While the major stock market indexes just posted their worst years since 2008, major sports leagues such as the NBA and NFL are reporting their highest franchise revenue and sales years in 2022.
According to one industry expert, those sales aren’t likely to slow down anytime soon.
“I think if some of their teams [are sold] trade, we will see another milestone year,” Bill Mulvihill, head of US Bank Sports and Entertainment Group, told Yahoo Finance. “I have no reason to believe we’re going to see a pullback in valuations.”
The record $4.65 billion sale of the Denver Broncos by Walmart (WMT) heir Rob Walton pushed the valuation of the sports franchise to a new high in 2022.
Greg Penner, Condoleezza Rice, Rob Walton, Mellody Hobson, and Carrie Walton-Penner are photographed after the NFL approved the purchase of the Denver Broncos sports franchise. (Photo by Hyoung Chang/The Denver Post)
This year, there are more high-profile sports teams for sale, including MLB’s Los Angeles Angels of Anaheim and Washington Nationals, the Premier League’s Manchester United, and the NFL’s Washington Commanders.
According to Forbes, the Commander can sell more than $7 billion, which will dwarf the previous record set by Walton’s purchase of the Broncos.
Mulvihill, like other industry experts, attributes the rise in sports valuation to the industry’s ties to Big Tech.
By 2022, Apple ( AAPL ) is broadcasting MLB games and has committed about $2.5 billion to Major League Soccer (MLS) over the next decade. The NFL entered into a $1 billion annual contract with Amazon (AMZN) and gave exclusive streaming rights for its NFL Sunday Ticket to YouTube (GOOG) for an estimated $2.5 billion.
“We know sports and entertainment are valuable around the eyeballs of life,” said the President of the San Francisco 49ers and Elevate Sports Ventures Chairman and CEO Al Guido Yahoo Finance. “We don’t know how valuable it is when you can cut the cord. It’s the only thing that comes close from an eyeball standpoint.”
Amazon Prime Video Thursday Night Football analyst Andrew Whitworth speaks before the game between the Dallas Cowboys and Tennessee Titans on December 29, 2022. (Photo by Cooper Neill/Getty Images)
Media is a major driver of sports revenue, accounting for more than 50% of most teams, according to Mulvihill. In a league like the NFL, where national broadcast revenue is evenly distributed, it’s easy to see revenue growth and thus potential return on investment.
Last year, the Green Bay Packers reported shared media revenue of $347.3 million. With an estimated cost of $501 million, the Packers were 70% of the way to profitability before the regular season even started. Billion-dollar deals with companies like Amazon and Google ( GOOGL ) pushed the team’s valuation even higher.
“It’s not like you’re buying crypto or internet stocks where there’s nothing there,” Michael Rapkoch, founder and CEO of Sports Value Consulting, told Yahoo Finance. “Actually there is one thing. Incomes are rising. Attendance is still strong.”
Josh is a reporter and producer for Yahoo Finance.
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NFL teams continue to become more valuable, rising in 2022 to an average of $4.47 billion, an increase of 28% year-over-year. At the top of the rankings, the Dallas Cowboys sit at an estimated valuation of $8 billion, making them the most valuable sports team in the world.
What is the richest sporting event?
| feature | Prize money pool in million US dollars |
|---|---|
| UEFA Champions League | 1,300 |
| Formula 1 | 797.5 |
| FIFA World Cup | 576 |
| European Championship | 245 |
What is the richest tournament in the world? FIFA World Cup – Soccer- $20 million This is one of the most expensive soccer competitions, with the 2022 FIFA World Cup expected to cost $220 billion.
Which is the largest sporting event in the world?
Olympic Games For roughly two weeks every two years (summer and winter Games alternate), the world’s greatest athletes compete for worldwide respect.
Which sport has most prize money?
Golf Major It’s consistent sizable payout with prize money for all of our sport’s major tournaments. In fact, the US Open, Open Championship and PGA Championship all pay out $1. To see also : 101 Moves, Names and Stories Shaping the Men’s College Hoops Offseason.8 million for their winners.
What NFL team has the loudest fans?
- Finally, the loudest of all NFL stadiums to date is the home of the Kansas City Chiefs. …
- The stadium currently holds the Guinness World Record for the loudest outdoor stadium.
Who has the best crowd in the NFL? The Dallas Cowboys play in one of the most impressive domes in the NFL. Read also : We should embrace the opportunity in the NIL for Lycée Sport in NC. The Cowboys averaged over 87,000 fans per game this season, tops in the league.
What’s the hardest NFL stadium to play in?
GEHA Field at Arrowhead Stadium â Kansas City’s Arrowhead Stadium is the NFL’s loudest stadium and probably one of the toughest stadiums in the United States for opponents to play in. To see also : Nick Zano and Shelley Hennig Titled “Removed” Netflix Series from “Cobra Kai” Creators.
Which NFL team has the loudest stadium?
Arrowhead Stadium, Kansas City â The Arrowhead Chiefs set the record at 142.2 decibels in 2014, and it has consistently been the loudest place to play since then.
What NFL team has the quietest fans?
What NFL team has the quietest fans? An unheard of fanbase, the Panthers have one of the quietest fans in the NFL. Becoming the league’s 29th franchise in 1995, Carolina did well in attendance but did not yet have an established fanbase.
Who owns the NFL?
The NFL, after all, is not a private enterprise. It is a glamorous trade association, financially supported by its 32 members. It is an exclusive club that even the richest in the world don’t have a chance to be a part of.
Who is responsible for the NFL? Roger Stokoe Goodell (born February 19, 1959) is an American businessman who is currently the commissioner of the National Football League (NFL).
Who owns most of the NFL?
Rob Walton, owner of the richest NFL Son of the founder of Walmart Sam Walton, Rob Walton still owns a significant share of shares in the company. Forbes estimates his net worth at $58.2 billion, making him the 22nd richest person in the world today and one of the wealthiest men in the United States.
Who owns the NFL right now?
Who owns the NFL now? No one person owns the NFL. Instead, the owner is all team owners. Some teams have the same owner.
Is there a billionaire in the NFL?
Tepper, the Tepper Sports & amp; Entertainment owns the NFL’s Carolina Panthers as well as the Major League Soccer expansion team Charlotte FC, with an estimated net worth of $16.7 billion, according to Forbes.
