Sports Empires With The Highest Value In 2023
Forbes has recently reported that Liberty Media, the entity that possesses Formula One, has secured the top spot as the most valuable "sports empire" globally in 2023
Forbes has recently reported that Liberty Media, the entity that possesses Formula One, has secured the top spot as the most valuable “sports empire” globally in 2023.
Liberty Media And Its Value
In addition to being the proprietor of Formula 1 and the Atlanta Braves, Liberty Media has invested in various sports entities, including the Drone Racing League, Kroenke Arena Co., Meyer Shank Racing, and Overtime Sports. According to a report published by Front Office Sports, Liberty Media’s investment portfolio in the sports industry is valued at $20.8 billion, and it holds ownership stakes of 50% or less in these ventures. This significant investment has propelled Liberty Media to the forefront of the sports industry, establishing it as the most valuable sports empire.
The sports industry owned by Liberty Media has emerged as the wealthiest entity with a whopping $21 billion valuation. This dominant position is attributed to Liberty’s ownership of major sporting assets such as the Atlanta Braves MLB franchise, which is valued at $2.1 billion, and the Formula One motor racing circuit, with an enterprise value of $17.1 billion. The company is headed by the renowned billionaire, John Malone.
Liberty Media’s acquisition of Formula 1 in late 2016 for $4.4 billion from a group of sellers led by Bernie Ecclestone and the private equity firm CVC was a strategic move that bolstered its position in the sports industry. Interestingly, prior to the change in methodology, Formula 1 was excluded from the Forbes annual rankings until 2021.
The combined value of the top 25 sports dynasties in the world has witnessed a remarkable 23% increase to reach $173 billion in total valuation. This year, a new 10% premium has been added to a sports empire’s overall worth to reflect the scalability that comes with owning multiple sports enterprises. Despite this new addition, the top 25 sports empires have performed significantly better than the previous year, experiencing a 12% increase and reaching $158 billion even without the premium.
F1’s total worth for 2023, which factors in any outstanding debts, has been estimated at $17.1 billion. This valuation is a direct result of FIA President Mohammad Ben Sulayem’s tweets, which were aimed at cautioning potential investors against overpaying for the racing franchise. The tweets were prompted by reports that the Public Investment Fund of Saudi Arabia had contemplated purchasing F1 for a sum exceeding $20 billion.
Liberty Media, the current owner of F1, has seen a substantial increase in valuation, with a gain of $7.8 billion since 2021 and a $3.6 billion surge since 2022. These gains have led to a current valuation of $20.8 billion, which has steadily climbed year after year. In terms of viewership, F1’s cumulative TV audience for 2021 saw a 4% increase from the previous year, and US viewership spiked in 2022, resulting in record viewership numbers reported by ESPN.
John Malone’s Next Step For Atlanta Braves
It appears that the owner of the Atlanta Braves, John Malone, is preparing to reap the rewards of his investment by putting the 2021 World Series champions up for sale. The Braves’ revenue for the first nine months of 2022 surged to $535 million, a significant increase from the $466 million recorded during the same period in 2021. This boost in revenue can be attributed, in part, to the new Braves stadium and The Battery Atlanta, a mixed-use development that has been major contributors to the team’s financial success.
Over the past year, the tracking stocks of both the Atlanta Braves and Formula One have experienced impressive growth rates of 5% and 35%, respectively, while the S&P 500 has seen a decline of 13%. These positive trends suggest that the market is responding well to the success of the Braves and Formula One, making them potentially lucrative investments for interested buyers. With such promising financial indicators, it seems likely that John Malone’s decision to sell the Atlanta Braves could result in a substantial return on his initial investment.
Ways To Achieve Success in the Industry
Through the exploitation and expansion of their trademarks and intellectual property, team owners have discovered a valuable opportunity. This has been achieved through various methods, such as investing in additional teams, acquiring media rights at premium rates, expanding content distribution via streaming services, cross-promoting sponsorships through diverse sporting assets, developing mixed-use real estate projects, and investing in sports-related technologies, analytics, sports betting, and niche sports, such as indoor lacrosse.
While Malone stands out among sports empire proprietors, as he uses stock to support his strategies, many others rely on their most valuable teams instead. Some opt for dominating their local market, while others aim for a global reach. Ted Leonsis, the wealthy owner of Monumental Sports and Entertainment, stands out as a prime example of commanding influence in the local market. He boasts ownership of both the NBA Wizards and NHL Capitals teams in Washington, as well as the Capital One Arena, their shared home venue.
Furthermore, Leonsis recently gained complete control of NBC Sports Washington, having acquired the remaining 66% ownership stake, which grants him authority over the distribution of his content. With a staggering valuation of $4.51 billion, MSE currently ranks 20th on the list of most valuable sports franchises. In a bold move to expand his sports empire, Leonsis made the acquisition of the MLB’s Washington Nationals, further cementing his dominance in the local sports oligopoly.
The vast empire of Stan Kroenke’s Kroenke Sports and Entertainment is a shining example of a global-minded business. The organization boasts an impressive collection of high-profile teams, including the NFL’s Los Angeles Rams, the NHL’s Colorado Avalanche, the NBA’s Denver Nuggets, and England’s Arsenal soccer team. Ranked second on this year’s list, KSE boasts an enterprise value of $12.75 billion, indicative of the company’s formidable success.
Demonstrating a clear passion for real estate development, Kroenke has invested over $5 billion of his personal fortune into the SoFi Stadium, which will serve as the home field for his beloved football team. The surrounding Hollywood Park, which will offer a diverse array of amenities, ranging from gastronomic delights to fitness centres and artistic performances, reflects Kroenke’s unwavering commitment to creating immersive experiences for fans and visitors alike.
Contribution Of Other Enterprises
Ranked third on the list of the most valuable sports team owners by enterprise value is Jerry Jones, the proprietor of the NFL’s Dallas Cowboys, whose total worth stands at an impressive $11.32 billion. According to Forbes, the Cowboys are currently valued at an unprecedented $8 billion, a testament to their continued success and widespread popularity. The fourth spot on the list is held by Fenway Sports Group, the proud owners of Boston Red Sox, Liverpool FC, and Pittsburgh Penguins, with an enterprise value of $10.4 billion. Madison Square Garden Sports, the parent company of the New York Knicks and Rangers, comes in at fifth place with a total enterprise value of $9.17 billion.
Completing the top 10 are a diverse range of entities, including The Glazer family, Paul G. Allen Trust, The Kraft Group, Yankee Global Enterprises, and Maple Leaf Sports & Entertainment. Finally, RedBird Capital Partners, which possesses an enterprise value of $3.6 billion, is positioned at the base of the rankings.
As investment firms continue to explore opportunities in team ownership, they are increasingly seeking to acquire larger stakes in sports clubs. Despite regulatory limitations on institutional investors’ ownership in North American leagues, such as the NBA, MLB, and NHL, and the NFL’s outright ban on such ownership, investment firms may still leverage the power of well-established European brands to gain greater control over these teams. By strategically aligning with a renowned European brand, investment firms could potentially acquire a substantial ownership share and exert greater influence over the direction of these teams.
Proofread & Published By Naveenika Chauhan
