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UFL and Valuation

Posted: Thu Jul 18, 2024 12:14 am
by 4th&long
WNBA getting rumors of a 10 yr deal at $250mm a year?  With just one year of the GWC?
https://www.sportsmediawatch.com/2024/0 ... lion-year/

NWSL team Angel City worth $250mm?  with just a $60mm a yr league TV contract
https://www.sportsmediawatch.com/2024/0 ... lion-year/

Not to mention the NBA deal...
https://www.sportsmediawatch.com/2024/0 ... mazon-tnt/

Sports Valuations are rising faster than expected thanks to live sports being the media holy grail.  The above valuations are eye popping ridiculous... but if these limited appeal leagues (WNBA/NWSL) can get these $$$ - is the UFL TV deal worth $120mm?  $150mm?  More...??

 

Re: UFL and Valuation

Posted: Thu Jul 18, 2024 11:25 am
by BattleHawks
Through the first eight weeks of the season, the UFL's broadcast partners had sold $3.7 million in in-game commercial inventory at an average of $6,750 per advertisement; in addition to the UFL's league sponsors, regular television sponsors included Jersey Mike'sT-MobileIBMLiberty Mutual and Subway, among numerous pharmaceuticals.[379] Most of the advertising was purchased as part of bulk agreements with Fox Sports and ESPN Inc. as the league was not believed to be popular enough to warrant separate advertising purchases, an arrangement that will continue in 2025.[402]
sounds like it's worth 3.7 million, or less

Re: UFL and Valuation

Posted: Thu Jul 18, 2024 1:10 pm
by MGB01
An aspiring MSNBC commentator and Angelo Fiouris' ghost walk into a bar.................................

Re: UFL and Valuation

Posted: Thu Jul 18, 2024 1:34 pm
by laxtreme56
The league will need to last at least 5 years before seeing any significant valuation. I think many advertisers are still weary of buying spots in the event the league goes bankrupt and pays pennies on the dollar to its creditors in the vein of the AAF and XFL 2.0.

Re: UFL and Valuation

Posted: Thu Jul 18, 2024 3:03 pm
by GDAWG
4th&long wrote: Thu Jul 18, 2024 12:14 am WNBA getting rumors of a 10 yr deal at $250mm a year?  With just one year of the GWC?
https://www.sportsmediawatch.com/2024/0 ... lion-year/

NWSL team Angel City worth $250mm?  with just a $60mm a yr league TV contract
https://www.sportsmediawatch.com/2024/0 ... lion-year/

Not to mention the NBA deal...
https://www.sportsmediawatch.com/2024/0 ... mazon-tnt/

Sports Valuations are rising faster than expected thanks to live sports being the media holy grail.  The above valuations are eye popping ridiculous... but if these limited appeal leagues (WNBA/NWSL) can get these $$$ - is the UFL TV deal worth $120mm?  $150mm?  More...??




 
Take away the 1 and 0 from 120 million and the 5 and the 0 from 150 million and that is the number the UFL is likely getting at this point in time.  Not a chance in hell that the league is worth as much as you say it is, at least right now.  If the league is still around in 2030?  Maybe, but probably not until then.  

Re: UFL and Valuation

Posted: Thu Jul 18, 2024 8:21 pm
by johnnyangryfuzzball
BattleHawks wrote: Thu Jul 18, 2024 11:25 am
Through the first eight weeks of the season, the UFL's broadcast partners had sold $3.7 million in in-game commercial inventory at an average of $6,750 per advertisement; in addition to the UFL's league sponsors, regular television sponsors included Jersey Mike'sT-MobileIBMLiberty Mutual and Subway, among numerous pharmaceuticals.[379] Most of the advertising was purchased as part of bulk agreements with Fox Sports and ESPN Inc. as the league was not believed to be popular enough to warrant separate advertising purchases, an arrangement that will continue in 2025.[402]
sounds like it's worth 3.7 million, or less
Counterpoint—those ads were being sold at WAY below what you would expect for that kind of viewership. I believe the number was somewhere around a fifth of what the NFL gets per viewer per ad. (The reference point I believe I used was Sunday Night Football and how it drew an ad rate 100 times higher for viewership only 20 times higher.) And that doesn't even include the integrated ads with the U.S. Army and its $11 million sponsorship nor the other corporate sponsors.

There is obvious room for ad revenue growth by bringing the ad prices up—if not to NFL levels, but even to half of the NFL's—such that if you stretch it to a full season, you'll be over $10 million.

Of course, that's with ESPN and Fox owning stakes in the league. They're purposely leaving that ad money on the table for a reason, AND it complicates any potential sale.

Re: UFL and Valuation

Posted: Fri Jul 19, 2024 1:08 pm
by MarkNelson
Those valuations make UFL owners drool for sure. This is what it has been about all along. The owners just need to have enough money and gumption to hang in there until pay day.

Re: UFL and Valuation

Posted: Sat Jul 20, 2024 11:34 am
by 4th&long
One on collaborated article on what UFL got paid for commercials - which is substantially below USFL in prior years  (reported) is not going to be the barometer here.  Even that could be a base with increases for actual ratings.  NWSL signed a $60mm a year deal and is what in year 12  and their ratings are way below UFL.  Yes since the cost of running UFL is much higher investors want to see commitment.  That's why the merger is so important.  Let's be real The UFL for TV is worth way more than NWSL.

You're right Mark N - the numbers make UFL ownership drool, yet its still peanuts.  A NWSL team selling a minority share that equates team valuation at $250mm is ridiculous.  Yet it happened.  Its true.  Good luck to Iger - he's done such a great job at Disney.

NWSL salaries are low around $35k with a $200k max, they only carry 20 players.  And WC ins is way cheaper than FB.  with 22 games played they have 11 home games.  But TV viewership is not great way below UFL and yet still there's that $60mm deal.

For UFL... Gate revenue will always be an issue for a league with only 5 home games each.  But with all games on TV, they have a fair amount of inventory to sell broadcasters.  The 850k over 40 televised timeslots is awesome.  Can they improve in 2025?  Hopefully at least no back slide.

UFL and - Top 5 USA leagues and Revenue breakdown

Posted: Sun Jul 28, 2024 2:50 pm
by 4th&long
UFL and - Top 5 USA leagues and Revenue breakdown

Here's a nice graphic on sources of revenue...  Revenue for the NFL and MLB is as of 2022, revenue for the NBA and NHL is for the 2022-2023 season, and revenue for the MLS is as of 2023.  SO this does not include the NBA new deal which would lean now more heavily toward "centralized via Media rights deal.

Would be cool to see WNBA and NWSL too.