Candidate for Deletion
Cheesehead
- Joined
- Jul 25, 2017
- Messages
- 357
- Reaction score
- 19
Yes, I grant that, but you also have to admit that the valuations are highly speculative, given the enormous costs of upkeep with the associated developed real estate, the fact that a drop in income from television due to a drop in ratings could very easily scare off current investor stock, a reduction in popularity (if also resulting in lower game time turnout) could cause local municipalities to be less willing to absorb costs associated with teams, etc etc. There's a lot that could go wrong really quickly to result in the teams being enough of a liability so as to tank their values.You have to understand that those valuations include enterprise values (equity plus net debt) based on the multiples of revenue of historical transactions, as well as offers to buy and invest in teams currently on the table. The values are based on each team’s current stadium (with adjustments for pending new stadiums and renovations) as well as revenue from non-NFL events, like concerts and stadium tours, is included when such revenue is pocketed by the team owner or an entity the owner controls.