How the Rockets are the latest example of a flawed valuation system

The Houston Rockets were recently listed as the eighth-most valuable NBA franchise, according to Forbes’ annual valuations. Here’s why that was far too low, and an example of a flawed system.

The Houston Rockets have had rising stock over the years, as they’ve won at least 50 games in five of the last six seasons. They’re also on pace to win 51 games this season as well. This has certainly raised the Rockets’ value, which is evident by the hefty $2.2 billion price tag current owner Tilman Fertitta paid for the franchise upon purchasing it in 2017.

This was a drastic increase compared to the $85 million former owner Les Alexander paid for the franchise when he bought it in 1993. Although this…