The Ownership and Valuation of Professional Sports Franchises

Until the recent spate of legal and IRS trouble, professional team sports has been one of the most robust growth industries in the U. S. In 1959, there were 42 franchises in the five major sports leagues; by 1974, there were 117 franchises in eight major sports leagues. Evidence of the boom can be found in the growth in attendance and in an increase in ticket prices; in the rise in television coverage and in the dollars spent for TV rights; and in the increase in player salaries. That boom is also reflected in the prices of sports franchises—the subject of this paper