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What is the Cheapest American Sports Team to Buy?

Published in Sports Team Valuations 3 mins read

The cheapest American sports team to buy, across all major professional leagues, is the Arizona Coyotes of the National Hockey League (NHL).

The valuation of a sports team is a complex process, reflecting factors like revenue, market size, league broadcast deals, and future growth potential. While actual sale prices can vary based on bidding wars and specific deal structures, valuations provide the best public indication of a team's worth.

The Arizona Coyotes: An Overview

The Arizona Coyotes are currently valued at $675 million, making them the lowest-valued franchise among all major American sports leagues, including the NFL, NBA, MLB, and NHL. This valuation places them at the very bottom of the market for professional sports teams.

Several factors contribute to a team's valuation, and for the Coyotes, historical market challenges and recent arena issues have played a role. Despite being part of one of the "big four" leagues, the NHL generally has lower team valuations compared to the NFL or NBA due to differences in media rights deals and overall revenue generation.

Valuations Across Major American Leagues

To put the Coyotes' valuation into perspective, it's helpful to compare it with the cheapest teams in other major leagues. The disparity in valuations between leagues can be immense, largely driven by the sheer scale of national media contracts and fan bases.

For instance, the lowest-valued team in the National Football League (NFL), the Cincinnati Bengals, is still worth significantly more than the entire NHL.

Comparison of Lowest Valuations

League Team Valuation
NHL Arizona Coyotes $675 Million
NFL Cincinnati Bengals $4 Billion

As evident from the table, even the most affordable NFL franchise, the Cincinnati Bengals, commands a valuation of $4 billion. This staggering figure is comparable to or even surpasses the value of almost every team in the NBA and MLB, and it is significantly higher than every single team in the NHL. This highlights the NFL's unparalleled financial dominance in the American sports landscape.

Understanding Team Acquisition

Acquiring a professional sports team is an exclusive and highly competitive endeavor. Beyond the sticker price (valuation), potential buyers must consider:

  • League Approval: Ownership groups undergo rigorous vetting by the league to ensure financial stability, ethical conduct, and alignment with league values.
  • Operating Costs: Owning a team involves substantial annual operating expenses, including player salaries, staff wages, facility maintenance, and travel.
  • Market Dynamics: The ability to generate local revenue through ticket sales, sponsorships, and merchandise depends heavily on the team's market size and fan engagement.

While the Arizona Coyotes represent the lowest entry point into American professional sports team ownership, the cost of entry remains in the hundreds of millions of dollars, underscoring the elite nature of this investment.