Why Sports Teams Are Selling for Record Prices – And What It Means for Fans

Just months after the Boston Celtics broke records with a $6 billion sale, the Los Angeles Lakers have upped the ante with a $10 billion valuation – cementing their status as one of the most valuable sports franchises in the world. But even that record might soon be eclipsed, with the NFL’s New York Giants reportedly testing the waters with a minority stake sale that could push the team’s value even higher.

Behind these eye-popping figures lies a story of scarcity, streaming, ego, and economics – and fans are more entangled in this high-stakes market than they may realize.

A Seller’s Market for the Ultra-Rich
If it seems like the value of professional sports teams is skyrocketing, that’s because it is. Across leagues – from the NBA to the NFL – ownership stakes are being snapped up at unprecedented prices. And as Victor Matheson, a sports economics professor at the College of the Holy Cross, puts it, the trend is clear: “No one has ever lost money selling a sports team.”

For example, a 10% stake in the small-market Milwaukee Bucks sold last year, valuing the team at $4 billion – a dramatic jump from the $550 million paid for the entire team just a decade ago. And the sales aren’t slowing down. Consultants like Marc Ganis, who advise major league franchises, say the number of billionaires lining up to buy – even small stakes – is higher than ever.

So why the frenzy?

The Allure of Sports as a ‘Trophy Asset’
For investors with deep pockets, buying into a team is about more than return on investment. Sports franchises have become the ultimate trophy assets – rare, high-profile, and emotionally charged. “There are only so many teams to go around,” said Sal Galatioto, a veteran investment banker who specializes in sports deals. “It’s like owning a Picasso or a private island. There’s scarcity, and scarcity drives value.”

But scarcity alone doesn’t explain it. Live sports content has become one of the last bastions of mass viewership in an era of streaming, ad-skipping, and declining cable subscriptions. That makes sports programming a goldmine for broadcasters and, by extension, for the teams themselves.

“Sports content is the heartbeat of the media world,” said Lori Bistis, a partner at PricewaterhouseCoopers focused on sports business. “It’s reliable, it’s watched live, and it keeps fans engaged.”

Broadcast rights alone are driving up valuations. Streaming platforms, facing saturation and churn, are now chasing live sports in a bid to lock in subscribers—just look at Amazon’s NFL deals or Apple’s entry into Major League Soccer.

The Billionaire Buy-In

Buyers like Mark Walter, the billionaire CEO of Guggenheim Partners, are emblematic of this new wave of owners. Walter already had a 27% stake in the Lakers and needed only a portion of the team to gain majority control – without fronting the full $10 billion valuation.

His other investment, the Los Angeles Dodgers, is a case study in big spending: the team boasted the highest payroll in baseball last year at $338 million and is known for aggressive investment in talent and infrastructure. The results? A World Series win in 2020 and regular playoff appearances.

But even Walter’s financial firepower isn’t a guarantee of dominance. The New York Mets, who briefly held the highest payroll under billionaire Steve Cohen, were ousted by Walter’s Dodgers in the postseason – highlighting a hard truth in sports.

Deep Pockets Don’t Always Equal Wins

While fans often cheer the arrival of wealthy owners who promise to “spend whatever it takes,” the track record is mixed. Only twice in the last 15 years has baseball’s top-spending team won the World Series. And in leagues like the NFL or NHL, where salary caps level the playing field, money alone doesn’t win championships.

According to Matheson, only about 30% of a team’s success in baseball can be chalked up to payroll. “The rest comes down to smart management, health, chemistry – and luck,” he said.

Fans may want owners who spend big, but what they really want is a winning culture. And that doesn’t come with a checkbook.

What It Means for the Average Fan

For everyday supporters, billion-dollar franchise sales can feel like a world apart. But they do have ripple effects. Higher valuations often mean increased pressure to generate revenue – through ticket prices, merchandise, or exclusive content partnerships. Some fans may pay more for the same experience, while others could see improvements in stadium facilities, fan engagement, or digital access.

There’s also the question of identity. As new owners – often from finance or tech – take the reins, they may bring different priorities. Community ties can take a backseat to global brand building, changing what it means to be a local fan of a now-global team.

Still, in a world where sports remain one of the few shared cultural touchpoints, the passion of fans continues to be the engine driving these massive deals. Whether in a sold-out arena or watching from a couch, fans keep showing up – and the billionaires are taking notice.

As Matheson puts it: “They’re not just buying a team. They’re buying the loyalty of millions. And that’s something you can’t put a cap on.”