clock menu more-arrow no yes mobile

Filed under:

Pelicans Continue to Increase in Value

Forbes came out with their most recent franchise valuations. Tom Benson must be thrilled.

Derick E. Hingle-USA TODAY Sports

The day was April 13th, almost three years ago. Tom Benson agreed to purchase the then-New Orleans Hornets from the NBA at a price of $338 Million. Just six weeks later, they won the lottery and the right to draft Anthony Davis. Naturally, the value of the team went up. Or not. Forbes placed the value of the franchise at $340 Million the following January with the Unibrow in tow. Not the kind of return on investment Benson was looking for.

Three first round picks traded out, the incredible development from Anthony Davis, and one ENORMOUS television contract later, Benson's gamble has paid off handsomely.

Time Value
Purchased: April 2012 $338M
January 2013 $340M
January 2014 $420M
January 2015 $650M

Combining this newest figure with the current value of the New Orleans Saints, a cool $1.11 Billion according to Forbes, and Benson appears to be doing quite well for himself. Beyond the increase in value, the team's revenues are up from $116M in 2014 to $131M in 2015. Adding the Smoothie King naming rights have helped.

Much of the increase in value can be chalked up to the new television deal and the CBA nearly guaranteeing profits for any franchise run with minimal restraint. (Sorry, Brooklyn Nets).

The Pelicans are also running a profit, and that profit has been increasing. In 2013 Forbes estimated a $3.3 Million profit, $11 Million in 2014, and now it's up to $19 Million. Slashing ticket prices and naming rights, along with an increasingly competitive team, especially at home, have all contributed.

If Benson wants to go ahead and find a way to get me a 192% return on my life savings in 33 months, I'm all ears.