10 Public Sports Franchises That May Entice Investors On Heels Of Denver Broncos Deal
The Denver Broncos are breaking records this week off the football field. The National Football League franchise is being sold to an ownership group that includes Rob Walton, one of the heirs of Walmart Inc. (NYSE:WMT), for a reported $4.65 billion.
The sale price tops the $2.4 billion price tag on the New York Mets in 2020 and the $2.275 billion paid for the Carolina Panthers (an NFL record) in 2018.
Walton ranks among the top 20 richest people in the world, with a wealth of $59 billion according to the Bloomberg Billionaires Index. While most can’t afford the billions needed to buy a pro sports team, there are several publicly traded sports teams and leagues that fans and investors could own partial stakes in.
Madison Square Garden Sports: One of the largest options for investors and fans to get a piece of professional sports teams is Madison Square Garden Sports Corp. (NASDAQ:MSGS). The publicly-traded company owns the New York Knicks (NBA) and New York Rangers (NHL). The company also owns minor league basketball and hockey teams and the esports team Counter Logic Gaming. The company has an enterprise value of $5 billion, significantly lower than the $6 billion value given to the Knicks and the $7 billion combined value of the Knicks and Rangers. Of note, the company does not have ownership of the Madison Square Garden area, which trades as Madison Square Garden Entertainment (NASDAQ:MSGE).
Atlanta Braves: The reigning World Series champ Atlanta Braves are publicly traded as Liberty Braves (NASDAQ:BATRA). The Braves are one of the most followed baseball teams and one of the winningest in league history. Owning shares in Liberty Braves includes the team, minor league assets, and portions of the real estate around Truist Park.
Manchester United: English Premier League soccer team Manchester United (NYSE:MANU) is one of the most popular teams in the world. Ranked third in value for world soccer teams, Manchester United is given a valuation of over $4 billion by several sports publications. The stock currently trades with a market capitalization of $2 billion and an enterprise value of $2.6 billion.
Formula One: Racing league Formula One is publicly traded as Liberty Formula One (NASDAQ:FWONA)(NASDAQ:FWONK). A Netflix Inc. (NASDAQ:NFLX) docuseries boosted viewership for races in the U.S., where the league added several races with a total of three coming in 2023. Instead of owning a piece of the individual racing teams, shareholders own a stake in the success of the overall Formula One league.
Endeavor Group: The owner of talent agencies WME and IMG also owns the UFC (Ultimate Fighting Championship). In 2020, Endeavor Group Holdings (NYSE:EDR) acquired the remaining portion of UFC that it didn't own for an estimated value of $3.5 billion. Today, the UFC is the largest mixed martial arts league in the world, with lucrative media deals and a chunk of its revenue from pay-per-view events.
Blue Owl Capital: A change to ownership rules by the National Basketball Association now allows private equity companies to acquire stakes in teams. Blue Owl Capital (NYSE:OWL), which went public via SPAC merger, is a minority owner of three NBA teams thanks to the new ruling. Shareholders of Blue Owl Capital own small stakes in the Phoenix Suns, Atlanta Hawks and Sacramento Kings.
Related Link: Elon Musk's Wealth Has Increased So Much He Could Buy Every MLB, NBA, NFL And NHL Team
Rogers Communications: Large Canadian telecommunications and media company Rogers Communications (NYSE:RCI) is the owner of the Toronto Blue Jays (MLB) and the Rogers Centre, home of the team. The company has expressed interest in selling the team to help fuel its acquisition of Shaw Communications (NYSE:SJR). Along with owning the Blue Jays, Rogers Communications is also a 37.5% owner of Maple Leaf Sports & Entertainment, which includes ownership of the Toronto Raptors (NBA), Toronto Maple Leafs (NHL) and several other sports assets.
Bell Canada: Canadian telecommunications and media company Bell Canada (NYSE:BCE) is also a 37.5% owner of Maple Leaf Sports & Entertainment, giving it partial ownership of several sports teams.
Enthusiast Gaming: Outside of the four major sports, several companies that are public own esports teams. Enthusiast Gaming (NASDAQ:EGLX) completed an uplisting to the Nasdaq and offers exposure to its large network of internet properties for video gamers and the ownership of several eSports teams.
FaZe Clan: One of the most well-known esports teams is going public via a SPAC merger valuing the company and team at $1 billion. FaZe Clan, which will trade with the ticker FAZE, is merging with B. Riley Principal 150 Merger Corp (NASDAQ:BRPM). FaZe Clan has 10 competitive esports teams and millions of fans worldwide.