The average NFL franchise is now valued at $2.3 billion according the latest valuations released by Forbes.com, a 22% increase over a year ago and double what the teams were worth just three years ago.
While the NFL’s revenue generated from television has been surging since 2011, it is interesting to note that the first huge jump in NFL franchise values came in the fall of 2014, six months after Steve Ballmer purchased the Los Angeles Clippers for an eye-popping $2.0 billion.
The feeling is that Ballmer’s purchase has led to a correction in the valuation of pro sports franchises. After all, the true value of something is just whatever somebody is willing to pay for it. In fact, NBA franchise values have also doubled since the Ballmer purchase, to $1.25 billion. Meanwhile, the value of Major League Baseball franchises have grown at a slightly more modest 69% over the last three years, also reaching $1.25 billion this year.
- Cork Gaines/Business Insider