Upshot: The Cavaliers are worth $100 million more and the Heat $100 million less.
Just for the moment, put aside luxury suite rentals and arena sponsorships and focus on television. The Cavaliers currently average about $25 million a season from Fox Sports Ohio. But that deal was signed before James left and ends in two years. Ratings for the Cavaliers tanked after James left.
A new cable deal, with James and the much higher ratings, will average at least $40 million a year. Applying a multiple of five to the discounted future value of that revenue stream would add $100 million in value to the Cavaliers.
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