Mostrando las entradas con la etiqueta Forbes. Mostrar todas las entradas
Mostrando las entradas con la etiqueta Forbes. Mostrar todas las entradas

martes, 27 de agosto de 2019

Business: Forbes, The U.S. Open Is More Lucrative Than Ever. So Why Is It So Hard For Players To Make A Buck?


John Isner, Contributor, SportsMoney
I’m a professional tennis player on the ATP Tour.

John Isner is the world’s 14th-ranked men’s singles player and the top-ranked American man. He opens play at the U.S. Open on Tuesday.


Unlike athletes in a league like the NFL or the NBA, who can rely on their teams to cover most of their playing-related expenses, I’m a one-man company. The members of my support team—coaches, trainers, agents and more—are paid their salaries and fees directly out of my pocket, and I cover their flights, meals and accommodations for tournaments, not to mention my own travel expenses.

The Open’s Escalating Prize Money

This year, the men’s and women’s singles champions will make $3.85 million. The 2007 Open purse was $19.6 million, and that was after the largest single-year increase in the tournament’s history; this year, the total player compensation will be $57.2 million. And players will be guaranteed $58,000 just for stepping on the court, up from the $17,500 Jarkko Nieminen received when I beat him in the first round in 2007.


In danger of losing money for competing

The expenses can really add up, particularly at tournaments like Wimbledon and the French Open. In those cases, if I don’t win a match, I’m actually in danger of losing money for competing.

You do well as a pro tennis player when you’re ranked in the top 20

Don’t get me wrong, you do well as a pro tennis player when you’re ranked in the top 20. But that can be short-lived. Brands are paying you to get their logos on televised show courts, so if your matches aren’t being featured on broadcasts because your play has fallen off—or because the ATP Tour or a Grand Slam event has struck a broadcast agreement that diminishes visibility, or because you’re injured and not playing at all—they’re going to stop calling.

Prince supplies my rackets in exchange for the exposure of being connected to one of the biggest servers in the game; when I line up along the baseline, the “P” stencil on my strings is clearly visible. 

Players might also make more or less than their competitors depending on where they’re from and how many big potential sponsors they have back home. But even in the U.S., which loves its sports and its stars, we have our challenges.

Tennis’ Off-The-Court Juggernauts

Because of their success on the court and the places they call home, tennis’ five highest earners make considerably more in endorsement income than their competitors. Most players in the next tier, which includes John Isner, can hope to make $3 million or $4 million in a good year.


I just want players to be able to make a fair living

I certainly don’t want to turn tennis players into walking billboards, but I also want to make it easier to make a living in a sport where no real part of my income is fixed. Remember, too, that even the “old-timers” of tennis are retiring before 40. (Right, Roger? Serena?) You’d better hope you made enough money and managed it well enough that you can support your family for the next 50 years of your life. Tournaments and tours could make some small changes to let us sell the small amount of space we have to work with on our hats and our sleeves to give my colleagues and future players a better chance of finding sustainable financial success. It just doesn’t seem fair for players to be restricted in how they earn money by the same groups that profit off the product we deliver on and off the court.

References:

Forbes, John Isner, Contributor, SportsMoney, The U.S. Open Is More Lucrative Than Ever. So Why Is It So Hard For Players To Make A Buck?, Aug 26, 2019. 


jueves, 15 de agosto de 2019

Business: Forbes, The World's 50 Most Valuable Sports Teams 2019




The world’s richest sports teams are almost all swimming in cash these days. Barcelona, which lost $37 million due to excessive player costs, was the only top-50 team to post a loss on an operating basis, and every other team turned a profit of at least $25 million. More than half of the teams made more than $100 million, led by the Cowboys at $365 million.

Some of the most relevant information:
  • NBA teams have made the most dramatic moves this decade. The New York Knicks headline nine hoops teams in the top 50 this year. Their $4 billion value, up 11%, ranks fifth among all sports teams. The Los Angeles Lakers ($3.7 billion) and Golden State Warriors ($3.5 billion) also cracked the top 10. In 2012, the Lakers were the most valuable NBA team at $900 million and ranked 35th out of all sports franchises. The Knicks were the only other NBA team in the top 50 in 2012.
  • Three NBA franchises have been sold for at least $2 billion since 2014 (Nets, Houston Rockets and Los Angeles Clippers). The prior NBA-record sale price was $550 million for the Milwaukee Bucks, which closed three months before Steve Ballmer’s $2 billion blockbuster purchase of the Clippers.
The franchise values below are based on Forbes’ published valuations over the past 12 months by Mike Ozanian, Christina Settimi and Kurt Badenhausen. Team values reflect enterprise values (equity plus debt). No teams from the NHL, Nascar, MLS or Formula One made the top 50. The highest-ranking franchise outside of the NBA, NFL, MLB and European soccer was the New York Rangers at 72nd with a value of $1.55 billion.

  • The NFL remains the most dominant sports leagues with more than half of the 50 most valuable sports franchises, but the other major sports chipped away at its dominance during the past year.
  • The discount bin is empty when shopping for teams in the major sports leagues. Every NFL, NBA and MLB franchise is now worth at least $1 billion.
  • Manchester United was the world’s only pro sports team worth more than $2 billion in 2012. Now there are at least 50, including almost every NFL team.

https://www.forbes.com/sites/kurtbadenhausen/2019/07/22/the-worlds-50-most-valuable-sports-teams-2019/#73def459283d

The World's 50 Most Valuable Sports Teams 2019: Top 10


1 | Dallas Cowboys (NFL)


Value: $5 billion
1-Year % Change: 4%
Owner: Jerry Jones
Operating Income: $365 million


2 | New York Yankees (MLB)


Value: $4.6 billion
1-Year % Change: 15%
Owners: Steinbrenner family
Operating Income: $30 million


3 | Real Madrid (Soccer)


Value: $4.24 billion
1-Year % Change: 4%
Owners: Club members
Operating Income: $112 million


4 | Barcelona (Soccer)


Value: $4.02 billion
1-Year % Change: -1%
Owners: Club members
Operating Income: -$37 million


5 | New York Knicks (NBA)


Value: $4 billion
1-Year % Change: 11%
Owner: Madison Square Garden Company
Operating Income: $155 million


6 | Manchester United (Soccer)


Value: $3.81 billion
1-Year % Change: -8%
Owners: Glazer family
Operating Income: $238 million


7 | New England Patriots (NFL)


Value: $3.8 billion
1-Year % Change: 3%
Owner: Robert Kraft
Operating Income: $235 million


8 | Los Angeles Lakers (NBA)


Value: $3.7 billion
1-Year % Change: 12%
Owners: Jerry Buss Family Trusts, Philip Anschutz
Operating Income: $147 million


9 | Golden State Warriors (NBA)


Value: $3.5 billion
1-Year % Change: 13%
Owners: Joe Lacob, Peter Guber
Operating Income: $103 million


10 (tie) | New York Giants (NFL)


Value: $3.3 billion
1-Year % Change: 0%
Owners: John Mara, Steven Tisch
Operating Income: $149 million

10 (tie) | Los Angeles Dodgers (MLB)


Value: $3.3 billion
1-Year % Change: 10%
Owners: Guggenheim Baseball Management
Operating Income: $95 million

References:

  

martes, 11 de junio de 2019

Business: Forbes, The World's Highest-Paid Athletes, 2019


Forbes is an American business magazine. Published bi-weekly, it features original articles on finance, industry, investing, and marketing topics. Forbes also reports on related subjects such as technology, communications, science, politics, and law. Its headquarters is located in Jersey City, New Jersey. Primary competitors in the national business magazine category include Fortune and Bloomberg Businessweek. 

The magazine is well known for its lists and rankings, including of the richest Americans (the Forbes 400), of the world's top companies (the Forbes Global 2000), and The World's Billionaires. 

Forbes has tracked the leading earners in sports for three decades, and only seven athletes have landed in the top spot since 1990 (Tiger Woods holds the record with 12 times at No. 1). Global soccer icon Lionel Messi adds an eighth name to the roll call this year and, after longtime rival Cristiano Ronaldo, is only the second soccer player to rank first.


The top 100 spans 10 sports and includes athletes from 25 countries. Their $4 billion in combined earnings from prize money, salaries and endorsements between June 2018 and June 2019 is up 5% from last year, when Floyd Mayweather was first with $285 million.

The Top 10 are:

https://www.forbes.com/athletes/#46e6132055ae
  1. Messi (Soccer)
  2. CR7 (Soccer)
  3. Neymar (Soccer)
  4. Canelo (Box)
  5. Federer (Tennis)
  6. Wilson (NFL)
  7. Rodgers (NFL)
  8. LeBron (NBA)
  9. Curry (NBA)
  10. Durant (NBA)

The Top 11 to 20 are:



11. Tiger (Golf)
12. Roethlisberger (NFL)
13. Hamilton (Formula 1)
13. Joshua (Box)
13. Mack (NFL)
16. Westbrook (NBA)
17. Djokovic (Tennis)
17. Trout (MLB)
19. Mickelson (Golf)
20. Harden (NBA)

The Top 21 - 100 are:









Newcomers Delight



NFL contracts for elite stars carry huge upfront signing bonuses, pushing this quartet of gridiron greats to career-high paydays and their first appearances on the top 100. They are joined by Philadelphia’s new $330 million slugger.

Basketball Rules



Thirty-five NBAers made the cut, with cumulative earnings of $1.3 billion. Credit basketball’s skyrocketing player salaries driven by a near doubling of the salary cap over the past five years. Tennis players make four times as much from endorsements and appearance fees as from prize money.

USA vs The World



More than half of the top 100 earners play in the NFL or the NBA, giving Americans the advantage on total earnings, but the rich endorsement portfolios of international tennis and soccer stars mean higher average earnings for those outside the U.S.

Rising Tides



The top earner in sports has regularly banked more than $100 million annually since Tiger Woods rose to prominence in the 2000s, but the major shift is the rise of the next class of paychecks. The earnings for the tenth-highest-paid player is up 150% in 15 years.

Elite athletes are earning more than ever thanks to soaring salaries driven by ever-richer TV contracts. The cutoff to crack the world’s 100 highest-paid athletes is $25 million this year, compared with $17.3 million five years ago.

Here is a breakdown of the sports, nationalities, sponsors and more for the world’s 100 highest-paid athletes.


Sport

Athletes from 10 sports made the top 100. NBA stars led the way with 35 players (down from 40 last year), headed by LeBron James at $89 million.

The NFL was the next-best-represented sport with 19 athletes. Russell Wilson ($89.5 million) and Aaron Rodgers ($89.3 million) are well ahead of their peers after signing new deals with signing bonuses worth a combined $115 million.

Baseball (15 athletes); soccer (12); golf, boxing and tennis (5 each); and racing (2) also landed multiple stars in the top 100. For the fourth straight year, Virat Kohli ($25 million) and McGregor were the lone representatives from cricket and mixed martial arts. No NHL player or Nascar driver earned $20 million during the past year.

Nationality

There are 25 countries represented in the top 100. The United States had 62 athletes make the cut, thanks to the sky-high salaries in the major U.S. sports leagues, although the tally was down from 65 in 2018. Formula One driver Lewis Hamilton and boxer Anthony Joshua (both at $55 million) led the U.K contingent of five athletes. France and Spain each had three athletes while Brazil, Canada, the Dominican Republic, Germany, Serbia and Venezuela all had two. 

This is the list of the countries with one athlete in The World's Highest-Paid Athletes:
  • Argentina (Lionel Messi, 1).
  • Chile (Alexis Sanchez, 53).
  • Cuba (Yoenis Céspedes, 62).
  • Egypt (Mohamed Salah, 98).
  • Greece (Giannis Antetokounmpo, 26).
  • India (Virat Kohli, 100).
  • Ireland (Conor McGregor, 21).
  • Japan (Kei Nishikori, 35).
  • Kazakhstan (Gennady Golovkin, 95).
  • Mexico (Canelo Alvarez, 4).
  • Portugal (Cristiano Ronaldo, 2).
  • Philippines (Manny Pacquiao, 92).
  • Switzerland (Roger Federer, 5).
  • Wales (Gareth Bale, 79).


Sponsors

The top 100 earned $986 million from endorsements, memorabilia and appearance fees, up 12% from last year, as companies focused their marketing budgets on elite talent. Nike has the most athletes under contract, with 51 of the top 100.

Nike’s chief rival, Adidas, endorses 17 athletes in the top 100, including those under its Reebok brand. PepsiCo, along with its Gatorade and Mountain Dew brands, is affiliated with 13 athletes by Forbes’ count.

Surprise

The biggest surprise is that not a single Chinese superstar is found in The World's Highest-Paid Athletes. China is a global powerhouse in multiple areas (e.g., business, science, and technology). From now on I anticipate that we have to count on China on the next list.


References:

Forbes, 2019 The World's Highest-Paid Athletes Earnings, Kurt Badenhausen, Forbes Staff, June 11, 2019, link: https://www.forbes.com/athletes/#46e6132055ae.

Forbes, Behind The Numbers Of The Top-Earning Athletes 2019, Kurt Badenhausen, Forbes Staff, June 11, 2019, link: https://www.forbes.com/sites/kurtbadenhausen/2019/06/11/behind-the-numbers-of-the-top-earning-athletes-2019/#6d0742f86bbe.

Kurt Badenhausen, Forbes Staff
  • I cover sports business with rare dips into b-schools, local economies. 
  • I am a senior editor at Forbes and focus mainly on the business of sports and our annual franchise valuations. I also spend a lot of my time digging into what athletes earn on and off the field of play. I've profiled a bunch of athletes that go by one name: LeBron, Shaq, Danica and others. I also head up our biennial B-School rankings and our annual features on the Best Places for Business (metros, states and countries). I joined Forbes in 1998 after working 3 years at Financial World magazine.

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