Wednesday, 4 June 2014

If the Clippers went for $2 billion, what would the Cowboys or Redskins fetch?

The Los Angeles Clippers' sale might end up like Alex Rodriguez's Texas Rangers contract, so far over market value and outrageous that everyone practically ignores it when calculating future deals. But it's still
worth thinking about if the Clippers' sale represents the new market for sports franchises.

The Clippers were sold for $2 billion, way more than the estimated value of the franchise. Business Insider, via Yahoo Finance, looked at what other NBA teams might go for if the value of the franchises was multiplied by 3.48, which was the inflation on the Clippers' sale. The Knicks' hypothetical sale would be $4.87 billion, and the Lakers would go for $4.7 billion.

So let's try this exercise with the big boys, shall we? Of Forbes' 20 most valuable sports franchises, as valued in 2013 by the magazine, 12 were NFL teams. Five of the other eight were international soccer clubs. A sale of one of the top NFL franchises would create a frenzy.

Jerry Jones is never going to sell the Cowboys. No matter how much Redskins fans hope for it, Daniel Snyder isn't selling his team either. But what would each NFL team go for if the Clippers' sale is the new standard for selling teams? Again, the Clippers' sale might be the A-Rod contract, so insane that no other franchise ever sells for more than three times its estimated worth. And in two recent NFL sales, Shad Khan bought the Jaguars for a reported $760 million and Jimmy Haslam bought the Browns for $987 million, according to Forbes, prices that are actually less than the Forbes' 2013 value of $840 million and $1 billion, respectively.

But that was before the Clippers' sale. Who knows what the future market for franchises holds? Here's what each of the NFL franchises would sell for if the Clippers' inflation of 3.48 times the value of the franchise is multiplied by Forbes' 2013 valuation for each franchise. And, of course, in these hypothetical sales, profits from the sale of the publicly-owned Packers would go to the Green Bay Packers Foundation, per the team's bylaws.

1. Dallas Cowboys, $8.004 billion (actual value: $2.3 billion)
2. New England Patriots, $6.264 billion (actual value: $1.8 billion)
3. Washington Redskins, $5.916 billion (actual value: $1.7 billion)
4. New York Giants, $5.394 billion (actual value: $1.55 billion)
5. Houston Texans, $5.15 billion (actual value: $1.45 billion)
6. New York Jets, $4.8 billion (actual value: $1.38 billion)
7. Philadelphia Eagles, $4.573 billion (actual value: $1.314 billion)
8. Chicago Bears, $4.357 billion (actual value: $1.252 billion)
9. Baltimore Ravens, $4.27 billion (actual value: $1.227 billion)
10. San Francisco 49ers, $4.26 billion (actual value: $1.224 billion)
11. Indianapolis Colts, $4.176 billion (actual value: $1.2 billion)
12. Green Bay Packers, $4.117 billion (actual value: $1.183 billion)
13. Denver Broncos, $4.04 billion (actual value: $1.161 billion)
14. Pittsburgh Steelers, $3.891 billion (actual value: $1.118 billion)
15. Seattle Seahawks, $3.762 billion (actual value: $1.081 billion)
16. Miami Dolphins, $3.738 billion (actual value: $1.074 billion)
17. Tampa Bay Buccaneers, $3.713 billion (actual value: $1.067 billion)
18. Carolina Panthers, $3.678 billion (actual value: $1.057 billion)
19. Tennessee Titans, $3.671 billion (actual value: $1.055 billion)
20. Kansas City Chiefs, $3.511 billion (actual value: $1.009 billion)
21. Minnesota Vikings, $3.504 billion (actual value: $1.007 billion)
22. Cleveland Browns, $3.497 billion (actual value: $1.005 billion)
23. New Orleans Saints, $3.494 billion (actual value: $1.004 billion)
24. Arizona Cardinals, $3.344 billion (actual value: $961 million)
25. San Diego Chargers, $3.303 billion (actual value: $949 million)
26. Atlanta Falcons, $3.247 billion (actual value: $933 million)
27. Cincinnati Bengals, $3.216 billion (actual value: $924 million)
28. Detroit Lions, $3.132 billion (actual value: $900 million)
29. St. Louis Rams, $3.045 billion (actual value: $875 million)
30. Buffalo Bills, $3.027 billion (actual value: $870 million)
31. Jacksonville Jaguars, $2.923 billion (actual value: $840 million)
32. Oakland Raiders, $2.871 billion (actual value: $825 million)

So there you go. If you have an extra $8 billion laying around, start planning on offering it up for the Cowboys if they ever come on the market.

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