When the next big thing in football is a $20M-plus franchise
The next big tech-related phenomenon is coming in 2019, and it could cost taxpayers a cool $20 million.
That’s according to a new study that analyzed the potential cost of owning a team, stadium, and/or player.
The Sports Business Journal published the study Wednesday, estimating that owning a new sports franchise could cost $21 million to $26 million.
But if a team is going to be profitable, the study says it’s important to be prepared.
If a team goes bankrupt, it’s worth keeping its owners around, said Chris Kohn, an analyst with Kohn Investment Advisors.
And the risk of a team losing its owners is much higher than if a company has a billion-dollar valuation, he added.
For instance, the NFL is not in a good place financially, according to the study.
In 2015, it was facing a $30 million deficit.
The current league-wide shortfall is $3.4 billion.
“The NBA is in a better position,” Kohn said.
“There is a lot of money available to be spent.
The NBA doesn’t have the luxury of not having its players in the league anymore.”
The study also estimated that the NFL’s annual revenue will increase by $50 million from 2019 to 2021, but that will be offset by a decrease in the NBA’s TV revenue, which is projected to fall by about $200 million in 2021.
That means that if the NFL were to raise $20 billion in 2019-20, it would have to pay $7.5 billion in 2020-21.
The study estimated that if a stadium were built, the cost of building a stadium would be $6.6 billion, but the actual costs would be more than that.
The study estimates that a stadium cost $2.5 million to build, but could cost up to $6 million.
The report estimates that the average cost of an NFL stadium in 2019 is $7 million.
The average cost in 2020 is $13.5.
In addition, the costs of playing the game in stadiums, which include amenities such as a concession stand, parking lots, bleachers, locker rooms, concourses, restrooms, and field and field equipment, would likely be higher than the average costs of building the stadiums themselves, according the report.
Kohn also said that while it’s unlikely a team would go bankrupt, the risk is there.
“If it happens, it could be the next team to go bankrupt,” he said.
The full study can be found here.