Investors make money in the basketball industry in several ways, depending on their level of involvement and financial resources.

Owning a Team (NBA, G League, International, or Semi-Pro)

Franchise Value Growth: NBA team values have skyrocketed over the years. Investors buy teams and sell them later for a massive profit (e.g., Steve Ballmer bought the Clippers for $2 billion in 2014; they are now worth over $4 billion).

Revenue from TV Rights & Sponsorships: Leagues like the NBA generate billions from broadcasting deals, sponsorships, and merchandising. A share of this revenue goes to team owners.

Ticket Sales & Concessions: Teams profit from game-day revenue, including ticket sales, merchandise, and food.

Merchandising & Licensing: Teams make money from jersey sales, branded merchandise, and licensing agreements.

Investing in Basketball-Related Businesses

Sports Agencies: Investing in or starting an agency that represents players in contract negotiations and sponsorship deals. Agents earn a percentage (typically 3-4%) of player salaries and endorsement deals.

Shoe & Apparel Companies: Big brands like Nike, Adidas, and Under Armour make billions by signing top players to endorsement deals and selling basketball shoes and gear.

Basketball Tech Startups: Companies focused on analytics, wearables, and training technology (e.g., ShotTracker, Noah Basketball) attract investors.

Basketball Academies & Training Facilities: Investing in or owning elite training centers for professional and youth players can generate revenue through memberships, sponsorships, and partnerships.

Media & Content Investments

Streaming & Broadcasting: Investing in sports media rights (TV deals, streaming platforms) can be highly profitable. The NBA’s next media rights deal is expected to exceed $75 billion.

Basketball Content Platforms: Websites, YouTube channels, and podcasts focusing on basketball analysis, highlights, and news can be monetized through advertising, sponsorships, and subscriptions.

Documentaries & Films: Investing in sports documentaries (e.g., The Last Dance) can be highly profitable if they gain mainstream success.

Fantasy Sports & Sports Betting

Owning a Betting or Fantasy Sports Platform: Companies like DraftKings and FanDuel make millions by offering daily fantasy basketball contests.

Investing in Sports Betting Companies: The legalization of sports betting in many places has created a booming industry. Investing in betting platforms or sportsbooks (e.g., FanDuel, BetMGM) can be lucrative.

Sponsorship & Endorsement Deals

Owning a Marketing Firm: Companies that connect players with sponsorship deals can earn commission-based revenue.

Investing in Player Brands: Some investors help athletes build personal brands (fashion lines, media ventures, business startups) and share in the profits.

Owning or Sponsoring Basketball Leagues & Tournaments

TBT (The Basketball Tournament): A summer event with a $1M+ cash prize, backed by investors and sponsors.

3×3 Leagues (BIG3, FIBA 3×3): Investing in or creating new basketball leagues can be profitable through TV rights, sponsorships, and ticket sales.

Youth & Amateur Leagues: Some investors fund AAU and high school basketball leagues, generating revenue through sponsorships and exposure.