When Josh Harris became the owner of the Washington Commanders in 2023, his record-breaking $6.05 billion purchase didn’t just change the face of the franchise. It also sent a clear signal across the entire NFL that the team valuations are set to skyrocket.
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And as it turned out, since 2023, stakes in other franchises like the Philadelphia Eagles and the Miami Dolphins have been sold at valuations touching $8 billion and above. So, how did things get here?
Harris, a former private equity titan with roots at Apollo and Drexel, knows exactly what’s driving the numbers and what’s coming next. Speaking with Jason Kelly and Alex Rodriguez of The Deal on Bloomberg Originals, he broke it all down.
“There’s a scarcity value that is associated with these teams… there’s only 32,” said Harris. “People want to own the teams, they want to be involved in it. They want to be part of building, creating memories for cities and winning, and competing.”
That scarcity, combined with an increase in cash flow, is lifting the ceiling higher and higher, believes the Commanders’ owner. And with multiple teams now bringing in close to $700 million in annual revenue, the demand makes sense.
“We think that… we’re buying at a real cap rate of three to four, going to five to six,” Harris explained. “Even though that sounds like a very high EBITDA [earnings before interest, taxes, depreciation, and amortisation] multiple, I look at it as like cash flow yield.”
Harris also sees the NFL as more than just a sports league. He views it as a media juggernaut that’s structurally built for growth.
“The NFL and the NBA, and the NHL are incredible businesses. They’re dominant in our culture… Most of the cash flow is guaranteed by massive media and technology companies,” he said.
That’s why private equity is now a major player in the NFL. “Allowing capital in for these now much bigger media companies to keep, continue to improve and innovate is very important,” Harris continued. “Private equity coming in is creating demand for investment. So that’s lifting the sports team values.”
It’s already happening in real time. The Eagles, for instance, sold an 8% stake, which valued them at a whopping $8.3 billion. This came just a year after Harris closed on the Commanders.
The Dolphins, meanwhile, sold 13% in total, while the Bills, Raiders, and others are also onboarding new minority owners, including major names like Ares Management, Silver Lake, and even Tom Brady.
What’s next? Harris believes that teams in the league have the potential to breach the $10 billion mark soon.
“The Bills… a billion three, a billion four. The Panthers, $2.2, 2.3. Broncos in 2022, $4.6. Us at six and now…” Harris paused, then continued: “I think there’ll be trades even higher than what you’re saying… There could be stuff in the $9 to $10 [billion] range.”
But the Commanders’ owner knows it’s more than math. It’s about fostering culture, community, and long-term growth.
“These are fundamentally great businesses,” he said. “And even in harder times, people want something to celebrate.”
And that’s why the man who once thought Jeff Bezos might outbid him for the Commanders now finds himself shaping the valuation trajectory of the entire league. “God smiled on me,” Harris said. “But my point being, part of the valuation uplift is just the scarcity value.”
And rightly so. The NFL is breaking its revenue records every year. Add to this, the league’s expansion plans to foreign countries, and one can understand how much more money is still to be made.
Under these circumstances, why wouldn’t anyone want to be part of this massive juggernaut?
