The REsheets Vault: 2010 NFL Real Estate

2010 post

Let’s revisit a 4 year old NFL analysis with some current value.

We thought we’d take another look at one of our original and favorite posts:

Valuing the Commercial Real Estate Industry | Whats It Take to Own an NFL Team?

The title won’t fool you, it’s a doozy. In 2010, we analyzed the owners of all 32 NFL teams and came to one obvious conclusion: real estate plays a major role in NFL franchise ownership. This, of course, isn’t surprising considering ownership is a form of Commercial Real Estate – in very rare supply.

This time we’re looking at the statistics one more time. In 2014, the top 5 highest valued NFL franchises are as follows:

  • Dallas Cowboys: $3.2B
  • New England Patriots: $2.6B
  • Washington Redskins: $2.4B
  • New York Giants: $2.1B
  • Houston Texans: $1.85B

This is where it gets fun. Here are the respective purchase prices: $150M, $172M, $750M, $500.00, $700M.

But as we’d all like to own an NFL franchise for the unimaginable $500, it’s really the date of purchase that makes these investments so magnificent. Let’s see those respectively: 1989, 1994, 1999, 1925, 1999.

Now let’s line it back up with the pertinent information. What is the annual rate of return?

  • Dallas Cowboys: 13.0%
  • New England Patriots: 14.5%
  • Washington Redskins: 8.1%
  • New York Giants: 18.7%
  • Houston Texans: 6.7%

Turns out purchasing the New York Giants 89 years ago for $500 was the best investment. Congratulations founder Tim Mara. But if you were looking for a strong IRR with a shorter turnaround, Kraft and Jones seem to have the right idea as well. We hope you enjoyed our quick and dirty NFL numbers analysis as much as we did. As we all know, there are many more variables in calculating commercial real estate value than a purchase and selling price, that’s why we’ve crafted these commercial real estate analysis models. Thanks for reading!