There are many approaches used to value an asset or business. They can all be categorized into one of the following three conceptually distinct methods. One method, the market approach, relies on what similar assets sell for in the marketplace. A second method, the income approach, uses income...

What if a zero-income NBA franchise only had sportsmen ownership value (utility value) because it consistently produced zero profit? If so, then a Hybrid Income and Market Approach method that adjusts for the weaknesses in the comparables would take the $320 million as the zero-profit value of...

In recent years, there are some sports franchises that have reportedly begun to produce extraordinary net income (e.g., Manchester United, Real Madrid, Dallas Cowboys, Los Angeles Lakers). Simply relying on a multiple of revenue would miss the real differences in net income of these franchises...

All three sections in this chapter are interrelated. Expansions and relocations, especially in the early years of a league, are often the response to upstart rival leagues. More recently, relocations have occurred because another city offers a better facility lease regardless of whether the...