Great to hear your on this topic As a sport fan, seeing clubs with rich owners disturbing the transfer market and buying players for crazy numbers has been frustrating.
Thank you, enjoyed your analysis. A real life toy story! I couldn't help but imagine the cowboy character Woody saying, "...there's a snake in my boot!" (But perhaps more interestingly, Buzz's catch phrase... "to infinity, and beyond"...?)
1. Your comment on price comparison is spot on. The Glazers held out on Manchester United sale because of the $6 billion price tag of the Washington Commanders. They would not let go of Manchester United for anything less than $6 billion. 2. You mentioned that the sports are becoming more like a media business. How do you think the broadcasting rights will play out over the long term and their impact on the media companies that continue to face heightened scrutiny on profitability? 3. It would be interesting to see how Financial Fair Play rules in soccer and salary caps in US sports will help curve the inflated prices of these assets over time. Thank for the great contents as usual.
As a NFL fan I wanted to say I really enjoyed the video and it had a lot of good information. One thing I would like to point out is your information on the NFL TV contracts didn't include Sunday Ticket which the NFL sold to RUclips a few months ago for an additional $2 billion per year, they will also be getting a bit more from the commercial venues like bars, restaurants and hotels. In your conclusion about how payroll will change from teams that generate the most revenue to teams with the wealthiest owners won't really impact the NFL under the current rules either. The NFL has a salary cap and cash spending floor so overtime all teams will spend relatively close to the same amount although it can vary widely year to year.
You mentioned the LA Clipper, valued at about $700 million. Steve Ballmer paid $2 billion, so the $1.3 billion is more or less a trophy value for Steve. In the long run, the rise and fall of a team is more or less tied to the owners' wealth.
I appreciate this analysis. Let me add two separate points. Firstly, having a sports franchise in Cleveland is probably an extremely valuable asset. No matter what type of product Cleveland teams put out in a given year, there will always be next year, the fans will keep buying the latest gear and tuning in to that tv and radio. Secondly, all these owners in every city demand that the municipalities and counties pay for their stadiums and if those governments do not agree to coerce their tax-paying citizens to fund those venues then the owners move their teams to another city.
Perfect timing - Media deals portion of a franchise continue to shake up college football conferences. What started with Texas & Oklahoma last year still hasnt ended. More teams realigning to position themselves into conferences with better media deals.
Interesting, in the Premier league-podcasts i listen to there has been a lot of talk about seeing a future where more American owners come in and take over and try to commercialize the sport even more. Making the teams more an investment rather than thinking about success on the pitch. Trying to move teams into a closed league like NFL for example (Super league) so there is no risk of relegation and giving the team-owners more control. And doing things like all-star games etc to increase the earnings. The talk of a Super league had a big backlash from the fans but I feel like it will probably be a reality in a not too distant future.
My life project consists of becoming the best professional in the field of Corporate Finance. Specifically, to provide services in the area of Valuation with excellence. I have been learning a lot about the subject from the books and videos produced by Professor Aswath Damodaran. May God continue to bless you!
@AswathDamodaran Do you consider Supercars, cars produced as a 1/20/1-50/1-500 to be trophy assets as well? These cars don't behave like other cars do and can often be sold for higher prices than originally purchased.
i think including bundesliga in this would have been interesting. I have heard their business models are different compared to other european football leagues
Sir, in 19:29 the information about IPL media rights share is incorrect. IPL media rights are split equally between teams irrespective of their performance.
Thanks for the lecture. Looking into the financials of Man United I get around 500 million, and they supposedly rejected a 5 bln bit already. With 10% margins and 25% ROIC I can only get to 500 million in equity value, given the pretty big debt position...
This was quite interesting! It might be intriguing for you to look at GiveWell's impact evaluations for charities or try to do one yourself taking DALYs/QALYs as social impact metrics
If I own an NFL Team that would literally be one one the few "things" in this world that are priceless. Because even if a was offered a trillion $, you cant just buy another one... Its only 32 of them around and none of them for sale basically ever...
I suppose this might give the publicly traded teams some extra diversification value in a portfolio, since collectible prices tend to behave differently than stock prices.
Great video, how did you explain PE firms buying sports teams? Does it make sense for them to overpay when looking for a good ROI? Is this why in cases like Man Utd, levering the business makes mgmt take decisions to not let cash flow out of the business consequently hurting on the field performance?(would this not reduce the multiple they can sell the business at down the line?)
It's basicly the same as in Formula 1 with Gene Haas and Lance Stroll. However being a very capital intesive sport sometimes a seat doesn't go to the best driver but the driver with sponsors, the right nationality and/or social media following. Top sport is all about money.
Can you value Manchester United? The fair value is nowhere near what has been communicated as the bidding prices but the Glazers want more so even as a trophy asset would would someone want to pay £7b more than fair value?
I began my investment journey at the age of 33, primarily through hard work and dedication. I am to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity...
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $500k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
My advisor is *Nolan Velden Brent* , a renowned figure in his line of work. I recommend researching his credentials further. He has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
A fool knows the price of everything but the value of nothing. This video makes one thing clear. It’s better to become a World Champion boxer. You only have to work for 2 days per year and earn $300 million. Sharing with your small training support of 4.
So Sports franchises are now more like Art , Paintings rich people buy hoping that there is a greater fool coming around the next decade. Show off until you have it and hope the next fool keeps running with the hype.
Building these concepts around a topic that I’m actually interested in makes me so much more engaged with the material
Great to hear your on this topic
As a sport fan, seeing clubs with rich owners disturbing the transfer market and buying players for crazy numbers has been frustrating.
Superb sir Something new apart from equities !!
You are the best Guru of valuations ❤️❤️
Very interesting topic, thank you!
Thank you, enjoyed your analysis.
A real life toy story! I couldn't help but imagine the cowboy character Woody saying, "...there's a snake in my boot!" (But perhaps more interestingly, Buzz's catch phrase... "to infinity, and beyond"...?)
Love you sir
we all do
1. Your comment on price comparison is spot on. The Glazers held out on Manchester United sale because of the $6 billion price tag of the Washington Commanders. They would not let go of Manchester United for anything less than $6 billion.
2. You mentioned that the sports are becoming more like a media business. How do you think the broadcasting rights will play out over the long term and their impact on the media companies that continue to face heightened scrutiny on profitability?
3. It would be interesting to see how Financial Fair Play rules in soccer and salary caps in US sports will help curve the inflated prices of these assets over time.
Thank for the great contents as usual.
Thanks for the great video! Very interesting topic, by the way.
As a NFL fan I wanted to say I really enjoyed the video and it had a lot of good information.
One thing I would like to point out is your information on the NFL TV contracts didn't include Sunday Ticket which the NFL sold to RUclips a few months ago for an additional $2 billion per year, they will also be getting a bit more from the commercial venues like bars, restaurants and hotels.
In your conclusion about how payroll will change from teams that generate the most revenue to teams with the wealthiest owners won't really impact the NFL under the current rules either. The NFL has a salary cap and cash spending floor so overtime all teams will spend relatively close to the same amount although it can vary widely year to year.
I would like to thank you for all your work. I was struggling in finances and accounting studies, and your work helped me a lot. Thank you :)
You mentioned the LA Clipper, valued at about $700 million. Steve Ballmer paid $2 billion, so the $1.3 billion is more or less a trophy value for Steve. In the long run, the rise and fall of a team is more or less tied to the owners' wealth.
There is an MBA typo on slide 17
Very good timing of this video. The Glazers decided not to sell Man Utd but really they would if they had the right price.
I appreciate this analysis. Let me add two separate points. Firstly, having a sports franchise in Cleveland is probably an extremely valuable asset. No matter what type of product Cleveland teams put out in a given year, there will always be next year, the fans will keep buying the latest gear and tuning in to that tv and radio. Secondly, all these owners in every city demand that the municipalities and counties pay for their stadiums and if those governments do not agree to coerce their tax-paying citizens to fund those venues then the owners move their teams to another city.
Grat content. To the point, easy to understand and sensible.
Thanks a lot!
I like how the show Billions explained it. Professional sports ownership is the closest thing the United States has to titled nobility.
Perfect timing - Media deals portion of a franchise continue to shake up college football conferences. What started with Texas & Oklahoma last year still hasnt ended. More teams realigning to position themselves into conferences with better media deals.
Thank you so insightful.
Cmon man.
Steve balmer made that face when he said “developers,developers,developers,developers…….”
Interesting, in the Premier league-podcasts i listen to there has been a lot of talk about seeing a future where more American owners come in and take over and try to commercialize the sport even more. Making the teams more an investment rather than thinking about success on the pitch. Trying to move teams into a closed league like NFL for example (Super league) so there is no risk of relegation and giving the team-owners more control. And doing things like all-star games etc to increase the earnings. The talk of a Super league had a big backlash from the fans but I feel like it will probably be a reality in a not too distant future.
Timely ❤❤❤❤ thank you😊
My life project consists of becoming the best professional in the field of Corporate Finance. Specifically, to provide services in the area of Valuation with excellence. I have been learning a lot about the subject from the books and videos produced by Professor Aswath Damodaran. May God continue to bless you!
@AswathDamodaran Do you consider Supercars, cars produced as a 1/20/1-50/1-500 to be trophy assets as well?
These cars don't behave like other cars do and can often be sold for higher prices than originally purchased.
Recommend watching al jazeera documentary (1h~) on the topic. At least football club sales is pure laundromat.
i think including bundesliga in this would have been interesting. I have heard their business models are different compared to other european football leagues
Sir, in 19:29 the information about IPL media rights share is incorrect. IPL media rights are split equally between teams irrespective of their performance.
Thanks for the lecture. Looking into the financials of Man United I get around 500 million, and they supposedly rejected a 5 bln bit already. With 10% margins and 25% ROIC I can only get to 500 million in equity value, given the pretty big debt position...
Definately a subject to be given consideration ❤
Simply Superb 🎯
The Green Bay Packers (NFL Franchise) is actually publicly traded. I’d be interested in your thoughts about that ownership model
That is not really true...the shares are not traded among the public or with others.
It’s not listed in public markets but privately marketed
This was quite interesting! It might be intriguing for you to look at GiveWell's impact evaluations for charities or try to do one yourself taking DALYs/QALYs as social impact metrics
If I own an NFL Team that would literally be one one the few "things" in this world that are priceless. Because even if a was offered a trillion $, you cant just buy another one... Its only 32 of them around and none of them for sale basically ever...
Please Speak Hindi sir ... Al lot people would join this channel ...your knowledge is so precious
Could Tesla be a trophy asset aswell given the deviation between value and price for that long?
Interesting.
Thx.
I suppose this might give the publicly traded teams some extra diversification value in a portfolio, since collectible prices tend to behave differently than stock prices.
Great video, how did you explain PE firms buying sports teams? Does it make sense for them to overpay when looking for a good ROI? Is this why in cases like Man Utd, levering the business makes mgmt take decisions to not let cash flow out of the business consequently hurting on the field performance?(would this not reduce the multiple they can sell the business at down the line?)
It's basicly the same as in Formula 1 with Gene Haas and Lance Stroll. However being a very capital intesive sport sometimes a seat doesn't go to the best driver but the driver with sponsors, the right nationality and/or social media following. Top sport is all about money.
Hey, Would you Consider F1 teams as Trophy Assets?
thik hai
can you show the data source?
Can you value Manchester United? The fair value is nowhere near what has been communicated as the bidding prices but the Glazers want more so even as a trophy asset would would someone want to pay £7b more than fair value?
I began my investment journey at the age of 33, primarily through hard work and dedication. I am to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity...
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
This is superb! Information, as a noob it gets quite to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $500k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
wow that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio..
My advisor is *Nolan Velden Brent* , a renowned figure in his line of work. I recommend researching his credentials further. He has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
❤❤❤❤❤
One point you don't mention is that for a foreign owner owning a team may create political cover or protection abroad.
A fool knows the price of everything but the value of nothing. This video makes one thing clear. It’s better to become a World Champion boxer. You only have to work for 2 days per year and earn $300 million. Sharing with your small training support of 4.
Sports laundering ?
So Sports franchises are now more like Art , Paintings rich people buy hoping that there is a greater fool coming around the next decade. Show off until you have it and hope the next fool keeps running with the hype.
❤❤❤❤❤