A Royal Pain
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Kings Rank 15th On Forbes’ Most Valuable Franchise List

By Anthony Cardenas

LAS VEGAS, NV - OCTOBER 8: Vlade Divac and owner of the Sacramento Kings, Vivek Ranadivé, talk before a preseason game between the Sacramento Kings and Los Angeles Lakers on October 8, 2017 at T-Mobile Arena in Las Vegas, Nevada. 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 Garrett Ellwood/NBAE via Getty Images)
LAS VEGAS, NV - OCTOBER 8: Vlade Divac and owner of the Sacramento Kings, Vivek Ranadivé, talk before a preseason game between the Sacramento Kings and Los Angeles Lakers on October 8, 2017 at T-Mobile Arena in Las Vegas, Nevada. 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 Garrett Ellwood/NBAE via Getty Images) /
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Despite a 13 percent increase in valuation over the last year, the Sacramento Kings are still in the middle of the pack of most valuable franchises.

Forbes released its annual report on the value of NBA teams on Tuesday, and the Sacramento Kings rank smack dab in the middle this year. Their position did not change from last year’s list when they also ranked 15th, but their franchise valuation has certainly increased.

Last season, the Kings franchise was valued at $1.6 billion, and enjoyed a 13 percent valuation increase over the last 365 days, bringing their 2020 valuation up to $1.77 billion. Their valuation increase ranked 15th in the league as well. The franchise also decreased their percentage of debt, which still ranks the highest in the league at 30%.

The purchase of the Kings has certainly been a lucrative investment for owner Vivek Ranadive. He bought a 65% stake in the team in 2013 for $348 million for a total valuation of $534 million. After a valuation increase of over 200% in the seven years since, Ranadive’s share is now worth over $1.15 billion (if his share still stands at 65%).

It seems as though Ranadive got in at just the right time. While franchise purchasing valuations hovered between $300 million and $500 million during the early part of the 2010s, every team is now worth more than $1 billion. The last two teams to sell were the Rockets in 2017 for $2.2 billion and the Nets in 2019 for $3.3 billion.

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Other notes from Forbes’ article:

  • The average NBA team is valued at $2.123 billion
  • The top three most valuable franchises are the Knicks ($4.6B), Lakers ($4.4B), and Warriors ($4.3B)
  • The Bucks were sold in 2014 for $550 million. The Hawks were sold in 2015 for $730 million. During the time in between those two sales, the Clippers were sold for $2 billion.
  • Michael Jordan bought a majority of the Hornets in 2010 when the franchise was worth $175 million. Ten years later, the valuation is up to $1.5 billion.
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