Commanders sale boosts NFL valuations after record price tag

The sale of the Washington Commanders turned out to be quite a boost for the rest of the NFL. 

The average NFL value went up 14% last year in large part as a result of the Commanders selling for a record $6.05 billion, according to Forbes. The business publication released its annual list of NFL valuations on Thursday, with the average NFL team now worth $5.1 billion. 

In addition to the Commanders’ sale propping up the league, NFL revenues increased 8%, Forbes reported. League operating income actually saw a decline of 14%, though that was attributed to the year-over-year player benefits that were deferred because of the pandemic. 

The Dallas Cowboys, to no surprise, led all teams with a $9 billion valuation — a 13% bump from a year ago. The New England Patriots ($7 billion), Los Angeles Rams ($6.9 billion), New York Giants ($6.8 billion) and Chicago Bears ($6.3 billion) rounded out the top five. 

The publication pegged the Commanders as the eighth-most valuable NFL franchise  — two spots lower than where Forbes placed them last year. The Las Vegas Raiders ($6.2 billion) and the New York Jets ($6.1 billion) have since leaped the Commanders. The Raiders, in particular, experienced the third-biggest jump in value, up 22%. 

Still, the Commanders sold for more than what Forbes estimated the team’s value to be. In 2022, the publication said Washington was worth $5.6 billion — meaning the franchise sold for 8% more than anticipated. 

Last November, the Commanders announced former owner Dan Snyder hired an investment bank to explore a sale of the team. Josh Harris quickly emerged as a suitor, striking a tentative agreement in April to buy the club. Contracts were signed a month later and the NFL officially approved the deal in July. 

Forbes described the Commanders’ sale as “an anomaly” because of the size of Harris’ group — the team has 20 limited partners, including NBA legend Magic Johnson — and the structure of the agreement. The deal reportedly calls for a $200 million “earn-out” payment to Snyder that can only be triggered if Washington hits specific revenue targets over the next three seasons. Those targets are likely to be hit, Forbes said. 

“I could have never imagined — ever, ever imagined — when I first got involved in the NFL that we’d be talking in these kind of numbers,” Cowboys owner Jerry Jones said in March, referring to the skyrocketing values of NFL teams. 

Jones bought the Cowboys in 1989 for $140 million.