Raiders Stadium Talk Drives Team Value Higher As NFL Numbers Soar

Sports practice group leader and San Francisco Managing Partner Richard Brand discussed the multibillion dollar trend with the Business Times, addressing this year’s headlines involving the Oakland Raiders, San Diego Chargers, and Los Angeles Rams.

Each of these franchises saw major jumps in franchise value as they considered moves and new stadiums. The San Francisco 49ers, now starting their third year at the $1.3 billion Levi’s Stadium, exemplify this trend. The team hit the $3 billion valuation mark for the first time- 145 percent higher than their 2013 value. Rich represented the 49ers in their naming rights and sponsorship transaction with Levi’s.

Sports franchise valuations have been climbing for almost three decades, Rich told the Business Times. “If there’s a bubble, it’s a big bubble.”

The teams’ varied financial portfolios are a major factor: media rights, sponsorships, stadium naming rights deals, and real estate development are all driving up the valuations, Rich said. “If the components go up together, that’s why the values increase,” he said. The limited availability of teams – 32 NFL franchises and 30 each in Major League Baseball, the National Basketball Association, and the National Hockey League – also affects the market. “There’s a cachet in team ownership,” he said.

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