Sales prices for sports teams are soaring to record levels. Here’s why, and what that means for fans   MHM NEWS - video Dailymotion

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Sales prices for sports teams are soaring to record levels. Here’s why, and what that means for fans

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00:00sales prices for sports teams are soaring to record levels here's why and what that means

00:12for fans dear viewers if you like this news please like it and share your comments in the comment

00:18box the lost angeles lakers may not have as many nba titles as the boston celtics but the lakers

00:26topped their arch rival with a record-setting 10 billion dollar franchise price tag this week

00:31just three months after the celtics held the honor for the highest sale price for a professional

00:36sports team at six billion dollars but this record might not last very long the nfl's new york giants

00:44are in the process of shopping a 10 ownership stake which could put the team's overall value above 10

00:50billion dollars according to mark ganis a chicago-based sports consultant who advises nfl nba

00:56and mlb clubs what's clear is that the valuations of sports teams are continuing to climb and climb

01:02rapidly victor matheson a professor of economics at college of the holy cross who specializes in

01:09sports business said in his 30 years of studying sports sales he can't remember a team selling for

01:14less than it was purchased for example a 10 stake in the milwaukee bucks was sold in september 2024

01:20which valued the small market nba team at four billion dollars a windfall from when the team was

01:26sold a decade earlier for 550 million dollars so even if the 10 billion dollar record for the lakers

01:34stands a while longer other teams will eventually be sold at a hefty premium to their previous purchase

01:39price the impact on fans meanwhile can be complicated fans often publicly yearn for an owner who is

01:50willing to spend what it takes to make the team competitive yet some of the wealthiest owners have

01:54lousy records in the end fans are more likely to care about a team's winning percentage than its

01:59owner's net worth why prices are rising sports franchises have long been considered trophy assets

02:07like luxury properties and short supply the only thing i remember from all those economics courses

02:14is when the supply is fixed and the demand goes up prices go up it's as simple as that said sal

02:20galashiotto one of the leading sports investment bankers brokering team sales it is so rare you get

02:26a chance to buy control of a premier franchise sports franchises have grown in value over the last

02:32decade cord cutting streaming and dvrs have made it more difficult for advertisers to reach viewers

02:38meaning live sports programming has become more important major sporting events have reliably been

02:44among the most watched events on television sports content is the lifeblood of the media industry and

02:51that drives tremendous value for these franchises said lori bistis a deal's partner and one of the leaders

02:57of accounting and consulting firm price waterhouse cooper's sports practice while cord cutting has

03:02resulted in some regional sports networks falling on to financial hard times in recent years streaming

03:08services have shown increasing interest in broadcasting games bistis said it only makes sense to see sports

03:15franchise values rise in tandem with that of lucrative television rights deals we're not surprised to see the

03:21increase in valuation and all the data points to it continuing she said another factor buyers of

03:28professional sports teams know they will have access to valuable data on the demographics and spending

03:33behavior of their fans bistis said data can be monetized throughout different viewing experiences

03:39merchandise and events galashiotto said the increase in sports gaming since it became legal in 2018 is

03:46also driving up the interest in sports and sports programming billionaires lining up to buy

03:52deep pocket investors have lined up to buy even minority stakes in teams and that is helping to

03:57drive up the valuations as well there's a lot of new money coming into the business said galashiotto

04:03i can always find the high net worth individuals willing to pay more an individual gets ego gratification

04:09value gets perks they get other advantages a potential buyer could think i'm willing to pay a premium to be

04:16an owner of my favorite team i'm not willing to pay a premium to be an owner of a bunch of assets

04:21according to galashiotto and a greater supply of potential buyers interested in minority stakes

04:26and teams can help drive up the prices being paid even more said sports consultant ganis the universe of

04:33potential buyers of a five percent or ten percent stake is much larger than the universe of potential

04:39potential buyers who can buy a one hundred percent stake he said

Sales prices for sports teams are soaring to record levels. Here’s why, and what that means for fans MHM NEWS

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