New Brand Finance data shows that one in three Americans perceive the NBA as having a positive impact on communities, outpacing all leagues except the NFL.
Dallas, 19 November 2024 – The Denver Nuggets lead the charge as the NBA's fastest-growing brand in 2024, with a remarkable 122% brand value increase to USD344 million. A new report from Brand Finance, the world's leading brand valuation consultancy, attributes the Nuggets' surge to their on-court successes, higher ticket prices, and more games played. Their brand strength also saw a significant rise, driven by enhanced reputation, improved perceptions of management, and a perfect 10 scored for perceptions of their sustainability and positive environmental impact.
The Denver Nuggets may be the fastest-growing, but the Golden State Warriors still hold the title of the most valuable NBA brand, valued at USD1.5 billion. Despite the team’s on-court struggles, their overall brand value still increased by 4%. Hot on their heels, the Los Angeles Lakers recorded a 27% increase in brand value, reaching USD1.1 billion, and have reduced the gap between themselves and the Warriors from USD620 million last year to approximately USD500 million.
The Lakers also defended their position as the strongest NBA brand, boasting a Brand Strength Index (BSI) score of 90.2 out of 100 and maintaining their coveted AAA+ rating. The Lakers scored 10 out of 10 for overall brand image and for having a good reputation and being a positive force in their local community. These scores reflect fans’ recognition of the team’s active community engagement through initiatives like the Lakers Youth Foundation.
Hugo Hensley, Head of Sports Services at Brand Finance, commented:
"The global appeal of the NBA is undeniable, and teams like the Lakers exemplify this. Los Angeles is known for the glitz and glamour of Hollywood, and the celebrity spotlight extends to the Lakers, a team with an intensely loyal fanbase, historical success, and legendary players. Brand Finance’s data highlights the Lakers’ global influence, with exceptional scores for its ‘star players’ and for ‘being the home of fans’ favorite athletes. This amplifies the Lakers’ status as not only one of the most recognizable brands in the NBA but also in the world.”
More broadly, the NBA’s reputation for accessibility and positive influence continues to set it apart from other US sports leagues. According to Brand Finance data, 33% of NBA followers in the US believe the league has a positive impact on their communities. This outpaces other leagues, such as Major League Soccer (25%), the National Hockey League (24%), and Major League Baseball (33%). Only the NFL surpasses the NBA, with 36% of followers perceiving it to have a positive community impact.
The NBA continues to be the most-watched sports league in the US, with 61% of sports fans tuning in. The league’s simplicity and accessibility have fueled its expansion internationally, helping basketball become a truly global sport. Although the NFL leads in overall brand value domestically, the NBA’s international influence gives it a unique edge in terms of global appeal.
Laurence Newell, Managing Director, Brand Finance Americas:
“The NBA’s global reach rivals that of most sports, with the exception of soccer, thanks to basketball’s simplicity – anyone can pick up a ball and play. This is evident in Brand Finance’s research, which reveals the NBA is the most-watched sports league in the US, with 61% of sports fans tuning in to the league. Football does boast a higher brand value in the US – with Brand Finance valuing NFL brands at a combined USD29.5 billion compared to the NBA’s USD11.5 billion – but basketball has the edge when it comes to international appeal.”
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
