💸 Y! Sports Biz: Cross the drawbridge

👋 Happy Friday! Thanks for joining us for the biggest sports biz week in recent memory.

In today’s edition: Investors cross the sports moat, even the NFL’s poor are rich, the Knicks won on the court and off, Fenway is Henry’s forever home, Joe Alt is a van man, and more.

Time to show you the money...

🏟️ SPORTS IN THE AI AGE

(Grant Thomas/Yahoo Sports)

It’s hard to imagine a week that could have illustrated the perceived long-term value of sports better than this one.

Inside the whirlwind: In just the last few days, remarkable investment news swirled around three of the most iconic sports teams in the world.

1. The Lakers sold for $12.5 billion to venture capitalist Josh Kushner and former Disney CEO Bob Iger, less than a year after the team previously sold for $10 billion.
2. Apollo Sports Capital made a $2.6 billion investment in Yankee Global Enterprises, reportedly valuing the Yankees at close to $10 billion.
3. A consortium that includes Jeff Bezos and Facebook co-founder Eduardo Saverin was reported to be nearing the purchase of a roughly one-third stake in Liverpool, valuing the club at $6 billion.

Consider the crowd: Represented in those three acquirers, you have one of the most successful venture capitalists in tech, one of the foremost giants of private equity, and one of the wealthiest people on the planet (if the Liverpool deal closes). All of whom have decided that sports is among the best places for their capital over the coming decades.

What gives? We’ve detailed the allure of sports as an asset class before, and the bull case hasn't changed. But zooming out from the reliable cash flows and the tax advantages, this is the story of an industry that’s uniquely isolated from the societal shifts that inevitably disintermediate others.

Out with the old: Our society was built on a rich history of innovation, each shiny new toy relegating past industry successes to the scrap heap.

• Today, we’re witnessing the rapid progression of AI, perhaps the shiniest technology of them all — the one purported to produce abundant intelligence and lower the barriers of creation. Whether in success or failure, it will leave commercial carcasses in its wake.
• It’s against that backdrop that minds well acquainted with the technology’s power have devoted capital to sports. Kushner’s Thrive Eternal describes the appeal, noting its preference for “iconic franchises and cultural institutions rooted in tradition, identity, and shared experience.”

The moat around the field: In a world awash with impermanence, sports offer the closest thing to a sense of durability that we have. Industries rise and fall, but you know what doesn’t change? The Yankees take the field in the Bronx to the roars of tens of thousands of New Yorkers. Hollywood icons find their place at courtside to watch the Lakers. 

• 80 years ago, the average lifespan of a U.S. S&P 500 company was 67 years. As of 2023, that number had dwindled to just 15, according to Ernst & Young, and it’s hard to imagine the AI era prolonging that lifespan in the years ahead.
• But in sports, a “Big Four” team hasn’t ceased operations since the NHL’s Cleveland Barons in 1978.
• Even as so much of the sports landscape changes, most people probably feel more confident about the Lakers and Yankees operating in 20, 30, or 50 years than they do about any other business. Our teams are part of our communal fabric. They're part of our identity.

The more things change: The world is changing fast, and it will continue to do so. But will there be a world where we aren’t inspired and captivated by the spirit of human achievement or live, unscripted competition? Where we don’t revel in our collective enjoyment of those spectacles? If there is, we don’t long to see it, and neither do some of the world’s sharpest investors. 

Go deeper: Lakers' $12.5 billion sale shows why private equity loves sports — and won't leave.

Disclosure: Yahoo is a portfolio company of funds managed by affiliates of Apollo Global Management.

🏈 NFL VALUATIONS

(Grant Thomas/Yahoo Sports, Data: Sportico)

Kurt Badenhausen and the team at Sportico released their NFL valuations this week, and, suffice it to say, the rich got richer. Even the poorest of the rich are among the very richest teams in sports.

By the numbers: The average NFL team valuation is $9.34 billion, up 31% from the prior year. That’s the largest increase since Sportico began the valuation exercise in 2020.

• Most valuable: Dallas Cowboys, $15.5 billion.
• Least valuable: Cincinnati Bengals, $7.4 billion.
• Biggest gainer: Seattle Seahawks, +46%.

Crazy stat: There are only six non-NFL franchises worth more than the Bengals. All 32 teams are among the top-40 most valuable teams in the world.

Looking ahead: The valuations were published just moments before the Lakers news broke. Has a $2.5 billion lift in the NBA’s valuation ceiling already provided more wind beneath the NFL’s wings?

Go deeper:How the Dallas Cowboys Became a $15.5 Billion NFL Team. 

📈 JOCK STOCKS

(Dustin Satloff/Getty Images)

The Knicks finally returned to the NBA’s mountaintop in June, bringing their fans on a memorable journey that featured record-setting ticket prices and merchandise sales. Madison Square Garden Sports’ financial results, reported Thursday, reflected that frenzy.

The results are in: The company, which owns both the Knicks and Rangers, saw revenues increase in almost every conceivable category in Q4 and 2026. Per-game revenue grew across in-arena offerings (tickets, suites, sponsorships, food, beverages, and merchandise), while national media rights fees also increased thanks to the new national NBA deal.

• Total revenues rose to $1.153 billion for fiscal 2026, up 11% from the prior year (2025 revenues were up just 1%), while Q4 revenues were up 37% to $278.7 million.
• Adjusted operating income for the year was $58.7 million, up 54% from 2025, with $39.6 million of that total realized in the Q4 playoff run.

Playoff payoff: The Knicks were so dominant this postseason that they played only nine home playoff games, the same as last season despite this year’s passage to the finals. Playoff-related revenues still increased by $66.9 million (to a total of $182 million), thanks to higher average per-game revenues ($20.2 million) and higher merchandise sales.

• The team set a new league-wide record on multiple occasions for the highest per-game gate revenues in NBA history.
• The first 24 hours following the title delivered the team’s highest-ever merchandise sales for a single day.

Glory comes at a price: Perhaps it comes as little surprise, but season ticket prices will rise for the Knicks next season as the team basks in the post-title glow. As the Rangers did not make the playoffs, management will keep those prices flat.

Devilish detail:  Local media rights fees fell $3.5 million in Q4 due to amended MSG Networks agreements and fewer local-exclusive games. As a result, total media rights fees (national plus local) were effectively unchanged. It’s a microcosm of one of sports’ biggest challenges: If even New York's brightest are treading water, imagine the lesser markets.

(Yahoo Finance Alphaspace)

Movin’ on up: The Lakers news sent shares 5% higher on Wednesday, perhaps front-running the company’s results, which left the stock flat on Thursday. Still, in two trading days, MSGS added over $450 million in market capitalization.

Looking ahead: The company confirmed that its planned spin-off of the Knicks and Rangers into separate companies is expected to close by the end of October. The enterprise value of MSGS (Knicks and Rangers combined) is approximately $10.8 billion. Consider that the Lakers alone sold for $12.5 billion, and you begin to see the rationale for the spin…

Go deeper:J.P. Morgan values the Knicks at $11.75 billion.

⚡ ICYMI

(Jonathan Bachman/Getty Images)

🐅 Daniels and LSU in turmoil: An attorney representing Jayden Daniels sent a cease-and-desist letter to LSU, instructing the university to halt any use of Daniels’ NIL rights. According to a report from ESPN, the dispute was initiated by a perceived lack of respect associated with assigning Daniels’ No. 5 to another player, DJ Pickett.

💰Brady’s CardVault gains investors: Tom Brady’s CardVault, a trading card and memorabilia retailer, announced the addition of several new investors, including Jay-Z, Aaron Judge, Connor McDavid, John Henry, Dana White, Gerry Cardinale, and the Kraft Group, among others. The chain currently has 17 locations and aims to expand significantly in a red-hot card market.

🏈 Bears still Indiana-bound: Indiana remains the Bears’ “sole focus” for stadium development plans, according to Bears president and CEO Kevin Warren. The assertion comes though the Bears have continued to hold “minimal” discussions with Illinois officials. If the team does land in Indiana, however, its name will remain the Chicago Bears, despite some brief internet suspicions to the contrary.

⚾️ Ohtani wouldn’t exercise key man clause: In the aftermath of the Lakers’ sale, attention has heightened on the “key-man” clause in Shohei Ohtani’s contract, which would allow him to opt out if owner Mark Walter sold the Dodgers or president of baseball ops Andrew Friedman left the organization. The Japanese superstar is unlikely to exercise that clause in the event of a sale, though, per The Athletic.

See what else is trending on the Yahoo Sports Business Hub.

🎙️ FOREVER SAY NEVER

(Maddie Meyer/Getty Images)

John Henry is never selling the Boston Red Sox — that’s according to Fenway Sports Group and Red Sox CEO Sam Kennedy, speaking on WEEI Boston’s "Greg Hill Show," when asked about the impact of the Lakers sale.

Kennedy:“John Henry, Linda Henry, the Henry family are never selling the Boston Red Sox. That’s a soundbite you can play forevermore. I’d bet anything on that. [The Lakers sale] really doesn’t matter. It is a reflection of how sports are in our society. The last thing that brings communities together is professional sports.”

Baseball lifer: Fenway Sports Group is a sprawling business empire, but Kennedy’s statement reflects how dearly Henry holds baseball. He first purchased a minor league team in 1989, explored the Rockies’ mid-1990s expansion bid, and bought the Marlins in 1999 before ultimately acquiring the Red Sox in 2001. Baseball has been a lifelong pursuit.

Walk-off shot: There are worse forever homes than Fenway Park.

🟤🟠 HOMECOMING COORDINATOR

(Jason Miller/Getty Images)

Role:Coordinator, Community & Alumni Relations

Employer: Cleveland Browns

Responsibilities: Who says you can’t go home? It’s your job to remind Browns alums that they can return to bask in the barks from the Dawg Pound, while also supporting the team’s initiatives in the community.

• Serve as the primary relationship manager and organizational resource for Browns Alumni.
• Maintain alumni communications, databases, and program administration, including ticket allocations and related assets.
• Plan, coordinate, and execute alumni programs and events, including reunions, appearances, recognition initiatives, game-day experiences, and commemorative celebrations.
• Support the planning and execution of Browns Give Back programs, community events, and engagement activities.

Potential challenges: Selling recent alumni on returning to their past may be barking up the wrong tree; the team has only made the playoffs three times since the turn of the millennium. And it’s a good thing we’ve exited the rolodex era, because there may not be one big enough to hold the entirety of the Browns’ quarterback lineage.

Family matters: Win or lose, a sense of belonging and tradition is core to a team’s identity, as is its ability to positively impact the surrounding area in ways that extend beyond the field. The individual hired has the opportunity to help transform the Browns from a mere team into a community for former players and residents of Northeast Ohio alike.

🏀  LET'S PLAY

(Sarah Stier/Getty Images)

Not long before the Lakers rewrote the record books and then rewrote them again, there was a time when billion-dollar sale prices for NBA teams were uncharted waters.

Question: You only need to go back to 2015 to find the last NBA team to sell for less than $1 billion. Which team was it?

A) Minnesota Timberwolves

B) Utah Jazz

C) Atlanta Hawks

D) Charlotte Hornets

Answer at the bottom.

🚐 VAN MAN

(Toyota USA on Instagram)

Trivia answer: C) Atlanta Hawks. The Hawks sold for $850 million in 2015 before the NBA bid goodbye to the millions forever. The team is now worth over $5 billion, according to Sportico.

Thanks for reading! Wanna talk shop? Follow me on X and Linkedin, or drop me a line: dylan.dittrich@yahooinc.com.