---
title: Why NBA teams are a hot investment
description: Investors love the NBA’s global expansion efforts (China, India, Africa).
---

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# [Why NBA teams are a hot investment](https://hs-sbup.thehustle.co/news/02082022-nba-investments)

 Written by [Trung T. Phan](https://hs-sbup.thehustle.co/news/author/trung-t-phan) | Feb 8, 2022 10:45:48 AM

If anyone reading this owned an NBA team over the past 2 decades, we tip our hat to you.

The average price of an NBA franchise *jumped* by +1,057% between 2002 and 2021, per [*CNBC*](https://www.cnbc.com/2022/02/06/private-equity-sports-investments-neared-2-billion-in-2021-nba-hot.html).

The return compares favorably to other sports leagues — MLB (+669%) and NHL (+467%) — as well as the S&P 500 (+458%) over that span.

#### **Private equity (PE) firms have taken notice…**

… and established funds to purchase stakes in professional sports teams.

Three NBA teams — Golden State Warriors, San Antonio Spurs, and Sacramento Kings — sold minority shares to PE firms in 2021 (a single PE fund is capped to 20% max ownership).

Rising team valuations are being driven in large part by lucrative media rights. NBA owners can also use a “roster depreciation allowance” to defer tax payments on sports-related revenue.

#### **Why is the NBA so hot?**

While sports like golf and tennis are considered “global,” the NBA has significant international expansion plans, per *CNBC*:

- **Africa**: Last May, the league launched a Basketball Africa League to develop talent and build arenas. It’s valued at $1B.
- **China**: In 2019, the Chinese government boycotted the NBA over comments from an NBA GM regarding Hong Kong. But games are still being broadcast, and NBA China is worth $5B.
- **India**: The NBA is slowly expanding into the country of 1B+ citizens.

Back in America, the WNBA — a women’s league owned by the NBA — just raised money for the 1st time ever at a $1B valuation.

With all the money rolling around, this Vancouver-based writer has one question: When are we getting an NBA team again?

[View full post](https://hs-sbup.thehustle.co/news/02082022-nba-investments)

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