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The Indiana Pacers are now worth over a $1 billion

By Ben Gibson

INDIANAPOLIS, IN - DECEMBER 13: Pacers owner Herb Simon during the press conference announcing Indianapolis to host NBA All-Star 202 on December 13, 2017 at Bankers Life Fieldhouse in Indianapolis, Indiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2017 NBAE (Photo by Jeff Haynes/NBAE via Getty Images)
INDIANAPOLIS, IN - DECEMBER 13: Pacers owner Herb Simon during the press conference announcing Indianapolis to host NBA All-Star 202 on December 13, 2017 at Bankers Life Fieldhouse in Indianapolis, Indiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2017 NBAE (Photo by Jeff Haynes/NBAE via Getty Images) /
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The Indiana Pacers are worth over a $1 billion according to Forbes latest valuation of NBA franchises. Herb Simon paid $10.5 million for the team in 1983.

The Indiana Pacers are worth $1.125 billion according to Forbes latest valuation for NBA franchises. The Pacers were sold to Herb Simon in 1983 for $10.5 million, roughly the current cost of Bojan Bogdanovic’s salary this season.

That’s a staggeringly good return on investment for Simon. Forbes values every single one of the NBA’s teams at over $1 billion dollars. The average team is worth a record $1.65 billion.

A season ago the team was valued at $880 million. Over the past three years, the team went from $830 million to its current price.

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Those numbers might make some fans nervous as Simon could sell the team for a hefty profit, but last year Simon outlined his plans to keep the Pacers in Indiana.

The current value of the team. the $1.125 billion price tag comes from more than just the $205 million in yearly revenue. The Pacers will spend over $92 million on their players’ salaries this season.

The team’s $29 million in operating expenses don’t include player salaries, as thanks to some bookkeeping magic, Victor Oladipo is like a tractor as far as finances are concerned. That is to say, a player’s salary is considered a depreciating asset, so they are considered an expense while also being subtracted from a team’s operating income.

This is one of the ways team’s can claim they are losing money while the franchise’s value climbs. Remeber this if the city is asked to help pay for a new arena at some point.

Next: Are the Pacers and Nuggets looking to deal?

While the team’s value does little for fans, at the those attending Pacers’ games can take some solace in the fact tickets are some of the least expensive in the NBA.

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