Forbes Announces NFL Franchise Values for 2003

Forbes has released their annual rankings of every NFL team in terms of dollar value and the Washington Redskins are at the top of the list, once again, with an estimated value of $952 million. Rounding out the top five is Dallas at No. 2 worth $851 million, followed by second-year franchise Houston at $791 million, New England at $756 million, and Cleveland at $695 million. The average NFL franchise is now worth approximately $625 million.

How is the value of a sports franchise calculated?

Forbes bases the value of a sports franchise on multiples of revenue. Most teams are valued at four times their annual revenue, but teams that are about to move into new stadiums or are moving into upgraded facilities have their multiple adjusted upward to reflect the added revenue the stadiums will generate. Teams that own their own stadiums are able to generate more revenue, thus, they are generally among the more valuable.

How does the NFL compare to other professional sports leagues in terms of franchise value?

Average Value
• National Football League - $625 million
• Major League Baseball - $300 million
• National Basketball Association - $250 million
• National Hockey League - $200 million

Why are NFL franchises valued so much higher than other pro sports franchises?

The reason NFL franchises are valued higher than other sports is because they have the highest national television deal, which brings in about $77 million annually per team.