But what does it mean when the Knicks and Lakers are said to be worth more than $5 billion? Here’s a look behind the curtain. (Representatives for the two franchises did not respond to requests for comment.) What is a valuation, exactly? In the most basic terms: It is an estimate of how much a team would sell for if it was on the market. But it is nothing more than an educated guess. “At the end of the day, we’re estimating what a private enterprise is worth,” said Kurt Badenhausen, a sports valuations reporter at Sportico. “No different than estimating what the value of your house is worth.”