THE NEW BUSINESS TYCOON IN SPORTS: THE GOLDEN STATE WARRIORS
The on-court success Golden State has garnered over the past decade is a rarity amongst professional sports teams. What's become an even better representation of the Warriors' rise is their achievements off the court on the business front.
When the Golden State Warriors were sold in 2010 to current owners Joe Lacob and Peter Guber for $450 million, the team's value had not even broken the $400 million threshold. According to Statista.com, the franchise was only valued at $315 million in 2010.
There was an abundance of reasons why Golden State, at the point in time, held little value amongst other teams across the league.
No star players; one playoff appearance in 16 seasons; limited opportunity in outside business in the Bay Area (2009 Market Crash occurred and tech boom had yet to take off); the franchise had sunk to become a laughing stock of the league in honest words.
Even while Lacob and Guber were initially thought to be out of the running, their offer was accepted. Lacob, who left his position with the Boston Celtics as a minority owner, set in the idea of greatness for the franchise right from the start.
"Peter and I intend to do what we do best -- innovating and building," Lacob said. "It is our passion to return the Warriors to greatness and build nothing short of a championship organization that will make all of us in the Bay Area proud."
It was no smooth ride in returning the Warriors to greatness. Attempting to regain the fans' faith and create a winning team, let alone a championship team, was going to be difficult.
After Steph was drafted in 2009, the franchise was faced with the decision three years later of who the main piece of a rebuild would be. Monta Ellis was a fan favorite, and Curry was the newcomer with high potential, and this left the front office with a tough decision. After ultimately choosing Curry, the new owners' relationship with fans quickly became tainted.
What Warriors fans didn't know after the decision to trade Monta and place Steph at the team's lead is what eventually became the great dynasty we have today. The dynasty on the court has created the newest business tycoon in all professional sports.
Since 2010 when the Warriors were valued at $315 million, which placed 18th in the NBA, that has skyrocketed to $5.6 billion. Golden State is the second most valuable franchise behind the New York Knicks.
Golden State Warriors team value from 2003-2021
Via Statista.com
Just how fast it happened makes this growth in value for Golden State so incredible. Not only was this rapid rise in value the fastest in the NBA in the last two decades, but it's also the fastest in all four major pro sports in North America.
This increase in value has brought the Warriors to become not only one of the most valued franchises in North America but in the world. In 2021, the Warriors ranked as the sixth most valuable franchise.
Out of all ten of these teams, Golden State achieved the highest five-year change in value at 147 percent– more than double the second highest five-year change in the top 10 (LA Lakers at 70%).
The team's rise in value is just the tip of the iceberg when it comes to the accomplishments the franchise has achieved. In 2019, the Sports Business Journal named the Warriors the franchise of the decade. The prestigious award recognizes the best franchise in all professional sports. Golden State was also named the franchise of the year in 2014 and 2016.
The Warriors were able to privately fund and build the Chase Center, which cost about $1.4 billion. And before the doors opened at Chase, there was already a $2 billion commitment in tickets. Even more impressive, Golden State is averaging around $700 million in revenue annually and is expected to bring in another $700 million this year.
There are more aspects to just physical sales that have allowed Golden State to become such a dominant business. The Warriors are thriving in its insights on media platforms online on social media. In July, the Warriors became the first NBA team to eclipse 25 million followers on Instagram. On Instagram, Facebook, and Twitter, the team has nearly 44 million followers.
Just as Golden State's reign as a premier business in basketball has reached new heights– they aren't stopping there. This year, the Warriors introduced "Golden State Entertainment," a new entertainment affiliate that will work in music and filmmaking. The division already has its first partnership with a Warriors and KPOP favorite, BAMBAM.
It's what Lacob has described as a three-part phase to expand the name of the Golden State Warriors outside of the basketball world– as a business. Lacob made it clear back in 2019.
"I want this to become more than a basketball team," Lacob said. "I want it to become a sports entertainment, media, and technology company. It's not just a team. That will become clear over the years."
Now in 2022, it's become even clearer the direction that Golden State is heading. With hopes of continued on-court success even after the primes of Curry, Thompson, and Green, this business expansion is almost certain to continue to expand and thrive.
(Photo credit: Garrett Ellwood/NBAE via Getty Images)