Tag: Forbes

Cowboys become first sports franchise ever to reach $10 billion valuation

From @ToddBrock24f7: The numbers from Forbes also show that the Cowboys have the highest operating income, and- by far- the most valuable brand in the NFL.

The Cowboys, though not not yet mathematically eliminated from playoff contention this season, will almost certainly extend their championship drought to a 29th year.

Nevertheless, they are continuing their dynasty as the most valuable sports franchise on the planet… by far.

Forbes has released its annual list of the NFL’s most valuable teams, and the Cowboys have come out on top for the ninth straight year, with a hefty margin separating them from everyone else.

The team that Jerry Jones bought in 1989 for a then-record $140 million now has a valuation of $10.1 billion. That figure is up 12% from last year and makes the club the first franchise- in any sport- to hit a staggering eleven digits.

Dallas was also the first team to reach the $5 billion threshold (in 2018) and the $6 billion mark, in 2021. To further illustrate how exponentially the NFL’s coffers have exploded in recent years, consider that even the Cincinnati Bengals, the league’s least valuable franchise for 2024, have now reached $4 billion, a number that was an unthinkable record when the Cowboys hit it… only nine years ago.

The Cowboys’ current $10.1 billion valuation is $2.5 billion ahead of the second-ranked team, the Los Angeles Rams, and more than double that of 11 other NFL teams.

Worth noting, though: that latter group of clubs includes Baltimore, Buffalo, and Detroit, teams that all have a much better chance of winning a ring before the 5-8 Cowboys… as well as the Kansas City Chiefs, who seek to win an unprecedented third straight Super Bowl this season.

One has to wonder if Jones would trade a sliver of his valuation for some of the success those teams are enjoying this year. (The most jaded fans assume he would not.)

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A further breakdown of the Cowboys’ $10.1 billion valuation shows that nearly $800 million in 2023 came from local revenue, meaning ticket sales, sponsorships, merchandise, and other streams specific to the Cowboys. No other NFL team even topped $400 million.

Almost four billion dollars of the $10.1 billion total is the Cowboys’ portion attributable to revenue shared among the league’s 32 teams. The size of Dallas’s market counts for another $2.27 billion. AT&T Stadium as a venue counts for $1.99 billion of value, and the Dallas Cowboys brand itself contributes $1.91 billion.

That last number is especially impressive. No other NFL team comes even close to Dallas’s $1.91 billion; the New England Patriots have the league’s second-most valuable “brand,” at $694 million, but that’s still more than 2.5 times less than the Cowboys’.

The Cowboys’ operating income is also tops in the league, pegged at $564 million; the Rams spend essentially half that, at $286 million.

But they’re still turning an absurd profit. When Forbes first ranked the NFL’s teams by valuation in 1998, Dallas led the pack at $413 million. This year’s $10.1 billion represents a mind-boggling 2,346% increase. Try getting that kind of ROI on absolutely anything else. It’s no wonder private equity firms are scrambling to own even the tiniest crumbs of ownership now being offered by some clubs.

But all of those astronomical dollar figures pale in comparison to the number that’s supposed to mean the most in professional football: five. That’s how many Super Bowl trophies stand in the lobby of the Cowboys’ team headquarters. That total hasn’t changed since 1996.

Until it does, no matter how many digits and commas there are in this year’s bottom line, the word valuation has very little value whatsoever to Cowboys fans, who continue to wait for their team to make the cover of something other than a money magazine.

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Where do the Raiders land among most valuable NFL franchises?

Forbes releases their NFL franchise valuations for 2024 and Raiders are again in a pretty good spot.

It’s that time of year. When Forbes ranks the value of NFL franchises from most valuable to least valuable. And the Raiders landed in a pretty favorable position.

Here is the top ten:

1. Dallas Cowboys – $10.1 Billion
2. Los Angeles Rams – $7.6 Billion
3. New England Patriots – $7.4 Billion
4. New York Giants – $7.3 Billion
5. New York Jets – $6.9 Billion
6. San Franciso 49ers – $6.8 Billion
7. Las Vegas Raiders – $6.7 Billion
8. Philadelphia Eagles – $6.6 Billion
9. Chicago Bears – $6.4 Billion
10. Washington Commanders $6.3 Billion

Bottom five

28. New Orleans Saints – $4.4 Billion
29. Arizona Cardinals – $4.3 Billion
30. Buffalo Bills – $4.2 Billion
31. Detroit Lions – $4.15 Billion
32. Cincinnati Bengals – $4.1 Billion

This is how Forbes explains their methodology on figuring up franchise values:

Team values are enterprise values (equity plus net debt) and include the economics of the team’s stadium (including non-NFL revenue that accrues to the team’s owner) but not the value of the stadium real estate itself.

Coming in at seventh in the rankings is not surprising for the Raiders these days. They have a stadium that is less than five years old along with one of them largest overall fanbases in sports.

Here is where the Raiders have landed in the rankings the past five seasons:

2024 — 7th $6.7 Billion
2023 — 6th $6.2 Billion
2022 — 9th $5.1 Billion
2021 — 16th $3.4 Billion
2020 — 12th $3.1 Billion

Seahawks listed as 15th most valuable NFL team, according to Forbes

Seahawks listed as 15th most valuable NFL team, according to Forbes

One of the most lucrative business models in the United States is owning a professional sports team. It is an asset that is constantly appreciating to an almost preposterous degree. It’s little secret why some of the wealthiest and most powerful people in the country (as well as former athletes, such as Tom Brady or Ken Griffey Jr.) are constantly trying to find their own slice of the ownership pie.

Forbes Magazine recently published their list of most valuable NFL franchises headed into the 2024 season. Of course, to the surprise of absolutely no one, the Dallas Cowboys topped the list. Valued at approximately $10 billion, the Cowboys prove (in this case) everything truly is bigger in Texas. Right behind them are the Los Angeles Rams, valued at $7.6 billion, and a few spots down at No. 6 are the San Francisco 49ers and their $6.8 billion in value.

When reading the list, you’ll have to scroll all the way down to the No. 15 spot to find the Seattle Seahawks. Valued at $5.45 billion, the Seahawks do remain in the upper half of organizations in this league, and well ahead of the only other team in the NFC West, the No. 29 Arizona Cardinals ($4.3 billion).

What should interest the 12th Man the most is an idea of what the team might sell for. When former owner Paul Allen died, the team was left to his Trust, which is operated by his sister Jody. Per his will, all his assets are to be sold… including the Seattle Seahawks and Portland Trail Blazers of the NBA. This was established in 2018.

While Jody has certainly taken her time getting around to executing these aspects of Paul’s will, eventually, she is going to have to sell. Given the success of the franchise, the premiere location in the US, the lack of income tax in the state, and the loyal fans that always show up, it’s not hard to imagine the Seahawks coming with a hefty price tag.

$5.45 billion might just be the starting price.

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Forbes estimates Broncos are worth $5.5B, 14th-most in the NFL

Forbes estimates the Broncos are worth $5.5 billion, making them the 14th-most valuable franchise in the NFL.

The Denver Broncos are worth an estimated $5.5 billion going into the 2024 NFL season, according to a projection from Forbes. That marks an 8% increase from when the team was valued at $5.1 billion last year.

The Broncos are the 14th most valuable franchise in the NFL with an operating income of $114 million, according to Forbes.

A group led by Rob Walton purchased the franchise for $4.65 billion in 2022 and they instantly became the richest ownership group in the NFL. After Walton transferred part of his ownership stake to his grandchildren last year, Greg Penner (Walton’s son-in-law) became Denver’s new controlling owner with a majority share.

Elsewhere in the AFC West, the Las Vegas Raiders ($6.7 billion) are ranked seventh in the NFL. The Los Angeles Chargers ($5.1 billion) are 20th and the Kansas City Chiefs ($4.85 billion) are 24th.

The Dallas Cowboys ($10.1 billion) are the most valuable team in the league and the Cincinnati Bengals ($4.1 billion) are the least valuable. You can view the full list of all 32 teams on Forbes.com.

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Tilman Fertitta ranked No. 18 among world’s richest sports owners

Rockets owner Tilman Fertitta ($9.4 billion) comes in at No. 18 on Forbes’ 2024 ranking of the 20 richest sports owners in the world.

In a Forbes ranking of the 20 richest sports owners in the world, Rockets owner Tilman Fertitta is the only Houstonian on the list.

According to Forbes, Fertitta’s net worth increased to $9.4 billion, which represents 16% year-over-year growth. In all, that earned him the No. 18 spot on the list of richest sports owners in the world.

Among the top 20 in 2024, other NBA owners include:

  • No. 1: Steve Balmer, Los Angeles Clippers, $121 billion (up 50% from 2023)
  • No. 3: Mariam Adelson and family, Dallas Mavericks, $32 billion (down 9% from 2023)
  • No. 5: Daniel Gilbert, Cleveland Cavaliers, $26.2 billion (up 46% from 2023)
  • No. 8: Stanley Kroenke, Denver Nuggets, $16.2 billion (up 26% from 2023)
  • No. 15: Antony Ressler, Atlanta Hawks, $10.5 billion (up 78% from 2023)
  • No. 17: Mat Ishbia, Phoenix Suns, $9.9 billion (up 83% from 2023)
  • No. 19: Tom Gores, Detroit Pistons, $9.1 billion (up 49% from 2023)
  • No. 20: Joe Tsai, Brooklyn Nets, $8.5 billion (up 12% from 2023)

Beyond sports, Fertitta has a major revenue stream via his Landry’s, Inc. empire of dining, entertainment, and hospitality brands.

In recent weeks, Fertitta has said he is exploring bringing a National Hockey League (NHL) and/or WNBA franchise to Houston — though nothing appears to be close to finished, at this time.

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Jon Rahm is the world’s highest-paid athlete in 2023 after move to LIV Golf

Rahm is among the world’s richest athletes.

Saudi Arabia’s Public Investment Fund hasn’t been afraid to dish out money to lure the top PGA Tour stars to come and play for LIV Golf.

Jon Rahm is no exception. In fact, he’s the new bar.

Although an exact figure has yet to be determined, estimates on how much Rahm was paid to leave the PGA Tour were in the $400 million to $600 million range. The Telegraph reported the most precise number at $566 million, with $302 million being paid upfront.

Those figures would move Rahm, the defending Masters champion and 11-time PGA Tour winner, into an upper echelon of athletes earning more than $500 million in their career. He would be the youngest at 29.

Moreover, if the estimates of Rahm’s signing bonus are true, he would be the highest-paid athlete in the world in 2023, according to Forbes.

Soccer players Cristiano Ronaldo, Lionel Messi and Kylian MBappe are at the top of the list with combined earnings on and off the field of $136 million, $130 million and $120 million, respectively. Forbes lists the top-50 athletes, with 15 of those being from the NBA.

Even if that $302 million number was cut in half, Rahm would still be at the top.

The highest-paid golfers this year before Rahm’s signing were a pair of American LIV golfers, Dustin Johnson ($107 million) and Phil Mickelson ($106 million).

Rahm had previously said $400 million wouldn’t change his way of life when previously asked about moving to LIV Golf. However, he admitted money is one of the reasons he went.

“I mean, I’m not going to sit here and lie to you,” Rahm said. “It’s definitely one of the reasons.

“Every decision I feel like we make in life there will be somebody who agrees and likes it and somebody who doesn’t, right. I made this decision because I believe it’s the best for me and my family and everybody I’ve been able to talk to has been really supportive of me,” Rahm continued. “So I’m very comfortable with my decision. I’m no stranger to hearing some negative things on social media or in media. It’s part of what it is, we’re public figures but you just learn to deal with it right? This certainly won’t define who I am or change who I am.”

However, the number of zeros at the end of his bank statement just went up astronomically.

Forbes study: Rockets valued at $4.4 billion, No. 8 among NBA teams

The Rockets are now valued at $4.4 billion and No. 8 among all NBA teams, according to a new Forbes study. That’s double what owner Tilman Fertitta paid in 2017.

According to Forbes, the average NBA team is worth $3.85 billion this season — up 35% from 2022 and higher by 75% from 2019.

For the Houston Rockets, owned by Tilman Fertitta, their $4.4-billion valuation in 2023 is up by 38% from a year ago and currently ranks No. 8 among the league’s 30 franchises. That figure is exactly double the $2.2-billion price that Fertitta paid upon buying the team from its former owner, Les Alexander, in October 2017.

Here’s how Forbes dissects the increasing values:

The surge in values was driven by the two sales of controlling stakes in NBA teams during the past 12 months—the Phoenix Suns sold for $4 billion to Matt and Justin Ishbia in February, and in August, Michael Jordan sold the Charlotte Hornets for $3 billion to Rick Schnall and Gabe Plotkin—as well as 25% of the Milwaukee Bucks at a $3.2 billion valuation by Jimmy and Dee Haslam in April.

The escalation in sale price multiples is due to the expectations over a major increase in media rights.

Going forward, Forbes believes future NBA expansion in desirable markets such as Las Vegas and Seattle could further bolster these valuations. The complete 2023 list, which is yet again headlined by the Golden State Warriors ($7.7 billion) at No. 1, is available here.

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Where are the Commanders valued in Forbes annual team rankings?

How did the sale impact Washington’s team value? What about others?

The Washington Commanders have a new owner. A group led by Josh Harris purchased the Commanders in July for a record $6.05 billion. This week, Forbes released its annual NFL team values.

As usual, the Dallas Cowboys came in at No. 1. But where did the Commanders rank after a record-breaking sale price?

Washington came in at No. 8, with a value of $6.05 billion. The Commanders fall two spots, with the Las Vegas Raiders and New York Jets passing them in 2023.

Considering Washington’s issues under Daniel Snyder, a terrible home stadium, lagging ticket sales, etc. and a fractured fan base, continuing to be ranked inside the top 10 over the years was impressive. It’s one of the reasons why the Commanders were considered a sleeping giant.

Harris and his partners knew they were entering the perfect situation. Anyone replacing Snyder would be treated as a hero. That’s been true, and Harris has helped himself by interacting with fans on multiple occasions, including buying them beer.

Business has already picked up since Harris took over in late July. Washington has announced three new corporate sponsorships that include Verizon and Anheuser-Busch. Additionally, season ticket and suite sales are on the rise.

Harris and team president Jason Wright have said the Week 1 home opener against the Arizona Cardinals is trending toward a sellout, as the Commanders just released some standing-room-only tickets this week.

The Cowboys’ value increased from $8 billion in 2022 to $9 billion in 2023. A big reason for the increase was the Commanders’ sale.

From Forbes:

The average NFL team is now worth a record $5.1 billion, 14% more than last year, powered by more television money and the $6.05 billion sale of the Washington Commanders—at 11 times revenue—to a group led by billionaire Josh Harris in July.

Imagine Washington’s eventual value when the franchise finally lands a new stadium.

Forbes estimates Broncos are worth $5.1B, 13th-most in the NFL

One year after the Broncos were sold for $4.65 billion, Forbes estimates that the team is now worth $5.1 billion.

Before the 2023 NFL season kicks off next week, Forbes has released their annual (estimated) valuations of all 32 teams.

The Denver Broncos are worth an estimated $5.1 billion, which marks a 10% increase from what Forbes estimated in 2022.

The Broncos are listed as the 13th-most valuable team in the league, second in the AFC West (the Las Vegas Raiders are worth $6.2 billion).

A Rob Walton-led new ownership group purchased the franchise for $4.65 billion last summer. Walton is the majority owner but his son-in-law, Greg Penner, is a co-owner and the team’s CEO who handles day-to-day ownership duties alongside his wife, co-owner Carrie Walton Penner.

The Walton-Penner family also brought in three minority owners after buying the team last year: Mellody Hobson, Mellody Hobson and Lewis Hamilton.

Denver’s new owners invested more than $100 million in stadium renovations this offseason, and a brand new stadium might be in store sometime down the road.

The Dallas Cowboys ($9 billion) are the most valuable NFL team and the Cincinnati Bengals ($3.5 billion) are the least valuable. To view the complete list of NFL team valuations, visit Forbes.com.

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Forbes raises Saints’ valuation by half a billion dollars going into 2023

In the wake of several franchise sales, Forbes estimates that the New Orleans Saints’ valuation has risen by half a billion dollars going into 2023:

Several NFL franchises have sold recently, with the Denver Broncos selling for $4.65 billion and the Washington Commanders selling for a whopping $6 billion. Those exchanges have helped Forbes’ Mike Ozanian and Justin Teitelbaum estimate franchise values for all 32 teams in the league on the eve of the 2023 NFL season, including the New Orleans Saints.

And it’s a big number: Forbes estimates that the Saints are now valued by as much as $4.08 billion. That’s a climb over their $3.575 billion valuation by Forbes this time last year, but it reflects something the league is acutely aware of: business is booming.

Forbes says the average NFL team is worth $5.1 billion, an increase over the $4.43 billion valuation they suggested last year. With new broadcast rights deals padding out the league’s pockets, that number is expected to continue to climb. The Saints certainly helped raise their valuation by inking a long-term naming rights deal with Caesars Entertainment for the Superdome, which is entering the final stage of widespread renovations in advance of Super Bowl LIX in 2025 (preceded by a record-breaking three-day Taylor Swift concert tour in 2024).

What does it mean for the Saints and New Orleans, though? Team owner Gayle Benson, 74, has made it clear she has no plans to sell the team. She also has no heirs. In 2021 multiple local outlets reported her succession plan in the event of her death: any buyer would be contractually obligated to keep the team in Louisiana, with proceeds from a sale to go to local charities in the region. Team president Dennis Lauscha is to serve as the executor of her estate, with senior executives like Mickey Loomis and Greg Bensel also involved, if need be.

Hopefully that isn’t something we’ll need to worry about for a long time. Benson has been quick to invest in the Saints’ team facilities and her willingness to regularly cut large checks for signing bonuses has allowed Loomis and his chief assistant Khai Harley to restructure contracts as often as they have (something other small-market teams haven’t enjoyed).

Still, Forbes’ valuation ranks the Saints all the way down at No. 27 among their peers. At the end of the day they’re not based in one of America’s largest or most affluent metro areas. New Orleans punches above its weight class, and that isn’t something fans should take for granted.

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