With 17 championships and 32 Finals appearances, the Los Angeles Lakers are one of the NBA’s most successful franchises. Some of the greatest players in league history have also played for the Lakers and have helped the team win championships, such as Jerry West, Wilt Chamberlain, Kareem Abdul-Jabbar, Magic Johnson, Shaquille O’ Neal, and Kobe Bryant. Today, though, we're going to look at the Los Angeles Lakers 2020 Franchise Value. 

Los Angeles Lakers 2020 Franchise Value (estimate): $4.4 billion

Their success on the court is reflected in the team’s value, with Forbes reporting in February that the Lakers joined the Golden State Warriors and New York Knicks as the only NBA franchises with a value that exceeds $4 billion. The Purple and Gold in particular reported an increase of $700 million over the past year, with their franchise value jumping from $3.7 billion to $4.4 billion, which ranks second to the Knicks’ $4.6 billion franchise value. 

Among North American sports franchises, aside from the Knicks, only the Dallas Cowboys of the NFL ($5.5 billion) and the New York Yankees of the MLB ($4.6 billion) are worth more than the Lakers. Forbes reported that despite lower television ratings, the value of NBA teams have continued to soar, with a 14% increase from the past season and an average value of $2.12 billion. Teams in the NFL, by comparison, only reported an 11% annual increase and a $2.86 billion average value, while MLB teams had an 8% increase and an average team value of $1.78 billion over the past year. 

The annual increase in the Lakers’ franchise value has continued despite their struggles in the last few seasons, with the team missing the playoffs for the sixth consecutive year during the 2018-2019 season. Los Angeles finished the season with a 35-47 record, just tenth in the Western Conference, despite the signing of three-time champion LeBron James in the summer of 2018. The Lakers’ lack of success in recent years is noteworthy considering that the team has only missed the playoffs just five times in their first 65 years, and previously never missed the postseason in more than two consecutive seasons.

The Lakers’ struggles on the court have not prevented fans from flocking to their home court of Staples Center, with the NBA reporting the team’s average per game attendance at 18,977, nearly the entire arena’s capacity, and a total attendance of 779,000 throughout the season. The attendance at the team's games at Staples Center, in fact, did not experience a significant decrease despite the lack of success in recent years, proving that the Lakers' legions of fans have continued to watch their games despite their struggles. 

But what catapulted the Lakers back into the NBA’s elite while also making them a must-see team was the trade for New Orleans Pelicans big man Anthony Davis during the summer of 2019. Forbes reports that the trade for Davis, a six-time All Star when he joined the team, made the Lakers “the league’s hottest ticket,” with Delta Air Lines, a team sponsor since 2011, signing a long-term extension in October last year and securing a promotion to for Lakers season ticket holders to exchange tickets for flight vouchers. 

Much of the Lakers’ $4.4 billion franchise value can be attributed to its city and market size, which accounts for $2.13 billion and 48.4% of its value. The success of the NBA as a whole has also played a part in its increase in value, with the revenue shared among all teams accounting for $818 million or 18.6% of the Purple and Gold’s franchise value. Next is the Lakers’ own brand, which makes up $754 million and 17.1% overall of their value, and their value which is attributable to the Staples Center, which amounts to $698 million and 15.9% of their franchise value. 

The acquisition of Davis vaulted the Lakers from the 10th spot to the best team in the Western Conference, with the team finishing with a record of 52-19. Los Angeles eventually won its 17th title after defeating the Miami Heat in six games in the 2020 Finals last month after the NBA resumed its season following the COVID-19 pandemic. This was undoubtedly a boon to their franchise value, with the teams revenue increasing from $395 million in 2019 to $434 million in 2020. However, the franchise owned by the Buss family also reported an increase in operating costs, up to $178 million from $147 million the previous season, and an increase in player expenses, which went up to $120 million from $112 million from the past year. 

One factor that could affect the Lakers’ and the other NBA teams’ value is the ongoing COVID-19 pandemic. The NBA makes 40% of its annual income from gate receipts, and with the league shutting down in March because of the pandemic, The Athletic reports the that the NBA has lost approximately $695 million in revenue from the 258 regular season games that were cancelled. 

The same report indicates that it was actually the Lakers which lost the most potential fan revenue among all teams, which amounted to $52.7 million because of 10 cancelled home regular season games. Not only were the Lakers’ fans deprived of the chance to see their team win their first championship in a decade, but it also hurt the team owners’ pockets. 

But the league’s initiative to resume the season in a bubble at the Walt Disney World Resort in Orlando, Florida prevented the loss of more revenue for the league and its teams. The Sports Business Journal reports that the NBA Bubble prevented the loss of $1.5 billion in expected revenue, which mainly came from local and national television revenue in preexisting contracts and league sponsorships. The NBA Bubble, which allowed teams to play 172 regular season and playoff games over a span of four months, cost the league $180 million. But with more than a billions dollars saved, a champion crowned, and no reports of players, team officials, or staff testing positive for COVID-19  over 100 days, the NBA Bubble has been an unqualified success.

In the end, it was the Lakers who emerged victorious in the NBA Bubble to end a season unlike any other. The COVID-19 pandemic has resulted in revenue losses for the league and the Lakers because of their cancelled home games both in the regular season and playoffs. But with the team looking to repeat as champions next season with two of the game's best players in James and Davis while remaining in one of the country’s best markets, the Purple and Gold should maintain their status as one of the most valuable franchises not just in the NBA, but in all of North American sports.