In this article, we take a look at the 10 most profitable sports teams in the United States. If you want to skip our detailed analysis of the global sports market, you can go directly to The 5 Most Profitable Sports Teams in the USA.
Sport has become an important part of our culture and society. Some of the best sports stadiums in the world generate billions of dollars in economic activity each year while supporting jobs and businesses in the surrounding community.
Before we talk about the 10 most profitable sports teams in the US, let’s take a look at the sports market and what some of the major companies in the global sports industry are up to.
Global sports industry and latest market trends
Previously in one of our articles about the most valuable football clubs, we talked about how COVID-19 has negatively impacted the global sports industry, with several tournaments, leagues and sporting events closed and canceled around the world. The global sports industry experienced unprecedented hardships during the COVID-19 pandemic, including severe financial losses. Despite these challenges, the global sports market has recovered strongly post-pandemic and is expected to continue growing in the coming years.
According to a report According to Research and Markets, the global sports market was valued at $512.14 billion in 2023. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 5% during 2023-2027, which will take the market to over $623 billion by the end of the forecast period. As the market continues to recover, sporting events around the world are expected to bring organizations, athletes and fans closer together, positively impacting the global sports market. The increasing passion for sports has led to an increase in sports tournaments and leagues at various levels across the world. People’s growing awareness of the health benefits of exercise has led to increased demand for sporting goods and products, which continues to have a positive impact on the global sports market. The emerging trend of physical fitness activities, increased investments in sports infrastructure and facilities, and development of stadiums and parks to promote participation of individuals in sports events and outdoor games are expected to further drive the growth of the market.
The story goes on
On October 6, Reuters reported that as the International Cricket Council World Cup begins in India, a country with great passion for cricket, the country’s economy is expected to experience a brief boost as consumers get to enjoy their favorite sport. The report also mentions that MakeMyTrip Limited (NASDAQ:MMYT), an online travel and hotel booking platform, reports increased bookings in Ahmedabad and Dharamshala, Indian cities hosting key Cricket World Cup matches.
Despite a difficult economic environment, sports are still considered an attractive investment opportunity. In the forecast period, we can also expect new media contracts and an improvement in their market presence by additional streaming providers. The increasing adoption of home entertainment technologies and live streaming services is expected to continue to be a key driver in the global sports market and provide a positive outlook.
A look at some of the key players in the sports market
Warner Bros. Discovery Inc. (NASDAQ:WBD) owns media rights to some of the most popular sports, including Major League Baseball and the National Basketball Association, among other sporting events. On September 6th, Bloomberg reported that Warner Bros. Discovery Inc. (NASDAQ:WBD) plans to offer live sports on its Max streaming service at no additional cost for a limited time later this year. While Warner Bros. Discovery Inc. (NASDAQ:WBD) already had about 96 million subscribers to its streaming services worldwide as of the end of June, this attempt to live stream basketball, baseball and hockey at no additional cost could help the company attract new subscribers win customers. Starting next year, customers may have to pay an additional amount to watch live sports.
The growing popularity of both professional and recreational sports is leading to increasing demand for sporting goods and equipment. On August 18, Dick’s Sporting Goods, Inc. (NYSE:DKS), the largest sporting goods retailer in the USA, announced that they opened nine new House of Sport stores in July and August, with appearances by celebrity athletes to celebrate the grand openings. Dick’s Sporting Goods, Inc. (NYSE:DKS) House of Sport is an approximately 100,000 square foot store that offers a very special and unique in-store experience, including the opportunity for customers to try out products while measuring and tracking their performance . Dick’s Sporting Goods, Inc. (NYSE:DKS) expects to have between 75 and 100 House of Sport locations in the U.S. by 2027.
Additionally, jersey sponsorship deals generate significant revenue for sports teams and leagues while also being a valuable marketing tool for companies in the field. On July 31, Reuters reported that in a deal worth £900 million Manchester United PLC (NYSE:MANU) has extended its partnership with Adidas AG (ETR:ADS), the club’s official supplier, for another ten years. Manchester United PLC (NYSE:MANU) is taking part in the lucrative UEFA Champions League this year after finishing third in the Premier League last season.
Manchester United PLC (NYSE: MANU) has a large, widespread fan base, and the Premier League club is one of them The richest football clubs in the world, measured by revenue. First, let’s take a look at the 10 most profitable sports teams in the United States.
The 10 Most Profitable Sports Teams in the USA
Photo by Ramiro Pianarosa on Unsplash
methodology
In this article, we have listed the 10 most profitable sports teams in the USA. To gather data for our list of the most profitable sports teams in the United States, we consulted the list of the most profitable sports teams in the world by Forbes. We used last year’s data in their dataset, which will be published in 2023. This database provided us with data on sports teams that generated the highest operating revenue over the past three years.
For baseball, basketball, hockey, and soccer teams, the numbers are through the 2022 season, but for soccer teams, the data ends with the 2021 season. For our rankings, we excluded sports teams that are not based in the United States. We then narrowed down our selection to rank the 10 most profitable sports teams in the U.S. based on the last three years of total operating income (earnings before interest, taxes, depreciation, and amortization), listed below in ascending order.
The 10 Most Profitable Sports Teams in the USA
10. Chicago Bulls
Operating income (3 years): $288 million
First on our list of the 10 most profitable sports teams in the US is the Chicago Bulls. The Chicago Bulls, based in Chicago, are an American professional basketball team that competes in the National Basketball Association (NBA). The sports team is most associated with Michael Jordan, one of the greatest basketball players of all time, who led the Chicago Bulls to six NBA championships and two three-pointers between 1991 and 1998.
Stocks expected to benefit from the growing sports market include Manchester United PLC (NYSE:MANU), Adidas AG (ETR:ADS), Warner Bros. Discovery Inc. (NASDAQ:WBD), and Dick’s Sporting Goods, Inc. (NYSE:DKS).
9. Washington Commanders
Operating income (3 years): $290 million
The Washington Commanders, based in the Washington metropolitan area, are a professional American football team that competes in the National Football League (NFL). The Washington Commanders have won two NFL championships and three Super Bowls in their history and are now one of the most profitable sports teams in the USA.
8. Los Angeles Rams
Operating income (3 years): $318 million
The Los Angeles Rams, based in the greater Los Angeles area, are another professional football team in the United States that competes in the NFL. The Los Angeles Rams are a popular American football team with a strong fan base and have won two NFL championships and two Super Bowls. As of 2023, the Rams will be one of the most valuable sports teams.
7.New York Giants
Operating income (3 years): $333 million
The New York Giants, based in New York, are another professional American football team on our list of the 10 most profitable sports teams in the United States that competes in the NFL. As one of the most iconic sports franchises in NFL history, the New York Giants have won a total of eight NFL championships. As the NFL’s second-oldest franchise, the New York Giants won four championships and four Super Bowl titles in the pre-Super Bowl era.
6. Los Angeles Lakers
Operating income (3 years): $333 million
The Los Angeles Lakers, based in Los Angeles, are an American professional basketball team that competes in the NBA. Many star players have played for the Los Angeles Lakers over the years, including Shaquille O’Neal, Magic Johnson, Kobe Bryant and LeBron James. As one of the most successful and popular sports teams in the USA, the Los Angeles Lakers have won a total of 17 NBA titles.
Investors looking to increase their exposure to the sports and entertainment industry can research and invest in some stocks including Manchester United PLC (NYSE:MANU), Adidas AG (ETR:ADS), Warner Bros. Discovery Inc. ( NASDAQ: WBD) and Dick’s Sporting Goods, Inc. (NYSE: DKS).
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Disclosure: None. The 10 Most Profitable Sports Teams in the USA is published on Insider Monkey.
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