Shad Khan says NFL valuations still have room to rise
Jaguars owner Shad Khan called NFL teams undervalued as CNBC put the average club value at $10.36 billion.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Shad Khan NFL valuations are back in focus after the Jacksonville Jaguars owner said the league’s teams remain undervalued relative to other professional sports. For investors watching the business of sports, the comment arrives as CNBC estimates the average NFL club is worth $10.36 billion, up 35% from a year earlier.
Khan made the remarks in an interview with CNBC, calling the NFL “still greatly undervalued compared to the other sports.” He said the league’s economic fundamentals, competitive balance and the ability of clubs to bring together their local communities support his view.
The figures are CNBC’s estimates, not prices from an active sale process. CNBC ranked the Jaguars 22nd among the league’s 32 teams and valued them at $9.35 billion.
Why does Shad Khan think NFL valuations can keep rising?
Khan pointed to private-equity investment, expanding media agreements and community building as forces he expects to support higher team values. CNBC also cited new stadium projects and renovations, along with the NFL’s international schedule, as parts of its case for continued growth in franchise values.
According to CNBC, roughly one-third of NFL teams are building new stadiums or undertaking substantial renovations. The league was scheduled to play nine international games in the season under discussion and 10 in 2027.
The Jaguars’ own history illustrates the scale of the gains reflected in CNBC’s estimate. Khan paid $770 million for the franchise in 2011. Using its current $9.35 billion estimate, CNBC calculated an 18% annualized increase in value.
CNBC also ran a hypothetical calculation: if the Jaguars’ estimated value rose at that same 18% annual rate for another 15 years, it would reach about $112 billion by 2041. That is a mathematical scenario dependent on the rate continuing, not a forecast or a reported transaction value. Asked about the possibility of a club passing $100 billion, Khan said it would be “a big number.”
What do recent NFL sales show?
Completed sales provide a separate measure from CNBC’s valuation estimates. CNBC reported that the Denver Broncos sold for about nine times revenue, the Washington Commanders for roughly 11 times revenue, and the Seattle Seahawks for more than 14 times revenue.
A sale-price-to-revenue multiple divides a team’s sale price by its revenue. It offers a way to compare how much buyers paid relative to the underlying business revenue in each deal.
CNBC reported that the Commanders sold for $6.05 billion in 2023, 30% above the Broncos’ 2022 sale price. The Seahawks later sold for an NFL-record $9.61 billion, CNBC said, 59% above the Commanders’ price three years earlier.
How can private equity invest in NFL teams?
Private-equity funds can collectively own up to 10% of an NFL team under rules approved by league owners, according to NFL.com. Each fund’s stake must be at least 3%, and the investments carry no voting rights or operational control.
Funds must initially hold their stakes for six years, NFL.com said. The rules preserve the league’s controlling-owner model while allowing teams that choose to sell minority stakes to raise capital. Khan said the current rules were working following the Seahawks sale, while adding that financial rules may change over time.
This story draws on original reporting from CNBC.
