How Much Is The Right To Blackmail And Steal Worth??

Forbes Magazine, is out with it’s list of the estimated values of the various pro football franchises. (which I actually can’t get at to easily today cause I am working right now off a little low speed mooched wireless.) According to the Post’s story, the Cowboys hold the top spot with a value of $1.5 Billion, with second and third held by the Patriots, and Redskins. Pittsburgh comes in at #16 with a value of only $929 million. Five teams have estimated franchise values over 1 Billion, but one can see from the list that a lot of teams are in that zone. Forbes is guessing that only Cleveland’s franchise may have slipped in value.

A big factor in changes in team value seemed to relate to new stadiums which I am just sort of guessing that few of these teams paid for on their own. The value of both the Jet’s and Giant’s rose due to plans for a new stadium.

“Thanks to a new $1 billion stadium set to open in 2009, the Cowboys’ value increased by 28 percent — by far the largest jump among NFL teams this year — to $1.5 billion. They bumped the Redskins off the top spot for the first time in the past eight years. The Cowboys climbed from third to first in the rankings, leapfrogging the Redskins ($1.467 billion) and the New England Patriots ($1.199 billion).

The new stadium added about $350 million to the Cowboys’ value. Jerry Jones can now boast that he owns the world’s most valuable sports franchise, according to Forbes.”

The normal value of businesses, (in a free market) relates to their projected future ability to please customers and includes factors like “brand value”, employee relations, skill of management and valuations of hard assets like plant, equipment and real estate. However in a market that is not free, a number of other factors play a big role, like relationships with politicians and insiders. In the case of major sports franchises, a large amount of equity value seems to come from the ability to blackmail taxpayers into giving them stadiums and all kinds of other stolen goods. I think this is a major reason that it’s almost unheard of for any team to decrease in value over time.

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