Yes, sports team owners can make money, but owning a professional sports team does not guarantee an annual profit. Team owners can benefit from operating income, rising franchise values, sponsorships, media rights, ticket sales, merchandise, stadium-related revenue, and eventually selling the team for more than they paid.
For many wealthy owners, the biggest financial opportunity is not necessarily taking a large paycheck from the team every year. It can be the long-term increase in the value of the franchise.
That distinction is important because a team can have a high valuation while producing relatively modest—or even negative—operating income in a particular year.
How sports team owners make money
Professional sports teams generate money from several sources. Depending on the league and franchise, major revenue streams can include:
- Television and streaming rights
- Ticket sales
- Premium seating and suites
- Sponsorships
- Advertising
- Merchandise
- Licensing
- Concessions
- Stadium or arena events
- League distributions
- International commercial deals
The money generated by the team is used to pay players, coaches, employees, operating expenses, debt, stadium costs, taxes, and other expenses.
Whatever remains can contribute to the team’s operating profit.
However, the owner’s financial return can also come from something different: the franchise becoming more valuable.
The value of a sports team can rise dramatically
A professional sports franchise is an asset. If the value of that asset increases, the owner’s equity can become much more valuable even if the owner does not receive huge annual cash distributions.
For example, Forbes currently values the Los Angeles Dodgers at about $7.8 billion. Guggenheim Baseball Management purchased the franchise for approximately $2 billion in 2012. The Dodgers’ reported revenue is about $850 million, while Forbes estimates operating income at negative $20 million under its methodology.
That example demonstrates why revenue, operating profit, and franchise value are three different things.
A team can generate enormous revenue without producing an equally enormous operating profit. At the same time, the value of the franchise can increase substantially.
Selling the team can create a huge return
One of the most significant ways owners can make money is by selling their stake.
Suppose an ownership group purchases a franchise for $2 billion and later sells it for $5 billion. Ignoring debt, taxes, transaction expenses, and other financial factors, the difference is $3 billion.
The actual return can be much more complicated because owners may use borrowed money, add capital, share ownership with other investors, or receive different amounts depending on their percentage stake.
Nevertheless, franchise appreciation has become a major part of the sports business.
Forbes reported in 2026 that NFL franchises were worth about 17 times their average 2000 value, while NBA teams had increased about 26 times on average. The same report said NHL and MLB franchise values had increased roughly 15 and 11 times, respectively, over that period.
Those increases help explain why wealthy investors continue to pursue professional sports franchises even when they are not simply looking for yearly cash profits.
Do owners receive money every year?
Sometimes.
If a team generates profits, ownership may be able to receive distributions. But there is no universal rule that requires an owner to take profits out of the franchise every year.
Owners may instead use available money to:
- Improve the stadium or arena
- Increase player spending
- Pay down debt
- Build training facilities
- Expand the business
- Fund other operations
- Strengthen the franchise’s long-term value
This means an owner could have a very valuable team without receiving a massive personal payment every season.
The financial structure varies considerably between leagues and individual franchises.
Revenue is not the same as profit
This is one of the most important concepts when understanding sports ownership.
Revenue is the money coming into the business.
Operating income is what remains after certain operating expenses are accounted for, according to the methodology being used.
Franchise value is an estimate of what the entire team and its related business interests are worth.
These figures can be dramatically different.
For example, Forbes estimates that the Los Angeles Lakers generated $551 million in revenue and $170 million in operating income, while valuing the franchise at $10 billion.
The figures show why simply looking at ticket sales or total revenue does not tell you how much the owner personally earns.
Where does the team’s money come from?
Television and media rights
Media rights are among the most important revenue sources in major professional sports.
Leagues negotiate enormous broadcasting and streaming agreements, with money distributed among teams according to league rules.
This can provide teams with substantial revenue even when the franchise does not have the biggest local market.
Ticket sales
Teams also make money from tickets.
Revenue can include regular tickets, premium seats, luxury suites, season-ticket packages, and playoff games.
The economics vary considerably depending on stadium capacity, ticket prices, attendance, and the number of home events.
Sponsorships and advertising
Companies pay professional teams for access to their audiences.
Sponsorship agreements can include jersey or uniform partnerships, stadium naming rights, advertising boards, digital promotions, and other commercial arrangements.
Successful teams with large national or international audiences can have particularly valuable commercial opportunities.
Merchandise
Jerseys, hats, shirts, collectibles, and other licensed products generate additional revenue.
Merchandise can become especially valuable when a team has a large fan base or a superstar player.
Stadium and arena revenue
Some ownership groups also benefit from revenue connected to the team’s venue.
That can include premium hospitality, concessions, parking, concerts, naming rights, and other events.
The exact financial benefit depends on the team’s lease and whether the ownership group controls or owns the venue.
Some owners make more from appreciation than annual profits
This is why sports franchises can be attractive to extremely wealthy investors.
An owner may accept relatively modest annual operating returns if the franchise is becoming much more valuable.
For example, the Dallas Stars are currently valued by Forbes at about $2.3 billion. Forbes estimates $250 million in revenue and $70 million in operating income for the franchise. The team was purchased by Tom Gaglardi in 2011 for about $240 million.
That illustrates how an owner can potentially benefit from both business operations and long-term appreciation.
It does not mean the owner’s personal profit equals the difference between those valuation figures, because financing, ownership percentages, debt, taxes, and other factors matter.
Can a sports team lose money?
Yes.
Being a famous professional sports franchise does not automatically mean the business produces a profit every year.
Teams have major expenses, including:
- Player salaries
- Coaching salaries
- Front-office employees
- Travel
- Facilities
- Stadium costs
- Insurance
- Marketing
- League expenses
- Debt payments
- Taxes
- Development and training
A team can also experience unusually high costs after signing players, constructing facilities, or making major investments.
Forbes’ current figures provide examples of this variation. The Dodgers are estimated to have generated $850 million in revenue while recording negative $20 million in operating income under Forbes’ methodology, whereas the Lakers are estimated at $551 million in revenue and $170 million in operating income.
Therefore, it would be inaccurate to assume that every major franchise produces the same profit.
Why would someone buy a team if profits aren’t guaranteed?
There are several reasons.
Long-term appreciation
A team may become dramatically more valuable over several years or decades.
Scarcity
There are only a limited number of major professional franchises. Owning one can therefore provide access to an unusually scarce asset.
Business opportunities
A team can provide opportunities in media, sponsorships, real estate, entertainment, technology, hospitality, and merchandising.
Personal interest
Some owners are sports fans and value the experience of owning a team in addition to the financial opportunity.
Forbes reported in 2026 that Sporting Kansas City owner Peter Mallouk viewed his investment partly as a passion project and said he considered stocks a better investment opportunity.
That is a useful reminder that sports ownership is not always purely about maximizing annual financial returns.
Are all sports team owners billionaires?
No.
Major professional sports franchises are extremely expensive, so controlling owners are generally very wealthy individuals, families, corporations, or investment groups.
But ownership can be divided among multiple people or organizations.
For example, private investment groups have increasingly become involved in professional sports ownership. Forbes reported that several major leagues have changed their rules to permit private-equity participation in team ownership, allowing investment firms to purchase minority stakes.
This means “the owner” is not always one individual who owns 100% of the franchise.
What is the biggest financial risk?
The biggest risk is that an owner pays a very high price for a franchise and its value or financial performance does not develop as expected.
Other risks include:
- Rising operating expenses
- Poor team performance
- Declining attendance
- Weak local markets
- Stadium problems
- Debt
- Changes in media economics
- League instability
- Economic downturns
- Regulatory or tax changes
- Unexpected player or business costs
Sports franchises are also highly illiquid. Unlike publicly traded stocks, an owner generally cannot simply press a button and sell the team immediately.
A sale can take months or years and requires finding a buyer, negotiating terms, and obtaining any required league approval.
Does winning championships make owners richer?
Winning can increase a team’s popularity and potentially strengthen its commercial position, but a championship does not automatically translate into a specific amount of profit for the owner.
A championship can create additional merchandise demand, media attention, sponsorship opportunities, ticket demand, and fan engagement.
However, winning also can require substantial spending on players, coaches, facilities, and other resources.
The financial effect therefore depends on the particular franchise and its business structure.
Frequently Asked Questions
do sports team owners make money every year?
Not necessarily. Some teams produce operating profits, while others may have years in which expenses exceed operating income. Owners can also benefit from increases in franchise value even when annual operating profit is limited.
How do sports team owners make the most money?
For some owners, the largest financial gain can come from selling a franchise after its value has increased. Annual operating profits, distributions, and other business income can also contribute.
Do sports team owners get all the team’s profits?
Not necessarily. Ownership may be divided among several individuals or investment groups. Teams also have expenses, debt, reinvestment requirements, and other financial obligations.
Can owning a sports team be a bad investment?
Yes. A franchise can lose money, require additional capital, or fail to appreciate as expected. Sports ownership is not a guaranteed investment.
Why are sports teams so expensive?
Major professional franchises are scarce assets with valuable media rights, commercial businesses, established fan bases, and long-term growth potential. Those characteristics can produce extremely high valuations.
Do sports team owners pay themselves a salary?
An owner may receive compensation from other roles within the organization, but ownership returns are not the same thing as an employee salary. The financial arrangements depend on the ownership structure and team.
Is sports team ownership mainly about making money?
Not always. Some owners clearly view franchises as investments, while others also value the prestige, community connection, competitive experience, or personal connection to a sport. Forbes’ reporting on Sporting Kansas City’s Peter Mallouk is one recent example of an owner describing the purchase partly as a passion project.
Conclusion
So, do sports team owners make money? Yes, many can, but the answer is more complicated than simply looking at a team’s annual revenue.
Owners can benefit from operating profits, distributions, sponsorships, media rights, and other business income. More importantly, a professional sports franchise can appreciate significantly over time, potentially creating a very large return when the team is eventually sold.
However, teams can also have substantial expenses and even report operating losses. Ownership is therefore not a guaranteed annual paycheck.
For wealthy investors, one of the biggest attractions is the combination of a scarce asset, a passionate customer base, recurring sports revenue, and the possibility that the franchise will become substantially more valuable over decades.