6 sports franchises that sold for over $1 billion
Tuesday's announcement that Texas businessman Tilman Fertitta will purchase the Houston Rockets from Les Alexander isn't the big story - the reported price tag is. The rumored $2.2 billion would be the largest amount ever paid for a sports franchise anywhere in the world.
The valuations of professional sports teams have exploded over the past two decades as a result of many factors - brand visibility and skyrocketing contracts for media rights chief among them. Forbes' annual rankings list several pro sports franchises worth over $1 billion today. However, here are the only five that have topped the mark in an actual sale (with the Rockets pending).
Houston Rockets (reported $2.2B)
While it still has to be approved by the NBA's Board of Governors, the Rockets' sale would set the new global benchmark. Alexander bought the team 24 years ago for $85 million and immediately ushered in an era of success: Houston won back-to-back championships in 1994 and 1995.
His return on investment is even more impressive. Even though the $85 million he paid in 1993 would be worth $144 million in 2017 dollars, the increase in the team's value under his ownership is almost 2,500 percent.
| Houston Rockets | |
|---|---|
| Reported sale price | $2.2B |
| Last sale price | $85M (1993) |
| Percentage increase | 2488% |
(Photo courtesy: Action Images)
Los Angeles Clippers ($2B)
The Clippers set an NBA record when Steve Ballmer paid $2 billion for the franchise in 2014. There are no guarantees an NBA franchise goes for 10 digits, however: The Atlanta Hawks sold the following year for around $800 million. Few markets beat Los Angeles, though, while Houston is the fourth-largest city in the United States.
Los Angeles Dodgers ($2B)
Eyebrows were raised when the Dodgers, another L.A. team, sold for $2 billion in 2012. The new owners, a group that includes Magic Johnson, have kept spending, too: Since the sale, the team has never fallen below second in MLB payroll in a season.
Manchester United ($1.47B)
Perhaps the world's most recognizable sports brand, Manchester United became the first professional concern to go for over $1 billion U.S. when the late Malcolm Glazer took control via buyout in 2005.
(Photo courtesy: Getty Images)
Buffalo Bills ($1.4B)
In a testament to the degree to which the NFL still rules the North American sports roost, a team that hasn't appeared in the postseason since last century - and plays in the league's fifth-smallest market - fetched a record sale price. Terry and Kim Pegula paid $1.4 billion for the Buffalo Bills in 2014. The team enters the 2017 campaign with an NFL-high 17 consecutive playoff-free seasons.
Miami Dolphins ($1.1B)
As further evidence of the rapid increase in valuations over the past decade, the Dolphins' sale to Stephen Ross for $1.1 billion in 2008 represented a record for a North American sports franchise. Within four years, the Dodgers had almost doubled it.