The 2024 NFL franchise valuations have been released, showcasing the immense financial power of America’s most popular sports league. Topping the list once again is the Dallas Cowboys, now valued at an astonishing $11 billion, making them the first NFL franchise to surpass the $10 billion mark. This figure represents a significant increase from last year’s valuation of $9 billion.
Top Five Most Valuable NFL Teams
In CNBC’s latest rankings, the Cowboys are followed by the Los Angeles Rams, valued at $8 billion, and the New England Patriots at $7.9 billion. Rounding out the top five are the New York Giants at $7.85 billion and the Las Vegas Raiders at $7.8 billion. This impressive valuation reflects the Cowboys’ status as “America’s Team” and their extensive fan base.
Dominance of Major Markets
The trend continues with the rest of the top 10 dominated by teams from major U.S. markets. The San Francisco 49ers hold a valuation of $7.4 billion, followed closely by the New York Jets at $7.35 billion and the Miami Dolphins at $7.1 billion. The Philadelphia Eagles and Chicago Bears complete the list with valuations of $7 billion and $6.4 billion, respectively. Notably, every NFL team is now valued at over $5 billion, highlighting the overall growth of the league.
Cincinnati Bengals: The Least Valuable Franchise
The Cincinnati Bengals have the lowest valuation in the league at $5.25 billion, though this marks a notable increase from their $3.5 billion valuation in 2023. This growth is indicative of the expanding market and fan engagement even for teams that have struggled historically.
Average Franchise Value
As of 2024, the average value of an NFL franchise stands at $6.49 billion. This figure illustrates the robust financial health of the league, fueled by lucrative television contracts, sponsorship deals, and an ever-growing fan base.
Understanding Franchise Valuation
Determining the value of an NFL franchise involves a complex analysis of various financial factors. Mike Ozanian, a senior sports reporter for CNBC, explains that the valuation process considers revenue, operating expenses, and earnings before interest, taxes, and depreciation (EBITDA). “Revenue is what determines team value because teams are bought and sold on multiples of revenue,” Ozanian states.
Shared Revenue Model
Approximately 65% of all NFL revenue is shared equally among the 32 franchises. This equal distribution ensures that all teams receive a substantial financial boost, approximately $357 million per team in 2024. However, what sets franchises apart is their ability to generate non-shared revenue through innovative strategies like stadium sponsorships and luxury suites.
Jerry Jones and the Cowboys’ Success
Jerry Jones, the owner of the Cowboys, revolutionized franchise revenue generation. By securing deals with companies like American Express and Pepsi, he carved out new revenue streams that traditional league sponsors had overlooked. This visionary approach has cemented the Cowboys’ status as the league’s most valuable franchise and set a precedent for others to follow.
Market Discrepancies Among Teams
Interestingly, market dynamics can lead to significant valuation discrepancies, even among teams that share stadiums. For example, while the Rams rank second, the Los Angeles Chargers are at No. 26 with a valuation of $5.83 billion. This disparity arises from the Rams’ favorable revenue-sharing agreement related to SoFi Stadium, where they enjoy an 85/15 split of stadium revenue compared to the Chargers.
A League of Financial Giants
The 2024 NFL franchise valuations reveal a league thriving both on and off the field. With all teams valued above $5 billion, the NFL continues to solidify its status as a financial powerhouse in the sports world. As franchises innovate in revenue generation and adapt to changing market conditions, fans can expect these valuations to rise even further in the coming years.
