How have sports empires been built?

The concentration of capital is becoming a trend in the sports industry. The more the value of sports properties rises, the more inaccessible it becomes for fortunes that, until less than a decade ago, could still afford this investment. However, major soccer clubs and franchises in the NBA, NFL, and MLB They no longer fall below a billion-dollar valuation, reducing purchasing power to a small elite. The same one that ends up controlling different organizations instead of having just one. These are and this is how the great sports empires have been built.

The 25 great sports empires have reached a valuation of 173,000 million dollars (158,720 million euros) in 2023, according to Forbes. It is an increase of 23% compared to the previous year, and this list does not include large organizations such as the Golden State Warriors (the most valued in the NBA) or Real Madrid and FC Barcelona (the most valued in soccer), since that do not belong to any business group or fund with more than one sports asset.

The leader of this ranking is Liberty Media, Formula 1 owner and the Atlanta Braves of the MLB. The World Championship of motorsports has been valued at 17,100 million dollars (15,700 million euros), and came to receive an offer from the sovereign wealth fund of Saudi Arabia for 20,000 million, according to Bloomberg.

The Arab country has not yet entered this list, although as its investment in sports continues, it continues to gain positions. If it does Abu Dhabi via City Football Group (CFG), the only group that is not North American and has its operations center in Europe. However, despite having one of the most famous soccer teams, it remains out of the top ten and is in twelfth position, with a total valuation of 5,960 million dollars (5,468 million euros).

The only non-US group is the CFG, controlled by the United Arab Emirates.

The second is not strictly North American -yes, the bulk of its sports business is Joe Tsai, owner of the Brooklyn Nets and other sports organizations, already at number 23. The co-founder of the Chinese ecommerce giant Alibaba has the triple nationality of Hong Kong, Taiwan and Canada, although his residence is in New York and all his investments are concentrated in American sports.

Another of those who has risen without brakes in recent years has been RedBird Capital, the investment firm led by Gerry Cardinale. It comes in at number 25 after investing in Fenway Sports Group (the fourth most valuable property organization) and buying AC Milan and Toulouse FC, as well as Yes Network, the local audiovisual partner that has the rights to the Nets, among others. teams.

However, the valuation of the properties held by Tsai, Fenway, Abu Dhabi or Saudi Arabia are still very far from the sports giants, where purely entertainment businesses are mixed with real estate linked to stadiums. The number two position is for Kroenke Sports & Entertainment, with assets valued at 12,750 million dollars (11,700 million euros). He has achieved the sports monopoly in the state of Colorado and also has Arsenal FC in his possession and the NFL’s Los Angeles Rams.

The podium is closed by a single investor, Jerry Jones. He is the owner of the Dallas Cowboys, the most valued franchise in the NFL. In addition, he also has capital placed in Legends, The Star media outlet, and GameSquare Esports. The fourth place, as indicated, is from Fenway, where LeBron James is a shareholder. He controls the Boston Red Sox, Liverpool FC, the Pittsburgh Penguins, and other organizations in various industries.

None of the largest sports holdings have investments in Spain

Another classic giant of the sports industry, and the only one listed, is Madison Sqare Garden Sports, owned by the Dolan family. He owns the New York Knicks and New York Rangers, as well as an entire media conglomerate and telecommunications infrastructure that make it one of the most valuable companies in the United States, not just in sports.

Below are other large groups, all of them owners of the most valued franchises in the MLB and the NFL, mainly, although none comes close to a valuation of 10,000 million among all their assets. The Kraft Group (New England Patriots), Yankee Global Enterprises (New York Yankees, among others), Paul Allen’s family office (Seattle Seahawks and Portland Trail Blazers), and Maple Leaf Sports & Entertainment (owner of all the major sports teams) stand out. Canadians).

From the top-10 will come, presumably, the glazer family, that Manchester United has put up for sale. She also owns the Tampa Bay Buccaneers, and her two clubs are currently valued at $7.53 billion. None of the large holding companies on the list have any Spanish sports property.

The concentration of capital is becoming a trend in the sports industry. The more the value of sports properties rises, the more inaccessible it becomes for fortunes that, until less than a decade ago, could still afford this investment. However, major soccer clubs and franchises in the NBA, NFL, and MLB They no longer fall below a billion-dollar valuation, reducing purchasing power to a small elite. The same one that ends up controlling different organizations instead of having just one. These are and this is how the great sports empires have been built.