Saturday, 6 September 2014

The NFL's Most Valuable Teams

Just because the auction of the Buffalo Bills is having a tough time drawing bids above $1 billion two years after the Cleveland Browns sold for $987 million, and just weeks after the National Basketball Association’s Los Angeles Clippers were sold for $2 billion, doesn’t mean the National Football League is losing its status as the most valuable sports league in the world.
To the contrary: The average NFL team is currently worth $1.43 billion, the highest value in the 17 years Forbes has tracked professional football team finances. The $1.43 billion average is 23% more than a year ago, the biggest year-over-year increase since 1999.
Forbes’ team values are enterprise values (equity plus net debt) and are calculated using multiples of revenue that reflect each team’s current stadium economics (with adjustments for pending new stadiums and renovations). For teams that own their stadiums, we include the revenue the team gets from the stadium (net of applicable debt payments), but not the market value of the real estate.
In our most recent reports on the other leading team sports, the world’s 20 most valuable soccer teams (comprised mainly of clubs from the top English, Spanish, German and Italian leagues) had an average value of $1.05 billion, Major League Baseball teams had an average value of $811 million, followed by the NBA, with an average team value of $634 million.

1. Dallas Cowboys

Team value: $3.2 billion
Revenue 2013: $560 million
Operating income 2013: $246 million

The Cowboys added watchmaker Hublot and Carnival Cruise Lines to their sponsorship roster this season, which will generate several million dollars in revenue for the team over the next five years and align the team with new brand categories.

2. New England Patriots


Team value: $2.6 billion
Revenue 2013: $428 million
Operating income 2013: $147 million

Adjacent to Gillette Stadium sits Patriot Place, which features more than 1.3 million square feet of shopping, dining, and entertainment, including Old Navy, Victoria’s Secret and the region’s only Bass Pro Shops, CBS Scenee, Davio’s, Toby Keith’s I Love This Bar & Grill and Olive Garden.

3. Washington Redskins


Team value: $2.4 billion
Revenue 2013: $395 million
Operating income 2013: $143 million

The Redskins went 3-13 in 2013 as franchise QB Robert Griffin III struggled with injuries and coach Mike Shanahan was fired after four years and one playoff appearance.


4. New York Giants


Team value: $2.1 billion
Revenue 2013: $353 million
Operating income 2013: $87 million

Even with $40 million annual payments to service stadium debt, the Giants have made a killing since MetLife Stadium opened in 2010.


5. Houston Texans


Team value: $1.85 billion
Revenue 2013: $339 million
Operating income 2013: $103 million

The Texans' stadium was re-branded as NRG Stadium this year after the parent company of Texas-based electric retailer, Reliant Energy, which previously had its name on the building.


6. New York Jets

Team value: $1.80 billion
Revenue 2013: $333 million
Operating income 2013: $80 million

In April 2014, Moody's Investors Service assigned Baa3 (three notches above junk) ratings to Jets Stadium LLC's $255 million of project revenue bonds and $297 million of parity debt, which are being used to finance the team's portion of MetLife Stadium.

7. Philadelphia Eagles


Team value: $1.75 billion
Revenue 2013: $330 million
Operating income 2013: $73 million

Former University of Oregon head coach Chip Kelly replaced long-time Eagles coach Andy Reid for the 2013 season and led the team to a 10-6 record and the top spot in the NFC East.


8. Chicago Bears

Team value: $1.70 billion
Revenue 2013: $309 million
Operating income 2013: $57 million

The Bears finished 8-8 in 2013 and missed the playoffs for the third consecutive season in their first year under head coach Marc Trestman, who replaced Lovie Smith.

9. San Francisco 49ers


Team value: $1.6 billion
Revenue 2013: $270 million
Operating income 2013: $25 million

The 49ers opened their new, privately financed, 68,500 seat Levi's Stadium in Santa Clara in July, and will host Super Bowl 50 in February 2016.



10. Baltimore Ravens


Team value: $1.5 billion
Revenue 2013: $304 million
Operating income 2013: $57 million

The Ravens inked a 10-year extension to its stadium naming rights sponsorship with M&T Bank in May worth $60 million and will run through the 2027 season.

Source: Forbes

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