Analyzing NFL Team Valuations: Cowboys Lead at $12.8 Billion

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00:00All right. So not surprisingly to me, I guess the Cowboys being evaluated here on Sportico, 12.8 billion.

00:08I can actually pivot away from that. I know it's a staggering number and it's huge, but it's not surprising.

00:13Like we've all known the Cowboys are the premier, you know, group in football with their stadium and everything that goes on there.

00:20So let's let's dive into the others here with the Rams, the Giants, the Patriots and the 49ers.

00:25I guess, to my surprise, are the Rams being second? Is it the stadium factor in that? Is that why?

00:31Huge factor. You think about what SoFi is, the development around that.

00:36They're capturing so much revenue, again, in the surrounding area.

00:42So we're not taking into account the full real estate development that's going on there, which is a 10 billion dollar plus project.

00:49But but we're capturing the part that in theory would sell with the team.

00:53But SoFi alone, I mean, you're talking about one of the premier venues in the world.

01:00I mean, it's a five point five billion dollar stadium.

01:02When you talk about events that go to Los Angeles, they all go to SoFi, you know, half dozen Taylor Swift concerts.

01:08I mean, concerts, Super Bowls, World Cup.

01:11So you have the team that generates a ton of revenue locally.

01:17But then Stan Kroenke, who owns the building, owns the team, also gets to capture all of that non NFL revenue that flows through SoFi.

01:26Chargers really are chargers are just a tenant in that building.

01:29And so all that money really flows to the Rams.

01:34Yeah, it's fascinating there.

01:35And to see the NFL, I know that they reported six point three to ten point three in terms of revenue multiples for sports teams.

01:43That's pretty dramatic.

01:44And I know that the WNBA and NBA have had their share of successes in sales, too.

01:48Yeah, I mean, this trend is this is not just a WNBA or NFL story.

01:56We've seen NFL and all sports teams emerge as an asset class.

02:01The NFL was the last one to approve private equity investments.

02:04And we've seen a flurry of LP sales over the last 12 months since they opened the door to institutional funds.

02:12So people are looking at sports teams as as a real asset alongside stocks, bonds, real estate commodities.

02:21This is a place we can park our money.

02:24And if I have one hundred million dollars and I'm a family office, I want to have some exposure to sports.

02:31And when you think about the NFL, it is truly the cream of the crop because it has one thing that no other league can guarantee.

02:39You can't lose money from a year to year basis.

02:42So there's no capital costs at the end of the year and you get a distribution because they all make money because of those big TV deals.