Sometimes it's not how you play the game on the court, but where you play the game that impacts the value of your National Basketball Association franchise -- at least that's the conclusion one could logically make from Forbes' annual ranking of NBA franchises.
Take, for example, the New Jersey Nets and New York Knicks, two teams that were each acquired for $300 million. Despite the Cablevison Systems Corp.-owned Knicks lowly record over the last couple of seasons while playing under the glitzy lights of Madison Square Garden in Manhattan, the team is the highest-valued NBA franchise at $613 million, according to Forbes. Meanwhile its "cross-town" rivals, the NJ Nets, who play only eight miles away in East Rutherford, N.J., at the Izod Center (to some known as the swamp or Meadowlands), slipped nine spots to a 26th-placed ranking with a valuation of $295 million.
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This couldn't have come at a worse time for Nets owner Bruce Ratner, who has denied regular rumors that he may sell the team. Whatever the status of a divestment, given the state of the economy Ratner will likely postpone any notions of selling his franchise in the near future.
For Ratner, the 2008 valuation is slightly less than the $300 million he paid for the Nets in 2004. Forbes reports that the Nets -- who didn't make the playoffs for the first time last year since 2002 -- tallied an operating loss of $900,000 last year. But the Daily News reported in October an NBA source saying the team has been losing between $20 million to $25 million annually for the last couple of years, which may be one reason for the sales rumors. Ratner's loss also may be getting bigger because of his, so far, unsuccessful attempt to build an arena in Brooklyn for his Nets. Common wisdom suggests these delays have left the team with a weak fan base as most New Jersey residents have lost interest in the team.
| Forbes list of NBA team valuations 2008 |
| Rank |
Team |
Value |
| 1 |
N.Y. Knicks |
$613M |
| 2 |
Los Angeles Lakers |
$584M |
| 3 |
Chicago Bulls |
$504M |
| 4 |
Detroit Pistons |
$480M |
| 5 |
Cleveland Cavaliers |
$477M |
| 6 |
Houston Rockets |
$469M |
| 7 |
Dallas Mavericks |
$466M |
| 8 |
Phoenix Suns |
$452M |
| 9 |
Boston Celtics |
$447M |
| 10 |
San Antonio Spurs |
$415M |
| 11 |
Toronto Raptors |
$400M |
| 12 |
Miami Heat |
$393M |
| 13 |
Philadelphia 76ers |
$360M |
| 14 |
Utah Jazz |
$358M |
| 15 |
Washington Wizards |
$353M |
| 16 |
Sacamento Kings |
$350M |
| 17 |
Orlando Magic |
$349M |
| 18 |
Golden State Warriors |
$335M |
| 19 |
Denver Nuggets |
$329M |
| 20 |
Portland Trail Blazers |
$307M |
| 21 |
Atlanta Hawks |
$306M |
| 22 |
Indiana Pacers |
$303M |
| 23 |
Minnesota Timberwolves |
$301M |
| 24 |
Oklahoma City Thunder |
$300M |
| 25 |
Los Angeles Clippers |
$297M |
| 26 |
N.J. Nets |
$295M |
| 27 |
Memphis Grizzlies |
$294M |
| 28 |
New Orleans Hornets |
$285M |
| 29 |
Charlotte Hornets |
$284M |
| 30 |
Milwaukee Bucks |
$278M |
Source: Forbes |
Meanwhile, it seems the Knicks have had anything but basketball on their minds, sitting in the basement of their division over the last several years and gaining more attention for their antics off the court, which include an alleged sexual harassment suit involving its former general manager Isiah Thomas and its star point guard Stephon Marbury being exiled for conduct detrimental to the team. But maybe that's just part of the soap opera of being the Knicks -- after all, New Yorkers love drama. No matter, all these fiascoes aside, the team is still the highest-valued NBA franchise ahead of the the more successful Los Angeles Lakers ($584 million), according to Forbes. Playing in the world's biggest media market likely helps the Knicks, as they raked in the dough, pulling in nearly double the gate receipts at $75 million with revenue of $208 million compared to the Nets' $35 million gate receipts with revenue of $98 million in 2007.
Some analysts have suggested in recent years that Jim Dolan, the CEO of Cablevision, should sell the Knicks for much needed cash for his cable business. But Dolan seems to feel otherwise, even reportedly rejecting in November 2005 a $700 million offer for the Knicks and the Rangers from an investment group led by financier and former Icahn Associates executive Russell Glass. - Gerald Magpily
See Forbes NBA valuation list
See Forbes article on N.J. Nets
See Forbes article on N.Y. Knicks
