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The Data Behind Surging NBA Team Valuations

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At the beginning of this decade, the NBA was not on firm footing. More than half of the league’s teams were losing money, and negotiations on a new collective bargaining agreement were looming.

Today, however, the NBA has undeniable momentum, buoyed by hefty broadcast agreements and superstars like LeBron James and Steph Curry. With interest in the NFL flagging in the U.S., professional basketball appears to be seizing the opportunity to win over sports fans and grow the popularity of the league.

This momentum has pushed team valuations to new heights, with the median team now being worth a solid $1.56 billion.

What are the exact valuations of individual franchises in the league, and how are these values derived? Let’s dig into Forbes’ annual NBA Valuations Ranking to learn more.

Breaking down team value

Forbes has broken down the value of an NBA team valuations into four components:

Sport: The revenue shared equally among all teams in the league
Market: City and market size
Arena: Revenues from sources such as attendance and premium seating
Brand: The actual value of the team’s brand

Every single team in the NBA is now valued at over $1 billion, and all but one team (the Cavaliers) were profitable last year.

For teams like the Knicks and Lakers, it’s easy to see how their huge market size contributes to their sky-high valuations. The former is currently the second-most-valuable sports franchise in America, tied with the New York Yankees.

While the biggest teams are worth more than double the NBA median value, the rising tide appears to be lifting all boats. The median team value has risen steadily and is up nearly 200% since 2014.

NBA Team Valuations Median

Gold Rush

The biggest story in basketball over recent years has been the ascension of the Golden State Warriors.

Making the NBA finals four seasons in a row – and winning three of those match-ups – has had a massive impact on the team’s value, which has shot up 367% over the last five years. As the team moves to the brand new Chase Center next season, Golden State may even have a shot at surpassing the Knicks or Lakers in overall valuation.

Here are the top five gainers over the past five years:

NBA team value gainers

Fan Power

The teams with the highest revenue-per-fan are typically in smaller markets like Salt Lake City and Oklahoma City, though both cities are unique in that an NBA franchise is their only professional sports team.

The struggling Chicago Bulls comes in near the bottom by revenue-per-fan, despite being the fourth most valuable team in the league.

nba revenue per team

Shifting Gravity

In recent years, LeBron James has been one of the most electrifying personalities in professional sports, however, his influence on the NBA is now proving to be a double-edged sword. Since LeBron moved time zones from Cleveland to Los Angeles, NBA viewership is down – a dip that is particularly pronounced during the earlier Eastern Conference time slot.

Despite the slight dip in viewership, NBA teams are more profitable than they’ve ever been, and as the NBA turns its sights eastward to China, today’s valuations may seem modest in a few years time.

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Misc

Visualizing the Speed of Light (Fast, but Slow)

In our every day lives, light is instantaneous – but in the context of our solar system and beyond, light is surprisingly slow.

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Visualizing the Speed of Light

With the flip of a switch, your room can be instantenously flooded with brightness.

In fact, there is no noticeable lag effect at all.

That’s because emitted photons travel at 186,000 miles (300,000 km) per second, meaning it takes only 1/500,000th of a second for light to reach even the furthest part of an ordinary room. And, if it could go through the wall, it would orbit the entire planet 7.5 times in just one second.

Light Speed is Fast…

In our every day experiences, we never see light as having to “take time” to do anything. It’s inconceivably fast, brightening up everything in its path in an instant — and with a few odd caveats, scientists believe light speed to be the fastest-known achievable pace in the universe.

But what if we get out of our bubble, and look at light from outside the confines of life on Earth?

Today’s animation, which comes from planetary scientist Dr. James O’Donoghue, helps visualize the speed of light in a broader context. It helps remind us of the mechanics of this incredible phenomenon, while also highlighting the vast distances between celestial bodies — even in our small and insignificant corner of the solar system.

Light Speed is Slow…

Once a photon is sent into the vast abyss, suddenly the fastest possible speed seems somewhat pedestrian.

  • Moon: It takes about 1.255 seconds for light to get from Earth to the moon.
  • Mars: Mars is about 150x further than the moon — about 40 million miles (54.6 million km) in the closest approach — so it takes 3 minutes to get there from Earth.
  • Sun: The sun is 93 million miles (150 million km) away, meaning it takes 8 minutes to see its light.

Let that sink in for a moment: the sun could explode right now, and we wouldn’t even know about it for eight long minutes.

Going Further, Taking Longer

If it takes light a few minutes to get to the closest planets, how long does it take for light to travel further away from Earth?

  • Jupiter: The largest planet is 629 million km away when it’s closest, taking light about 35 minutes.
  • Saturn: The ringed planet is about as twice as far as Jupiter, taking light 71 minutes.
  • Pluto: It takes about 5.5 hours for light to go from Earth to the dwarf planet.
  • Alpha Centauri: The nearest star system is 4.3 light years away, or 25 trillion miles (40 trillion km).
  • Visible stars: The average distance to the 300 brightest stars in the sky is about 347 light years.

If you really want to get the feeling of how “slow” light really is, watch the below video and journey from the sun to Jupiter. It’s done in real-time, so it takes about 43 minutes:

So while light obviously travels at a ludicrous speed, it really depends on your vantage point.

On Earth, light is instantaneous – but anywhere else in the universe, it’s pretty inadequate for getting anywhere far (especially in contrast to the average human lifespan).

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Chart-Toppers: 50 Years of the Best-Selling Music Artists

This mesmerizing video visualizes the best-selling music artists from 1969 to 2019 and highlights how long they held onto the top spot.

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Chart-Toppers: 50 Years of the Best-Selling Music Artists

Fame, fortune, and adoring fans—this is often the dream-turned-reality for the world’s most popular music artists.

Thanks to their relatability and creative prowess, these artists have not only boasted longevity in their record sales, but they’ve also dominated the charts year after year.

Today’s video from Data is Beautiful visualizes the world’s best-selling music artists from the past 50 years (1969 to 2019) and highlights the length of their reigns.

Do you see your favorite artist or group in the mix?

The Best Selling Artists, By Decade

Of all of the artists in the past half-century, two stand out: Michael Jackson and Eminem. Michael Jackson has the highest cumulative number of years in the top spot (~12 years), while Eminem holds the longest continuous best-selling artist slot (8.5 years).

Let’s dive into each decade to uncover defining moments and key technology advancements that pushed the art of music into exciting new areas.

top selling music artists

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1970s

This era of music is defined by the emergence of the rock genre, with artists like The Eagles and Led Zeppelin, the latter of which is widely considered a forefather of hard rock and heavy metal.

The Beatles became known, not just for their music, but for pushing the envelope with how they recorded their music. They used analog sound editing techniques—utilizing a sound effect “bank” to record overtop finished music tracks to add depth and texture. This left a huge mark on the music world, and in many ways influenced how modern music is recorded.

The introduction of 8-tracks and cassette tapes enabled people to play albums in their vehicles, opening up new possibilities for on-the-go entertainment.

1980s

Enter the age of electronic music—synthesizers, theremins, electronic samplers, and electronic drum kits popped up in the music scene, most predominantly in the United Kingdom and the United States. The German-based group Kraftwerk was one of the first to pioneer using a synthesizer in their sets.

For example, one of the reasons for Michael Jackson’s success was that the technology of the time allowed for much wider distribution at much lower costs. In addition, Thriller was one of the first albums recorded on compact discs (CDs), which were introduced in 1982.

The MTV era (launched 1981) also significantly impacted the sales of albums, as music now offered both visual and audio experiences—and broadcast directly into people’s homes.

1990s

A predominant factor of the 90s music scene was the explosion of popular music artists being commissioned to record the theme songs for blockbuster films.

The most notable artists and their corresponding blockbuster movies of the time include:

  • Elton John ─ The Lion King
  • Celine Dion ─ Titanic
  • Whitney Houston ─ Bodyguard
  • Bryan Adams ─ Robin Hood: Prince Of Thieves
  • Madonna ─ Evita

While the 1990s marked a decade of great variety in top-selling artists, it was also the peak of the music industry’s sales, at a whopping $21.5 billion in 1999—a figure not since repeated.

2000s

Eminem dominated 2000s record sales, but the decade also featured brief stints from the Backstreet Boys in 2000 and Rihanna in 2009.

Eminem helped to launch hip hop music into the mainstream. Being one of the most controversial best-selling artists of all time, he pushed genre boundaries through his technical prowess, wordsmithing, and relatability to wider audiences.

The 21st century also brought music streaming services such as Spotify to the forefront, forever altering how people listen to their favorite artists and bands.

2010s

Only three artists have hit the best-selling artist spot in the current decade: Rihanna, Drake, and Luis Fonsi—the Puerto Rican singer most well known for his hit single “Despacito”.

In 2016, the Recording Industry Association of America (RIAA) certified that Drake was the first music artist ever to reach #1 through streaming platform sales and downloads, instead of through physical album sales.

According to RIAA, streaming revenues jumped from almost half of all music industry sales in 2017, to over 75% of sales in 2018—with $4.6 billion in total record sales as of Q1 2018.

The Future Of Music

Musicians are a creative breed, continuously experimenting with new instruments, sound effects, and recording styles.

Some artists are even going so far as use only an iPhone to record their work—showcasing the modern-era ability to record high-fidelity quality and achieve studio-like results.

With a new decade just around the corner, we may see even more possibilities for technology to revamp how we access our favorite tunes—and how artists distribute them to their fanbase.

Who might become the next Beatles, Michael Jackson, or Drake?

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