Who Owns the NBA? A Breakdown of League and Team Ownership Structures

ByJames Dorn Last Update on

The NBA is a private business league collectively owned by the 30 NBA team owners. Unlike European sports leagues which are often managed by singular entities, the NBA is governed by the team owners together. They make up the NBA‘s Board of Governors which oversees league operations, revenues, policies, and future direction.

So while no single owner "owns" the NBA, the ones from each franchise own it jointly through their involvement in league-level decisions. The NBA Commissioner leads the league itself, acting as CEO.

Delving Into the Ownership Details

Let‘s break down the key details around NBA team owners and league oversight:

Team Structures

Every NBA franchise has a designated controlling owner that holds the largest share, has final authority in team matters, and sits on the Board of Governors. Additional investors with smaller ownership stakes serve as minority partners without decision-making capacities.

For example, the Phoenix Suns‘ controlling owner is Robert Sarver who owns about 35% of the team. Their minority owners include various business executives and even celebrity investors like Diplo and Jahm Najafi.

Owning an NBA franchise is an elite status symbol, but also a major financial undertaking – recent sales have exceeded $2 billion. Teams rely heavily on revenue streams like ticket sales, media deals, and corporate sponsorships.

NBA Governance

As mentioned, the NBA‘s owners collectively govern league affairs through the Board of Governors where each team gets one vote. They appoint the Commissioner and ratify any major initiatives like revenue sharing between teams.

The Board is the ultimate decision-making body for NBA policies and future plans. For something impactful like adding expansion teams or new ownership groups, a full Board vote is required.

Daily operations are handled by the NBA Commissioner, Adam Silver, along with various league office executives. The Commissioner answers to the Board and serves at their discretion.

Ownership Trends

In the early NBA, team owners tended to be individual rich businessmen focused on the prestige more than profit (a major exception being the Knicks). But franchises have become far more lucrative assets, now attracting investment groups and corporations.

Despite being a game dominated by Black players, NBA ownership has historically lacked diversity. Michael Jordan became the first majority Black owner in the modern era when he took over the Charlotte Hornets. Since then only a few more, like Kings minority owner Shaquille O‘Neal, have joined those exclusive ranks.

There are also very few women controlling owners despite prominent examples like Jeanie Buss of the LA Lakers. More representation could bring beneficial new mindsets for shaping league growth.

Notable Owners Over the Years

Let‘s highlight some of the more famous faces that have owned NBA teams over the decades:

Former Players

  • Michael Jordan: As mentioned, Jordan revolutionized Black ownership when he became majority owner of the Charlotte Hornets in 2010. The six-time NBA champion is spearheading their rebuilding efforts.

  • Shaquille O‘Neal: "Shaq" was another trailblazer, buying a minority piece of the Sacramento Kings in 2013. As with many star players, he became fascinated with ownership ambitions after retirement.

  • Grant Hill: Continuing the tradition, Hill purchased a piece of the Atlanta Hawks in 2015 where he finished his playing career. Hill is now vice chairman and oversees club business.

Tech and Business Magnates

  • Steve Ballmer, LA Clippers: The former Microsoft CEO stunned the sports world with his then record $2 billion purchase of the Clippers in 2014 following the Donald Sterling controversy.

  • Joe Lacob, Golden State Warriors: Lacob bankrolled the Warriors‘ dynasty behind smart leadership and Silicon Valley resources. They epitomize how modern sports franchises leverage analytics and technology.

  • Robert Pera, Memphis Grizzlies: The founder and CEO of hardware tech company Ubiquiti Networks took over the small-market Grizzlies in 2012, promising to keep them in Memphis.

Celebrity Investors

  • Justin Timberlake, Memphis Grizzlies: The pop icon bought a small minority stake in the Grizzlies in 2012 alongside controlling owner Pera. NBA ownership has unique cachet and branding power for megastars.

  • Jay-Z, Brooklyn Nets: An icon in New York, Jay-Z held a very small stake in the Nets for several years leading up to their 2012 move to Brooklyn. He helped with rebranding and marketing efforts to expand their fanbase.

  • Usher, Cleveland Cavaliers: Continuing the music industry trend, Usher bought shares in hometown club the Cavaliers back in 2016. Minority holdings allows stars to support their teams.

As media, technology, and entertainment converge more with sports, we may see more famous investors get involved with NBA franchises. But major decisions will still be made by those controlling governors.

Final Thoughts

Despite its collective ownership structure, the NBA still faces issues around equity and inclusion at the highest levels of leadership. Most team controlling owners and major stakeholders are still white businessmen, not reflecting the diversity of players and fans.

Hopefully Michael Jordan‘s pioneering example leads more former players and Black business leaders to take majority ownership stakes. More perspectives could bring innovation that propels the NBA‘s product growth among global audiences. More female voices also are sorely lacking around the Board tables where pivotal strategies get mapped out.

But in general, the owner-as-steward model has put the NBA in a healthy financial position. Team valuations continue to skyrocket based on strong attendance, viewership, and sponsorship revenues. And the partnering between former star players, Silicon Valley execs, and investment moguls have helped modernize operations.

Expect ownership dealings to stay in the headlines as interest grows and new power players emerge. But the 30 principal owners will firmly direct the NBA‘s path forward as they balance competition, cooperation, and community impact.

James K. Dorn, a passionate gamer deeply immersed in the world of video gaming. My journey in gaming is not just about playing; it's about exploring every facet of the games I love. I am particularly fascinated by the intricate worlds of role-playing games like "The Witcher" series and "Elder Scrolls: Skyrim," where every decision shapes the story.

As a strategy game enthusiast, I spend hours devising tactics in games like "Civilization VI" and "StarCraft II," always eager to share my strategies with fellow gamers. I'm also an ardent follower of the ever-evolving landscape of indie games, finding gems like "Hollow Knight" and "Celeste" that offer unique, compelling experiences.

My content isn't just reviews; it's about deep dives into game mechanics, storytelling, and the art of game design. I love dissecting the narratives of games like "The Last of Us" and discussing the innovative gameplay of titles like "Death Stranding."

Being at the forefront of gaming news, I eagerly anticipate and share insights on upcoming releases like the next big open-world adventure or the latest in the "Final Fantasy" series. My goal is to build a community where we not only play games but also appreciate the artistry and effort behind them. Join me in this gaming journey, where every session is an adventure, and every game is a story waiting to be told.

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