NFL Team Valuations: The Rise in Franchise Value and Factors Driving It
Introduction:
Welcome to CNBC’s Official NFL Team Valuations, where we rank professional football teams based on their overall franchise value. These rankings, calculated by CNBC senior sports reporter Michael Ozanian, take into account a team’s revenue, profit, and debt. Today, the average NFL team is worth $6.49 billion, representing significant returns for league owners.
The Factors Driving Up Values:
Several factors are responsible for the surge in NFL team values. One major driver is the recent big-money media deals, which have injected substantial revenue into the league. These media deals have not only increased the visibility of the NFL but also brought in significant sponsorship revenue. Additionally, non-NFL events held at team stadiums, such as Taylor Swift’s The Eras Tour, have contributed to the rise in franchise value.
Dallas Cowboys: From Losses to the Most Valuable Franchise:
The Dallas Cowboys serve as a prime example of a team that experienced a remarkable turnaround in terms of value. They went from losing $1 million a month to becoming the NFL’s most valuable franchise, worth a staggering $11 billion. This incredible transformation can be attributed to the strong leadership of owner Jerry Jones, who has implemented successful business strategies and built a highly profitable brand.
The Los Angeles Rams’ Surging Value:
Another team that stands out in terms of value is the Los Angeles Rams. They are currently worth $8 billion, significantly more than their cross-town rivals, the Los Angeles Chargers. This disparity can be attributed to a combination of factors, including the Rams’ success on the field, their state-of-the-art stadium, and the ownership of Stanley Kroenke, a billionaire real estate developer. The Rams’ value also benefits from being located in a major media market.
Rankings of Most Valuable NFL Franchises:
Here is the list of the top 10 most valuable NFL franchises according to CNBC’s Official 2024 NFL Team Valuations:
1. Dallas Cowboys: With a value of $11 billion, the Cowboys reign supreme as the most valuable team. They generate a revenue of $1.22 billion and an EBITDA of $550 million. Jerry Jones is the owner of this iconic franchise.
2. Los Angeles Rams: The Rams hold the second spot with a value of $8 billion. They generate a revenue of $825 million and an EBITDA of $243 million. The team is owned by Stanley Kroenke.
3. New England Patriots: The Patriots, led by owner Robert Kraft, have a value of $7.9 billion. They generate a revenue of $740 million and an EBITDA of $250 million.
4. New York Giants: The Giants, owned by John Mara and Steve Tisch, have a value of $7.85 billion. They generate a revenue of $723 million and an EBITDA of $185 million.
5. Las Vegas Raiders: The Raiders, who recently relocated to Las Vegas, have a value of $7.8 billion. They generate a revenue of $780 million and an EBITDA of $115 million. Mark Davis is the owner of the team.
6. San Francisco 49ers: With a value of $7.4 billion, the 49ers are a highly valuable franchise. They generate a revenue of $687 million and an EBITDA of $138 million. Denise DeBartolo York and John York are the owners.
7. New York Jets: The Jets have a value of $7.35 billion. They generate a revenue of $677 million and an EBITDA of $145 million. The team is owned by Woody Johnson and Christopher Johnson.
8. Miami Dolphins: The Dolphins, owned by Stephen Ross, have a value of $7.1 billion. They generate a revenue of $673 million and an EBITDA of $160 million.
9. Philadelphia Eagles: With a value of $7 billion, the Eagles make the top 10 list. They generate a revenue of $669 million and an EBITDA of $138 million. The team is owned by Jeffrey Lurie.
10. Chicago Bears: The Bears round out the top 10 with a value of $6.4 billion. They generate a revenue of $590 million and an EBITDA of $103 million. The team is owned by Virginia Halas McCaskey.
Conclusion:
The NFL’s most valuable franchises showcase the immense growth and financial success of the league. Factors such as big-money media deals, sponsorship revenue, and non-NFL events at team stadiums have contributed to the surge in franchise values. The Dallas Cowboys, with their impressive turnaround, and the Los Angeles Rams, benefiting from their success and location, exemplify the potential for teams to increase their value. As the global sports business continues to thrive, and with private equity investors showing interest, the NFL’s franchise values are expected to keep rising in the future.
