Valuations for sports franchises have reached unprecedented levels, boosted by limited availability and ongoing interest from billionaire investors. Investment banks like JPMorgan and Goldman Sachs have established dedicated divisions for sports investments. Record-breaking sales have occurred, such as the $10 billion valuation of the Lakers in June, surpassing the $6.1 billion sale of the Celtics earlier in the year. Over the past 25 years, NBA team values surged over 1000%, with the Lakers increasing by approximately 2677% since 2000, far outperforming the S&P 500 index during the same timeframe.
Mergers may have slowed but one asset class continues to increase in valuation and interest: sports team franchises. Some of the largest investment banks, such as JPMorgan Chase and Goldman Sachs, have created dedicated sports teams to cater to this group.
Valuations for major sports teams surged to record levels this year, with several leagues seeing their price tags increase by double and triple digit percentages. The highest price ever paid for a professional sports team was notched in June when Mark Walter, CEO of Guggenheim Partners, agreed to buy a majority stake in the Lakers in a deal that valued the basketball team at $10 billion.
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