Donnerstag, 8. September 2011

Kickoff day - big time sport and big business.

Today the world's most profitable league, the National Football League will enter a new season after an extended lockout period. The recently published Forbes list states that the most valuable franchises in professional football, listing the Dallas Cowboys franchise on top at a value of $1.85 billion. The Jacksonville Jaguars franchise, at the bottom of the list of 32 franchises, is worth "only" $ 0.725. However, the Jaguars franchise is always said to be in the wrong area and always mentioned as a possible candidate for relocation to the currently vacated Los Angeles are.

On average the value of the top 4 franchises rose by about 4 percent, mostly due to the new collective bargaining agreement. The changes in the CBA now shift a larger share operating incomes (currently an average of  $30.6 million per team) to the team owners.

While the Dallars Cowboys will not be listed on the list of top-25 companies in the US, the NFL as a whole will certainly be a significant player. Summing up all individual franchises in terms of value we get an overall value of   $33.28 billion. Not counting the value of the NFL as a brand itself. The operating income of all 32 teams is just below $1 billion. 6 of the most valuable sports franchises are NFL teams (Forbes). Only the English Premier League has more than one franchise in the top ten. The city of New York even has two NFL teams in the top 10.      

Today it is kickoff day in the most profitable sports league worldwide and the new CBA will make sure the franchise owners will have another great business year. The new ESPN $1.9 billion per year deal with the NFL for the rights to Monday Night Football will certainly do it's part to ensure that.

My pick for today: New Orleans Saints.

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