The 80th NBA season tips off with a new TV agreement that includes the continuation of the league’s partnership with ESPN, a return to NBC for the first time in 23 years and a dose of streaming on Amazon. It reflects the league’s evolving media strategy and economic transformation.
Forty years ago, NBA teams earned $33 million per year collectively as Michael Jordan entered his second season in the league. The new crop of deals are worth $6.9 billion annually, more than 200 times the value during the 1985-86 season.
NBA teams generated $12.25 billion, or $408 million per club, in revenue during the 2024-25 season, including non-NBA events at buildings owned or operated by teams. These earnings ranged from $833 million for the Golden State Warriors to $301 million for the Memphis Grizzlies. The tally is net of revenue-sharing that transferred roughly $400 million to low-revenue teams last year, funded by high-revenue teams and 50% of luxury tax proceeds.
By comparison, NFL teams made $22.2 billon, MLB ones were $12.75 billion, NHL clubs did $7.7 billion and MLS was $2.2 billion.
Teams in these leagues all generate revenue the same way: from gate receipts, sponsorships, concessions, merchandise, luxury suites, media contracts and other events at their venues, such as concerts. But the scale of the revenue streams varies wildly in the different sports.
In the NBA, central revenue is the biggest source of money, representing 38% of revenue last year. It sits between the NFL (62%) and MLB (25%) in that respect. But the NBA’s new 11-year, $76 billion media deal pushes the league closer to the NFL’s economic model. It bumps each team’s TV revenue from $103 million to $143 million this season. The payouts rise roughly 7% per year on average, putting each team on track for $281 million for the 2034-35 season, based on a 30-team league.
If the TV deal was in place last season, central revenue would have been 44% of team revenue. The league distribution also includes shared revenue from sponsorships, international, retail and other league operations.
The average NBA franchise is worth $5.51 billion, per Sportico’s NBA team valuations. That figure is up 20% versus last year and 113% from 2022, when the average was $2.58 billion. The value of the lowest-ranked team (Grizzlies) is $4 billion, up 2.5x from 2022 ($1.63 billion). Investors have bid up the entry price to own 1/30th of an entity with global aspirations, including building new leagues in Africa and Europe, and a new blockbuster TV contract. Domestic expansion is not on the immediate horizon, but the fee is likely now $6 billion.
Seating and luxury suites make up the NBA’s second biggest revenue stream at an estimated $3.4 billion, or 28% of total revenue. Last season, the Warriors were tops in the NBA with ticket revenue of more than $5 million per game. The Los Angeles Lakers and New York Knicks were next up at roughly $4 million per contest.
Premium seating is an increased priority for teams, as fans and companies seek exclusive entertainment opportunities. The Los Angeles Clippers’ new $2 billion arena, Intuit Dome, includes four courtside cabanas that cost $2 million per year and are all leased. The Warriors generate $2.5 million per game from suites. The Cleveland Cavaliers just opened an invite-only private members club, HIPP, that includes a five-figure annual membership fee for valet parking, a separate entrance, a luxury club and other amenities, but not tickets.
Sponsorships are the third biggest category for NBA teams at $1.7 billion, or 14% of revenue. Arena naming rights are roughly 10% of the category, and the Knicks are the only team playing in a building without a corporate name. The Phoenix Suns’ arena has a new name, Mortgage Matchup Center, via a 10-year, $115 million deal. Mortgage Matchup is the consumer-facing brand for United Wholesale Mortgage, where Suns owner Mat Ishbia is co-founder and chairman.
The Clippers took the biggest financial leap in 2024-25 in Year 1 of the Intuit Dome at just over $100 million in sponsor revenue, good for second in the NBA. The Warriors maintained their place in front and are now closing in on $200 million.
Local media was 10% of total revenue for the 2024-25 season and dipped from the prior year, as teams faced the lower rights fees stemming from the bankruptcy of Diamond Sports, now Main Street Sports, and some pivoted to less lucrative over-the-air options. The Knicks agreed to a 28% cut to their fee from MSG Networks, which like the Knicks, is controlled by James Dolan via his voting rights in Sphere Entertainment. Madison Square Garden Sports owns the Knicks.
The Lakers have the NBA’s richest local TV deal; their agreement with Charter Communications’ Spectrum brand paid the club nearly $200 million for the 2024-25 season.
The balance of NBA team revenue is from concessions, parking, merchandise and non-NBA events, such as concerts. It was $1.15 billion for 2024-25, 9% of total revenue. Eleven arenas that host NBA teams grossed at least $100 million in ticket revenue from concerts last year, according to Billboard. Most of that money stays with the artists, while teams cash in via concessions, parking, merchandise and premium seating.