The World's Most Valuable Sports Team

            Soccer is the most popular sports in the world. The best three prize money sports events in the worlds are soccer events: UEFA Champions League, UEFA European Football Championship, and FIFA World Cup. So, when I found “the World’s 50 Most Valuable Sports Teams” by Forbes.com, I expected that soccer teams dominated the ranking.

Manchester United

Manchester United was on the top of the list with a value of $1.81 billion. However, only eight soccer teams were listed on the ranking. On the other hand, all 32 NFL teams were ranked on the list. The most valuable NFL team was Dallas Cowboys with a worth of $1.81 billion. Even the lowest valuable NFL team, Jacksonville Jaguars with a value of $725 million, this team was ranked above than any other NBA and NHL teams. Why all NFL teams are do valuable? What is the difference between soccer teams and NFL teams, and NFL teams and other major sports teams in the US?

           
The worth of Manchester United keeps growing. The new shirt sponsorship with Aon, $32 million per year over four years, raised 50% from the previous contract with AIG. Also, merchandise sponsorship with NIKE will be increase as same amount as the shirt sponsorship. Now, Nike pays $40 million each year, but the new contract from 2015 would be $70 million per year. Moreover, Manchester United is thinking to sell shares on the Hong Kong Stock Exchange because the team estimated the value of the team would be $2.7 billion.

Dallas Cowboys

           
The NFL is also fast growing sports league. The TV revenue has increased 700% in 25 years. The most valuable NFL team, Dallas Cowboys built the $1.25 billion stadium to increase annual ticket sales. Ticket sales are one of the most important revenue for not only the NFL but also the European soccer leagues. Also, the NFL teams got sponsorship with lucrative companies as well as the European soccer teams do. So, teams try to find valuable sponsor and get more people to come to the stadium.

The big difference between the NFL and the soccer leagues is the NFL divides the TV revenue equally to every 32 teams. 70% of each team’s revenue is shared equally among all NFL teams, while each soccer team makes contract with TV companies directly. The NFL chose other interesting policies, such as the limitation of the payment to the players, and the weakest team can pick up the rookie first at the rookie draft.

The NFL has developed as a whole league. In the soccer league, if the team were weak or poor, it would be less opportunity to be the champion for that team. The weak team or poor team can’t be run the team as the business because nobody wants to see the game. The NFL realized that point and it organized the league as every team and every game can be exciting for the fans. As the result of the success of this business model, All 32 NFL teams were on the list of the world’s most valuable teams.