The Indiana Pacers Are Worth $880 Million According to Forbes
By Josh Padmore
The Indiana Pacers are worth $880 million according to Forbes in 2017, up from $840 million a year ago.
On Wednesday, Forbes released their yearly NBA team values. The Indiana Pacers ranked 24th at $880 million. The New York Knicks and Los Angeles Lakers, as usual, led the way in terms of franchise value.
This is a slight improvement in from last year. The Pacers ranked 23rd in 2016 but valued at $840 million. The revenue also increased from $138 million last year to $157 million this year.
Still, the Pacers are worth a below average amount. That is to be expected for a small market team. According to Forbes, the average NBA franchise is worth $1.36 billion.
"The Pacers chronically lost money before the NBA’s collective bargaining agreement, which cut players costs. Another perk of the CBA was the tripling of revenue sharing moving from high-revenue to low-revenue teams. Small market teams like Indiana can reap $20 million or more through revenue sharing now."
As Forbes mentioned, teams around the league have seen increased value ever since the NBA’s collective bargaining agreement back in 2011. In 2012, the Indiana Pacers were only worth $283 million. From then to now, that’s a $597 million increase.
The New York Knicks ranked number one on Forbes’ list for the second consecutive year. Despite a lack of success and franchise turmoil, the Knicks made an NBA record operating profit of $141 million during the 2015-2016 season.
Just two years ago when the Los Angeles Clippers were sold to Steve Balmer for $2 billion, people rightly questioned if he paid too much. But now with six teams worth at least that much, it doesn’t seem like such a bad price.
Next: Pacers in Desperate Need of Shooting and Rebounding
With the new CBA ratified and ensuring labor peace until 2022 and the NBA continuing to expand its brand globally, the owners of NBA teams can expect strong returns on their investments.