Create a Valuation for a minor league basketball team

Assume you paid a $160k expansion fee for your new team

Compare it to NBA Valuation Data

Determine

A. Valuation of your team based on the Market Approach (using comparable teams, price to revenue ratios)

B. Valuation of your team based on the Income Approach (using a discount rate of 12.8% and a perpetual growth rate of 7%)

C. Valuation of your team based on the Cost Approach (use an arena value of $100,000)

D. Overall value with all three approaches

The data of your team last season.You were the best performing team in your leageu that year.:

Total Costs

Salary

Fines

Trades

%Fixed Costs

%Variable Costs

Total Revenue

Gate Receipts

Concession

Total Sponsorship $

Broadcast

Merchandise

%Revenue Share

%Team Revenue

Profits

Profit Margin

$43,858,602.67

$34,796,666.67

$0.00

$61,936.00

20.52%

79.48%

$84,801,830.99

$12,384,831.67

$5,221,864.07

$24,976,361.73

$40,407,889.08

$1,810,884.44

49.79%

50.21%

$40,943,228.32

48.28%