The Rising Value of Sports Teams
Key takeaways:
- The value of sports teams is loosely tied to fundamentals like a Birkenbag or a Picasso.
- MLB, NFL, and NBA franchises have experienced explosive growth in value over the past decade, with increases of 242%, 303%, and 629% respectively.
- Foreign money, mainly from American and Persian Gulf investors, has contributed to the increase in Premier League football club valuations.
- The river of team economics has recently reversed direction, leading to upward trends in sports team values.
Episode AI notes
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The value of sports teams has been increasing at an exponential rate, with MLB, NFL, and NBA franchises seeing growth by 242%, 303%, and 629% respectively, and Premier League football clubs also being valued in the billions.
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Sports team values are loosely tied to traditional investment fundamentals and have been likened to luxury items such as Birkenbags or Picassos.
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Foreign investment, namely from American and Persian Gulf investors, has played a significant role in the rise of sports team valuations, particularly in the Premier League.
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In recent years, the trend in sports team economics has shifted positively, with an increase in team values as opposed to historical trends of stagnation or decline.