NFL Team Values Increase on Sports Betting Expansion, Raiders Franchise Gains Nearly $1.5B
Posted on: September 5, 2019, 09:52h.
Last updated on: September 6, 2019, 12:10h.
NFL team values are soaring after the Supreme Court’s May 2018 decision to end a longstanding federal ban on sports betting, and the Oakland Raiders – soon to call Las Vegas home – are one of the largest benefactors.
Forbes this week released its annual Most Valuable Teams in the NFL list, and the financial media outlet said the average franchise saw their valuations soar 11 percent over the last 12 months. Interested in buying a team? The average franchise is $2.86 billion.
The increase comes largely from more lucrative media deals. Contracts with Comcast, CBS, Walt Disney, Fox, and AT&T are all set to expire in 2022, and television ratings were up last year following two years of declines.
The expansion of sports betting will additionally assist in growing audiences and associated ratings.
Sports media analyst Lee Berke told Forbes that NFL wagering will “add to the value of media deals by increasing the size of the audience, as well as increasing the time the audience is watching a game with the help of augmented broadcasts.”
Sports betting is now operational in 13 states. Those joining Nevada since the SCOTUS decision include Indiana, New Jersey, New York, and Pennsylvania – four states home to where NFL teams play.
Raiders Value Surges
The Dallas Cowboys – aka America’s team – remain on top at $5.5 billion. But the greatest year-over-year team value increase comes by way of the Oakland Raiders.
Following owner Mark Davis’ wishes to relocate the storied franchise built by his father Al to Las Vegas, and the league ownership’s approval, the Raiders value jumped significantly. Over the last 12 months, the Raiders have seen its worth increase 20 percent, with the team now valued at $2.9 billion.
The Raiders are ranked No. 12 of the 32 NFL teams. The assessment is largely dependent on the team’s future value, as the franchise reported operating income of $28 million. By comparison, No. 14 Pittsburgh Steelers had operating income of $102 million, and No. 10 Philadelphia Eagles had $150 million.
The Raiders’ $28 million income is the least amount of revenue of every single team in the league.
Sports Betting Impact
The American Gaming Association (AGA) recently released its study on anticipated 2019 NFL betting plans by American adults. The survey – conducted by Morning Consult of 11,001 US adults – found that 15 percent of American adults (38.1 million) say they will place a wager on an NFL game this season.
Thirty-nine percent said they were “avid” NFL fans, and 24 percent of all Americans “would like to be bet on the NFL if it was legal and convenient to do so in their state.”
Three out of four said they’re likelier to watch an NFL game if they bet money on it.
Caesars Entertainment is an official casino partner of the NFL, but unlike the MLB, NBA, and NHL, the pro football league continues to prohibit sports betting operations from being advertised at its stadiums.
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