What are the most valuable sports franchises?
The Value of the Top 50 US Sports Franchises, Ranked
- Dallas Cowboys Franchise value: $6.50 billion Total championships: 5 The Cowboys’ status as the nation’s most valuable NFL — and pro sports — franchise for 15 straight years largely ...
- New York Yankees Franchise value: $5.25 billion Total championships: 27 Babe Ruth. Joe DiMaggio. ...
- New York Knicks
What is the most valuable sport franchise in the world?
- New York Yankees (MLB): $6.75 billion
- Dallas Cowboys (NFL): $6.43 billion
- New York Knicks (NBA): $5.42 billion
- Golden State Warriors (NBA): $5.21 billion
- Los Angeles Lakers (NBA): $5.14 billion
- New England Patriots (NFL): $4.97 billion
- Boston Red Sox (MLB): $4.8 billion
- Barcelona (Soccer): $4.76 billion
- Real Madrid (Soccer): $4.75 billion
Which world pro sports franchise is the most valuable?
- Dallas Cowboys (NFL): $5.5 billion
- New York Yankees (MLB): $5 billion
- New York Knicks (NBA): $4.6 billion
- Los Angeles Lakers (NBA): $4.4 billion
- Golden State Warriors (NBA): $4.3 billion
- New England Patriots (NFL): $4.1 billion
- New York Giants (NFL): $3.9 billion
- Los Angeles Rams (NFL): $3.8 billion
- San Francisco 49ers (NFL): $3.5 billion
What sports franchise has moved the most times?
The most any franchise has moved is two times. Following are the three teams that did so: 1. The Milwaukee Brewers moved to St. Louis and became the the Browns in 1902. Then the Browns moved to Baltimore and became the Orioles in 1954.
What sports franchise is most profitable?
#1. $8 billion. DALLAS COWBOYS. ... #2. $6.4 billion. NEW ENGLAND PATRIOTS. ... #3. $6.2 billion. LOS ANGELES RAMS. ... #4. $6 billion. NEW YORK YANKEES. ... #4. $6 billion. NEW YORK GIANTS. ... #10. $5.5 billion. LOS ANGELES LAKERS. ... #15. $5 billion. BARCELONA. ... #19. $4.6 billion. MIAMI DOLPHINS.More items...•
How do sports franchises make money?
Professional sports teams are valuable properties, worth billions of dollars. Ticket sales, merchandise, broadcast rights, and marketing deals all contribute to the value of a franchise.
Is owning a sports team lucrative?
While professional sports may appear to be lucrative due to the huge player contracts, the reality is many team owners don't seek profits but an increase in value.
What sports franchise is worth the least?
The Cincinnati Bengals are the lowest-valued team at $2.84 billion.
What are the benefits of owning a sports franchise?
Besides the potential for long-term appreciation of the investment and the prestige of owning a professional sports team, other benefits include specific tax benefits, a potential vehicle for estate planning, the ability to operate a multi-generational family business, and the opportunity to partake in various ...
What makes sports franchise successful?
The success of a franchise depends on the players and their performance. The fame and recognition a franchise earns is only because of its players. It is important to take care of the needs of the players who, leave behind their families for months and dedicate all their time and energy for the sport.
How do sport owners make money?
Sponsorships & Licensing Deals Besides large media contracts and more tangible items like tickets and concessions, professional sports leagues and teams also make a large sum of money by selling companies the rights to sell items that represent their league or team.
Do sports complexes make money?
Indoor sports facilities can be profitable ventures if they're managed correctly. There are several factors that are essential to running indoor sports facilities successfully. As a sports facility operations service, Sports Facilities Management has years of experience discovering and utilizing best practices.
Why do rich people buy sports teams?
Reasons for buying are generally these: It's a very big business and can make an owner very wealthy. Owning a team sometimes is done because an owner wants recognition, may be on an ego trip. They are great for advertising and some owners own other businesses that they use them both to help each other.
Which franchise has the most losses?
The Philadelphia Phillies have the most losses, with 11,112, while the Arizona Diamondbacks have the fewest, with 1,946. With 21,769 games played, the Chicago Cubs have played more games than any other MLB club. Conversely, Tampa Bay has played the fewest (3,784).
What is the most losing NFL franchise?
The Arizona CardinalsThe Arizona Cardinals hold the record for the most losses in the history of the National Football League. Since joining the NFL in 1920 (the league's inaugural season), the Cardinals have suffered more defeats than any other team (777 in 102 seasons).
What is the cheapest sport ever?
Walking has to be the most affordable sport, but jogging, basketball, skating, volleyball and swimming are also fairly inexpensive. Of course, you have to consider that fees associated with sports vary according to region. Plus, renting or buying equipment second hand can make a big difference in the cost of a sport.
How do sports franchises work?
Essentially, a franchise in sport involves setting up your own business but taking on board the branding, name and ethos of an already established company involved in the sports sector.
How does an NFL franchise make money?
The NFL divides its sources of income into local and national categories. The league negotiates national merchandise, licensing, and TV contracts, which make up most of the national revenue. The 32 teams receive equal shares of this money, regardless of individual team performance.
How profitable are NFL franchises?
NFL regular season ticketing revenue made up about 1.25 percent of the league's total revenue in 2020, while NFL league and team sponsorship generated 1.47 billion U.S. dollars that same year....National Football League revenue by team in 2021 (in million U.S. dollars)CharacteristicRevenue in million U.S. dollars--12 more rows•Sep 8, 2022
Do NBA franchises make money?
But that's not always the case. A simple answer would be that NBA teams and owners make money from a combination of ticket sales, suite sales, naming rights, and local TV and radio deals. Additionally, they also have leaguewide media, merchandising, and sponsorship revenues.
How much did the MLB make in 2016?
The team made a profit of $204 million in 2016 alone from this deal. However, the MLB is not a match to the NFL when it comes to the number of most valuable sports franchises in the world. Just 6 out of 50 most valuable teams come from this sports league.
What are the factors that influence the profits of La Liga?
Two big factors that influence La Liga’s profits include commercial revenues and revenues from transfers. However, there are also ticket sales and broadcasting revenues, which are key for every league.
How many teams are there in the Ligue 1?
It is also one of the world’s most valuable sports leagues. The league consists of 20 teams, which, granted, are not as popular as those coming from La Liga or the Premier League, for example. However, there are still some quite popular clubs in Ligue 1, such as Paris Saint-Germain, AS Monaco FC, Lille OSC, and others.
Why do people love sports?
There are many reasons why people love sports — they are fun, exciting, healthy, unpredictable, and they make us feel alive. But for sports executives, the most profitable sports leagues are primarily a profitable business.
How much money does the Indian Premier League make?
Indian Premier League (Cricket) — $6.3 Billion. Cricket is one of the least popular sports on our list of the most profitable sports leagues. But the Indian Premier League is the fastest-growing sports league in the world.
What are the first clubs to come to mind when thinking of La Liga?
When we think of La Liga, the first clubs that come to our mind are FC Barcelona, Real Madrid, Atletico Madrid, Sevilla FC, Valencia CF, and many others.
What is the biggest AFL stadium in Australia?
Melbourne is the capital of the AFL, with 9 out of 18 teams residing there. The biggest AFL stadium in Australia is the Melbourne Cricket Ground with a 100,000 capacity, which is often used to the fullest. That makes the AFL the most attended sports league in Australia. 8.
What is the most common valuation method for a sports team?
As noted in this article, the most commonly applied valuation method is the precedent transaction method , and consideration must be given to the facts and circumstances of each precedent transaction in selecting a multiple for the subject team. While the article focused on the most common valuation method for a professional sports team, depending on the league’s salary cap/revenue sharing mandates and team’s local market factors, positive cash flow may be consistently achieved and an income approach could also be applied in a valuation analysis. However, the value of professional sports franchises will continue to depend on the willingness and availability of individuals wealthy enough to pay a significant multiple of revenue to own these “trophy” assets.
What is revenue multiple?
As profitability can be minimal or nonexistent for professional sports teams, a revenue multiple is typically applied in the valuation analysis. Consideration is given to the facts and circumstances of each transaction and will have an impact on the selected multiple for the subject team.
What NBA franchises were sold in 2014?
The four sales of NBA franchises from 2014 through 2017 were: the Houston Rockets, Atlanta Hawks, Los Angeles Clippers, and Milwaukee Bucks.
What is a professional sports franchise?
Professional sports franchises comprise a distinct market where teams typically sell at prices in excess of what would be expected based on traditional valuation methodologies. Traditional fundamental variables (e.g., profitability or cash flows) do not tend to impact the valuation of professional sports teams as they would other businesses.
How much did the Trail Blazers make in 2016?
The Trail Blazers' 2016-17 season revenue of $223 million. However, an additional $12 million was anticipated for the local television extension known to start for the 2017-18 season. Therefore, the adjusted Trail Blazers' revenue to use in the valuation is $235 million. Step 3: Application Revenue Multiples.
How is the value of a sports franchise determined?
The valuation of a professional sports franchise is primarily driven by supply and demand forces. There is a limited supply of teams and a growing number of billionaires (potential buyers) that continue to bid acquisition prices higher as teams become available for sale.
Why do you need to value a sports team?
Additionally, sports teams tend to be owned by individuals with gift and estate tax planning needs that require valuation work. Some additional reasons might include: business reorganizations, shareholder disputes, ...
How many games did the Bulls lose in 2017?
Once an NBA dynasty, the Bulls lost two out of every three games in 2017 and did even worse last season, when they lost 60 games. Even still, the storied franchise led the league in attendance for nine seasons in a row. Only this year did the Bulls slide out of the top spot in ticket sales, falling below the Philadelphia 76ers. The franchise is valued at $2.9 billion.
How much is Bayern Munich worth?
It’s not hard to understand why Bayern Munich is valued at $3.02 billion and is one of the 10 most profitable franchises in the sporting world when you look at the team’s performance. The German Bundesliga league franchise boasts 29 domestic championships and has qualified for the Championship League 22 seasons in a row.
How much did Bisciotti pay for the Ravens?
Stephen Bisciotti paid just $600 million when he bought the Ravens in 2004. His investment is now valued at $2.59 billion. The team keeps fans coming back, in part, with cheap concessions, including $5 beers and $3 hot dogs, along with its performance on the field. One of the most consistent teams in football, Baltimore has qualified for the playoffs in seven of the past 11 seasons and won the Super Bowl in 2013.
How much is Manchester United worth?
Soccer’s most storied team also makes good moves off the field. The franchise, valued at $3.81 billion, has among its sponsorships a contract with Kohler that pays Manchester United $13 million a year.
How much is the Falcons stadium worth?
Fans spent more at the new stadium despite concessions prices being half of what they were the prior year. The Falcons franchise is valued at $2.6 billion.
How much is the Chicago Bears worth?
Valued at $2.9 billion, the Chicago Bears are one of the NFL’s most storied teams — but the Mike Ditka glory days were a long time ago. The Bears went 14-34 during the three years ending in 2017 that represented the John Fox era, but the team’s stadium helps to keep it rich. When the Oakland Raiders move to new digs in Las Vegas in 2020, Chicago’s Soldier Field will be the lowest-capacity stadium in the league, which keeps ticket prices high.
How much is Real Madrid worth?
In terms of team value, Real Madrid is the biggest soccer club in the world — the franchise is valued at $4.24 billion. The team holds bragging rights for 33 domestic championships, but its moves off the field sweeten the pot, too. Real Madrid’s contract with Adidas pays it $113 million annually plus 20% of Real Madrid merchandise sales through 2028.
What is team value?
Team values (equity plus net debt) are based on Forbes ’ published valuations for each sport during the past six months, which were calculated using revenue and operating income adjusted for revenue sharing, and include the economics of each team’s arena deal but not the value of the real estate itself.
How much is Jerry Jones worth?
Take Cowboys owner Jerry Jones ( net worth: $8.8 billion ).
How much did the Yankees make in 2019?
The team delivered operating profits of $425 million on revenue of $980 million in the 2019 season, record results for the franchise. Those numbers look even better for the Steinbrenner family, which bought MLB’s New York Yankees for $8.8 million in 1973 and have since added Yankee Global Enterprises ...
Which soccer teams are not valued in 2020?
The biggest one-year change in value among the U.S. franchises— Forbes did not value soccer clubs in 2020—was shared by the New York Jets, the Philadelphia Eagles and the Seattle Seahawks, all of who rose 11% from last year’s ranking.
Where does the information used to compile our valuations come from?
The information used to compile our valuations primarily came from the teams, sports bankers, media consultants and public documents, like arena lease agreements and bond documents.
Who owns the Dallas Cowboys?
Billionaire Dallas Cowboys owner Jerry Jones in the end zone at AT&T Stadium.
Is the Super Bowl a blowout?
A Super Bowl hailed as “one for the ages” turned into a blowout, with TV viewership the lowest since 2007. Two months later, the NCAA’s March Madness tournament returned but without its four most powerful teams —and four of its biggest draws—its own ratings celebrated for avoiding the steep declines of other events.
National Football League (NFL) — $13 Billion
Major League Baseball (MLB) — $10 Billion
- (Source: LWO Sports) Major League Baseball is another sports league that is not popular globally. Its fan base is mostly centered in the United States. However, that does not stop the MLB from taking the second position on our list of the most profitable sports leagues in the world. The MLB earns around $10 billion annually, which means that each of the participating teams brings in a …
National Basketball Association (NBA) — $7.4 Billion
- (Source: NEX Change Now) Contrary to the two highest-grossing sportsabove, the National Basketball Association enjoys worldwide popularity and fame. Basketball is one of the most popular sports in the worldin general, so it’s natural that the NBA is followed in North America and other parts of the world. The NBA, just like the other leagues on this list, has valuable deals sign…
Indian Premier League (Cricket) — $6.3 Billion
- (Source: Medium INC) Cricket is one of the least popular sports on our list of the most profitable sports leagues. But the Indian Premier League is the fastest-growing sports league in the world. That makes a lot of sense considering that India is home to 1.339 billion people and cricket is their favorite sport. To put things into perspective, the top-10 most-watched TV broadcasts ever …
English Premier League — $5.3 Billion
- (Source: Medium) The Premier League is the most-watched sports leaguein the world, at least when it comes to football. It is restricted only to teams only from England and Wales, but it is followed by people around the world. The Premier League is one of the most valuable leagues because it is home to some of the most expensive football clubsin the world, such as Manchest…
National Hockey League (NHL) — $4.43 Billion
- (Source: Ultimate Corporate League) The National Hockey League is on the sixth position of our list of sports leagues ranked by revenueeven though ice hockey is not in the top 10 most popular sports in the world. How is this possible, you might ask? The reason is that ice hockey is one of the most popular sports in North America and the northern, richest countries in Europe. Therefor…
Australian Rules Football — $2.5 Billion
- (Source: Global Sport Matters) Australian Rules Football is far less popular than its American rival, the National Football League. However, AFL attracts some of the biggest crowds at its events, averaging around 36,700 spectators per match. In 2018, the AFL ended the year with a revenue of $2.5 billion. The biggest teams, such as Collingwood Football Club and Hawthorne Football Clu…
La Liga (Spanish Football League) — $2.2 Billion
- (Source: NEX Change Now) La Liga is the biggest Spanish football league and the 8th on our list of the most profitable sports leagues. La Liga does not enjoy the popularity of the English Premier League, but it is still home to some of the most expensive and most popular sports franchises in the world. When we think of La Liga, the first clubs that come to our mind are FC Barcelona, Rea…
Serie A (Italian Football League) — $1.9 Billion
- (Source: Money INC) The Italian Serie A football league used to be much more popular and profitable than today, home to some of the most valuable football teams. However, it is still one of the most favorite sports leagues in the world, especially when it comes to true football fans. Serie A is doing much better now than in previous years. This might be thanks to some of the most po…
Ligue 1 (France/Monaco Football League) — $1.5 Billion
- (Source: Ultimate Corporate League) After checking out Italy, it’s time to take a trip to France and talk about Ligue 1. It is also one of the world’s most valuable sports leagues. The league consists of 20 teams, which, granted, are not as popular as those coming from La Liga or the Premier League, for example. However, there are still some quite popular clubs in Ligue 1, such as Paris …
Introduction
Economics of Professional Sports Franchises
- While the goal of profit maximization is consistent with any business, the sources of revenue for professional sports teams and operating expenses are unique versus other industries. Certain financial information is reported in the press, mainly Forbes’ annual team valuations; however, the accuracy of this information is unknown and is sometimes di...
Unique valuation Considerations
- The valuation of professional sports franchises requires consideration of several unique factors that do not exist in most traditional business valuations. Professional sports franchises comprise a distinct market where teams typically sell at prices in excess of what would be expected based on traditional valuation methodologies. A significant reason for this is the limited number of tea…
Professional Sports Franchise valuation Methods
- Generally accepted valuation approaches typically include: 1. The income approach, via the discounted cash flow method, where the value is estimated based on the cash flows a business can expect to generate over its remaining useful life. 2. The market approach, via the comparable companies method and the precedent transaction method, where the value is estimated based …
Hypothetical valuation of The Portland Trail Blazers
- As an example, I will estimate the hypothetical value of the Portland Trail Blazers through the application of the precedent transaction method. To estimate the value of the Trail Blazers, this section will first review the NBA economic environment, recent NBA team sales, and background on the Trail Blazers. Note that this hypothetical valuation example utilizes only financial informat…
Parting Thoughts
- As noted in this article, the most commonly applied valuation method is the precedent transaction method, and consideration must be given to the facts and circumstances of each precedent transaction in selecting a multiple for the subject team. While the article focused on the most common valuation method for a professional sports team, depending on the league’s salary cap…