One team already reaping the benefits of new TV money on the local level is the Los Angeles Lakers. The 17-time NBA champions rank second with a value of $1.35 billion, up 35% from last year. The Lakers earned $122 million from local TV last season, which marked the first year of the team’s massive 20-year, $3.6 million deal with Time Warner Cable TWC +0.55%. The Lakers’ Time Warner payout last season was more than 20 times what teams like the Bucks and Bobcats generate (see “The NBA’s Richest Local Television Deals“).
The cable money pushed the Lakers’ revenue to a record $295 million, net of revenue sharing. The team’s revenue sharing bill is roughly twice the size of the tab for the Knicks, who get a break due to their $1 billion investment in Madison Square Garden. Even with revenue sharing and a $29.3 million luxury tax bill that accompanied the NBA’s highest payroll, the Lakers turned an operating profit of $66 million, second highest in the NBA.