Sports team sales have become increasingly expensive over the years. The demand for owning a sports team has skyrocketed, leading to record-breaking sales. Once finalized, the Washington Commanders sale for approximately $6.05 billion, which has already been approved by other NFL owners, will set a new record for the highest price paid for a sports team.
In this article, we will take a look at the 10 most expensive sports team sales in history and their impact on the sports industry.
1. Washington Commanders — $6.1 billion (2023)
The Washington Commanders are an American football team that was sold for $6.1 billion in 2023. The team was previously owned by Dan Snyder, who had faced numerous controversies during his tenure. The sale was made to a group of investors led by Amazon CEO Jeff Bezos.
The sale of the Washington Commanders has had a significant impact on the sports industry blew the lid off the previous record sale. It has brought attention to the increasing value of sports franchises and the potential for tech industry leaders to invest in sports teams.
2. Chelsea Football Club — $5.3 billion (2022)
Chelsea Football Club is a professional football club based in London, England. In 2022, the club was sold by Russian billionaire Roman Abramovich for $5.3 billion. Former owner Abramovich owned the club since 2003, and the sale was seen as a way for him to offload his assets.
The sale of Chelsea Football Club highlights the global appeal of football and the willingness of wealthy individuals to invest in the sport. It also demonstrates the potential for football clubs to become major global brands.
3. Denver Broncos — $4.7 billion (2022)
The Denver Broncos are an American football team that was sold for $4.7 billion in 2022. The team was previously owned by the Bowlen family, who had owned the team for over 30 years. The sale was made to an ownership group of investors led by tech entrepreneur Jay Patel.
The sale of the Denver Broncos showcases the potential for tech entrepreneurs to invest in sports franchises. It also highlights the value of established sports teams with a loyal fan base.
4. Phoenix Suns — $4.0 billion (2023)
The Phoenix Suns are a professional basketball team based in Phoenix, Arizona. In 2023, the team was sold for $4.0 billion to a group of investors led by tech entrepreneur Chamath Palihapitiya. The team was previously owned by Robert Sarver, who had owned the team since 2004.
The sale of the Phoenix Suns demonstrates the potential for tech entrepreneurs to invest in the NBA. It also highlights the value of established NBA franchises with a loyal fan base.
5. Milwaukee Bucks — $3.5 billion (2023)
The Milwaukee Bucks are a professional basketball team based in Milwaukee, Wisconsin. In 2023, the team was sold for $3.5 billion to a group of investors led by hedge fund manager Jamie Dinan. The team was previously owned by Herb Kohl, who had owned the team since 1985.
The sale of the Milwaukee Bucks showcases the value of NBA franchises in smaller markets. It also highlights the potential for hedge fund managers to invest in sports franchises.
6. New York Mets — $2.4 billion (2020)
The New York Mets are a professional baseball team based in New York City. In 2020, the team was sold for $2.4 billion to hedge fund manager Steve Cohen. The team was previously owned by the Wilpon family, who had owned the team since 2002.
The sale of the New York Mets highlights the value of established sports franchises in major markets. It also demonstrates the potential for hedge fund managers to invest in sports franchises.
7. Brooklyn Nets — $2.4 billion (2019)
The Brooklyn Nets are a professional basketball team based in Brooklyn, New York. In 2019, the team was sold for $2.35 billion to a group of investors led by Alibaba co-founder Joe Tsai. The team was previously owned by Russian billionaire Mikhail Prokhorov.
The sale of the Brooklyn Nets showcases the potential for international investors to invest in NBA franchises. It also highlights the value of established NBA franchises in major markets.
8. Carolina Panthers — $2.2 billion (2018)
The Carolina Panthers are an American football team based in Charlotte, North Carolina. In 2018, the team was sold for $2.275 billion to hedge fund manager David Tepper. The team was previously owned by Jerry Richardson, who had owned the team since 1993.
The sale of the Carolina Panthers highlights the potential for hedge fund managers to invest in an NFL team. It also demonstrates the value of established NFL franchises in smaller markets.
9. Houston Rockets — $2.2 billion (2017)
The Houston Rockets are a professional basketball team based in Houston, Texas. In 2017, the team was sold for $2.2 billion to tech entrepreneur Tilman Fertitta. The team was previously owned by Leslie Alexander, who had owned the team since 1993.
The sale of the Houston Rockets showcases the potential for tech entrepreneurs to invest in NBA franchises. It also highlights the value of established NBA franchises in smaller markets.
10. Los Angeles Dodgers — $2.0 billion (2012)
The Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. In 2012, the team was sold for $2.0 billion to a group of investors led by Guggenheim Baseball Management. The team was previously owned by Frank McCourt, who had owned the team since 2004.
The sale of the Los Angeles Dodgers highlights the value of established sports franchises in major markets. It also demonstrates the potential for investment groups to invest in sports franchises.
What makes a sports team so highly valuated?
There are several factors that influence the high valuation of sports teams:
- Firstly, the popularity and demand for the sport in question plays a huge role. Sports such as football, basketball, and baseball have a massive following worldwide, which translates to high revenues from ticket sales, merchandise, and broadcasting rights.
- Secondly, the success of the team in terms of winning championships and accolades can significantly increase its value. Winning teams attract more fans and sponsors, consequently increasing revenue.
- Thirdly, the location of the team also matters. Teams situated in major cities with a high population density and a strong economy tend to have a higher valuation due to the potential for greater fan engagement and commercial opportunities.
- Lastly, the ownership structure and management of the team play a significant role in its valuation. Strong and experienced management can improve the team’s performance and reputation, leading to increased revenue and valuation.
Final thoughts
The sale of sports franchises has become increasingly expensive over the years. Wealthy individuals, tech entrepreneurs, and hedge fund managers are all investing in sports teams, showcasing the global appeal of sports franchises. The sports industry will continue to evolve, and it will be interesting to see how these sales impact the future of sports team sales.
Glossary
- Sports Team Sale – The transfer of ownership of a professional sports team from one owner to another, usually involving a significant monetary transaction.
- Franchise Value – The estimated worth of a sports team based on various factors such as revenue, market size, and brand strength.
- Forbes List – An annual ranking by Forbes magazine of the most valuable sports teams in the world based on their estimated worth.
- Major League Baseball (MLB) – A professional baseball league consisting of 30 teams in North America.
- National Basketball Association (NBA) – A professional basketball league consisting of 30 teams in North America.
- National Football League (NFL) – A professional American football league consisting of 32 teams in North America.
- National Hockey League (NHL) – A professional ice hockey league consisting of 31 teams in North America.
- Real Madrid – A professional football club based in Madrid, Spain, and one of the most successful and valuable sports teams in the world.
- Manchester United – A professional football club based in Manchester, England, and one of the most successful and valuable sports teams in the world.
- English Premier League (EPL) – The top professional football league in England, consisting of 20 teams.
- Los Angeles Dodgers – A professional baseball team based in Los Angeles, California, and one of the most valuable sports teams in the world.
- Houston Rockets – A professional basketball team based in Houston, Texas, and one of the most valuable NBA teams.
- Carolina Panthers – A professional American football team based in Charlotte, North Carolina.
- Buffalo Sabres – A professional ice hockey team based in Buffalo, New York.
- Brooklyn Nets – A professional basketball team based in Brooklyn, New York, and one of the most valuable NBA teams.
- Miami Dolphins – A professional American football team based in Miami, Florida, and one of the most valuable NFL teams.
- Jacksonville Jaguars – A professional American football team based in Jacksonville, Florida.
- Premier League – The top professional football league in England, consisting of 20 teams.
- Expansion Team – A new sports team added to a league to increase the number of teams and/or enter a new market.
- Billionaire – A person with a net worth of at least one billion dollars, often associated with sports team ownership.
