might have an interest. The two men, each worth over $100 billion, would certainly be the types of “whales” who could drive up the price of the Suns. But neither has made an offer so far.
Sports bankers use the term “whale” to describe someone with deep, deep pockets who can have a huge impact on increasing the sale price of a team. Think Steve Ballmer, who paid at leastthan the next-highest bid in 2014 for the Los Angeles Clippers. Ballmer was, and still is, super-rich, and he badly wanted the Clippers.
One NBA team executive told me recently that he thinks there’s a greater chance that the Suns will sell for more than $5 billion than less than $4 billion. But the thinking among sports bankers is that the higher-price scenario would be possible only with a whale bidding. Without the whale, they doubt the team would fetch $4 billion., 13th in the league. Our valuation places an enterprise value/revenue multiple of 8.9 on the team.
More recently, the Utah Jazz were purchased by Ryan Smith in 2020 for $1.66 billion, or 6.4 times revenue; the Brooklyn Nets were acquired by Joe Tsai for $3.2 billion, a multiple of 10.2; and Tilman Fertitta bought the Houston Rockets in 2017 for $2.2 billion, or 7.4 times revenue. There were no whales for the Jazz or the Rockets, and the Nets had the benefit of being in the NBA’s biggest market. Thus, it would appear the Suns would need a super-rich buyer to hit the $4 billion mark.
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