Why team valuations are up across all sports leagues

TheStreet's Colin Salao breaks down the reason behind the explosive rise in value of professional sports teams.

Transcript

00:00 And why are we seeing valuations go up across all professional sports leagues, not just the NBA?

00:06 Yeah, again, all professional leagues. The NBA is growing at 35% year on year, according to Forbes.

00:12 But the NFL and the NHL are also growing at double digit year on year growth in terms of valuation.

00:18 And even smaller growing leagues like the NWSL, MLS, they're seeing huge growth.

00:26 And the big reason for that, I think, is because sports is stable in a media environment that is evolving significantly.

00:34 Sports has been able to bring fans through, you know, cord cutting. People are no longer watching cable as much.

00:40 They're moving into these streaming services, social media is taking over.

00:44 But live sports continue to get millions and tens of millions of viewers.

00:49 And so from the broadcasters all the way to sponsors, they're seeing that and they're thinking,

00:55 "Well, we can keep putting our money into that because no one's going to stop watching sports."

01:00 And so that's driving up valuation or keeping people interested.

01:03 And particularly for the NBA, their media rights deal is coming up in two years.

01:08 So people are expecting that to double, potentially triple.

01:12 And so that's why valuations are also increasing with the expectation of this new revenue that's about to come in.

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