The 81st NBA season tips off with stars in new cities, teams selling at record prices and Year 2 of its new media deal.
Forty years ago, the NBA started a media contract worth $56 million per year collectively as Michael Jordan entered his third season in the league. The new crop of deals is worth $6.9 billion annually, more than 120 times the 1986-87 season’s value.
The NBA generated roughly $14.5 billion in revenue during the 2025-26 season, while the 30 teams collectively made $13.7 billion, or $456 million per club, including non-NBA events at buildings owned or operated by teams (a portion of the $14.5 billion stays at the league level for investments and expenses).
Team revenue ranged from $895 million for the Golden State Warriors to $339 million for the Memphis Grizzlies. The tally is net of revenue sharing, which transferred roughly $400 million to low-revenue teams, funded by high-revenue teams and 50% of luxury tax proceeds.
By comparison, NFL teams made $23.5 billion, MLB ones were $13.2 billion, NHL clubs did $8.3 billion, and MLS was $2.5 billion.
Teams in these leagues all generate revenue the same way: from gate receipts, sponsorships, concessions, merchandise, luxury suites, media contracts and other events at their venues, such as concerts. But the scale of the revenue streams varies wildly in the different sports.
In the NBA, central revenue is the biggest source of money, representing 41% of revenue last year. It sits between the NFL (62%) and MLB (25%) in that respect. The NBA’s 11-year, $76 billion media deal pushes the league closer to the NFL’s economic model. It bumped each team’s TV revenue from $103 million to $144 million last season. The payouts rise roughly 7% per year on average moving forward.
The league distribution also includes shared revenue from sponsorships, international, retail and other league operations.
The average NBA franchise is worth $6.64 billion, per Sportico’s NBA team valuations. That figure is up 21% versus last year and 157% from 2021, when the average was $2.58 billion. The value of the lowest-ranked team (Grizzlies) is $4.2 billion, up 2.8x from 2021 ($1.51 billion). Investors have bid up the entry price to own 1/30th of an entity with global aspirations, including building new leagues in Africa and Europe, and the new blockbuster TV contract.
The league has signaled that it will make a decision on expansion franchises in Las Vegas and Seattle by the end of the year. If Las Vegas and Seattle both land expansion franchises, each existing owner is looking at a payday north of $500 million. Those proceeds do not have to be shared with players, unlike traditional revenue where the players are entitled to 51% each year.
Seating and luxury suites make up the NBA’s second-biggest revenue stream at an estimated $3.64 billion, or 30% of total revenue. Last season, the Warriors were tops in the NBA with ticket revenue of nearly $5.5 million per game. The Los Angeles Lakers and New York Knicks also make more than $4 million per regular season contest. The Knicks’ playoff run generated $180 million in gross revenue, largely from tickets.
Premium seating is an increased priority for teams, as fans and companies seek exclusive entertainment opportunities. The Los Angeles Clippers’ $2 billion arena, Intuit Dome, which opened in 2024, includes four courtside cabanas that cost $2 million per year and are all leased. The Warriors generate nearly $150 million annually from suites.
Sponsorships are the third-biggest category for NBA teams at $1.9 billion, or 15% of revenue. Arena naming rights are roughly 9% of the category, and the Knicks are the only team playing in a building without a corporate name. The Phoenix Suns’ arena got a new name in 2025, Mortgage Matchup Center, via a 10-year, $115 million deal. Mortgage Matchup is the consumer-facing brand for United Wholesale Mortgage, where Suns owner Mat Ishbia is co-founder and chairman. The Philadelphia 76ers home also landed a new naming partner last year: Xfinity Mobile Arena.
Golden State’s sponsorship revenue was about $190 million last season and will top $200 million this season with the addition of its new patch partner, Iren—at more than $50 million per year.
Local media was 10% of total revenue for the 2025-26 season and will dip this year, as 13 clubs face the financial fallout from Main Street Sports’ bankruptcy. Last year, the Knicks agreed to a 28% cut to their fee from MSG Networks—which, like the Knicks, is controlled by James Dolan via his voting rights in Sphere Entertainment. Madison Square Garden Sports owns the Knicks.
The Lakers have the NBA’s richest local TV deal; their agreement with Charter Communications’ Spectrum brand is worth roughly $200 million per year.
The balance of NBA team revenue is from concessions, parking, merchandise and non-NBA events, such as concerts. It was $1.27 billion for 2025-26, 10% of total revenue. Four arenas that host NBA teams grossed at least $100 million in ticket revenue from concerts last year, according to Billboard. Most of that money stays with the artists, while teams cash in via concessions, parking, merchandise and premium seating.
During the 2024-25 season, the bottom 22 clubs received $429 million in revenue sharing, according to a March league memo shared with teams. Eight franchises—Lakers, Knicks, Warriors, Celtics, 76ers, Nets, Raptors, Clippers—paid $189 million into the system, while 50% of luxury tax proceeds, $230 million, represented the balance.
Final accounting for 2025-26 revenue sharing is still to be completed, but big market clubs are on the hook for bigger bills after multiple teams ducked under the luxury tax threshold ahead of the trade deadline. It meant “only” $110 million was available to fund revenue sharing, and non-taxpaying teams will each receive just under $5 million from the other 50% of proceeds.