The Los Angeles Lakers recently set a record for the highest franchise price tag at $10 billion, just three months after the Boston Celtics reached $6 billion. However, this new benchmark may not last long as the NFL’s New York Giants are shopping a 10% ownership stake that could push their value above $10 billion.
According to sports consultant Marc Ganis, valuations of sports teams continue to rise rapidly. In his 30 years of studying sports sales, Professor Victor Matheson has never seen a team sell for less than its purchase price. Even the Milwaukee Bucks’ sale of a 10% stake in September 2024 valued the team at $4 billion.
The rise in sports franchise prices can be attributed to several factors, including the increasing importance of live sports programming and the growth of streaming services. Major sporting events have become more important as viewership has shifted away from traditional TV advertising. The demand for sports content is driving tremendous value for these franchises.
Buyers of professional sports teams are also aware that they will have access to valuable data on their fans’ demographics and spending behavior, which can be monetized through different viewing experiences, merchandise, and events. This trend is evident in the growing interest in sports gaming since its legalization in 2018.
Deep-pocket investors are lining up to buy even minority stakes in teams, further driving up valuations. Sports consultant Ganis notes that there’s a lot of new money coming into the business, with high-net-worth individuals willing to pay more for the benefits and perks associated with team ownership.
However, having an owner who spends big on players, coaches, and a front office does not necessarily guarantee winning titles. Only twice in the last 15 years has the baseball team with the top payroll won the World Series. The relationship between winning and payroll is complex, with higher payrolls only responsible for predicting about 30% of a team’s success.
As fans, we often yearn for an owner who will spend to make the team competitive, but the impact on our enjoyment of the game can be complicated. Ultimately, fans care more about a team’s winning percentage than its owner’s net worth.
Source: https://edition.cnn.com/2025/06/21/business/sports-team-sales-prices-soar