Raiders Franchise Value Soars To $5.1 Billion, Biz Magazine Says
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By Alan Snel of LVSportsBiz.com
The value of the NFL Las Vegas Raiders skyrocketed by 49 percent over last year, according to Forbes annual NFL team value report.
The magazine pegged the Raiders’ value at $5.1 billion, which was ninth in the 32-team National Football League. The Raiders had an operating income of $116.5 million, according to Forbes.
The top five teams, according to the business publication, were Dallas Cowboys at $8 billion, New England Patriots at $6.4 billion, Los Angeles Rams at $6.2 billion, the New York Giants at $6 billion and the Chicago Bears at $5.8 billion.
Raiders owner Mark Davis has a Southern Nevada-subsidized NFL domed stadium to thank for the meteoric rise in his team’s value.
The Raiders also have the most expensive average game ticket in the NFL, while generating the most ticket revenue in the league.
The Raiders were among four NFL teams that saw their value increase by more than 40 percent. The other three teams were the Bears, Bills and Browns.
The Raiders’ stadium certainly makes the franchise a valuable commodity, but it’s the multi-billion-dollar media rights contracts that help make the NFL teams so valuable. The average NFL team value was $4.47 billion thanks to media deals that account for an astounding 61 percent of the teams’ revenues. The teams also share slightly more than 70 percent of all football-related revenues, Forbes said.
But the Raiders’ palatial stadium means the team can charge premium prices for its luxury seating options after the new venue brought in more than a dozen founding corporate partners that signed on for $30 million sponsorship deals after the stadium opened in 2020.
The Raiders’ division rival, the Denver Broncos, was just sold for a record $4.65 billion to the Walmart heir Rob Walton.
The Raiders play the Patriots in their final preseason game at Allegiant Stadium Friday. Look for LVSportsBiz.com coverage from Raiders camp Tuesday and Wednesday this week and our live game coverage Friday.
