Washington Redskins valued at $1 billion?

[SunDancer]

Reading Forbes.com for a business paper I am writing, I came across the NFL's 2004 team values. The top team was the Redskins, valued at $1 billion. This makes them the highest valued team in all of North American sports (including the Yankees). I am curious, how are the Redskins worth so much. Sure, they are in a big market (but not NY, Chicago or LA), with a team close by (Baltimore), and a 2-to-3-year old stadium that does have the perks, but have not made a trip to the Super Bowl in 13 years, or made it into the playoffs very often. Also, are football and sports team worth the money from an investment and business operation standpoint?

[wade moore]

There is a piece you are missing here. One of the most loyal and rabid local fanbases in the country. There is something like a 10-15 year waiting list to get season tickets. Snyder makes a FORTUNE on concessions. One thing he did when he came into town is increase the profit in the stadium by adding more seats, more amenities, and jack up prices.

They will sell out if they don't make the super bowl for another 13 years, which means it does not matter what their performance is because they will still make money.

[Maple Leafs]

I believe they have the highest ticket prices in the league.

I always assumed it was due to being in a government town -- you know, lots of money flowing around, lots of clients to take out, so sky's the limit on the expense accounts.

[John Galt]

I think the real reason the Redskins are worth so much is because Snyder overpaid for them. I believe the sale price was $800 million. It is pretty reasonable to assume some appreciation since then. Valuing sports franchises is a funny business - there are no comparables and they only rarely are for sale. Using past sale numbers and projecting appreciation is about the only way to do it.

[albionmoonlight]

Having worked at a big law firm in DC, I can attest to the fact that $$$ is no object when it comes to the Skins. People would throw around hundreds of dollars for tickets, parking, concessions, etc. without thinking twice about it.

[henry296]

I think since when Synder bought the team he also bough FedEx field, the value of the stadium is included in the value of of the team.

[Dutch]

I think that's correct. But I agree, when I lived in Norhtern Virginia for a few years, the people there were rabid over the Redskins. They rank right up there with Packer and Browns fans, just not as goofy looking (well, okay, they are just as goofy looking). :)

[Alf]

I think that's correct. But I agree, when I lived in Norhtern Virginia for a few years, the people there were rabid over the Redskins. They rank right up there with Packer and Browns fans, just not as goofy looking (well, okay, they are just as goofy looking). :)Are not Raiders fan in the same ballpark ? A stupid question from an overseas 49ers fan :D

[clintl]

Are not Raiders fan in the same ballpark ? A stupid question from an overseas 49ers fan :D

The Raiders fans are indeed rabid, but there aren't enough of them to fill the stadium each week.

[QuikSand]

This in't all that hard to understand -- for whatever reason, the Redskins have a deep and loyal local fan base, more so (at least on the first count) than any other NFL team. That translates to a substantial and very secure income stream from ticket sales, broadcast rights, promotional stuff, concessions, and so forth. Generally, a business is worth the capitalized value of its future income stream. The fact that Redskins' income stream is not only very generous but very secure makes them "worth" the most right now -- it's hard to argue against that logic.

[Alf]

The Raiders fans are indeed rabid, but there aren't enough of them to fill the stadium each week.Thanks, that was the info I needed.

[clintl]

FWIW, if Al Davis had never moved the team to LA, the Raiders would sell out every week and have a long waiting list, too. They never had problems with attendance before the move. Davis likes to try to shift the blame to "broken promises" by Oakland officials, but the truth is that he betrayed the fans in Oakland once with his greed, and a lot of people will never forgive him for that, and never trust him again. Especially since he's still trying to claim territorial rights to LA.

[Dutch]

Yep, the Oakland Raiders or the fan base is nothing like what I perceived it to be in 1983 (?) or before...

[Franklinnoble]

Somewhere Jack Kent Cooke is smiling. Or spinning in his grave.

As said before, the Redskins have an enormous, affluent, loyal fan base. They have a waiting list that's like 4x the capacity of their stadium.

And they play in the largest stadium in the NFL.

And they own said stadium outright. And it's practically brand new.

Jack Kent Cooke made the team into a winner in the 80's. He fought tooth and nail with the city of Washington D.C. just to get access to the land to build a replacement for RFK. Bear in mind... he was not asking for the city to build the stadium... he just wanted to have permission to build his own.

It never happened. And that's a damned shame, because a new, privately funded stadium in downtown D.C. would have done wonders for that city.

He tried N.Va, but too many NIMBY freaks killed the deal.

Finally, he ended up in Landover. Built the ballpark with his own money. The only public funds used were for infrastructure improvements.

Then he died right before it opened.

Snyder didn't overpay for the team. It was an established, financially sound franchise with an incredibly loyal and wealthy fan base, and they owned their own brand-new ballpark.

Since then, Snyder has pimped the hell out of the team. New TV deals. Countless new streams of advertising revenue. More seats in the stadium. Marketing and merchandising deals. Etc, etc. The Redskins generate more revenue than any other team in sports.

Oh, and Joe Gibbs is back... ;)

So, yeah, they're worth every bit of $1 billion.

[Cap Ologist]

Somewhere Jack Kent Cooke is smiling. Or spinning in his grave.

As said before, the Redskins have an enormous, affluent, loyal fan base. They have a waiting list that's like 4x the capacity of their stadium.

And they play in the largest stadium in the NFL.

And they own said stadium outright. And it's practically brand new.

Jack Kent Cooke made the team into a winner in the 80's. He fought tooth and nail with the city of Washington D.C. just to get access to the land to build a replacement for RFK. Bear in mind... he was not asking for the city to build the stadium... he just wanted to have permission to build his own.

It never happened. And that's a damned shame, because a new, privately funded stadium in downtown D.C. would have done wonders for that city.

He tried N.Va, but too many NIMBY freaks killed the deal.

Finally, he ended up in Landover. Built the ballpark with his own money. The only public funds used were for infrastructure improvements.

Then he died right before it opened.

Snyder didn't overpay for the team. It was an established, financially sound franchise with an incredibly loyal and wealthy fan base, and they owned their own brand-new ballpark.

Since then, Snyder has pimped the hell out of the team. New TV deals. Countless new streams of advertising revenue. More seats in the stadium. Marketing and merchandising deals. Etc, etc. The Redskins generate more revenue than any other team in sports.

Oh, and Joe Gibbs is back... ;)

So, yeah, they're worth every bit of $1 billion.

Not too mention they had you running the shots for awhile!

[SunDancer]

Somewhere Jack Kent Cooke is smiling. Or spinning in his grave.

As said before, the Redskins have an enormous, affluent, loyal fan base. They have a waiting list that's like 4x the capacity of their stadium.

And they play in the largest stadium in the NFL.

And they own said stadium outright. And it's practically brand new.

Jack Kent Cooke made the team into a winner in the 80's. He fought tooth and nail with the city of Washington D.C. just to get access to the land to build a replacement for RFK. Bear in mind... he was not asking for the city to build the stadium... he just wanted to have permission to build his own.

It never happened. And that's a damned shame, because a new, privately funded stadium in downtown D.C. would have done wonders for that city.

He tried N.Va, but too many NIMBY freaks killed the deal.

Finally, he ended up in Landover. Built the ballpark with his own money. The only public funds used were for infrastructure improvements.

Then he died right before it opened.

Snyder didn't overpay for the team. It was an established, financially sound franchise with an incredibly loyal and wealthy fan base, and they owned their own brand-new ballpark.

Since then, Snyder has pimped the hell out of the team. New TV deals. Countless new streams of advertising revenue. More seats in the stadium. Marketing and merchandising deals. Etc, etc. The Redskins generate more revenue than any other team in sports.

Oh, and Joe Gibbs is back... ;)

So, yeah, they're worth every bit of $1 billion.


Nice recap. So they Skins play in Maryland, outside of DC? Any other NFL fan base has the large, affluent, loyal that can compete with Washington, in terms of its appeal and ability to have season tickets?

[Franklinnoble]

Nice recap. So they Skins play in Maryland, outside of DC? Any other NFL fan base has the large, affluent, loyal that can compete with Washington, in terms of its appeal and ability to have season tickets?
Maybe the NY Giants, or perhaps the Dallas Cowboys. No other franchise comes to mind.

The Packers sell out constantly, and have a long waiting list, but I wouldn't call their fan base "affluent." Besides, I think the Packers are publicly owned, and it's probably not possible for them to be sold.

[JeeberD]

Should be interesting to see how much the Cowboys value jumps when the new stadium is built...

[Franklinnoble]

Should be interesting to see how much the Cowboys value jumps when the new stadium is built...
It should go up a bit, but it'll never match the Redskins, as the Cowboys are not going to own the new ballpark.

FedEx Field probably counts for about a third of the Redskins overall value.

[SunDancer]

It should go up a bit, but it'll never match the Redskins, as the Cowboys are not going to own the new ballpark.

FedEx Field probably counts for about a third of the Redskins overall value.

Agreed. Any word on the NFL going back to LA?

[Franklinnoble]

Agreed. Any word on the NFL going back to LA?
There won't be any "official" word on that until after it's already happened.

The Cardinals were a leading candidate, until they got their new stadium deal done in Glendale.

If it's gonna happen, I'd guess it'd be the Colts. Although I'd never rule out the Raiders moving again. Al Davis is very unhappy with the stadium arrangement in Oakland. The Chargers are a possibility... and, hell, I wouldn't put it past the 49er's ownership.

The bottom line is that there's no strong ownership group in LA with a stadium plan lined up and money to buy and relocate an existing team. And there's no municipal government pushing hard for a new stadium to lure a current owner. So I don't really see it happening anytime soon.

[Bearcat729]

Maybe the NY Giants, or perhaps the Dallas Cowboys. No other franchise comes to mind.

The Packers sell out constantly, and have a long waiting list, but I wouldn't call their fan base "affluent." Besides, I think the Packers are publicly owned, and it's probably not possible for them to be sold.

When that rat bastard Modell moved out of Cleveland I remember a story about the Packers. It is possible that the team be sold and move out of the city but the contract is set up that any money made from the sale of the team would go to an American Legion post or a cub scout troupe I can't remember which.

[SunDancer]

When that rat bastard Modell moved out of Cleveland I remember a story about the Packers. It is possible that the team be sold and move out of the city but the contract is set up that any money made from the sale of the team would go to an American Legion post or a cub scout troupe I can't remember which.

Would that detert someone from buying the Packers?

Also, what about the Bears in Chicago?

[Eaglesfan27]

The Saints are also a potential threat to move to LA. However, the rumors I've heard is that the NFL is seriously considering expansion for LA as opposed to allowing a team to relocate there.

[Aylmar]

When I got on the Steelers season ticket waiting list three years ago, they told me 10-12 years was a reasonable window to expect to get them. They haven't sold a walk-up ticket since 1970. Their fanbase, however, is not nearly as affluent as the 'Skins. Rabid, however. :)

[SunDancer]

The Saints are also a potential threat to move to LA. However, the rumors I've heard is that the NFL is seriously considering expansion for LA as opposed to allowing a team to relocate there.

I've heard that too. But 33 teams in the current NFL aligement? Wouldn't make sense.

[bigdawg2003]

after all the realignment the NFL had to go through to accomodate the Texans, i can't possibly see them adding another team. Either the Saints, Colts, Cardinals, or Chargers will end up in LA