Street Speculator

Forbes magazine annual ranking of NFL team values were published this week. There were no surprises with the top 3 highest valued teams: Dallas Cowboys, Washington Redskins, and the New England Patriots.

What was surprising was the fact that the NFL now has 19 teams worth at least $1billion dollars. This is unprecedented. These high valuations are definitely due to the proliferation of new stadium construction and those currently under construction. These new stadiums shower the owners and their respective teams with revenue, revenue not included in the league-wide revenue sharing system.

If you view the fundamentals, although valued at high dollar values, these teams generate a rather small amount of revenue compared to the values. The Washington Redskins generated $327 million in revenue, the largest amongst all 32 teams. However, of that $327 million, they made a profit of $58 million. A paltry sum compared to a commanding price in the event of a sale.

To the NFL as a league, CONGRATULATIONS. Stick around for more. The Major League Baseball Chicago Cubs is on the sales block. Word is, they may fetch between $1.1 and $1.3 billion.