Small Market Rise: Which NBA Teams are Valuable to the League?

What are the Markets in the NBA?

Before we dive deep into the league’s debate between the prominence of small-market and big-market teams, it is worth knowing what these market tags even have to do with the overall dominance of respective teams in the NBA or the way they are perceived both by sponsors and the media as a whole.

For starters. Big-market teams are those who are in larger cities with bigger fan bases, higher media exposure, and larger corporate sponsorships. Some of the most notable big-market teams are the Los Angeles Lakers, New York Knicks, Chicago Bulls, and Miami Heat, and the Boston Celtics. Big-market teams often generate more revenue from merchandise, ticket sales, and sponsorship deals. They can afford to spend more on players, coaches, and facilities.

Star players are often drawn to big markets for the spotlight, endorsement opportunities, and lifestyle. For example, LeBron James went to the Lakers partly because of the LA lifestyle and business opportunities. With their larger fanbases and national TV games, big-market teams get more visibility, which can help attract both players and sponsors. Some big-market teams have storied histories (like the Lakers and Knicks), which can help with recruiting talent who want to be part of a winning tradition.

On the other hand, small-market teams are in smaller cities, and while they may not have the same financial advantages, they often have passionate fanbases and a unique identity. Teams like the Milwaukee Bucks, Utah Jazz, Oklahoma City Thunder, Cleveland Cavaliers, and Portland Trail Blazers are considered small-market.

Smaller markets sometimes provide an environment where players can develop closer relationships, and the pressure may be less intense, which can help team cohesion. For example, Giannis Antetokounmpo’s rise with the Bucks was largely about growing a team-first mentality. There’s often less pressure to immediately contend for a title, which can allow teams to develop young talent and build more organically over time.

Who are the Small-Market and Big-Market Teams in the NBA?

Defining which market a team belongs to is not that hard, especially when you have market value to consider. There’s a lot of talk as to how this can change over time, given how a team that has won championships at a consistent rate can increase its market value with more investors coming in.

NBA Franchise Values as of 2024 (IN BILLIONS)

Based on this data, the Golden State Warriors ($8.8B), New York Knicks ($7.5B), and Los Angeles Lakers ($7.1B) represent the top three teams, all located in major metropolitan markets. Boston Celtics ($6B) and Los Angeles Clippers ($5.5B) round out the top five, showcasing the financial strength of teams in large cities.

Big-market teams have significant advantages in terms of overall franchise value. These teams benefit from larger fanbases, national and international exposure, higher media deals, and more corporate sponsorships.

The Bay Area (Golden State), New York, and Los Angeles, in particular, are markets that bring in substantial revenue and visibility, even if the teams themselves aren't always at the top of the standings. Especially for the case with the likes of the Brooklyn Nets, Philadelphia 76ers, and the Dallas Mavericks – who are all on the verge of missing out on the NBA Playoffs for this season so far.

NBA Finals and the Market Teams

The NBA Finals is considered the grandest event of all in an NBA season, and it cannot be denied that the league has its eyes on the final two teams that are bidding for a shot at the championship now more than ever. However, the viewership varies from time to time, especially when the top seeds of each conference reach the big stage. But market also comes into play as a factor to consider on how popular the NBA Finals can be.

NBA Finals Viewership in Millions (2015-2024)

Based on this data, the Golden State Warriors and Cleveland Cavaliers rivalry from 2015 to 2018 has resulted in high viewership numbers (ranging from 17.56M to 20.38M). Both teams had major stars (Stephen Curry, LeBron James), with the Warriors particularly benefiting from their dominant run in the mid-2010s.

The Los Angeles Lakers also played a role in driving high viewership in 2020 against the Miami Heat (7.45M), even though the pandemic's restrictions had a significant impact on ratings. Milwaukee Bucks (small market) vs. Phoenix Suns (relatively smaller market) in the 2021 Finals saw a notable dip to 9.91 million viewers. Despite the Bucks' win, the presence of smaller teams and fewer star-studded lineups likely led to lower numbers.

Similarly, the Toronto Raptors (a smaller market in Canada) against the Golden State Warriors in 2019 also had 8.8 million viewers. Despite the Raptors' historic win, the series’ viewership wasn’t as high as other Finals featuring more traditional powerhouses. Small-market teams, while capable of attracting strong local interest, may not generate the same widespread viewership as large-market teams. This suggests that the appeal of star players and team legacy plays a huge role in drawing in casual fans.

The Denver Nuggets and Miami Heat in 2023 also benefitted from global fan bases—particularly with international stars like Nikola Jokić (Serbia) leading the Nuggets. Their appearance helped elevate interest beyond just U.S. borders. It was a battle between two small-market teams, with the Heat only valued at $4.25 billion (13th overall), and the Nuggets set at $3.9 billion (17th overall).

Does Market Matter in Today’s NBA?

Well, considering how the power has shifted in today’s NBA, it is safe to say that there’s a dominant stretch from small market teams so far. The Cleveland Cavaliers (16th, $3.95 billion) and the Oklahoma City Thunder (21st, $3.65 billion) are the top two teams in the league right now.

These two teams are the only squads to cap off a winning streak of more than 10 games, with the Cavaliers logging three of a streak with at least 15 wins. Moreover, they are the first two teams to clinch a spot in the NBA Playoffs, and have a combined total losses of 23 – which is two less than the second seed in the Western Conference and four more than the second seed in the Eastern Conference.

Big-market teams continue to enjoy the financial benefits of their larger fanbases, media markets, and star power, which translates into higher franchise values and greater viewership. Small-market teams, while often facing financial constraints, can still succeed if they have superstar talent, strong ownership, and compelling narratives. Their success, however, often leads to more limited viewership compared to the big-market giants.

Star players and international appeal can bridge the gap for smaller markets, enhancing both financial value and Finals interest, proving that player power can often outshine the size of the market.

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