For decades, owning a professional sports franchise was the ultimate billionaire’s trophy.

Now it might be the ultimate billionaire’s trade.

Over the past month, Southern California has suddenly become ground zero for a remarkable ownership carousel, with three marquee franchises changing hands thanks to astronomical valuations and unusual circumstances.

The latest domino fell on Tuesday, when Los Angeles Rams owner Stan Kroenke agreed to purchase a controlling stake in the Los Angeles Angels from Arte Moreno in a deal valuing the franchise at an MLB-record $4 billion.

It followed the San Diego Padres $3.9 billion sale to José E. Feliciano and Kwanza Jones and another stunning Lakers transaction, with Josh Kushner and Bob Iger agreeing to purchase control of the NBA’s glamour franchise from Mark Walter at a professional sports-record valuation of roughly $12 billion.

Three Southern California franchises. Three staggering price tags.

And potentially another one lurking.

Walter’s broader business empire has come under federal scrutiny involving loans connected to his insurance businesses, raising questions about whether additional asset sales could follow. Considering Guggenheim Baseball Management controls the Los Angeles Dodgers, the possibility of the best team in baseball going up for sale also is enough to make your head spin.

But this isn’t some bizarre SoCal coincidence.

Sports ownership is changing.

Private equity companies want a piece of sports

There was a time when families bought sports teams and kept them for generations.

Jerry Buss bought the Lakers, Kings and the Forum for $67.5 million back in 1979. That’s a growth of 178x the original investment in less than 50 years. For comparison, general consumer prices in the U.S. have increased by roughly 5.8 times over the last five decades.

But it’s not just Southern California that is selling sports franchises.

Mark Cuban bought the Dallas Mavericks for $285 million in 2000. He sold control in 2023 for an evaluation of $3.5 billion.

The Washington Commanders sold for $6.05 billion. The Boston Celtics changed hands at a $6.1-billion valuation. The Seattle Seahawks reportedly commanded $9.6 billion and the Minnesota Timberwolves sold for $4.5 billion just last month.

But it’s not just private equity companies. Venture capitalists and institutional investors want in as well.

Apollo Global Management launched Apollo Sports Capital. TPG created a sports investment business. The NBA opened its doors to private-equity ownership in 2021. Even the NFL finally allowed approved institutional investors to purchase minority stakes in 2024.

There is simply too much money available and sports teams are an appealing investment to own.

Television rights changed the calculus

One of the biggest reasons for these astronomical valuations is because of television rights. It’s as appealing to investors as beachfront property is to real estate moguls.

Streaming shattered the traditional entertainment model. Viewers can watch movies, binge television shows or spend hours consuming reality television without ever touching a broadcast television network.

But live sports remain different.

Live sports still create appointment viewing in an entertainment world increasingly devoid of firm schedules.

And that scarcity has become extremely valuable to sports leagues.

The NBA’s new national media agreement is worth roughly $76 billion over 11 years. NFL media contracts produce massive guaranteed revenue distributed across the league.

Why are the Dodgers so valuable?

Because they signed a 25-year, $8.35 billion local TV contract back in 2013.

So for Kushner, Iger, and Kroenke, buying the Lakers and Angels isn’t about a roster of talent. It’s about buying a recognizable brand in the second-largest media market in America.

Sports franchises now combine intellectual property, television inventory, sponsorships, merchandise, ticket revenue, and in some cases, venues and valuable real estate in a growing global market.

What does this mean for fans?

Fans in Anaheim are celebrating Kroenke’s takeover of the Angels. There are real benefits to an ownership change.

Deep-pocketed owners can build stadiums, modernize training facilities, invest in women’s sports, expand internationally and spend aggressively on elite talent.

Walter’s Dodgers and Kroenke’s Rams are perfect examples of what enormous financial resources can accomplish. SoFi Stadium was built for $7 billion out of Kroenke’s pocket.

Money matters, but it comes at a price.

When owners purchase franchises for billions of dollars, there will inevitably be pressure to maximize premium seating and raise the prices on sponsorship deals, merchandise, parking, concessions, ticket prices and every other revenue stream available to them.

All that comes out of the fans’ pockets.

The Moreno family can own a franchise for 23 years and endure lean periods. But an investment fund has investors and those investors expect returns.

What is the byproduct of these high franchise valuations?

This is the biggest question surrounding the new ownership revolution going in sports.

These new ownership changes increasingly look less permanent. Walter flipping the Lakers in less than a year is a great example. Instead of families owning teams for decades, equity firms want to buy, grow, monetize and sell.

Suddenly every franchise in sports could be had for the right price.

But passionate fans remain the product that makes it all possible.

Which is why these new ownership groups should be careful.

There is nothing wrong with making money. After all, sports teams have always been businesses at the end of the day.

But the industry shouldn’t become so intoxicated by valuations that it forgets what created those valuations in the first place. Fans.

These investors are betting billions of dollars that the loyalty, traditions, and diehard passion of fans for their teams never change.

Trust us when we say that Tuesday’s sale of the Angels is not the end of this ownership boom.

Less than a month after the Lakers sold for a record $12 billion and the Padres for a record $3.9 billion the Angels eclipsed it.

Somewhere, another owner is looking at those numbers and running the calculation of what he paid years ago and what insane amount it could be worth today. 

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