Sports franchise transactions

The value of professional sports franchises—in football, baseball, soccer and even hockey—has never been higher, and has increased dramatically over the past several years.

Sports teams can be an almost priceless collector’s item, bringing notoriety, personal satisfaction, and bragging rights. But there are also compelling economic and regulatory variables to take into consideration when investing in or selling a sports team, including:

• The growing importance and value of media rights deals
• Sports franchise ownership as part of a diversified portfolio investment strategy
• Changing regulations—both favorable and unfavorable (e.g., potential antitrust regs)
• The increasing presence of institutional investor ownership and the multi-sport franchise business model
• The impact of sports betting on fan interest and franchise valuations

In this paper, we take an in-depth look at the current sports deal landscape, providing insights for why it may make sense to invest in or sell a sports franchise.