How much are Indiana Pacers worth? Looking at Steven Rales buying $525 million stake in NBA franchise

Billionaire Steven Rales has reportedly acquired a 15% minority stake in the Indiana Pacers at a valuation of $3.47 billion. Rales had already purchased a 5% stake in the team, and the latest transaction brought his ownership of the franchise to 20%.

Rales spent $525.5 million in the two transactions.

Rales is one of the founders of Danaher Corporation, a science and technology firm focusing on the creation of advanced materials and components across diverse sectors such as automotive, aerospace and electronics. He served as the CEO from 1984 to 1990 and has been the chairman of the board since 1984.

He founded the film production company Indian Paintbrush in 2006 and has produced several critically acclaimed films, such as "The Master" and "Phantom Thread."

Forbes approximates his net worth to be $7.5 billion.

According to Sportico, the terms of the deal include a potential route to control for Rales in the event the Simon family, the current owners of the Pacers, decides to sell. This could involve a first right of refusal should the owners decide to sell or a first-offer privilege.

According to Forbes' NBA team valuations, the Indiana Pacers rank 27th among 30 teams with an estimated worth of $2.9 billion. The only teams below it are the New Orleans Pelicans ($2.55 billion), Minnesota Timberwolves ($2.5 billion) and Memphis Grizzlies ($2.4 billion).

The teams with the highest valuations include the Golden State Warriors ($7.7 billion), New York Knicks ($6.6 billion), LA Lakers ($6.4 billion), Boston Celtics ($4.7 billion) and LA Clippers ($4.65 billion).

The average valuation of an NBA team stands at $3.85 billion, reflecting a notable 35% surge compared to the previous year.

Ownership history of the Indiana Pacers

The founding of the Indiana Pacers franchise dates to 1967 when it became a member of the American Basketball Association. The team was established by a group of six investors, including lawyer Richard Tinkham, John DeVoe, Chuck DeVoe, entrepreneur Lyn Treece, sports agent Chuck Barnes and Indianapolis Star sportswriter Bob Collins.

The Indiana Pacers were one of only two teams to play for the entire duration of the ABA without relocating, changing their team name or dissolving. They were also most successful team in the league's nine-year history, appearing in five finals and winning three championships over a four-year period

In 1976, the Pacers became a franchise in the NBA following the NBA-ABA merger. The Pacers were sold to Tom Binford Arena Sports Inc. that same year.

The Pacers were sold to California businessman Sam Nassi in 1983. The following year, the Simon family, led by Herb Simon, purchased the team for $11 million and has owned it since.

Indiana has won three championships, all in the ABA, and has made the NBA playoffs 27 times, with one trip to the NBA Finals.

The team has had several Hall of Fame players, including Reggie Miller, Chris Mullin and Alex English.