Some Current NBA Owners May Consider Selling Due To Strong Franchise Valuations
The NBA is heading toward a new collective bargaining agreement and a significant increase in its next media rights deal, which could lead to an expansion. But it could also lead to existing owners considering selling given the fact the financial health of the league is so sound that it has created an environment where other parties are desperate to buy in despite record valuations.
"There's starting to be some rumblings of some NBA owners maybe looking to sell," said Brian Windhorst. "That the market is getting ripe for NBA owners to sell.
"One of the reasons is because the Broncos just sold for $4.3 billion. And the Commanders may sell pretty soon here and that's going to smash every record. The Commanders, people are talking about $6 billion potentially. $5 billion to $6 billion, maybe more.
"We just saw Liverpool FC is now for sale it sounds like reportedly. And they're valued at $4 billion and I was reading a report yesterday that they think the owners, the same folks who own the Red Sox, that the owners may be able to get $5 billion for that.
"The value of teams are coming up."
The average NBA franchise multiple is at 8.6 compared to seven before the pandemic.
"There might be some folks sitting on the sideline sort of wondering 'Should I sell?' and they're going to see these numbers."
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, Khareem Sudlow
