SACRAMENTO -- In a roundabout way, the Sacramento Kings ownership owes a huge thank you to hedge fund billionaire Chris Hansen. A lifelong Seattle Supersonic fan, Hansen attempted to abscond with the franchise in early 2014, only to be rebuffed by the NBA.
Despite his last minute offer of $650 million to purchase the team, David Stern and the NBA’s Board of Governors decided to keep the team in Sacramento with new ownership at the cost of $534 million, far above the team’s original valuation price.
Hansen’s price heavy attempts to relocate the Kings, matched with a new television and official clothing sponsor, has opened the door for a massive increase in NBA franchise values.
Stay in the game with the latest updates on your beloved Bay Area and California sports teams! Sign up here for our All Access Daily newsletter.
Wednesday morning, Forbes magazine released its 2016 Business of Basketball list, ranking each NBA franchise by their current estimated worth. The New Yorks Knicks stole the top spot with a current value of $3 billion, but even the Sacramento saw a substantial 16 percent jump from last years $800 million valuation.
[HAM: Advanced metrics say Karl pushing wrong buttons for Kings]
Vivek Ranadivé and his long list of co-owners are sitting on a $925 million asset, good enough for 18th overall in the rankings. That figured is bolstered by the Golden 1 Center, which is set to open in October of this year.
According to Forbes, the Kings have $141 million in revenue with an operating income of $4.2 million (down from $8.9 million a year ago). Those numbers will skyrocket next season with the new television contract, the $1 billion NBA deal with Nike as the new official clothing brand of the league and a new arena.
NBA
The report states that the Kings will receive $6 million annually from Golden 1, a local Sacramento credit union, for the naming rights to the new building. In addition to the naming rights deal, the Kings ticket sales and luxury box crew have been killing it on the new 17,500 seat arena.
“Sales at the Golden 1 Center have been brisk with all 34 luxury suites already reserved, plus all 48 lofts,” Forbes states. “More than 12,000 fans have put their names on a waiting list for season tickets.”
The Kings have a Sacramento record $81 million in player expenses this season, which will jump substantially next season with the massive increase in salary cap. But the added income from a myriad of new revenue sources should once again increase the value drastically next year.
Owning an NBA team is big business these days.