December 7, 2008

Los Angeles Lakers #2 in Forbes' Most Valuable Teams List

The Los Angeles Lakers were valued by Forbes as the second most valuable team in the NBA for 2008.

Based on the team valuations made by Forbes for all the 30 teams, the Lakers were pegged at US$ 534 million. Here's the breakdown:
  1. $123 million or 23% comes from the earnings from the league's shared profits
  2. $240 million or 41% comes from the value of the city's market size
  3. $140 million or 24% comes from the stadium earnings (ticket sales, merchandise, food, etc.)
  4. $81 million or 14% is attributed to the team's brand
Why is the breakdown interesting? The most interesting point for me is the fourth point or the team's brand. It is valued at a staggering $81 million. If you look at the other NBA teams in the Forbes top 10 list, most of teams' brand valuation is pegged between $40 million-$55 million.

Now what does that mean? It means that the Lakers have the strongest brand as far as NBA teams go. It's like the Lakers are the Coca-Cola of the NBA, and the rest could be Pepsi or Dr. Pepper.

What's the #1 valued team? The New York Knicks. They got there because of the city's market size and stadium earnings.

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