Orlando Magic Franchise Valued at $560 Million
Forbes has released their annual list of NBA franchise values and the Orlando Magic are still holding strong in value, despite being weak in terms of wins. With an overall revenue of $139M and an operating /profit/ of $12m, the DeVos family doesn’t have to worry about losing money on the franchise anytime soon (though all owners will certainly cry lo$$e$ when the CBA can be opted out of). Overall, the Magic were valued at $560 million which is the 15th best in the league.
“TV ratings on Fox Sports South plummeted 55% and average viewership of 14,000 households was third lowest in the NBA. On the plus side, the Magic set a record for sponsorship revenue with the addition of Chase and season ticket sales remained strong at roughly 13,000.” – Forbes, describing some of the challenges the Magic faced in the previous year.
Rich DeVos, the owner of the Magic purchased the team in 1991 for a price of $85M dollars. Just two years ago in January 2012, the team was valued at $385 million. Remember that the next time your local General Manager wants to trade a key rotation player on a contending team to avoid a $2 million tax payment. Remember that the next time the salary cap is frozen for multiple years. Remember that the next time an owner holds a city hostage to get taxpayers to fund an arena.
Don’t let your rose-colored fan glasses blind you, basketball (and the commodites that produce it) is big business.