The value of the Golden State Warriors is falling – and here is why

The value of the Golden State Warriors is decreasing faster than a Steph Curry jump shot.

The Washington Post has learned that an attempt to sell a minority stake in the team – the most successful NBA franchise of the past decade with four titles – has been stalled for nearly a year. The reason is concerns about the team’s aging – coupled with general fears about the exodus of high-paid tech workers from San Francisco.

The offer price for the 8 percent stake in the Warriors, which includes the recently built Chase Center in San Francisco, is $5.4 billion, according to sources familiar with the process – after a deal with a reported valuation of $7 billion was sought last September.

The alleged stock cut comes as NBA franchise prices are soaring amid rising popularity and the league’s impending new television contract worth $76 billion over the next 11 years.

As the Post exclusively reported, Julia Koch bought a 15 percent stake in the struggling Nets last month for about $3.8 billion.

The majority owner of the Boston Celtics, who had just won an NBA title, put the team up for sale on Monday.

Forbes estimated the franchise’s value at $4.7 billion last October, behind only the Los Angeles Lakers ($6.4 billion), the Knicks ($6.6 billion) and the Warriors, who were valued at $7.7 billion.

But Golden State failed to make the playoffs last year when Curry turned 36.

On Monday, Klay Thompson – one half of the vaunted “Splash Brothers” along with Curry – signed a free agent contract with the Dallas Mavericks.

“This is a difficult sale,” said one of the sources close to the talks.

A sports investment banker raised the possibility that fair-weather fans might abandon the team as its meteoric rise could lead to a crash due to the Warriors’ declining value.

The source noted that many technicians have fled San Francisco or are working from home and may be less likely to attend games – especially if the Warriors are not competing for titles.

Admission to Warriors home games is the most expensive in the league after the Knicks. According to Axios, the cheapest four tickets plus four hot dogs, two beers, two sodas and a parking space cost $608.39.

Joe Lacob and Peter Guber bought the Warriors in 2010 for $450 million.

In 2022, Arctos Sports Partners bought a 5 percent stake in the team, including buildings and real estate, for a value of $5.6 billion – a record price for an interest in an NBA team.

Gerry Cardinale, founder of RedBird Capital Partners, which owns shares in Boston Red Sox owner Fenway Sports Group and Italian soccer club AC Milan, said in a recent interview that sports team valuations are in an economic bubble and are declining.

“There is a tremendous amount of inexperienced capital chasing the sport,” Cardinale told Private Equity News.

“I just think everyone needs to calm down a bit. We need sober, unemotional investments in the sport that are not aimed at trophy hunting.”