The World’s Most Valuable Sports Brands

by Rachel Baker on October 14, 2013

There’s a really good explanation of what goes into determining the Most Valuable Sports Brands for 2013 at Forbes’ Sports Money.

The Forbes Fab 40 consists of the 10 most valuable sports brands in each of four categories–businesses, events, teams and athletes.

How do you place a value on a brand? This is SportsMoney. So we don’t use polls/surveys or complex formulas that exist in some black box. We use the most important financial data specific to each category.

For sports business brands, this means quantifying the amount the business would fetch in an arms length transaction in excess of what a comparable rival would be worth. When News Corp NWSA +0.4%. bought a stake in the YES Network last November the deal placed an enterprise value of $3.8 billion, or 15.2 times operating income (earnings before interest, taxes, depreciation and amortization) on the regional sports network. Your average company would have been valued at 10 times operating income, or $2.5 billion.

But we cannot ascribe the entire $1.3 billion to the YES brand because Rupert Murdoch wasn’t looking to buy a grocery store chain or an oil company. He wanted pipes and top-shelf sports programming. So in order to estimate the value of the YES brand we need to extract the amount the average RSN would have sold for.

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