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Timberwolves jump 19 percent in annual Forbes valuation

By Dylan Hughes

MINNEAPOLIS, MN - DECEMBER 5: Karl-Anthony Towns #32 of the Minnesota Timberwolves embraces Minnesota Timberwolves Owner Glen Taylor after the game against the Charlotte Hornets on December 5, 2018 at Target Center in Minneapolis, Minnesota. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by David Sherman/NBAE via Getty Images)
MINNEAPOLIS, MN - DECEMBER 5: Karl-Anthony Towns #32 of the Minnesota Timberwolves embraces Minnesota Timberwolves Owner Glen Taylor after the game against the Charlotte Hornets on December 5, 2018 at Target Center in Minneapolis, Minnesota. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2018 NBAE (Photo by David Sherman/NBAE via Getty Images) /
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In their annual NBA team valuations, Forbes valued the Minnesota Timberwolves at $1.26 billion — a 19 percent increase from last season.

After ranking 27th in the league last season with a team valuation of $1.06 billion, the Minnesota Timberwolves have made a small leap. According to Forbes, the Wolves are now worth $1.26 billion — which is still 27th in the league — a 19 percent year-over-year jump.

Forbes was also kind enough this year to break the valuation down. Forbes credits $727 million (57.7 percent) of the Wolves’ valuation to the sport itself, $300 million (23.8 percent) to the market they operate in, $139 million (11 percent) to the Target Center, and $94 million (7.5 percent) to the brand.

Arenas are obviously a large part of a team’s value seeing as though they are property in highly populated areas. Location matters, as land in New York City is worth more than Oklahoma City. Madison Square Garden, for example, accounts for nearly a quarter of the Knicks’ valuation.

Target Center, opened in 1990,  is almost 30 years. Renovations have been done over time and Forbes noted that the Wolves have spent over $100 million to do so — which should help the Wolves bring in more cash.

In terms of revenue, the Timberwolves brought in $223 million last season — 22nd in the league. They ranked 17th in operating income at $47 million.

The Timberwolves continue to benefit off the league’s growth as a whole. Average team valuations have jumped 13 percent over the last year and tripled over the past five years. Last season, the New Orleans Pelicans became the last team to be worth over $1 billion. A year later, the Grizzlies are the league’s least valuable team at $1.2 billion.

The average earnings before interest, taxes, depreciation, and amortization (EBITA) is $61 million — double the amount it was in 2017. Thanks to TV deals, arena renovations, and jersey-patch sponsorships, the NBA total revenue was $8 billion last season — an 8.5 percent increase.

Next. Wolves should make a splash, trade for Blake Griffin. dark

As time goes on and sports betting becomes more prominently involved with the NBA, the Timberwolves‘ value will continue to rise alongside the other 29 teams.

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