are now worth over $5 billion each, according to Sportico, while the average NBA team is valued around $2.4 billion. That’s an increase from 2020, when the average team valuation crossed $2 billion for the first time, according to Forbes.
When Tilman Fertitta officially purchased the Houston Rockets in September 2017 for $2.2 billion, that was a record sale price for an NBA team. But according to Sportico, Fertitta is getting return on his investment, even in these uncertain economic times. The Rockets are now worth $2.77 billion, which is No. 7 overall among the 30 NBA teams.
Only the Knicks ($5.42 billion), Warriors ($5.21 billion), Lakers ($5.14 billion), Brooklyn Nets ($3.4 billion), Boston Celtics ($3.18 billion), and Chicago Bulls ($3.14 billion) are ranked ahead of the Rockets.
Fertitta $2.2bn investment in the #Rockets is now worth $2.77bn – a 7% CAGR since purchase. In that time, the S&P 500 has appreciated 13% annually. Not the kind of 14% CAGR Les Alexander achieved, but the valuation could improve when the Landry's synergies are better realized. https://t.co/00jSCqbZCT
— Justin Levine (@JustinLev) January 18, 2021
In the updated valuation rankings, Houston is currently edging out the Los Angeles Clippers ($2.63 billion), who come in at No. 8 overall. Next are the Dallas Mavericks ($2.58 billion), Toronto Raptors ($2.55 billion), Philadelphia 76ers ($2.50 billion), and Miami Heat ($2.38 billion).
On the other end of the spectrum, the New Orleans Pelicans ($1.35 billion), Memphis Grizzlies ($1.36 billion), and Minnesota Timberwolves ($1.43 billion) carry the lowest valuations. All of those three bottom-feeders are in the Western Conference, which might help Fertitta’s Rockets in the years ahead as they embark upon what could become a rebuilding cycle after the recent trade of superstar James Harden.
Sportico’s complete list of NBA valuations can be accessed here.
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.@nyknicks top the 2021 #NBA Valuations at almost $5.5 billion. Here are the top 10 franchises ranked by value.
Read our report:https://t.co/NyHerHKF9C pic.twitter.com/BLnpA6HGxR
— Sportico (@Sportico) January 18, 2021