Sports team valuations soar: It's not just the Lakers experiencing a surge inworth
Hey there, sports freak! This week, we're dishing the deets on dough to give you a full-on money-focused edition of Trendlines.
You already know that the Los Angeles Lakers are one hot ticket, and the Buss family knows it too - that's why they're selling the team for a cool $10 billion. Mind blown, right?
Let's take a step back to understand just how unbelievable this deal is. Back in 1979, when Jerry Buss first scooped up the Lakers, the price tag was just under $100 million. Not bad for a team that went on to win 11 NBA championships during their ownership. That's more than twice the record set by any other team over this time frame.
Now, hold up before you say, "Rats! I wish my investments had grown that much!" The Lakers' increase in value isn't just due to their on-court success. No sir-ee! The entire industry has been booming, and it's all about those media deals. The NBA, NFL, and other leagues have been able to secure mega-dollars from streaming and TV companies, which has skyrocketed the value of teams league-wide.
In fact, even the average team is worth a fortune these days. By 2025, an NBA team is worth almost $5 billion on average, while a NFL team's value has soared to more than $6 billion.
You might say, "But the Lakers are special. They're in LA, doll! They're gonna be valuable no matter what!" Well, sure, that adds to their value, but the same trend of massive media deals and increased revenue streams has benefited every team, not just the Lakers. The Buss family's insane fortune is pretty much what every team owner is dreaming of.
Here's the full rundown:
- Trending Up: Lakers’ Franchise ValuationThe Lakers were sold for a whopping $10 billion valuation – a massive leap from the mere $100 million Buss paid in 1979. That's an increase of over 10,000% if we're not taking inflation into account. Even after considering inflation, the value has jumped roughly 4,000%.
- Trending Up: Average NBA Franchise ValuationThese days, the average NBA team is worth almost $5 billion. In 1995, the average team was valued at a measly $100 million. But thanks to those golden media deals, team values have increased about 4,000% over the years.
- Trending Up: Average NFL Team ValuationNFL teams were worth under $200 million on average in 1995. Now, we're talking well over $6 billion for the average team. That's a crazy increase of about 4,000% in just 30 years.
- Despite the Lakers' on-court success, the unprecedented $10 billion sale price isn't solely due to their achievements. The entire sports industry, particularly finance from media deals in football (NFL) and basketball (NBA), has experienced exponential growth, contributing significantly to the skyrocketing values of teams.
- As a result of these lucrative media deals and increased revenue streams, the average NFL team is now worth more than $6 billion, marking a staggering 4,000% increase from its 1995 valuation. Similarly, the average NBA team, which was worth just $100 million in 1995, is currently valued at almost $5 billion, reflecting a comparable period of financial growth.
