How Much Do NBA Owners Make?
The NBA league is the most popular sports league in the world with millions of fans around the world.
Moreover, the NBA has a reputation for being the most innovative of the major professional North American sports leagues and the only one that went global.
Therefore, NBA team owners have an interest in anything you can imagine – TV rights, ticketing, merchandise, and many more.
There is lots of money in this league so you will see tech billionaires, successful executives, real estate moguls, former athletes, and successful people from other professions owning NBA franchise teams.
Lots of people think it’s crazy to spend billions or hundreds of millions on an NBA team. But the truth is the popularity of this sport and league is growing every day.
NBA is not a public company. Accordingly, the league officials do not release detailed financial reports to the public. However, according to Forbes, total revenue across the organization reached around $9 billion. The 30 teams of the league have an average valuation of $2.12 billion. So if you are wondering how NBA franchises earn money and how much owners make then keep reading.
How NBA Franchises Make Money
Arena Income
First of all, teams earn a lot of money from the arenas where the team plays. The income generates from ticket sales, premium seating, concessions, merchandise, and other in-arena sources of revenue.
The teams earn even more money from the market income. The size of the market is defined by the number of people who tune in to watch a team’s home games. A team with a large market will generate more income compared to teams with small market size.
Amount Of Money NBA Owners Make
His success in NBA has helped him book a place on the Forbes list with a $1.9 billion net worth. His Airness spent $180 million to purchase the Charlotte Hornets, the team from his native North Carolina.
When MJ took over the team it was the 28th most valuable franchise in the league, but with Mike in charge, it went up by 575% and is now worth $1.3 billion.
Cuban bought the Dallas Mavericks in 2000 for $280 million. What makes him unique is his true love of the game and he never sees the team as an investment. His personality and team success has played a big part in creating a huge fan base.
DeVos bought the Orlando Magic in 1991 for $85 million. DeVos is also the founder of Amway, the company that owns the arena in Orlando. He generated a profit worth $1.1 billion from the investment in Orlando Magic.
Steve Ballmer was the CEO of Microsoft. He purchased the Los Angeles Clippers for a jaw-dropping $2 billion. He works hard to make the Los Angeles Clippers a premier basketball team and he is so close to getting there. The purchase of the Clipper by Ballmer caused ripples in the league as more teams increased in valuation.
Gilbert is the owner of the Cleveland Cavaliers and the youngest NBA franchise owner. He is a billionaire and most of his money comes from the real estate sector. He is also the co-founder of Quicken Loans, the largest home mortgage lender in the U.S. The Cavs ‘ worth is over $1 billion despite the fact that LeBron James is long gone.
Reinsdorf has been the owner of the Chicago Bulls for more than 30 years. He took over the team when it wasn’t doing well but since then he has made it into one of the most popular franchises in the world mainly because of a guy named Michael Jordan.
Miss Buss is the president and controlling owner of the Los Angeles Lakers. She is the daughter of real estate investor Jerry Buss who owned various sports businesses, including the Lakers.
At 19, Jeanie Marie began working in the family business as general manager of the professional tennis team, Los Angeles Strings. She gained controlling ownership of the Lakers after her father died in 2013 and the franchise was passed on to her and her five siblings.
