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Sports Valuation
The valuation of a sports franchise is an important piece of the sports business world as it affects everything from the sale of a franchise to ticket pricing to payroll considerations. Franchises complete valuations for various reasons, including, but not limited to, purchase price allocation, examining current operations, forecasting future budgets, and evaluating marketing effectiveness.
Assessing where value lies within a franchise is integral from an operational standpoint as well as for forecasting future financial performance. AbsoluteBrand has the capability to provide a financial snapshot of a franchise in its current state and then address where value can be improved or even realized.
The valuation of sports franchises have been generating headlines in the past few years as the sale prices of franchises continue to grow and even surpass the $1 billion mark. So where does all of that value lie within a franchise?
When examining the value of a franchise are many demand drivers but the most significant drivers of value include the following:
- Revenue Streams
- Ticket Sales
- Stadium Deal / Lease Situation
- Market Size
- Television Broadcast Deals
- Intangible Assets
- “Prestige” Factor