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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 Power and Frequency of Earthquakes

Our planet is in a constant state of creation and destruction as the plates of the earth collide. This visualization looks at earthquake magnitude.

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Earthquake Magnitude

Visualizing the Power and Frequency of Earthquakes

The surface of our planet is in a constant state of creation and destruction as the plates of the Earth collide. It is this movement of the Earth’s crust that causes earthquakes, sending tremors throughout the world.

Today’s graphic is inspired by a classic USGS diagram that tracks the scale and frequency of earthquakes.

Shifting Foundations

Earthquakes occur because the crust of the Earth is made up of several plates. The boundaries of these plates create faults that can run into one another.

Earthquakes describe both the mechanism that causes a sudden stress release along plate boundaries and also the ensuing ground shaking.

They occur when stress builds up along a tectonic fault. This stress causes the two surfaces of the fault, which had previously been stuck together due to friction, to suddenly move, or slide, releasing energy in the form of seismic waves.

Measuring an Earthquake’s Impact

There are three factors to assess the impact of Earthquakes – magnitude, energy, and intensity.

Magnitude is a number most commonly associated with the Richter scale, describing the size of an Earthquake on a scale from 0 to 10 – the latter of which is the maximum motion recorded by a seismograph. Each increase by one on the scale represents a tenfold increase in the amplitude. There are over a million tremors around the planet each year, but it’s not until an earthquake reaches a magnitude of 4 that humans can typically feel it.

Another way to measure the size of an earthquake is by how much energy it releases. The amount of energy radiated by an earthquake is a measure of the potential for damage to man-made structures.

An earthquake releases energy at various frequencies, and in order to calculate accurately, you have to include all frequencies of shaking for the entire event. Some research suggests technology could harness this energy for power generation.

Intensity describes the severity of an earthquake with a qualitative evaluation of its effects on the Earth’s surface and on the built environment. An earthquake may have a high magnitude but if a city or landscape experiences little damage, it can be said that the intensity is low. The Modified Mercalli Intensity Scale measures this intensity.

The World’s Largest Earthquakes by Magnitude

Prior to the development and use of seismographs, around 1900, scientists could only estimate magnitudes, based on historical reports of the extent and severity of damage.

DateLocationMagnitude
May 22, 1960Valdivia, Chile9.4-9.6
March 27, 1964Prince William Sound, Alaska9.2
Dec. 26, 2004Indian Ocean, Sumatra, Indonesia9.1
March 11, 2011Pacific Ocean, Tohoku Region, Japan9.1
July 8, 1730Valparaiso, Chile9.1-9.3 (est.)
Nov. 4, 1952Kamchatka, Russia9
Aug. 13, 1868Arica, Chile8.5-9.0 (est.)
January 26, 1700Pacific Coast, Modern Day British Columbia8.7-9.2 (est.)
April 2, 1762Chittagong, Bangladesh8.8 (est.)
Nov. 25, 1833Sumatra Indonesia8.8 (est.)

Earthquakes are a fact of life on Earth and mark distinct moments in history. One would think given our knowledge of earthquakes, that humans would avoid these locations – however, the very faults of the Earth also create its greatest advantages.

Living with Your Faults

It’s extremely common to find human settlements along the fault lines where earthquakes occur most frequently. Some could say that this is because these decisions were made before a complete understanding of science enabled us to know the potential risks involved.

However, a recent scientific study reveals that there may be more to the pattern than previously thought. Tectonically active plates may have produced greater biodiversity, more food, and water for our human predecessors.

Certain landscape features formed by tectonic processes such as cliffs, river gorges, and sedimentary valleys create environments that support access to drinking water, shelter, and an abundant food supply.

This inherent problem reveals that humans are more connected to their environments than previously thought. It comes down to a question of how well humans can adapt their lifestyle and built environments to a dynamic planet.

Now let’s worry about the asteroids

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COVID-19

How Many People Die Each Day?

COVID-19 deaths can be hard to interpret without context. This graphic shows how many people die each day globally, by cause.

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How Many People Die Each Day?

As the COVID-19 pandemic rages on, the media continues to rattle off statistics at full force.

However, without a frame of reference, numbers such as the death toll can be difficult to interpret. Mortalities attributed to the virus, for example, are often measured in the thousands of people per day globally—but is this number a little or a lot, relative to typical causes of death?

Today’s graphic uses data from Our World in Data to provide context with the total number of worldwide daily deaths. It also outlines how many people who die each day from specific causes.

Worldwide Deaths by Cause

Nearly 150,000 people die per day worldwide, based on the latest comprehensive research published in 2017. Which diseases are the most deadly, and how many lives do they take per day?

Here’s how many people die each day on average, sorted by cause:

RankCauseDaily Deaths
#1Cardiovascular diseases48,742
#2Cancers26,181
#3Respiratory diseases10,724
#4Lower respiratory infections7,010
#5Dementia6,889
#6Digestive diseases6,514
#7Neonatal disorders4,887
#8Diarrheal diseases4,300
#9Diabetes3,753
#10Liver diseases3,624
#11Road injuries3,406
#12Kidney disease3,370
#13Tuberculosis3,243
#14HIV/AIDS2,615
#15Suicide2,175
#16Malaria1,698
#17Homicide1,111
#18Parkinson disease933
#19Drowning809
#20Meningitis789
#21Nutritional deficiencies740
#22Protein-energy malnutrition635
#23Maternal disorders531
#24Alcohol use disorders507
#25Drug use disorders456
#26Conflict355
#27Hepatitis346
#28Fire330
#29Poisonings198
#30Heat (hot and cold exposure)146
#31Terrorism72
#32Natural disasters26
Total Daily Deaths147,118

Cardiovascular diseases, or diseases of the heart and blood vessels, are the leading cause of death. However, their prominence is not reflected in our perceptions of death nor in the media.

While the death toll for HIV/AIDS peaked in 2004, it still affects many people today. The disease causes over 2,600 daily deaths on average.

Interestingly, terrorism and natural disasters cause very few deaths in relation to other causes. That said, these numbers can vary from day to day—and year to year—depending on the severity of each individual instance.

Total Daily Deaths by Country

On a national level, these statistics vary further. Below are the total deaths from all causes for selected countries, based on 2017 data.

how many people die each day
China and India both see more than 25,000 total deaths per day, due to their large populations.

However, with 34.7 daily deaths per million people each day, Russia has the highest deaths proportional to population out of any of these countries.

Keeping Perspective

While these numbers help provide some context for the global scale of COVID-19 deaths, they do not offer a direct comparison.

The fact is that many of the aforementioned death rates are based on much larger and consistent sample sizes of data. On the flipside, since WHO declared COVID-19 a pandemic on March 11, 2020, daily confirmed deaths have fallen in a wide range between 272 and 10,520 per day—and there is no telling what could happen in the future.

On top of this variance, data on confirmed COVID-19 deaths has other quirks. For example, testing rates for the virus may vary between jurisdictions, and there have also been disagreements between authorities on how deaths should even be tallied in the first place. This makes getting an accurate picture surprisingly complicated.

While it’s impossible to know the true death toll of COVID-19, it is clear that in some countries daily deaths have reached rates 50% or higher than the historical average for periods of time:

excess deaths covid-19

Time, and further analysis, will be required to determine a more accurate COVID-19 death count.

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