Referee bias for KC has to stop

[George Cantstandya]

(Yesterday, 03:00 PM)XsandOs Wrote: It feels like the baseline of Team values are based on the 10% ROI principle - with revenue sharing serving as the foundation. 

With the share being around $400 million per Team, that puts the baseline at around $4 billion per Team. 

It also feels like the difference between each Team value is then based on either multiples, Growing Perpetuity or Enterprise to EBITDA.

But none of this really is clear given that Team books are closed, so no one really knows true earnings.

Ultimately; these valuations are intended to establish values for interested buyers and especially now that private equity is being entertained. 

Yes they are based on estimates because as you noted the books are closed aside from the Packers.  Forbes has been doing NFL valuations for long time now and is a frequently referenced source so that's why I went with their projection. Here is what they say about their calculations:

Quote:METHODOLOGY

Figures for revenue and operating income (earnings before interest, taxes, depreciation and amortization) are estimated for the 2023 season and are net of stadium debt service. Debt includes both team and stadium debt recourse to team owners. Forbes presents its P&L figures on a cash basis, rather than an accrual basis, of accounting.
Team values are enterprise values (equity plus net debt) and include the economics of the team’s stadium (including non-NFL revenue that accrues to the team’s owner) but not the value of the stadium real estate itself. Team values also exclude other businesses related to the team with separate financial statements, such as The Star, the Dallas Cowboys’ headquarters and entertainment facility. (Those valuations are included in Forbes’ annual ranking of sports empires.) Team values are rounded to the nearest $50 million, and estimated operating income is rounded to the nearest $1 million.
Sources for NFL valuations include team executives, sports bankers and league consultants; public documents such as stadium lease agreements and credit rating reports; and sponsorship and broadcasting industry executives.

Also it seems to me strange that the Bengals were the only team to vote against the private equity proposal. I think given they are not a very wealthy team they could use some investment money.   But I'm not some smart finance guy so what do I know?  :)