Forbes NFL Team Valuation List Bogus?

[erpowers]

As of now I think Forbes Magazine's list of NFL team values is bogus. Does anyone else think the list is bogus? Forbes lists five teams in the NFL that are supposedly worth a billion or more. Those teams are: the Washington Redskins, the New England Patriots, the Houston Texans, the Dallas Cowboys, and the Philadelphia Eagles. The only teams that I think should be worth $1 billion are the New England Patriots and the Dallas Cowboys. I am having a hard time believing that the Washington Redskins, the Houston Texans, and the Philadelphia Eagles are worth $1 billion, especially the Houston Texans. I contend the Houston Texans should be the least expensive team in the NFL. Last year even the New Orleans Saints had a better record than the Texans. In addition, the Texans at the most only had two winning seasons since they were formed and they have never won a super bowl. The Texans are ranked higher than many teams that have won multiple super bowls.

I understand that the current owner of the Washington Redskins paid about a billion to buy the team, from what I understand he paid more for the team than what it was worth at that time. So I do not see how a team can be worth a billion dollars just because someone was willing to overpay for the team. Finally, even though the Philadelphia Eagles have had pretty good season lately I just do not see how they can be worth $1 billion.

[Ravenseye]

1. It's more complicated than the results of the schedule

It has to do with revenue generally. Houston may suck for instance, but they're in one of the largest markets in the country and have a disproportionatly large share of it because Houston is underrepresented by teams. So the television revenue, radio revenue, stadium rights, boxes, tickets, etc. It adds up. Different owners market their teams better, that's why New England and Washington are up there. New England isn't up there because they won those superbowls. They helped, but it's mostly because Kraft was smart enough to capitalize on it.

It's a whole slew of factors. If it was just by popularity the Steelers would be high up on the list for instance, because they have one of the largest followings nationwide, but they are also in a tight market that supports more teams than it probably can, and they're not as good at marketing as other teams. Plus local revenue is much lower than in other locations, such as Dallas or Philadelphia.

It's also not just market size, otherwise the Jets would be very valuable. They're not up at the top though because they have such a large amount of competition for viewers from the thirty million other teams in the city.

Etc.

Team valuation is a complicated business but it mostly comes down to revenue generation.

[Captain Hilts]

2. Location, timing, etc.

If the Dallas Cowboys were sold this week, they might be worth as much.

BUT, you have to remember, when it comes to Washington, part of the value is the value of political access: big political mukety mucks go to the games and often sit in the owner's box. You can't put a price on that access and the prestige it represents.

Also, as a team that's been around since the 30s, the name/logo recognition is very high. The Dallas Cowboys, NYYankees, ChiBulls, Boston Red Sox, like the Redskins, have logos recognized around the world.

[northzax]

3. it's all about revenue generation

and the Redskins are better than it than anyone else. There is a thirty year waiting list for the most expensive tickets in the NFL. you cannot get parking, unless you have season tickets, then you are required to buy it, for $25/game (times ten games) the team owns it's stadium, which is fairly new and paid for. it leads the league in concession sales. it broadcasts radio coverage of the games on radio stations owned by, you guessed it, the Redskins. it has a website that gets a million hits a week. it licences itself to everyone and everything.

last year, the Skins had the largest payroll in the league, the highest paid coaching staff (this year there are three coaches making a combined 10 million) and the team still makes money. let's not forget that 5 of the country's ten wealthiest counties are in Skins country. the team generates almost $175 million a year in revenue- 1.4 billion is not a high price for that.

stop thinking of it as sports and start thinking like a business.

[erpowers]

4. Saw Those Things

I noticed many of those things when I looked at the list. I saw how much money the Washington Redskins were making and realized that Houston was the fourth largest city with only a few other major sports to compete with the football team, but I thought that the superbowls would cause a teams value to be more. Thanks to all for the other information about licenses and parking.

[Captain Hilts]

5. Remember, the NFL is socialism that works. A team doesn't...

make THAT much more for winning the Super Bowl, and most licensing for products goes through the NFL that redistributes the money in a fairly even way.

It's not like baseball or basketball or hockey at all.

[erpowers]

6. What's Your Opinion

So what is your opinion on that? Bryant Gumbel seems to not like at least some parts of it. How do you feel?

[Captain Hilts]

7. It's why the NFL is competitive and the NBA and baseball are not.

Makes sense to me.

The Packers get just as much tv money as the Giants.

[NJ Democrats]

8. WTF?

Houston is worth $1B plus? And the Giants aren't?

[Jack Rabbit]

9. Forbes is the same jerk who says Castro is one of world's wealthiest men

He does this by counting Cuban government assests as Castro's private property. Of course, Mr. Bush much be that much wealtier, since he would, by that reasoning, own all those nuclear weapons.

Now, of course, that's a red herring, but why should I take Mr. Forbes seriously?