The Golden State Valkyries haven't played a game (but they're already winning big)
Joe Lacob and Peter Guber turned the Warriors into a $9.4 billion empire. Now they’re using that same playbook in the WNBA, starting with record ticket sales, elite facilities, and blue-chip sponsors.
The Golden State Warriors are the NBA’s most valuable franchise today, but it wasn’t always this way. In fact, many people thought Joe Lacob and Peter Guber were crazy when they paid an NBA record $450 million for the Bay Area franchise in 2010.
The Warriors had only made the playoffs once over the previous 15 seasons. They played in Oracle Arena, the NBA’s oldest venue, which they did not own. Teams like the Knicks, Lakers, Bulls, Celtics, and Rockets were doing hundreds of millions of dollars more in annual revenue, and the Warriors were losing $25 million each year.
However, it’s now an entirely different story. According to CNBC, the Golden State Warriors generated $781 million in revenue last year, $155 million in EBITDA, and are valued at $9.4 billion. Not only are the Warriors more valuable than the NBA’s biggest market teams (Knicks and Lakers), but it means Lacob and Guber are up nearly 2,000% on their investment, compounding capital at a 22% annualized rate for 15 years.
Casual fans will attribute this success to Stephen Curry. Don’t get me wrong, he deserves a lot of credit, and the Warriors wouldn’t have won four championships without him. But those who operate in and around the sports business know that Lacob and Guber are equally important. They have rewritten the NBA ownership playbook, turning an irrelevant franchise into the sport’s best business model.
Now, Lacob and Guber want to do it again. After agreeing to pay $50 million for the expansion rights to the WNBA’s 13th team, the Golden State Valkyries will kick off a new era in the Bay Area tonight. But rather than just riding Caitlin Clark’s coattails, the Warriors’ ownership group wants to leverage its machine to financially dominate.
Lacob has promised to win a championship within five years and expects to lead the WNBA in revenue. This might sound like a new owner being overconfident in his abilities, but it’s also entirely possible, and, dare I say, likely. Let’s break it down.
