2025 NFL Team Values

[Gregg]

https://www.sportico.com/feature/nfl-team-values-ranking-list-1234684165/

 

Cowboys top the list at 12.8 billion. The Bills are worth 5.87 billion. It must be nice owning an NFL team which is a giant cash cow as the NFL is the most popular sport in America and who is growing their fanbase overseas.

 

[Augie]

 

The $1.4 Billion purchase price for the Bills isn’t looking that crazy now. 

[Fleezoid]

Yay! we're not the worst. 

[mushypeaches]

I will never forget Terry Pegula’s comment on the day he bought the team.  Reporter asked if he thought he paid too much… Terry says “I got the damn team, didn’t I?”

[prissythecat]

20 minutes ago, Gregg said:

https://www.sportico.com/feature/nfl-team-values-ranking-list-1234684165/

 

Cowboys top the list at 12.8 billion. The Bills are worth 5.87 billion. It must be nice owning an NFL team which is a giant cash cow as the NFL is the most popular sport in America and who is growing their fanbase overseas.

 

 

 

Here are 2024 figure for the Bills

 

Category Amount (2024 Fiscal Year)Source

National Revenue$432.6 million

Total Revenue$551 million

Player Expenses$282 million

Operating Income$101 million

Franchise Value$4.2 billion

 

 

 

Operating income for 2024 is just $101 million.      With taxes , interest, depreciation,  etc. ,  the number for a net profit figure goes down much lower.  Estimates I've seen with a quick Google search is around $24 million.   Certainly profitable but hardly a cash cow. 

[Lost]

1 minute ago, prissythecat said:

 

 

Here are 2024 figure for the Bills

 

Category Amount (2024 Fiscal Year)Source

National Revenue$432.6 million

Total Revenue$551 million

Player Expenses$282 million

Operating Income$101 million

Franchise Value$4.2 billion

 

 

 

Operating income for 2024 is just $101 million.      With taxes , interest, depreciation,  etc. ,  the number for a net profit figure goes down much lower.  Estimates I've seen with a quick Google search is around $24 million.   Certainly profitable but hardly a cash cow. 

 

NFL valuation has to come mostly from scarcity.   It's not like any Billionaire can start up their own franchise whenever they feel like it.   Probably once every generation a team goes up for sale and I don't see any other league expansions happening anytime soon, at least not domestically. 

[corta765]

31 minutes ago, prissythecat said:

Operating income for 2024 is just $101 million.      With taxes , interest, depreciation,  etc. ,  the number for a net profit figure goes down much lower.  Estimates I've seen with a quick Google search is around $24 million.   Certainly profitable but hardly a cash cow. 

Eh your saying in 4 years your profit is 100 mil just by existing. That is pretty dang good.

[Artful Dodger]

The Bills are priceless.  You can't put a value on them.  

[ticketssince61]

4 hours ago, prissythecat said:

 

 

Here are 2024 figure for the Bills

 

Category Amount (2024 Fiscal Year)Source

National Revenue$432.6 million

Total Revenue$551 million

Player Expenses$282 million

 

Operating Income$101 million

Franchise Value$4.2 billion

 

 

 

Total revenue [$551] minus Player Expenses [$282] = $269 but op income is $101.

 

What makes up the $159 of additional expenses? How much is for coaches/GM/employees? stadium lease pmts?  travel? .... ???

[Mr. WEO]

32 minutes ago, ticketssince61 said:

 

Total revenue [$551] minus Player Expenses [$282] = $269 but op income is $101.

 

What makes up the $159 of additional expenses? How much is for coaches/GM/employees? stadium lease pmts?  travel? .... ???

[hondo in seattle]

Companies are often valued using a multiple of EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization).  For example, an independent, non-chain restaurant is usually valued around  2 or 3x EBITDA.  Taco Bells typically sell for about 8x EBITDA.  

 

The EBITDA multiples in the NFL are crazy high.  The annual revenue generated by an NFL team doesn't begin to justify the price.  Nearly any other American business investment gives you a better financial ROI.   But then there's the emotional ROI - and the profit you make when you sell since valuations appreciate.  

 

Bills data from a 2024 CNBC article

Valuation: $5.35 billion

Revenue: $551 million
EBITDA: $29 million
Debt as a percentage of value: 7%

 

If the Bills were a Taco Bell franchise with that EBITDA number, they'd be valued at around $240 million.  In reality, they have an EBITDA multiple of something like 200x.  The NFL is a unique beast.  

[pennstate10]

15 minutes ago, hondo in seattle said:

Companies are often valued using a multiple of EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortization).  For example, an independent, non-chain restaurant is usually valued around  2 or 3x EBITDA.  Taco Bells typically sell for about 8x EBITDA.  

 

The EBITDA multiples in the NFL are crazy high.  The annual revenue generated by an NFL team doesn't begin to justify the price.  Nearly any other American business investment gives you a better financial ROI.   But then there's the emotional ROI - and the profit you make when you sell since valuations appreciate.  

 

Bills data from a 2024 CNBC article

Valuation: $5.35 billion

Revenue: $551 million
EBITDA: $29 million
Debt as a percentage of value: 7%

 

If the Bills were a Taco Bell franchise with that EBITDA number, they'd be valued at around $240 million.  In reality, they have an EBITDA multiple of something like 200x.  The NFL is a unique beast.  

I’m not sure that I believe an Ebita of $29 mil is correct. What are they spending $522 mil on?  If this was after interest, amort,  depreciation I might believe it. 
 

Just because something is on the internet doesn’t mean it’s true. 

[hondo in seattle]

18 minutes ago, pennstate10 said:

I’m not sure that I believe an Ebita of $29 mil is correct. What are they spending $522 mil on?  If this was after interest, amort,  depreciation I might believe it. 
 

Just because something is on the internet doesn’t mean it’s true. 

 

Agreed. 

 

I don't rely on random internet (mis)information.  In this case, the source was a CNBC article written by Michael Ozanian who knows more about NFL finance than I do.  Since the Bills aren't telling us their EBITDA, I went with his number which I assume is close since this is his professional area of expertise.  

 

His bio...

 

Michael Ozanian is the Senior Sports Reporter for CNBC, based at the network’s Global Headquarters in Englewood Cliffs, N.J. He is a lead reporter for CNBC’s business of sports vertical, CNBC Sport. Ozanian focuses on the intersection of sports and money, and provides his unique rankings of the most valuable sports leagues and teams. He reports on breaking news, insights, and analysis of the inner workings of the sports industry across all CNBC platforms.

Prior to CNBC, Ozanian was with Forbes where he began in the statistics department in the mid-1980s and later transitioned into writing about high-priced stocks. Most recently, he served as an Assistant Managing Editor at the company and Managing Editor and Co-Host of Forbes SportsMoney, a four-time Emmy Award winning television show on the YES Network. While at Forbes, Ozanian also created the “SportsMoney Index,” which ranks the most valuable athletes, brands, teams and sports agencies based on a combination of their individual values, and value of the top athletes, brands, teams and agencies they do business with.

Ozanian received his MBA from Long Island University and his bachelor’s degree from Siena College.