Forbes Asia - October 2018

(Steven Felgate) #1
0 1000

Bufalo Bills
Terry & Kim Pegula

Detroit Lions
Martha Firestone Ford

Cincinnati Bengals
Michael Brown

Cleveland Browns
Dee & Jimmy Haslam

Tampa Bay Buccaneers
Glazer family

Tennessee Titans
Amy Adams Strunk

New Orleans Saints
Gayle Benson

Jacksonville Jaguars
Shahid Khan

Kansas City Chiefs
Lamar Hunt family

Arizona Cardinals
William Bidwill

Los Angeles Chargers
Spanos family

Carolina Panthers
David Tepper

Carolina Panthers
David Tepper

Indianapolis Colts
James Irsay

Minnesota Vikings
Zygmunt Wilf

Oakland Raiders
Mark Davis

Miami Dolphins
Stephen Ross

Seattle Seahawks
Paul Allen

Daniel Rooney Trust,Pittsburgh Steelers
Art Rooney II

Baltimore Ravens
Stephen Bisciotti

Atlanta Falcons
Arthur Blank

Green Bay Packers
Shareholder-owned

Denver Broncos
Pat Bowlen Trust

Philadelphia Eagles
Jerey Lurie

Houston Texans
Robert McNair

New York Jets
Johnson family

Chicago Bears
McCaskey family

Denise DeBartolo York,San Francisco 49ers
John York

Washington Redskins
Daniel Snyder

Los Angeles Rams
Stanley Kroenke

New York Giants
John Mara, Steven Tisch

New England Patriots
Robert Kraft

Dallas Cowboys
Jerry Jones

479 %

445%

535%

Team
Owner

52 | FORBES ASIA OCTOBER 2018

least 30%, and the maximum amount of
debt at the team level is $350 million. If a
team is sold for $2.3 billion, for example,
the minimum GP equity would be $585
million, assuming the GP has secured the
maximum amount of debt for the team.
In other words, it takes much more
than being a member of h e Forbes 400,
many of whose fortunes were made via
real estate or privately run companies.
It takes liquid wealth—lots of it.
One reason this has become an in-
creasingly large pill for one individual to
swallow is the contrast between the long-
term performance of the stock market
(a key source of liquid wealth) and NFL
franchise values. During the past 20 years,
team values have climbed almost nine-
fold—an 11.6% annual rate—versus just
4.5% for the S&P 500. Moreover, the NFL
permits no corporate ownership. League
rules stipulate a maximum of 24 limited
partners. In the example above, the LPs
would have to throw in $1.37 billion—and
get no say in how the team is run.
h e NFL’s requirements have been
ef ective. h e league has not had a team
in i nancial trouble because of too much
debt since 1999, when Art Modell agreed
to sell the Baltimore Ravens. h ere have
been no Los Angeles Dodgers, New Or-
leans Hornets or Arizona Coyotes i ascoes
in the NFL.
Already the biggest and most proi table
league in the world—the average team has
$427 million in revenue and $95 million in
operating income—the NFL will soon get
even richer. It can opt out of the Sunday
Ticket deal with AT&T’s DirecTV in 2019,
four years early. h e current deal, which
averages $1.5 billion a year, is worth 50%
more than the prior agreement.
Bidding for Sunday Ticket will be hot.
Amazon and Disney’s ESPN are likely to
be interested, given their push toward
streaming sports. Forbes’ best guess: h e
annual average value of the next Sunday
Ticket deal could be twice this one.
Dallas Cowboys owner Jerry Jones
recently said, “Legalized gambling is going
to increase the amount of time people
spend watching the NFL on TV and
online, and will therefore have a positive
impact on the value of our content.”
As a result, barring any changes in
ownership and i nancing rules, the schism
between the NFL’s economics and team
sale prices will probably widen. Which
isn’t necessarily a bad thing.


Enterprise value (equity plus net debt) of team based on current stadium deal (unless new stadium is pending).

FRANCHISE VALUES


1998

2018 ($MIL)


  1. AARON1. AARON
    RODGERS
    GREEN BAY PACKERSGREEN BGREEN BAY PACKERSCKERS
    TOTAL EARNINGS:TOTAL EARNINGS: O AL EARNINGS:
    $75.9 MIL
    SALARY/BONUSES:AL /BONUSES:
    $66.9 MIL$66.9 MIL
    ENDORSEMENTS:ENDORSEMENTENDORSEMENTENDORSEMENTS:
    $9 MIL $

  2. MATT RYAN
    ATLANTA FALCONSA F
    TOTAL EARNINGS:TOTAL EARNINGS: AL EARNINGS:
    $$57.5 MIL
    SALARY/BONUSES:/BONUSES:
    $52.5 MIL
    ENDORSEMENTS:ENDORSEMENTENDORSEMENTS:
    $5 MIL$5 MIL


FORBES ASIA


SPORTSMONEY

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