AtlantaDan
09-05-2019, 09:45 AM
Business continues to be boomin' if you own a NFL franchise
Latest Forbes rankings estimate the Steelers to be worth $2.8 billion. That is middle of the pack (#14 out of 32) and the 8% appreciation since last year is less than the 11% average. Still not a bad return on investment for The Chief's initial purchase price of $2500 and a valuation of a little less than $1 billion in 2010.
No surprise TV revenue is what is driving the valuations.
https://specials-images.forbesimg.com/imageserve/5d6eaf0ffead28000892f16a/480x0.jpg?fit=scale
https://www.forbes.com/sites/mikeozanian/2019/09/04/the-nfls-most-valuable-teams-2019-cowboys-lead-league-at-55-billion/#3aa3f44e2f1b
https://www.forbes.com/teams/pittsburgh-steelers/?list=nfl-valuations#7494fa694cd6
And the Forbes valuations may be low. Irsay reportedly turned down an offer of $3.2 billion to buy the Colts.
https://profootballtalk.nbcsports.com/2019/09/04/colts-claim-jim-irsay-turned-down-3-2-billion-offer-for-the-team/
But the NFL actually may have a problem in continuing to drive up franchise values.
Suffering a dearth of bidders amid skyrocketing franchise values, the National Football League is mulling ownership rule changes designed to attract buyers outside of the richest of the rich....
NFL guidelines require that the principal owner put up at least 30% of the purchase price in cash. Moreover, each team has a debt limit of $350 million. That means that, at current valuations, a would-be buyer would have to shell out at least $600 million (and usually more) and then pursue limited partners for much of the rest. It’s difficult to find people willing to fork over tens or hundreds of millions of dollars for a noncontrolling stake in a franchise....
When limited partners, or LPs, want to sell their stakes, it can be hard to find takers — especially since the holdings usually come without much say in governance.
https://www.bloomberg.com/news/articles/2019-09-05/nfl-considers-changes-after-average-team-value-hits-2-9-billion
Baseball allows corporate ownership, such as the Braves now being owned by Liberty Media as part of a tax driven swap of assets with Time Warner several years ago. At these prices that may be where the NFL is headed. At least that would get rid of those Roman emperor like shots during the fawning TV coverage of Mr. (fill in the blank Owner) in his luxury box during the game.
Latest Forbes rankings estimate the Steelers to be worth $2.8 billion. That is middle of the pack (#14 out of 32) and the 8% appreciation since last year is less than the 11% average. Still not a bad return on investment for The Chief's initial purchase price of $2500 and a valuation of a little less than $1 billion in 2010.
No surprise TV revenue is what is driving the valuations.
https://specials-images.forbesimg.com/imageserve/5d6eaf0ffead28000892f16a/480x0.jpg?fit=scale
https://www.forbes.com/sites/mikeozanian/2019/09/04/the-nfls-most-valuable-teams-2019-cowboys-lead-league-at-55-billion/#3aa3f44e2f1b
https://www.forbes.com/teams/pittsburgh-steelers/?list=nfl-valuations#7494fa694cd6
And the Forbes valuations may be low. Irsay reportedly turned down an offer of $3.2 billion to buy the Colts.
https://profootballtalk.nbcsports.com/2019/09/04/colts-claim-jim-irsay-turned-down-3-2-billion-offer-for-the-team/
But the NFL actually may have a problem in continuing to drive up franchise values.
Suffering a dearth of bidders amid skyrocketing franchise values, the National Football League is mulling ownership rule changes designed to attract buyers outside of the richest of the rich....
NFL guidelines require that the principal owner put up at least 30% of the purchase price in cash. Moreover, each team has a debt limit of $350 million. That means that, at current valuations, a would-be buyer would have to shell out at least $600 million (and usually more) and then pursue limited partners for much of the rest. It’s difficult to find people willing to fork over tens or hundreds of millions of dollars for a noncontrolling stake in a franchise....
When limited partners, or LPs, want to sell their stakes, it can be hard to find takers — especially since the holdings usually come without much say in governance.
https://www.bloomberg.com/news/articles/2019-09-05/nfl-considers-changes-after-average-team-value-hits-2-9-billion
Baseball allows corporate ownership, such as the Braves now being owned by Liberty Media as part of a tax driven swap of assets with Time Warner several years ago. At these prices that may be where the NFL is headed. At least that would get rid of those Roman emperor like shots during the fawning TV coverage of Mr. (fill in the blank Owner) in his luxury box during the game.