15 Most Valuable Sports Companies in the World
In this article, we will be taking a look at the 15 most valuable sports companies in the world. To skip our detailed analysis, you can go directly to see 5 Most Valuable Sports Companies In The World.
Some of the most popular sports in the world, including football, have long been considered a working class sport because you don't really need to spend a lot to be able to participate in it, while other examples include dart and rugby. On the other hand, middle class or upper class sports include tennis, where you need to buy expensive rackets and have access to properly maintained court and rowing, where of course you need to have access to racing boats. In England and across many countries in Europe, formal football leagues and teams were formed in the late 19th century and early 20th century which saw the sport rise quickly in popularity across working class folk, as tickets were easily affordable and more people could fit in stadiums as safety measures were not as widely sought or implemented. The same is true for the U.S. It is strange in a way, but most of the popular sports in the U.S. aren't that popular outside of the country, with such sports including American football, baseball and basketball. While there may be similar leagues in other countries, the number of fans and revenue generated is much lower.
Across the world, even though the most successful athletes would always get tons of fame, as sports has a much wider fanbase than other forms of entertainment, athletes still weren't immensely rich like they are today. This all changed in the 1960s, thanks to the advent of broadcasting deals, which resulted in professional sports leagues earning tens of millions of dollars, and players being able to demand a large slice of these earnings. TVs had started becoming popular in the 1950s, and allowed games to be broadcast to tens of millions of people, if not hundreds of millions of people. This wasn't sudden; however, while salaries began to increase in the 60s, it wasn't until 1972 that the first million-dollar contract was signed in Canada, across ten years. The first $1 million per year contract was signed in 1978. The 1980s and especially the 1990s, then saw multimillion dollar contracts become the norm, as superstars showed skills and prowess that elevated sports to a new level and brought in a bigger audience, which in turn led to higher broadcasting deals and hence, players received higher salaries.
In the UK, where football has long been the dominant sport, the sport changed from the working class to a behemoth worth billions of dollars after the Premier League was formed in 1992 after breaking away from the Football League, in an attempt to benefit from a lucrative television rights sale to Sky Group, whose ultimate parent is Comcast Corporation (NASDAQ:CMCSA). Salaries of the best soccer players and the power and value of football clubs have continued to increase since with no signs of abating. Perhaps the only blemish is when some of the biggest football clubs in the world attempted to break away and form a European Super League, a move which led to such significant outcry that it was abandoned by most clubs within a few days of its announcement.
All of this has led to sports club becoming vehicles of investment. As the reach of broadcasting rights continues to increase, so does the money, which is then spread among the clubs though not evenly, leading to some of the richer clubs being able to establish more dominance. This in turn has led to sports teams attracting the eyes of investors, many of whom often buy sports team because they love the sport, while others do it as they know that the value of the team will continue to increase in the long run and the return on investment will be good. Some of the most valuable sports teams in the world are even listed on stock exchanges, which means that the general public can buy shares as well.
Meanwhile, many companies have realized how lucrative the sports industry is worldwide and based their success on their affiliation with different sports and their superstars, with many of the most valuable sports companies being sporting goods companies which provide apparel and equipment for various sports.
Despite football being a more global sport, the most valuable sports teams in the world are almost entirely located in the U.S., with the domestic audience being enough to justify the millions and billions of dollars being spent each year. Among the 50 most valuable teams, England and Spain combined have less teams than California alone. 13 of the 15 most valuable sports teams in the world are in the U.S. with the remaining two being football clubs in Spain. Teams such as Manchester United plc (NYSE:MANU), which has a market cap of over $3.7 billion, doesn't even make the list despite often being considered to be one of the most popular sports teams in the world. Manchester United plc (NYSE:MANU) has also been in the news recently after indications that its owners the Glazer family, who have been incredibly unpopular with the team's fanbase, are considering selling the club, which has enticed many potential buyers.
To determine the most valuable sports companies in the world, we have considered both actual companies which are involved in sports as well as the brand values of sports teams. Sometimes, using an entire company isn't as accurate as that doesn't represent its presence in the sports world. For example, ESPN is extremely valuable to the world of sports, but it is majority owned by The Walt Disney Company (NYSE:DIS) which has a market cap of over $156 billion. Since the vast majority of The Walt Disney Company's (NYSE:DIS) business is focused on areas outside of sports, we have considered only the brand value of ESPN, which we have taken from Forbes. Where entire sporting companies have been considered, we have taken their market cap from Yahoo Finance. Let's now take a look at the stars of the lucrative world of sports, starting with number 15:
15. Washington Commanders
Total value of the company (in billions): $5.6
The sixth most valuable NFL team, Washington Commanders has won 3 Super Bowls, even though its last victory came over three decades ago.
14. Golden State Warriors
Total value of the company (in billions): $5.29
The San Francisco based basketball team hold several records in the NBA, including best postseason reason, best regular season and most wins in a single season.
13. Chicago Bears
Total value of the company (in billions): $9.81
The Chicago Bears are well-known for having the second-most wins of any team in the NFL.
12. New York Knicks
Total value of the company (in billions): $5.8
The New York Knicks are the most valuable basketball team in the world, and are owned by Madison Square Garden Sports Corp. (NYSE:MSGS), which may not be one of the most valuable sports companies in the world but owns one of the biggest brands.
11. Yankee Global Enterpises
Total value of the company (in billions): $6
Yankee Global Enterprises owns the most valuable baseball team in the world is the New York Yankees, which is considered to be the most successful sports team in the United States, regardless of field of play. The company also has minor stakes in the MLS soccer team New York City FC as well as one of the most prestigious Italian football clubs in AC Milan, thus making it one of the most valuable sports companies in the world.
10. Los Angeles Rams
Total value of the company (in billions): $6.2
The Los Angeles Rams have two Super Bowl championships, winning their last championship in 2021. The company plays in the SoFi Stadium, whose naming rights are owned by SoFi Technologies, Inc. (NASDAQ:SOFI).
9. New England Patriots
Total value of the company (in billions): $6.4
NFL teams are among the most valuable sports teams in the world, and New England Patriots maintain this trend, and has won 6 Super Bowl championships, the most prestigious title in American football. It plays in the Gillette Stadium, with Gillette being one of the biggest brands of The Procter & Gamble Company (NYSE:PG).
8. Dallas Cowboys
Total value of the team (in billions): $8
Dallas Cowboys is an NFL team which is the most valuable sports team in the entire world, and in 2015, it became the first sports team in the world to be worth over $4 billion, which it has since doubled in the past 7 years, showing it to be a savvy investment for its owners.
7. Puma
Total value of the company (in billions): $8.60
Puma was created after a dispute between the brothers who created Adidas, which is its main rival. While Adidas has had comparatively more success, Puma is also a major sports team in its right, with revenues of over $7 billion.
6. Fenway Sports Group
Total value of the company (in billions): $9.81
Fenway Sports Group is one of the most valuable sports companies in the world, and owns English football club Liverpool F.C., which is one of the most successful football clubs in history with 18 league titles and six Champions League / European Cups. In addition, Fenway Sports Group also owns the Boston Red Sox, a team playing in Major League Baseball and Pittsburgh Penguins, which play in the National Hockey League.
Click to continue reading and see the 5 most valuable sports companies in the world.
Suggested articles:
Disclosure: None. 15 most valuable sports companies in the world is originally published at Insider Monkey.