Big spending Golden State need to keep winning to chase top spot in NBA rich list
The ‘Bay Area’ team keeps spending with The Warriors’ payroll now some $40 million over the luxury tax threshold of $175 million as the franchise strives to keep winning and generating profit.
Building a dynasty is expensive... but profitable when done correctly. The Golden State Warriors have been thinking big since the acquisition by the consortium led by businessman Joe Lacob in 2010. The purchase price then was 450 million dollars and today, twelve years later, the franchise is worth more than 6 billion. It has even surpassed the Lakers (5.6 billion) and is already chasing the NY Knicks in top spot with the Big Apple team now valued at approximately 6.1 billion, according to Forbes.
Oakland to San Francisco move fundamental
A fundamental key in this growth was the move to the Chase Center, from Oakland to San Francisco and from the outdated Oracle Arena to a revolutionary pavilion that cost more than 1.3 billion but generates revenue non-stop, seven days a week: concerts, events, real estate deals linked to its facilities... the Warriors are already the team that generates the most in non-basketball activities, some 474 million in 2021. And in total, their revenues are at 700 annually. That’s after just three years in their new home and when they are only, they claim, “starting to scratch the surface.”
Big spenders
But the big show, the backbone of the business, is the basketball team that costs more than any in the NBA: 178 million in salaries this season. Since the salary cap for all teams is 112.4 and the Warriors have been skipping that cap for years, they pay a record penalty in what’s called the luxury tax: 184 million. The team thus comes out ahead by more than 360 million this season. The Boston Celtics, their rival in the 2022 Finals and a historic team now valued at 3.4 billion, came out of the tax with a February trade and pay for their roster 138 million.
For the Warriors, who spend a lot to earn even more, reaching the 2022 Finals is a jackpot: with more than 100 million dollars generated in their home games in the playoffs: nine so far with a 100% win record in front of a packed house. The facilities and amenities offered by the new arena coupled with the purchasing power of San Francisco fans, with a tremendous injection of the inexhaustible Silicon Valley dollars, boosts the business. For each game on their home court in the first two rounds, 7 million in revenue was generated. Nine million dollars for each of the three games in the Western Conference finals... with an estimated 15 million to come in the Finals, the first two of the series get underway tonight (Thursday) and Sunday. The Finals going to a Game 7 could involve more than 30 million extra into the Warriors already deep pockets.