10 Most Profitable Sports Teams in the US
In this article, we will take a look at 10 most profitable sports teams in the US. If you want to skip our detailed analysis of the global sports market, you can go directly to 5 Most Profitable Sports Teams in the US.
Sports have 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 also 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 discussed that the COVID-19 had negatively impacted the global sports industry because of closures and cancellations of several tournaments, leagues and sporting events around the world. The global sports industry experienced unprecedented difficulties during the COVID-19 pandemic, including heavy financial losses. Despite these challenges, the global sports market has made a strong recovery post-pandemic, and is expected to continue growing in the coming years.
According to a report by 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, propelling the market to reach above $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 to positively influence the global sports market. The increasing passion for sports has led to a rise in sports tournaments and leagues at different levels around the world. The growing awareness among individuals about the health benefits associated with sports has resulted in an increased demand for sporting goods and products, which continues to influence the global sports market positively. The emerging trend of physical fitness activities, increased investment in sports infrastructure and facilities as well as the development of stadiums and parks to encourage the participation of individuals in sporting events, and outdoor games, should further drive growth in the market.
On October 6, Reuters reported that as the International Cricket Council's World Cup begins in India, a nation that is deeply passionate about cricket, the country's economy is expected to receive a short boost with consumers splurging to enjoy their favorite sport. The report also mentions that MakeMyTrip Limited (NASDAQ:MMYT), an online travel and hotel booking platform, reports increased bookings to Ahmedabad and Dharamshala, Indian cities hosting key matches of the Cricket World Cup.
Despite a challenging economic environment, sports is still seen as an attractive investment option. During the forecast period, we can also expect to see new media deals and more streaming providers improve their market presence. The increasing adoption of home entertainment technologies as well as live streaming services is expected to remain a key driver in the global sports market creating a positive outlook.
A Look at Some of the Major 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 6, Bloomberg reported that for a limited time period later this year, Warner Bros. Discovery Inc. (NASDAQ:WBD) is looking to offer live sports on its Max streaming service at no extra cost. While Warner Bros. Discovery Inc. (NASDAQ:WBD) already had around 96 million subscribers to its streaming services worldwide by the end of June, this effort to live stream basketball, baseball, and hockey at no additional cost could help the business attract new customers. Starting next year, the customers may need to pay an additional amount to watch live sports.
Growing popularity of sports, both at the professional and recreational levels, is leading to an increase in demand for sporting goods and equipment. On August 18, Dick's Sporting Goods, Inc. (NYSE:DKS), the largest sporting goods retailer in the US, announced that they have launched nine new House of Sport stores in July and August, with celebrity athlete appearances to commemorate the grand openings. Dick's Sporting Goods, Inc. 's (NYSE:DKS) House of Sport is an approximately 100,000+ square-foot store that offers a very special and unique in-store experience, including giving customers an opportunity to try products while measuring and tracking their performance. Dick's Sporting Goods, Inc. (NYSE:DKS) expects that by 2027, they will have between 75 to 100 House of Sport locations in the US.
Moreover, kit sponsorship deals generate significant revenue for sports teams and leagues while also being a valuable marketing tool for companies in this space. On July 31, Reuters reported that in a deal worth 900 million pounds, Manchester United PLC (NYSE:MANU) has extended its partnership with Adidas AG (ETR:ADS), the club’s official kit supplier, for 10 more years. Manchester United PLC (NYSE:MANU) is competing 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, wide-reaching fan base, and the Premier League club ranks among some of the world’s richest soccer clubs based on revenue. For now, let’s take a look at the 10 most profitable sports teams in the US.
Photo by Ramiro Pianarosa on Unsplash
Methodology
In this article, we have listed the 10 most profitable sports teams in the US. To collect data for our list of the most profitable sports teams in the US, we consulted the list of World’s Most Profitable Sports Teams by Forbes. We used data obtained for the latest year in their dataset, which is published in 2023. This database provided us with data on sports teams that have generated the highest levels of operating income over the past three years.
For baseball, basketball, hockey and soccer teams, the figures are through the 2022 seasons, but for football teams the data ends with the 2021 season. For our rankings, we excluded sports teams that are not in the US. We then narrowed down our selection to rank the 10 most profitable sports teams in the US based on 3-year total operating income (earnings before interest, taxes, depreciation and amortization), which are listed below in ascending order.
10 Most Profitable Sports Teams in the US
10. Chicago Bulls
Operating Income (3-Year): $288 Million
First up on our list of 10 most profitable sports teams in the US is the Chicago Bulls. Based in Chicago, Chicago Bulls is 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 ever, who led the Chicago Bulls to six NBA championships and two three-peats between 1991 and 1998.
Some of the stocks that are 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-Year): $290 Million
Based in the Washington metropolitan area, the Washington Commanders 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 today it ranks among the most profitable sports teams in the US.
8. Los Angeles Rams
Operating Income (3-Year): $318 Million
Based in the Greater Los Angeles area, the Los Angeles Rams are another professional football team in the US that competes in the NFL. The Los Angeles Rams is a popular American football team with a strong fan base, and they have won two NFL championships and two Super Bowls. As of 2023, the Rams rank among some of the most valuable sports teams.
7. New York Giants
Operating Income (3-Year): $333 Million
Based in New York, the New York Giants are yet another professional American football team, in our list of 10 most profitable sports teams in the US, that competes in the NFL. As one of the most iconic sports franchises in NFL history, the New York Giants have won eight total NFL championships. As the second oldest franchise in the NFL, the New York Giants won four championships in the pre-Super Bowl era, and four Super Bowl titles.
6. Los Angeles Lakers
Operating Income (3-Year): $333 Million
Based in Los Angeles, the Los Angeles Lakers are an American professional basketball team that competes in the NBA. Over the years, many star players have played for the Los Angeles Lakers such as Shaquille O'Neal, Magic Johnson, Kobe Bryant, and LeBron James. As one of the most successful and popular sports teams in the US, Los Angeles Lakers have won a total of 17 NBA titles.
For investors looking to increase their exposure to the sports and entertainment industry, some stocks they can research and consider investing in include 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. 10 Most Profitable Sports Teams in the US is published on Insider Monkey.