KD in CA Posted July 31, 2014 Share Posted July 31, 2014 That's what I figured, but then the question is: does the value of all 31 other teams instantly shoot up, leaving the Bills still as the third-least valuable team? More like the (current) value of the other teams was already higher. Forbes essentially pulls those valuations out of their ass. Yes, the Bills are still going to be 'worth' less than better franchises in more prosperous cities. As others have pointed out, value is largely subjective and based on a belief of ongoing prosperity (among other things including the number crunching). Ask your this; is the value of the S&P 500 companies really worth twice what it was five years ago? Link to comment Share on other sites More sharing options...
GG Posted July 31, 2014 Share Posted July 31, 2014 Ask your this; is the value of the S&P 500 companies really worth twice what it was five years ago? Oh, oh. PPP here we come. Link to comment Share on other sites More sharing options...
PromoTheRobot Posted July 31, 2014 Share Posted July 31, 2014 (edited) Oh, oh. PPP here we come. https://www.youtube....h?v=7J-y2rFfny8 CLASS WARFARE ALERT!!! Edited July 31, 2014 by PromoTheRobot Link to comment Share on other sites More sharing options...
Rubes Posted July 31, 2014 Author Share Posted July 31, 2014 More like the (current) value of the other teams was already higher. Forbes essentially pulls those valuations out of their ass. Yes, the Bills are still going to be 'worth' less than better franchises in more prosperous cities. Not necessarily. According to the Forbes list from 2013 (the one where Buffalo was listed with a "team value" of $870 million), only 7 teams were listed with a value over $1.3 billion—Dallas, New England, Washington, NY Giants, Houston, NY Jets, Philadelphia). The article was written a year ago, and at the time they said the values of NFL teams went up by about 5% from the previous year, so those numbers are likely inflated again by another 5% or so right now. But generally speaking, those numbers are around what they are now, so most teams were not already valued at more than $1.3 billion. If the Bills, valued at roughly $900 million, are sold for $1.3 billion, that's nearly 150% of their current estimated value. Do the other teams now reap a similar benefit? If the league's most valuable team, the Cowboys, were valued at $2.3 million in 2013 (more than 2.5x the value of the Bills), and the Bills now sell for $1.3 billion, do the Cowboys maintain that 2.5-fold value over the Bills and are now estimated to be worth $3.4 billion? Link to comment Share on other sites More sharing options...
Olaf Fub Posted July 31, 2014 Share Posted July 31, 2014 The market determines the price. If Pegula pays 1.3 billion, then that's the teams value. Forbes doesn't have access to the Bills financial statements ( or 30 other teams). Their team values are an educated guess. Link to comment Share on other sites More sharing options...
papazoid Posted July 31, 2014 Share Posted July 31, 2014 The market determines the price. If Pegula pays 1.3 billion, then that's the teams value. Forbes doesn't have access to the Bills financial statements ( or 30 other teams). Their team values are an educated guess. based on green bay's public financial statements....it's easy for forbes to make a very educated guess. that doesn't stop someone from paying more than something is expected to sell for. like a painting, rare coin or the los angeles clippers. Link to comment Share on other sites More sharing options...
Iraq Vet Posted July 31, 2014 Share Posted July 31, 2014 I think the $870m figure is their their worth... And paying more wouldn't change their worth... If you buy a $20,000 car for $30,000- it's still a $20,000 car... Unlike a car, however, the worth of this organization will eclipse the purchase price, which is expected by multiple sources to be in excess of $1B Bad analogy. A car loses value and can not make up. Link to comment Share on other sites More sharing options...
BuffaloBill Posted August 1, 2014 Share Posted August 1, 2014 Another issue in this process is that other assets the uber-wealthy may own are more regularly and freely traded. For example, real estate, financial instruments and even companies are always for sale. Sports teams may be for sale only a handful of times in a lifetime. Once owned they are generally held. This drives up the price due to scarcity. Link to comment Share on other sites More sharing options...
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