For the ultra-rich, owning a sports team has long been a coveted goal, but the real power move lies in expanding it into an empire, with multiple teams across various leagues. This strategic approach proves to be a winning formula for creating generational wealth, offering avenues such as cross-sponsorships, real estate development, and diversified distribution channels. A sports empire not only acts as a hedge during rebuilding years for individual teams but also serves as a lucrative investment that consistently pays off.
In the year 2024, the 25 most valuable sports empires worldwide boast an impressive aggregate enterprise value of $216 billion, averaging $8.6 billion—a notable 24% increase from the previous year. The primary driver behind this surge is the robust growth in team values, with an average 26% increase for the 124 teams across MLB, NBA, NFL, and NHL in 2023 compared to the previous year. Earning a spot on this coveted annual ranking has become increasingly challenging, with this year’s cutoff reaching $4.95 billion, marking a substantial 38% uptick from the preceding year.
The standout performer on this year’s sports empires list is Harris Blitzer Sports & Entertainment (HBSE), experiencing an extraordinary 155% growth to reach $11.9 billion. This remarkable increase is primarily attributed to Josh Harris’s acquisition of the Washington Commanders for a record $6.05 billion in July, consolidating HBSE’s influence across major sports leagues, including NFL, NBA, NHL, English Premier League, Nascar, and youth sports through Ripken Baseball.
A savvy strategy to monetize sports empires involves building them up substantially and then strategically slimming them down. Liberty Media exemplifies this approach, with Formula 1 auto racing as its most valuable sports property. While the aggregate value of Liberty’s ownership stakes in sports assets decreased by 12% to $18.2 billion, it maintains its top position on the list. Liberty’s decline is attributed to the spin-off of the Atlanta Braves in July, which currently holds an enterprise value of $2.6 billion.
In another intriguing development, the Ontario Municipal Employees Retirement System acquired a 5% stake in Maple Leaf Sports and Entertainment, the parent company of NHL’s Toronto Maple Leafs, NBA’s Toronto Raptors, and MLS’ Toronto FC. This strategic move, valued at $8.4 billion, underscores the attractiveness of obtaining a majority stake valuation for a minority share.
Monumental Sports & Entertainment, boasting teams like the Washington Capitals, Washington Wizards, Washington Mystics, and a controlling interest in esports franchise Team Liquid, sold a 5.52% stake to Qatar Investment Authority in June. This transaction, valued at $4.05 billion, highlights the growing trend of leveraging minority enterprise valuations.
Looking ahead, billionaire Stephen Ross, with significant stakes in the Miami Dolphins, Hard Rock Stadium, and Formula 1’s Miami Grand Prix, may be the next to sell minority shares in his sports empire, estimated to be worth $6.9 billion by Forbes.
Among the new additions to the 2024 sports empires list are the Jacobs Family and AEG, focusing on venues and related services to bolster their expansive domains. The Jacobs Family, led by billionaire Jeremy Jacobs Sr., owns the Boston Bruins and collaborates with over 50 major sports teams at their North American arenas and stadiums. AEG, aside from owning the Los Angeles Kings, holds stakes in arenas globally, exemplifying its commitment to supporting multiple teams across various sports. The landscape of sports empires in 2024 is undoubtedly a billion-dollar spectacle, where strategic investments and diversified portfolios are key to success.