12 Mar Avantisteam Announced Global Conglomerates May Be Eyeing Your Sports Team. Look a…
A billion dollars: That is now the bargain-basement price for a major sports team in America. Another 10 years from now, it likely won’t even be enough to acquire a voting interest.
It isn’t entirely unreasonable. Investors know they are buying into a closed circle where the clubs are explicitly in business with each other. Profits from lucrative television contracts are shared, drafts ensure that talent spreads out, and there is no chance of dropping out of the league after a bad season.
But as valuations climb ever higher, a question looms: What happens when the price of NFL, NBA and Major League Baseball teams begins to exceed the reach of single parties? Sports investors, current owners and other industry observers say they envision a world where multinational investment vehicles and sovereign-wealth funds will be the only ones that can afford to buy high-profile teams. Once that happens, what does it mean for the future of these community institutions?