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Toronto Raptors: Breaking down their Forbes ranking

By Paul Taylor

TORONTO, ON - APRIL 18: General view prior to the first half of Game Two of the Eastern Conference Quarterfinals between the Milwaukee Bucks and the Toronto Raptors during the 2017 NBA Playoffs at Air Canada Centre on April 18, 2017 in Toronto, Canada. 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. (Photo by Vaughn Ridley/Getty Images)
TORONTO, ON - APRIL 18: General view prior to the first half of Game Two of the Eastern Conference Quarterfinals between the Milwaukee Bucks and the Toronto Raptors during the 2017 NBA Playoffs at Air Canada Centre on April 18, 2017 in Toronto, Canada. 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. (Photo by Vaughn Ridley/Getty Images) /
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The latest annual Forbes NBA franchise valuations were released on Wednesday and we take a look at where the Toronto Raptors ranked.

What’s in a valuation? That’s a matter of perspective, but the Toronto Raptors and the rest of the NBA sure seem to be in a great position right now.

On Wednesday, Forbes released their 20th annual valuation of the NBA’s teams. And for the first time ever, each franchise is worth more than $1 billion.

Forbes’ annual rankings understandably lead to a lot of debate, starting with how they determine the valuations. Factors include revenue, operating income and sponsorship deals.

Regardless, the findings always make for a lot of intrigue among fans. One thing we can safely say is all teams have benefited from the new nine-year, $24 billion TV deal, which started last season.

Of course, Toronto Raptors fans were mostly interested in how their own team did in the latest rankings. The good news is they continued to trend in the right direction, moving up to 12th place this year. (They ranked 18th in 2014, 14th in 2015-16 and 13th last year.)

As for the Raptors’ worth, they were valued at $1.4 billion. The statistical breakdown included:

  • Revenue – $250 million
  • Operating income – $51 million
  • Debt/value – 8 percent increase
  • Player expenses – $121 million
  • Gate receipts – $65 million
  • Revenue per fan – $24

The Raptors were also given a wins-to-player costs ratio of 118. Here’s what else Forbes had to say:

"The home of the Raptors and Leafs is getting a name change. Beginning July 2018 the Air Canada Centre will be renamed Scotiabank Arena, after Maple Leaf Sports & Entertainment (the hockey team’s parent company) struck a deal with the bank this past summer. The deal is for $640 million based on recent exchange rates ($800 million in Canadian) over 20 years."

Certainly, the Raptors have been helped financially, by going on the best and most consistent run in franchise history. The last four campaigns has seen the team set regular season win records on three occasions, clinch a trio of Atlantic division titles and qualify for the playoffs four times.

The run of success also included a first ever trip to the Eastern Conference finals. And this campaign could conceivably be their best yet, with them on course to set another record for regular season wins and potentially secure the top seed in the East.

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On a league-wide scale, the New York Knicks claimed top spot for the third year running, with a valuation of $3.6 billion. In second place was the Los Angeles Lakers, who are worth $3.3 billion.

The rest of the top five included the Golden State Warriors ($3.1 billion), Chicago Bulls ($2.6 billion) and Boston Celtics ($2.5 billion). As noted by ESPN‘s Darren Rovell, the Houston Rockets saw the biggest rise in value to $2.2 billion (33 percent) after the sale of the team to Tilman Fertitta last October.

Overall, the average value of a franchise is now $1.65 billion, up from $634 million in 2014. (At that time, the Toronto Raptors were valued at $520 million.)

As a final note of interest, the Cleveland Cavaliers were the only NBA team to lose money on an operating basis. As per Forbes, this was due to their significant payroll and luxury tax bill.

Next: Raptors face tough decision with Fred VanVleet

Do you put any value in Forbes’ annual rankings of the NBA franchises (and professional sports teams generally)? Or does it not particularly interest you? Share your thoughts in the comments section below.

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