2h ago
Raptors return on investment is the real deal
Toronto Raptors forward Scottie Barnes puts up a shot over Golden State Warriors guard Stephen Curry
Toronto Raptors forward Scottie Barnes puts up a shot over Golden State Warriors guard Stephen Curry , The Associated Press
Written by: Dan Gladman
Follow: @dgontheroad
Come June of this year, Canadians will be reminded of the Toronto Raptors’ NBA championship. After all, it will be the 5-year anniversary of the historic accomplishment.
That capped an unprecedented run of success for a team that was brought into the league as an expansion club in 1995. In addition to the championship, the team won its division in six of seven years from 2014-2020. Both Nick Nurse and Dwane Casey won Coach of the Year honours and numerous players were All-Stars.
Since that era, the team’s on court performance has been mediocre. The Raptors are on pace to miss the playoffs for the third time in four years.
Despite disappointing results on the court, the Raptors, like literally every NBA team, are a perpetual champion when it comes to the bottom line. The organization’s financial valuation is worthy of the Hall of Fame.
According to Sportico, the Raptors are valued at US$4.11 billion, ranking 9th among all teams in the National Basketball Association. The Golden State Warriors are at the top, worth a cool US$8.28B. Even the last ranking team - the New Orleans Pelicans - value at US$2.72B.
Even more amazing is the Raptors value increasing by 23% in just the past year alone. The team’s 2022-23 revenue came in at US$347 million (Sportico), an increase of $32M from the year before. NBA revenue is up across the board with new profit-generating streams around the corner.
Reports conclude that Silver is looking for a US$7B annual package for media rights. Remember, last year’s number was $2.66B. Nearly tripling that might not materialize but what if it doubled? Five billion dollars spread evenly among 30 teams on an annual basis would enhance earnings to the tune of approximately $150-160 million per year, per team. The cap on player salaries, an NBA team’s largest expense, is presently US$136M.
So who will join the NBA as national broadcast partners? ABC/ESPN and Turner are unlikely to relinquish their stakes, but John Ourand of Puck News reported on his Marchand and Ourand Sports Media Podcast that NBC is in contention for a return to NBA broadcasting, and would potentially bring along its streaming service Peacock. One or more of Prime, Apple TV and YouTube could be in the mix as well. Ourand maintains that the streamers have been “disciplined” in their negotiating approaches, but those around the NBA are certain that big tech will enter the picture in the next composition of a rights package.
Additionally, NBA expansion is coming more and more into frame. Las Vegas and Seattle are likely to join the league within five years. (Vancouver and Mexico City are long shots). According to Sportico, the expansion fee could rise as high as US$5 billion, yet another cheque for NBA teams. But unlike all other basketball-related revenue, team owners would not have to share this amount with players.
This could be back soon!
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