The 50 Most Valuable Sports Franchises 2012 - Forbes

[Mardukis]

Originally Posted by NY2FLDWC85

No love for my Rays? Damn.

Empty seats don't count. trop is a dump...move to the fairgrounds and capture some Orlando market.

[sg3]

Originally Posted by SAR I

Yes.

The StubHub carpetbaggers haven't helped us one iota, buying tickets below face. The old time fans on the lower level that stayed with us for two years have left us now, pretty funny how back-to-back AFC Championship seasons had them feeling good about the upper deck and the 8-8 collapse has them running for the exits saying they're the worst seats on Earth. Nice fans they are.

It's the loyal, diehard PSL owner that's the lifesblood of the franchise. I'm very proud of what we've helped Woody Johnson achieve.

SAR I

+1

The reason why the Jets value has dramatically increased to the current level is the value of the new stadium as compared with the old dump in which the Giants got pretty much all the concessions, all the parking and all of everything during Jets home games --- the worst stadium deal any team in the NFL had.

The new stadium where they finally get their rightful share of revenues (ALL) for their home games is a HUGE factor. The new stadium was privately financed and there was considerable debt originally. However with the assistance of the best of all Jet fans through their PSL purchases, the sellout of all non luxury seats every year and the increased revenues that will be arriving from the new network TV deals, this debt is now at a much more reasonable level and THUS the value of the franchise has jumped up to one of the top sports franchises in the world.

A great job by the great base of Jet fans in supporting their team where it matters

[DDNYjets]

And just imagine how much more they would be worth with their own stadium. MetLife is a dump and it still added value.

[SAR I]

Originally Posted by DDNYjets

And just imagine how much more they would be worth with their own stadium. MetLife is a dump and it still added value.

Ever take a business course?

The Jets just leaped to the top of the most valuable list after decades of being the the top of the least valuable list. The Jets make 100% of the profit for the 10 days a year they play there and they get the Giants to eat 50% of the losses on the 345 days a year it sits there empty, the world's largest chip 'n dip.

If the Jets had their own stadium they'd be way down on the list. The easiest way to increase value? Add a third team. The more teams that share this facility the better. It's the NFL. They only need it 10 days a year.

SAR I

[FijiJet]

Originally Posted by NY2FLDWC85

So, now only the "PSL Owners" have supported the team?

Thanks SAR. First useful thing you've done all week.

Amazed that expansion franchise Texans is worth that much.

Equally incredible that all NFL teams made it but probably not all NBA and baseball franchises. I wonder what the average salary is across those sports.

I think that at one time the broad average for the NBA salary was above the NFL.

[sg3]

Originally Posted by SAR I

Ever take a business course?

The Jets just leaped to the top of the most valuable list after decades of being the the top of the least valuable list. The Jets make 100% of the profit for the 10 days a year they play there and they get the Giants to eat 50% of the losses on the 345 days a year it sits there empty, the world's largest chip 'n dip.

If the Jets had their own stadium they'd be way down on the list. The easiest way to increase value? Add a third team. The more teams that share this facility the better. It's the NFL. They only need it 10 days a year.

SAR I

Lets see..... the total value of the franchise is listed at 1.2 billion

so let's figure out how much additional debt the Jets would have incurred in the expenditure of the entire 1.6 billion that the new stadium cost all on their own. Or even worse built it in New York City or Long Island with unionized labor costs 40 percent or more higher than those where it was built AND land acquisition costs.

My guess is that Mr Johnson would have incurred debt of roughly 2 billion or more vs the 800M involved in Jet Life Stadium because of the cost sharing with the Giants.

That would translate into PSLs of 50-75K in the LLSL and clubs, 15-25 in the mezzanine and LLEZ and 5K or more in the UD in addition to game day costs in the Bob Kraft range averaging between 250 to 300 dollars a game per seat


As a reference, here is an interesting article regarding the PSL and gameday costs of Jerry's Cowboy stadium which cost only about 1.2 billion financed by only one team owner...


Staggering Prices for Cowboys PSLs


Fri, Dec 7th 2007 1:19 pm EDT


Big Bucks for New Stadium Personal Seat Licenses

By Alfred Branch, Jr.

Fans will have to shell out some serious cash for the right to purchase premium seats for the Dallas Cowboys when the team starts playing in its new stadium 2009.

According to the team, personal seat licenses (PSLs) for Club seats in the new $1 billion, state-of-the-art stadium will start at $16,000 and reach $150,000. For each seat. Just for the right to then buy tickets that will start at $340 a piece, or $3,400 for eight home games and two preseason matches. The PSLs give fans the right to purchase a ticket for that seat for 30 years. The breakdown, depending on where the seat is located, is $16,000, $35,000, $50,000, $100,000 and $150,000, based on a chart published by the Dallas News.

The team expects to sell about 15,000 PSLs for Club seats, all of which are located in the lower levels between the endzones PSLs for the remaining 65,000 seats in the stadium will go on sale in 2008, but prices for those PSLs have not been announced.

The fees for these licenses are considered the most expensive in the history of the NFL, according to published reports, and will help pay for the new stadium. Cowboys tickets consistently rank among top-selling sports events in TicketNews’ listings.

“They’re not going to get that much,” said Texas ticket broker Doug Goodman, who was shocked by the prices. “It’s still two years away, so those prices will probably drop.”

Another Texas broker, who wished to remain anonymous because he plans to purchase seat licenses to the new stadium, said brokers will have a tough time making money on the Club seats when they carry a face value of $340 a piece. The equivalent of Club seats in the Cowboys current home cost between $100 and $150 each, which he then can regularly resell for more than $300.

“The way they’re pricing it, the best seats in the house have been eliminated from everybody except the very wealthy,” he said about the exorbitant PSLs. “They’re basically financing the stadium before they even sell a ticket. It’s a great business plan.”


Maybe DDNY is wealthy enough to deal with such costs but I'm not sure they could find enough others to be able to fill up the joint.

[Apache 51]

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NFL Team Valuations
#5 New York Jets
09.10.08, 6:00 PM ET
< Previous: New York Giants Next: Houston Texans >

www.newyorkjets.com

Team Value 1 $1.2 bil


Robert Wood Johnson New York Jets
are owned by Robert Wood Johnson IV,
who bought them in 2000
for $635 mil.

Player-costs-to-win ratio 8 46
Coach Eric Mangini



Sport: Portion of franchise's value attributable to revenue shared among all teams. Market: Portion of franchise's value attributable to its city and market size. Stadium: Portion of franchise's value attributable to its stadium. Brand Management: Portion of franchise's value attributable to the management of its brand.

The skinny
The Jets not only solved their annual quarterback problem when they signed Brett Favre during training camp, they obtained a badly needed identity for their franchise. For giving the Packers a 2009 draft pick that could will be somewhere from the first to the fourth round (depending on how many games Favre plays and how far the Jets go in the postseason) and the $12 million they will pay the three-time league MVP, the team gives fans a reason to buy personal seat licenses to their new stadium. The Jets will share their new stadium with the Giants beginning in 2010. The PSLs will allow the team to more quickly pay off the debt used to finance the stadium. Also, almost immediately after the future Hall of Famer signed with the Jets, Favre jerseys were the top selling merchandise and the waiting list for season tickets jumped by 10,000.

Major corporate sponsors are Gatorade, Anheuser-Busch (nyse : BUD), Sprint Nextel (nyse: S), MasterCard (nyse: MA), Capital One Financial (nyse: COF).
Historical Snapshot



Dates are when valuations were published; figures for most recently completed season.


1-Yr Value Chg. 21%
Ann. Value Chg. 2 8%
Debt/Value 3 68%
Revenue 4 $213 mil
Operating Income 5 $25.9 mil
Player Expenses 6 $129 mil
Gate Receipts 7 $52 mil
Facility Information

Giants Stadium
Owner: New Jersey Sports and Exhibition Authority
Year Opened: 1976
Capacity: 80,242
Cost To Build: $78 mil
Concessionaire: Aramark
Average Ticket Price: $82



Revenue and operating income are for 2007 season and net of revenue sharing and stadium debt service.
1Value of team based on current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt).
2Current team value compared with latest transaction price.
3Includes stadium debt.
4Net of stadium revenues used for debt payments.
5Earnings before interest, taxes, depreciation and amortization.
6Includes benefits and bonuses.
7Includes club seats.
8Compares the number of wins per player payroll relative to the rest of the NFL. Postseason wins count twice as much as regular season wins. A score of 120 means that the team achieved 20% more victories per dollar of payroll compared with the league average.
NA: Not applicable.
Team Logos Courtesy NFL.

Rank
Team
Current Value ($mil)
1-Yr Value Change (%)
Debt/Value (%)
Revenue ($mil)
Operating Income ($mil)





< Previous: New York Giants Next: Houston Texans >

[DDNYjets]

Originally Posted by SAR I

Ever take a business course?

The Jets just leaped to the top of the most valuable list after decades of being the the top of the least valuable list. The Jets make 100% of the profit for the 10 days a year they play there and they get the Giants to eat 50% of the losses on the 345 days a year it sits there empty, the world's largest chip 'n dip.

If the Jets had their own stadium they'd be way down on the list. The easiest way to increase value? Add a third team. The more teams that share this facility the better. It's the NFL. They only need it 10 days a year.

SAR I

Yes and I understand the shared liabilities and costs argument.

Those decades where they were on the bottom of the list was b.c they did not own a share of anything, they were a tenant. So now with half ownership, they jump to near the top. With full ownership of a stadium, in a prime location, I think they would be worth even more. Even if they would have to shoulder all the costs and liabilities themselves. You are conveniently leaving out the rest of the year where they can host concerts. And if they would have put a roof on the place, they could have used it in the winter as well.

And I believe for the purposes of this article, each team's debt was not taken into consideration. That would alter the landscape. A lot of the new ownership groups have debt.

[GuidoYaztremski]

Originally Posted by DDNYjets

Yes and I understand the shared liabilities and costs argument.

Those decades where they were on the bottom of the list was b.c they did not own a share of anything, they were a tenant. So now with half ownership, they jump to near the top. With full ownership of a stadium, in a prime location, I think they would be worth even more. Even if they would have to shoulder all the costs and liabilities themselves.

And I believe for the purposes of this article, each team's debt was not taken into consideration. That would alter the landscape. A lot of the new ownership groups have debt.

That's correct. The list of the most profitable teams would look dramatically different. As would a list of teams that have given their owners the largest increase in value after debt calculations.

[Mardukis]

Originally Posted by SAR I

Ever take a business course?

The Jets just leaped to the top of the most valuable list after decades of being the the top of the least valuable list. The Jets make 100% of the profit for the 10 days a year they play there and they get the Giants to eat 50% of the losses on the 345 days a year it sits there empty, the world's largest chip 'n dip.

If the Jets had their own stadium they'd be way down on the list. The easiest way to increase value? Add a third team. The more teams that share this facility the better. It's the NFL. They only need it 10 days a year.

SAR I

Unless you're the GIANTS. Then you actually get a home playoff game once in a while.