• Loading stock data...
Friday, July 19, 2024
Join us this September for Tuned In Request to Attend

The Broncos Sale Highlights an Emerging Investment Trend

  • Sports teams are drawing attention as assets insulated from market gyrations.
  • The number of billionaires has grown, adding potential buyers.
Denver-Broncos
Isaiah J. Downing-USA TODAY Sports

The Denver Broncos were already a hot commodity, but an additional factor may have helped push forward their record-setting $4.65 billion sale to a group led by Walmart heir Rob Walton: Sports franchises are seen more and more as recession-proof properties.

Amid market uncertainty, particularly in tech stocks and cryptocurrencies, sports teams have emerged as assets that show consistent growth, insulated from market conditions

On top of that, the number of potential buyers is rising: By Forbes’ count, there are now 2,668 billionaires – a 31% increase from 2017. Their average net worth has grown 26.9% in that time to $4.8 billion.

Team values are rising annually across leagues. 

  • NFL teams grew 14% year-over-year to $3.5 billion last year, per Forbes.
  • NBA team values increased 4% last year to reach an average of $2.2 billion.
  • MLB teams rose 9% to $2.1 billion on average.
  • The average NHL team grew 32% to $865 million in value. 

No Brakes on Stakes

While Chelsea FC set a global record with its $5.2 billion sale price (which includes promised investments in the team and its venue), the Broncos’ $4.65 billion price tag is the largest ever for a North American team. There is an equally robust market for non-controlling team stakes.

Last year, private equity firms spent $51 billion on sports transactions, including $3 billion in minority stakes in North American teams.

Philadelphia 76ers and New Jersey Devils owner Harris Blitzer Sports and Entertainment struck a deal this month to sell a more-than-5% stake to private equity firm Arctos Sports Partners at a $3 billion valuation.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

WBD at a Crossroads: NBA Rights Decision Could Determine Its Future

Financial analysts argue for a large-scale overhaul of the TNT Sports parent company.

Caleb Williams’s Contract Requests Could Have Changed the NFL

Williams asked for several unusual clauses and tax dodges.

NBA’s New Money Has Josh Hart Ready to ‘Play Until My Knees Fall Off’

Hart and Jalen Brunson recently appeared on ‘Front Office Sports Today.’
podcast thumbnail mobile
Front Office Sports Today

‘EA Sports College Football 25’: It’s More Than a Game

0:00

Featured Today

Jan 7, 2024; Nashville, Tennessee, USA; Jacksonville Jaguars wide receiver Calvin Ridley (0) reacts after scoring a touchdown against the Tennessee Titans during the first half at Nissan Stadium.
July 14, 2024

Without Hard-Line Bans, Pro Athletes and Personnel Will Keep Betting on Sports

Penalties often aren’t stringent or consistent enough to deter banned behavior.
Oct 2, 2021; Miami Gardens, FL, USA; NFL commissioner Roger Goddell speaks during the Don Shula Celebration of Life at Hard Rock Stadium.
July 13, 2024

The NFL Is Confident It Can Overturn the Sunday Ticket Verdict

The league may have good reason to believe it can win.
July 8, 2024

NFLPA Report Cards Have Become the ‘Talk of the Locker Room’ Across..

NFLPA report cards have become the ‘talk of the locker room.’
Oct 27, 2023; Sacramento, California, USA; A general of the Sacramento Kings logo on the court before the game against the Golden State Warriors at Golden 1 Center.

How Sports Went From Private Equity Punchline to Coveted Asset Class

Once an industry punchline, sports are now a coveted asset class.
DraftKings
February 16, 2024

DraftKings Trends Toward the Black, Buys Lottery App

The sports gambling giant continues to narrow its losses.
April 2, 2024

Silver Lake to Take Endeavor Private, Ending Tough Stock Market Run

Private equity giant Silver Lake is set to acquire the remaining shares it didn’t already own.
Sponsored

TopSpin 2K25 Brings the Legends of Tennis to Your Living Room

2K sports is reviving a classic with TopSpin 2K25.
Exterior of Nike Company Store
February 16, 2024

Nike to Lay Off 2% of Its Workforce in Cost-Savings Effort

The sportswear giant hinted at staff cuts in a December earnings call.
February 7, 2024

ESPN DTC to Debut by Fall 2025, but Streaming Alliance Hastens Market Entry

Date set for stand-alone version of network, but new joint venture will beat that by a year.
January 22, 2024

They Make Sports Balls—and They Could Be Worth Almost $9 Billion

Amer Sports looks to raise as much as $1.8 billion in the public markets.
A view of a FanDuel sportsbook location.
January 18, 2024

FanDuel Strengthens U.S. Dominance Ahead of NYSE Debut

Flutter posts strong financial results as NYSE shares are set to debut Jan. 29.