is worth a record $1.1 billion dollars. The National Basketball
Association is growing at an alarming rate. Factors playing a role in
this growth are players receiving global recognition, TV and internet
access and the technological advances in today’s world.
The twenty-four hour media machine is
playing a significant role on merchandising and advertising sales. In
the NBA today, there are 11 franchises worth over $ 1 billion dollars.
Totaling an estimated value of $18.35 billion dollars combined. I would
say that the league is economically sound at this point. The $18 billion
dollar estimate doesn't include the 22 other NBA teams that have net
worth of $500 million dollars or more each. It is only a matter of
time until those teams reach that billion-dollar mark especially with
the access that smartphones, tablets and computers give consumers to the
sport. As the world produces more billionaires, the desire of being in
an elite group of team owners and the lure of a market that has an $80
billion dollar TV deal in place starting in 2016 should influence many
startup ventures ready to capitalize on this growing market. What
investor wouldn’t want in on the money sport? Between the 11 teams worth
over a billion dollars the average change in value for each team was an
astonishing 84%, change. Meaning, teams who were worth $500 million in
2013-14 are now worth almost $2 billion today. We saw this with the LA
Clippers when the team was sold for an NBA record $2 billion dollars in
2014. The team had a value of $575 million dollars in 2013, up 34% from
its original purchase price of $12.5 million dollars in 1981. Players
are key components of the value of teams, the more popular the players
on a team the more exposure the team gets and the more merchandise it
sells along with major media deals. Expect player salaries to skyrocket
past the now lucrative deals in place to individual athletes today.
Technology and the growing market of cell phone use and social media
accessibility will spike viewer numbers tremendously. Sport web sites
like AgainstTheGrainSports.com and media giant ESPN are ready to reap
the benefits of such a market. Internet advertising is a fast growing
business that overcame cable television and nearly exceeded those of
broadcast television in 2011 according to Wikipedia. The revenues in
just the United States alone totaled $42.8 billion dollars. With the
increase in smartphone usage, the NBA will reach even more of the market
they now connect too. According to Video Ink, smartphones accounted for
13.6% of online video starts in Q2 of 2014 a percentage of 38.2 billion
“online videos”. At this rate, online content will overtake TV
broadcast within the next 5 to 10 years. The NBA has a great economic
future to look forward too. Major TV networks shouldn’t be worried
though since every network has its own digital media web site that can
facilitate any online viewer’s smartphone, tablet, and computer. As the
NBA game expands its global market, it will command the attention of
viewers across the globe. For example, Internet growth in India is
mainstreaming amongst their young population with smartphone access as
the leading way of connecting to the internet. With more than 200
million people connected, the National Basketball Association will be
looking if it has not already has plans to diversify their marketing
plans on and offline according to SlideShare’s Digital Statistics.
According to bleacher reports mock draft, 11 overseas players are
expecting to enter the 2015 NBA Draft in 2015. Of those 11 players,
Emmanuel Mudiay from Guangdong China is projecting to be in the top five
picks. This means that fans in China will follow him to the NBA. There
are 32 NBA teams, eleven of them are worth an average of $1 billion
dollars today, and twenty-two are worth an average of $700 million.
Expect all teams to be valued at over $3 billion in the next five years
with the global players influence along with technology increasing at a
high-speed rate. The NBA is an economically sound business investment
right now and well into the future, if you are a fan, an investor, or an
entrepreneur it behooves me to say that this market has a bright
upside.
By ATGS Jerod McCain
The twenty-four hour media machine is playing a
significant role on merchandising and advertising sales. In the NBA today,
there are 11 franchises worth over $ 1 billion dollars. Totaling an estimated
value of $18.35 billion dollars combined. I would say that the league is
economically sound at this point. The $18 billion dollar estimate doesn't
include the 22 other NBA teams that have net worth of $500 million dollars or
more each. It is only a matter of time until those teams reach that
billion-dollar mark especially with the access that smartphones, tablets and
computers give consumers to the sport. As the world produces more billionaires,
the desire of being in an elite group of team owners and the lure of a market
that has an $80 billion dollar TV deal in place starting in 2016 should
influence many startup ventures ready to capitalize on this growing market. What
investor wouldn’t want in on the money sport? Between the 11 teams worth over a
billion dollars the average change in value for each team was an astonishing
84%, change. Meaning, teams who were worth $500 million in 2013-14 are now
worth almost $2 billion today. We saw this with the LA Clippers when the team
was sold for an NBA record $2 billion dollars in 2014. The team had a value of
$575 million dollars in 2013, up 34% from its original purchase price of $12.5
million dollars in 1981. Players are key components of the value of teams, the
more popular the players on a team the more exposure the team gets and the more
merchandise it sells along with major media deals. Expect player salaries to
skyrocket past the now lucrative deals in place to individual athletes today.
Technology and the growing market of cell phone use and social media
accessibility will spike viewer numbers tremendously. Sport web sites like
AgainstTheGrainSports.com and media giant ESPN are ready to reap the benefits
of such a market. Internet advertising is a fast growing business that overcame
cable television and nearly exceeded those of broadcast television in 2011
according to Wikipedia. The revenues in just the United States alone totaled
$42.8 billion dollars. With the increase in smartphone usage, the NBA will
reach even more of the market they now connect too. According to Video Ink,
smartphones accounted for 13.6% of online video starts in Q2 of 2014 a
percentage of 38.2 billion “online videos”. At this rate, online content will
overtake TV broadcast within the next 5 to 10 years. The NBA has a great
economic future to look forward too. Major TV networks shouldn’t be worried
though since every network has its own digital media web site that can
facilitate any online viewer’s smartphone, tablet, and computer. As the NBA
game expands its global market, it will command the attention of viewers across
the globe. For example, Internet growth in India is mainstreaming amongst their
young population with smartphone access as the leading way of connecting to the
internet. With more than 200 million people connected, the National Basketball
Association will be looking if it has not already has plans to diversify their
marketing plans on and offline according to SlideShare’s Digital Statistics.
According to bleacher reports mock draft, 11 overseas players are expecting to
enter the 2015 NBA Draft in 2015. Of those 11 players, Emmanuel Mudiay from
Guangdong China is projecting to be in the top five picks. This means that fans
in China will follow him to the NBA. There are 32 NBA teams, eleven of them are
worth an average of $1 billion dollars today, and twenty-two are worth an
average of $700 million. Expect all teams to be valued at over $3 billion in
the next five years with the global players influence along with technology
increasing at a high-speed rate. The NBA is an economically sound business
investment right now and well into the future, if you are a fan, an investor,
or an entrepreneur it behooves me to say that this market has a bright upside.
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