Led by the eye-popping $7 billion Golden State Warriors, the average NBA team is now worth $2.86 billion, 15% more than a year ago, an impressive feat considering the stock market is down more than 15% over the same span.
Click here to read the story at forbes.com.
Discussion Questions:
- What factors might influence the value of a professional sports franchise?
- Some teams might not generate a profit year over year. Given the potential challenge in turning an annual profit, why do so many people want to invest in pro sports teams?
- How do teams generate revenue?
- What might represent some expenses for a pro sports team?
- What do you think a team’s biggest expense might be?
- What factors influenced the Warriors’ rise to the top of most valuable NBA franchise rankings, based on information from this Forbes story?
- The stock market has struggled in the last year, down 15% from one year ago. Yet the value of a NBA franchise has increased by 15% in that time period. How is that possible?
- Do you think pro sports teams will continue to rise in value as rapidly as they have in recent years? Why or why not? Be prepared to discuss your answers in class.