A record-breaking year in sports deals causes the value of these teams to skyrocket

Mef there are lessons to be learned The Ishbia brothers recently agreed to buy the Phoenix Suns for $4 billion and Rob Walton and his syndicate plummeted $4.65 billion for the Denver Broncos in June. A sports team is worth as much as a millionaire or two would be willing to pay. Each offer broke previous records for franchise sales prices in their respective leagues. This is a sign of strong NBA and NFL business and increased competition among the ultra-wealthy to join the exclusive ranks of sports ownership. getting higher and higher.

just two months ago forbes valued the Suns at $2.7 billion, which is already up 50% from 2021, making it the NBA’s biggest gain even before the sale. A valuation of $4 billion means the Sands has since been valued at over 135%. forbes Estimated October 2021. Assuming the deal goes through, the Suns would have the biggest single-year increase of any sports team in the world in 2022.

But it’s not just the team that has achieved great results over the past year.Among the major sports leagues to which forbes Tracking the ratings each year, the 11 teams increased in value by more than 40% in 2022.

The most dramatic change has been seen in European football, which can quickly become financially bankrupt in the same way that top teams soar to new heights. Italian club AC Milan was taken over by Elliott Management last season, although he had a negative capital of $37 million in 2018, helping him return to the top of both the Champions League and Serie A last season. After injecting hundreds of millions of capital into the club for forbes valued Rossoneri at $1.2 billion in May, up a staggering 115%.

In the NFL, there were no losers. Franchise values ​​increased by an average of 28% across the league, with four franchises he exceeded 40%. The Buffalo Bills, who are looking to move to a new stadium for $1.4 billion, have the league’s biggest transfer fee at 50%, but he still ranks 29th in the league.

NHL team valuations averaged over $1 billion this year for the first time, thanks to franchise valuations averaging 19% across the league. Teams that have sold a portion of their ownership, like the Tampa Bay Lightning, or are preparing for a potential sale, like the Ottawa Senators, saw a 50% or more increase in value.

Even Major League Baseball clubs, rated just 9% on average, posted the biggest increase in four years. High-profile franchises such as the New York Yankees and Los Angeles Dodgers have tapped into disproportionate levels of revenue from their patch sponsorships and regional sports networks, and reap the rewards.

A high sale price won’t automatically boost the fortunes of all owners in a given league, but it can certainly have an impact. increase. forbes If Suns owner Robert Thurber manages to secure a $4 billion asking price, that would mean the Knicks’ value would rise to at least $200 million more than $6 billion. forbes 2021 rating. (next month, forbes With a handful of high-profile teams such as the Washington Commanders, Ottawa Senators, Manchester United and Liverpool FC likely to be sold next year, it’s safe to assume a healthy increase in sports team values. again in 2023.

1. AC Milan

1 year change: 115%

worth: $1.2 billion

Owner: Elliott Management

Operating loss: $16 million

2. Leicester City

1 year change: 103%

worth: $925 million

Owner: Khun Aiyawat Srivaddhanaprabha

Operating income: $16 million

3. West Ham United

1 year change: 77%

worth: $900 million

Owner: David Sullivan, David Gold

Operating income: $42 million