Forbes - The World's Most Profitable Sports Teams 2025
The Dallas Cowboys lead as the most profitable sports team globally, with an operating income of $564 million in 2023. This success is attributed to their substantial local revenue streams, including ticket sales, concessions, and merchandise, totaling nearly $800 million. The Cowboys' financial model benefits from playing in a large market and controlling their stadium, allowing them to maximize revenue from sponsorships and events. The NFL's salary cap system also helps maintain profitability by controlling spending. In contrast, European soccer teams like Barcelona and Paris Saint-Germain face financial challenges due to high transfer fees and salaries, resulting in significant operating losses. The New York Mets are noted as the most unprofitable team, with a $292 million loss, largely due to luxury taxes and a high payroll. Overall, 141 out of 174 sports teams evaluated by Forbes in 2024 were profitable, indicating a shift towards profitability as a standard expectation in sports team ownership.
Key Points:
- Dallas Cowboys generated $564 million in operating income in 2023, leading globally.
- NFL teams benefit from a salary cap system, aiding profitability.
- European soccer teams face financial challenges due to high transfer fees and salaries.
- New York Mets reported a $292 million operating loss in 2023, the highest among sports teams.
- 141 out of 174 sports teams were profitable in 2024, showing a trend towards profitability.
Details:
1. 📊 Overview of Profitable Sports Teams
1.1. 📊 Overview of Profitable Sports Teams
1.2. Impact of Broadcasting Deals
1.3. Role of Sponsorship Deals
1.4. Future Prospects and Strategic Growth
2. 🏈 NFL's Dominance in Profitability
- In 2025, NFL teams each collected an estimated $323 million from national media and sponsorship deals during the 2023 season before selling any tickets, highlighting the league's strong media-driven revenue base.
- The Dallas Cowboys, valued at $10.1 billion, are the world's most profitable sports team, generating an estimated $564 million in profit, showcasing the significant financial success possible within the NFL.
- The league's profitability is underscored by its lucrative media contracts and sponsorship deals, which are major revenue streams alongside ticket sales and merchandise.
- Expanding beyond team-specific insights, the NFL's centralized revenue generation model benefits all teams, promoting league-wide financial stability and growth.
3. 💸 Dallas Cowboys: The Financial Giant
- The Dallas Cowboys are the most profitable team in 2023, significantly outperforming their competitors.
- The Los Angeles Rams, the second most profitable team, earned $286 million, which is less than half of the Cowboys' earnings.
- The New England Patriots ranked third with $261 million in operating income.
- Nine NFL franchises are among the 20 most profitable sports teams, alongside five NBA, three NHL, and three English Premier League teams.
- Together, these teams generated an estimated $3.9 billion in profit during the most recent season, averaging $195 million per team, which is a 12% increase from the previous year.
- The Dallas Cowboys generated nearly $800 million in local revenue, highlighting their financial dominance.
4. 🏟️ Maximizing Revenue through Market and Stadium Control
- Dallas crossed $400 million in revenue from ticket sales, concessions, and merchandise, setting a benchmark no other pro football team has reached.
- NFL teams averaged $143 million in operating income in 2023, with no franchise earning less than $56 million, indicating a strong financial base across the league (Forbes estimates).
- Playing in a large market gives Dallas a financial advantage, further enhanced by controlling its stadium to maximize revenue from sponsorships, luxury suites, concerts, and non-sports events.
5. ⚽ Contrasting Financial Models: NFL vs. European Soccer and MLB
- The NFL employs a salary cap system, similar to the NBA and NHL, which controls spending by capping player salaries and splitting revenue between players and team owners, ensuring financial stability and competitive balance.
- European soccer leagues are governed by UEFA's Financial Fair Play (FFP) regulations, which mandate that clubs align their payrolls with their revenue, but do not limit transfer fees or player salaries, leading to potential financial instability.
- Barcelona and Paris Saint-Germain, despite being major clubs, faced significant financial challenges, with Barcelona reporting a $145 million operating loss and PSG a $126 million operating loss for the 2022-23 season, illustrating the financial strain even top clubs can face under current regulations.
- Comparatively, the MLB operates with a luxury tax system rather than a salary cap, allowing teams more flexibility in spending but potentially leading to disparities in team competitiveness.
6. 📈 Profitability Trends and Financial Management Across Leagues
- The New York Mets experienced a significant $292 million operating loss in 2023, attributed mainly to $111 million in luxury taxes on a $375 million payroll, highlighting the financial pressures in sports management.
- Out of 174 sports teams evaluated by Forbes in 2024, 141 were profitable, and five broke even, while 28 operated at a loss, with Major League Soccer accounting for 15 of these unprofitable teams.
- There is a noticeable shift in team ownership strategies towards profitability, moving away from ego-driven or speculative ownership to more financially sustainable models.
- The rising interest of private equity firms and institutional investors in sports ownership is driven by these profitability expectations, indicating a change in the investment landscape.
- To enhance financial sustainability, teams are increasingly adopting disciplined financial management practices and exploring new revenue streams.
7. 🤝 The Rise of Private Equity in Sports Investments
- The NFL began allowing private equity firms to acquire minority team stakes starting in August, indicating a shift towards more private investment in sports teams.
- The NBA selected its first private equity partner in 2020 and has more lenient rules for institutional investors compared to the NFL, suggesting an increasing trend of private equity involvement in the league.
- The NBA's new national media deals, effective next season, are valued at more than double the current package, highlighting a significant increase in potential revenue and profitability for the league.
- Private equity's involvement in sports teams could lead to more sophisticated management strategies and increased financial stability.
- The trend suggests a broader acceptance of private equity in sports, potentially leading to more competitive and financially robust leagues.