Economist Mike Walden: The Value of Professional Sports Teams
I recently saw a listing of the estimated value of professional sports teams from all the major leagues. If my memory serves me, the lowest valued teams were in hockey, with a $500 million price tag. In baseball, most teams were worth over $1 billion, with the Yankees leading at a $4 billion price tag. What’s driving these enormous valuations?
- Teams have several sources of revenue
- Fans – based on attendance and ticket prices
- Often share in concessions
- Also, usually have low rents at stadium or arena
- And then the intangible – many people who have the money want to own a team
- Several teams recently purchased by successful investors, including the Panthers
The Economic Perspective is an NC State Extension program from the Department of Agricultural and Resource Economics.