Back to the NBA Newsfeed

Is $2 billion the new rate for an NBA franchise? Don't count on it

The news spread quickly this morning: Houston billionaire Tilman Fertitta had agreed to pay Leslie Alexander a reported $2.2 billion for the Houston Rockets.

It's another apparent affirmation that the then-record $2 billion Steve Ballmer paid three years ago for the LA Clippers wasn't just an outlier.

But the assumption that all NBA owners will now experience a bump similar to former owners Donald Sterling and Alexander doesn't make much sense.

The latest franchise prices aren't necessarily a reflection of how much teams are worth, but rather how much someone is willing to pay.