The New York Giants are gaining in value even though there’s a pandemic going on and revenues are sure to suffer. You would be wrong to assume that. NFL Team values are up 7% from last year and there are now four teams valued over $4 billion according to Forbes Magazine:
Dallas Cowboys: $5.7 billion
New England Patriots: $4.4 billion
New York Giants: $4.3 billion
Los Angeles Rams: $4 billion
“Last season, NFL franchises posted $477 million of revenue, on average, and generated $109 million of operating income per team, trouncing the NBA ($70 million), MLB ($50 million) and NHL ($25 million).
That helped the league start this season with scant debt relative to team values, despite some $10 billion of credit that it can make available to teams at cheaper rates than they could borrow individually because the debt is backed by the leagueâ€™s long-term, guaranteed media deals. NFL team owners can stack up to $500 million of debt on their teams and another $150 million of debt on a special purpose entity.
And while the pandemic is likely to cut average team revenue by about a third and leave the NFL facing a breakeven year, the downturn will be short lived. The NFL will likely soon sign new national media rights deals that will begin in 2023 and are expected to average roughly $15 billion a year, twice the value of its current media agreements.”
The Giants are up 10% in value since 2019, even though they’ve only won 12 of their last 48 games and no longer have popular players such as Eli Manning and Odell Beckham, Jr. They have an operating income of $168 million with a yearly revenue of $547 million and debt/value percentage of 11.
They had $98 million in gate receipts last year that they will not come close to recouping this year as there doesn’t appear to be any word on whether or not fans will be permitted to attend games in New Jersey.