The owner of the Dallas Mavericks Mark Cuban believes NBA teams are ‘considerably undervalued’.
NBA franchises are valued at $2.12 billion on average, which is up 475 percent from a decade ago. Dallas is valued at $2.4 billion by Forbes.
“Any unique asset is worth what someone will pay for it. That said, most NBA teams and their arenas make money. When interest rates are low, as they have been for so long, the cash flows can justify these valuations and higher.
Add to that the value of any ancillary projects, real estate, development projects, whatever, and of course the vanity and branding value, and I think today…and of course things can change…but today NBA teams are undervalued. Considerably undervalued,” Cuban told Bill Shea of The Athletic.
The Mavericks have sold out more than 800 straight games, including playoffs, at the American Airlines Arena. The streak, which began in 2001, is the second longest in NBA history behind the Portland Trail Blazers.
Dallas is seventh in the West with a 39-26 record.
