NFL teams rarely become available on the open market these days. The league has been a cash cow the past decade or so, doubling their revenue from approximately $8 billion in 2010 to over $16 billion in 2019.
Owning an NFL team has been like owning a bank. It has become almost impossible to buy — or even buy into — an NFL franchise in this day and age. Since 2010, only five of the league’s 32 teams have changed hands: Carolina, Buffalo, Cleveland, Jacksonville and the Rams.
But 2020 has played a cruel turn on the global economy. COVID-19 has decimated many businesses and sent the economy into the worst nosedive in 90 years. Professional team sports has not escaped the debating blow of COVID-19. The NFL’s streak of record revenues will come screeching to a halt this year as games will undoubtedly be played in front of either no fans or much smaller crowds.
That could lead to some owners to cash out while they can. Long-time sports business reporter Darren Rovell believes that “10 to 20 teams” could be sold within the next few years with the New York Giants being the most expensive property on the block.
Q: Which teams will be be sold due to Covid-19?@DarrenRovell told us that “the average franchise value in the last 80 days has dropped maybe 20% or more,” and that “10-20 teams” could be sold by 2022, naming the Giants, Raiders and Titans as possibilities. pic.twitter.com/Gg71yvuQ3W
— Daniel Wallach (@WALLACHLEGAL) July 9, 2020
Forbes valued the Giants at $3.9 billion last year, third in the NFL behind the Dallas Cowboys ($5.5 billion) and the New England Patriots ($4.1 billion). But that was when things were going great. What a difference a year makes.
The Giants, whose value rose by 15 percent in 2019 is likely down at least 20 percent at the moment according to Rovell, and could continue to dive. Ticket rebates along with other lost game day revenue will hammer down their value even further. That is, if the NFL even gets through the season.
The Mara and Tisch families may feel they have reached the ceiling on revenues and could consider taking their long-gained profits and finally walk away. It could be years before the economy bounces back from this crisis. Anyone wanna buy a football team?
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