After looking at the Houston Rockets' competitive prospects combined with its recent acquisition of NBA player Chris Paul, team owner Les Alexander may see a return of more than 1,100 percent on the sale of his franchise.
With an estimated value of $1.65 billion, the team's ability to create positive buzz when it comes to ticket sales and TV ratings is essential for creating stability, said Steven Salaga, an assistant professor of sports management in the College of Education's department of kinesiology.
"From a public perspective, the team looks better on paper than it used to," Salaga told the Houston Chronicle. "You want to sell the team when the team's doing well."
After five straight seasons of making the playoffs, the Rockets recently re-signed star player James Harden to a four-year contract on top of his two remaining years. Additionally, the NBA signed a national cable contract with ESPN and Turner worth $24 billion, which will likely inflate the value of all basketball franchises.
According to the article, there are a handful of major components that help determine the value of an NBA franchise, including national cable contracts, local media markets, player strength and the team's venue. Based on all of these metrics, the price for the Rockets will likely set records.