Sports Teams Are So Expensive Billionaires Are Teaming Up to Buy Them

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, was quoted in The New York Times in an article discussing the skyrocketing sale prices for sports franchises.

The article chronicles the recent sales of professional sports teams and the rising sale prices across the board. “I am absolutely convinced that we have not reached anything close to a ceiling,” said Irwin. And particularly with the most recognizable teams, he said, “you could only envision the numbers going further north.”

The article further notes that there are many factors contributing to the rising prices, including the rights to air live games. Irwin pointed to the N.B.A.’s recent TV rights package: an 11-year agreement with broadcasters worth about $77 billion. "The legalization of sports betting has also opened a new revenue stream for franchises," Irwin said. In addition, the article notes that there is a feeling that sports and other live and in-person events "may be insulated from the impact of artificial intelligence."

The article also noted the concern that new owners would view the teams as a financial asset rather than "prized civic entities to protect." The new owners of the Lakers tried to assuage these concerns releasing a statement that they were "deeply honored for the opportunity to become stewards of the Los Angeles Lakers.” Irwin added that he would be surprised if the new owners sold quickly, or if many other primary owners of teams sold their majority stakes. 

Read the full article in The New York Times here. Access may require a subscription.