The value of professional sports teams has skyrocketed over the past 3-decades outpacing the rise in most asset class. For example, the Dallas Cowboys, which is known as “America’s Team” was purchased by owner Jerry Jones in 1989 for 150-million dollars, and has increased 28-fold during the past 3-decades. This compares to a 15-fold rise in the S&P 500 index during the same period. The Steinbrenner’s purchased the New York Yankees in 1973 for $8.7 million dollars and today it’s worth $3.7 billion dollars. Sport team ownership is very attractive for the ultra-rich and recent transactions show that demand for these very expensive assets, continues to accelerate.
The top 10 Most Valuable Sports Teams in 2017
1. Dallas Cowboys - Value: $4.2B
2. New York Yankees - $3.7B
3. Manchester United - $3.69B
4. FC Barcelona - $3.64B
5. Real Madrid - $3.58B
6. New England Patriots - $3.4B
7. New York Knicks - $3.3B
8. New York Giants - $3.1B
9. Los Angeles Lakers - $3.0B
10. San Francisco 49ers - $3.0B
The demand for professional sports teams continues to be reflected in recent transactions, which continue to impress. On Tuesday September 5, the Houston Rockets, a U.S. Basketball club, was purchased by Tilman Fertitta for $2.2 billion dollars, surpassing the $2.0 billion paid for the Los Angeles Clippers by Steve Ballmer in 2014. This price is a new record paid for a NBA team, reflecting the ongoing demand for professional sports teams.
While most professional sports teams are owned by individuals, there are some like FC Barcelona and Real Madrid that are owned by their supporters. The most valuable European soccer clubs are listed in the top 5-most valuable sports franchises, but the bulk of the top-10 most valuable teams are from the United States.
Data: Table 1.1