Despite the increasing value of the sport from media deals, and it's potential for globalization, $2bn for an average NBA franchise does seem worth at least a "…say what?".
According to Forbes' lists, I think Real Madrid is the most valuable sports franchise today, valued at $3.4bn. That leaves the largest names in American sports being around the $2-2.5bn mark. Gugguenheim partners bought the Dodgers for $2bn two years ago, and in general the television dollars seem to be supporting that valuation. However, no NBA team sold since 2011 has been bought for more than $550million. The LA Clippers earned $128M Revenue and $15M in Operating Profit for 2013, valuing them by Forbes at $575milion.
It seems a strange world where there are too many billionaires chasing too few teams. I wonder if there are equivalents in history. Perhaps Roman senators backing gladiators, or Medieval Kings with their mercenary armies. I guess it's a win for civilization that the money now gets moved into sports rather than actual warfare.
Steve Ballmer buys Los Angeles Clippers: Why the Microsoft billionaire was destined to overpay.: the joy of owning his very own team is probably worth far more than whatever the returns on that team could add to his vast personal fortune. His bid might be cursed. But he probably doesn’t care.
Steve Ballmer, The Clippers And The Basketball Bubble: Kurt Badenhausen at Forbes points out 10 reasons driving future value growth for NBA teams but still sees bids above $1bn being driven by "the nature of the explosion of concentrated wealth in America"
Football's Most Valuable Teams List - Forbes August 2013
Dallas Cowboys $2.3bn, New England Patriots $1.8bn
Baseball Team Values 2014 Led By New York Yankees At $2.5 Billion: "The television rights party in baseball continues to boost team values. Bottom line: the average MLB team is now worth $811 million, 9% more than last year. For the first time there are five teams–each with lucrative deals with regional sports networks–worth at least $1 billion....
The World's Most Valuable Soccer Teams: For the first time since Forbes began ranking the world’s most valuable soccer teams a decade ago, two Spanish teams, Real Madrid and Barcelona, have grabbed the top two spots. During the 2012-13 season Real Madrid generated revenue of $675 million–the most of any team in history in any sport–and are now worth $3.44 billion, 4% more than a year ago. Barcelona posted the second-most revenue ($627 million) and are worth $3.2 billion, up 23% from last year....Manchester United is the third most valuable team, worth $2.8 billion.
According to Forbes' lists, I think Real Madrid is the most valuable sports franchise today, valued at $3.4bn. That leaves the largest names in American sports being around the $2-2.5bn mark. Gugguenheim partners bought the Dodgers for $2bn two years ago, and in general the television dollars seem to be supporting that valuation. However, no NBA team sold since 2011 has been bought for more than $550million. The LA Clippers earned $128M Revenue and $15M in Operating Profit for 2013, valuing them by Forbes at $575milion.
It seems a strange world where there are too many billionaires chasing too few teams. I wonder if there are equivalents in history. Perhaps Roman senators backing gladiators, or Medieval Kings with their mercenary armies. I guess it's a win for civilization that the money now gets moved into sports rather than actual warfare.
Steve Ballmer buys Los Angeles Clippers: Why the Microsoft billionaire was destined to overpay.: the joy of owning his very own team is probably worth far more than whatever the returns on that team could add to his vast personal fortune. His bid might be cursed. But he probably doesn’t care.
Steve Ballmer, The Clippers And The Basketball Bubble: Kurt Badenhausen at Forbes points out 10 reasons driving future value growth for NBA teams but still sees bids above $1bn being driven by "the nature of the explosion of concentrated wealth in America"
"The
most recent NBA sales were the Milwaukee Bucks ($550 million), Kings
($534 million), Memphis Grizzlies ($377 million), New Orleans Pelicans ($340
million), Toronto Raptors (an estimated $400 million as part
of the sale of Maple Leaf Sports Entertainment) and 76ers ($287
million). All were sold since 2011. Yet, logic is not always part of the
equation when it comes to sports teams."
Football's Most Valuable Teams List - Forbes August 2013
Dallas Cowboys $2.3bn, New England Patriots $1.8bn
Baseball Team Values 2014 Led By New York Yankees At $2.5 Billion: "The television rights party in baseball continues to boost team values. Bottom line: the average MLB team is now worth $811 million, 9% more than last year. For the first time there are five teams–each with lucrative deals with regional sports networks–worth at least $1 billion....
The Dodgers place second on our list with a value
of $2 billion. The team inked an $8.35 billion, 25-year television deal with
Time Warner Cable that was signed off on by MLB earlier this year and begins
with the 2014 season. Although SportsNet LA, the new RSN created to televise
Dodger games, is not available yet in over two-thirds of
the team’s television market, TWC will pay a total of $210 million to the
Dodgers this year–$84 million as a “rights fee” and $126 million for the
“value” of the RSN, including a branding fee.
The TWC deal justifies the $2 billion paid by Guggenheim Partners
for the Dodgers two years ago, although the team will not keep as much of its
television bounty as it wanted.
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