Thursday, September 03, 2009

Eagles worth 1.1 billion

Forbes magazine’s annual ratings of the value of NFL teams is out and the Eagles are ranked 7th, worth $1.123 billion, generating revenues of $250 million per year with an operating income of $48. 8 million.

The top six on the Forbes list are Dallas (worth $1.7 billion), Washington ($1.6 billion), New England ($1.4 billion), the New York Giants ($1.2 billion), the New York Jets ($1.2 billion) and the Houston Texans ($1.15 billion).

Understand these numbers are all paper values and the Eagles are only worth $1.1 billion if there is a buyer out there that offers that amount. Basically, the company generates $250 million a year and has a nice profit margin.

The thought that NFL teams are making money hand over fist is generally facetious. Because of the high cost of labor, NFL teams generally have a lesser profit margin than "regular companies" generating similar revenue.

NFL owners make the big money when they decide to sell. Jeffrey Lurie purchased the Eagles for $185 million in 1994. Even in this stagnant economy, if Lurie decided to get out today he would make one heck of a profit selling the team.


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