The Golden State Warriors were blown out Tuesday night against the Sacramento Kings in an elimination game in the NBA’s Play-In Tournament. It marked the Warriors’ third season out of the playoffs over the past five years and might be the last game that Stephen Curry, Draymond Green and Klay Thompson play together.
It has been a stunning run for the Warriors over the last decade, winning four titles and making two other NBA Finals appearances. The on-court success sent the business of the Warriors into the stratosphere and propelled them to their spot as the second-most valuable sports franchise in the world at $8.2 billion, behind only the Dallas Cowboys at $9.2 billion.
“We’ve been watching this team for a long time,” Kings guard De’Aaron Fox said after the game. “If it is the end, it is what it is. I’m glad we’re able to beat this team at this moment, but they definitely had a hell of a run.”
If this is the end of the dynasty, what does that mean for the value of the Warriors?
The most valuable sports teams behind the Warriors are blue-blood franchises in big markets: New York Yankees ($7.93 billion), New York Knicks ($7.43 billion), Los Angeles Lakers $7.34 billion) and New York Giants ($7.04 billion). Those fan bases have stuck around for the good years and the bad—older Knicks fans can still remember those good years.
The Los Angeles Rams ($6.94 billion) slot in at No. 7, with their value goosed by a move from St. Louis to the second-biggest U.S. market and by building a $5.5 billion stadium, nearly three times the cost of anything built prior. The New England Patriots ($6.7 billion), like the Warriors, soared in value on the back of on-field success, while the Los Angeles Dodgers ($6.3 billion) and San Francisco 49ers ($6.15 billion) round out the top 10.
The top clubs are all U.S. sports franchises, thanks in part to better player cost controls driving more profits.
When Joe Lacob and Peter Guber bought the Warriors in 2010 for $450 million, it was a money-losing club that sat out the postseason 17 out of 18 years before a postseason return in 2013. Revenue soared as the team started making long playoff runs, but the ultimate catalyst for pushing the Warriors to the top of the NBA franchise value rankings was the opening of the Chase Center.
The Warriors top the league in almost every revenue category outside of local media; they have led the NBA in TV ratings seven of the past eight years through the 2022-23 season, but their RSN deal sits in the second quartile of clubs, which provides less exposure risk in the quickly evolving TV landscape.
Total revenue is up sevenfold since 2010. Last season’s revenue was 37% higher than that of the Lakers, net of revenue sharing. Sponsorship and premium seating revenue were in the single-digit millions when Lacob bought the team but are now $150 million and $250 million, respectively.
The Warriors have 37 sponsors that spend at least $1 million a year, and those partners benefit from the largest social media following among North American sports franchises—the Warriors have 32.6 million Instagram followers, ahead of the Lakers at 24.6 million. Japanese e-commerce giant Rakuten has the biggest deal, with its jersey patch renewal worth an estimated $45 million per season.
Golden State’s sky-high value benefits from its multiuse development around Chase Center, and the team has expanded its related businesses with a new entertainment division launched last year—Golden State Entertainment—and landing a WNBA expansion franchise in 2023 that will begin play in 2025.
“Our basketball team will always be our primary focus,” Lacob told Sportico in a December 2022 phone interview. “But I view our future as a sports, entertainment, media and technology company.” He highlighted how Walt Disney diversified its business after starting with animated movies.
The Warriors’ dynasty hasn’t been without flops; the team posted the worst record in the NBA during the 2019-20 season when Curry was limited to five games after surgery to repair a fracture in his hand. They missed the playoffs again the following year despite winning 54% of their games.
Fans and sponsors still showed up in droves, and the team won the 2022 NBA Finals. The Warriors’ brass wanted to navigate a “two timeline” strategy of building a new young nucleus to provide a seamless transition from the core from the title teams.
The wins helped the Warriors drive annual increases for sponsorships and ticket prices. A falloff from competing for annual titles shouldn’t dent their regular season finances, due to their $3 billion in contractually obligated revenues tied to Chase Center. The average Warriors sponsorship deal is roughly nine years, while suite leases typically run 10 years.
Warriors' brass thinks the $1.4 billion Chase Center in the heart of a city whose residents have massive disposable income will continue to be a must-visit destination, similar to Madison Square Garden, even if leaner years are ahead. And there is an argument that the Warriors were better than last season when they reached the Western Conference semifinals. The club closed this season with a 27-12 run and won two more games than last year but was tripped up by a loaded conference.
The Warriors will remain a must-see property as long as Curry is on the floor. Curry, who turned 36 in March, is beloved by the fan base and just finished another top-level season.
The franchise’s financial advantages also help the on-court performance. The team has blown past the luxury tax threshold to keep the core group together and add new pieces, which is not something most other franchises would tolerate. Last season’s tax bill was $164 million, and total payments have topped $500 million over its six years as a payor. Another nine-figure bill is coming for the 2023-24 season.
In February, Lacob told The Athletic’s Tim Kawakami he wanted the Warriors to be under the luxury tax next season to avoid penalties associated with a being a repeat offender. But the owner has shown that he is willing to spend at historic levels, which of course is helped when your revenue is more than $800 million.
"The value of the brand building is worth the massive expense,” Lacob said. "But you only do that if you have a chance to add a title.”