Economist Thesis Engine

Sports Franchise Valuation & Trophy Premium Explorer

"The new owners of the LA Lakers have compared their purchase to getting hold of the Mona Lisa. The team is indeed one of a kind, but the price seems extravagant. Is sports investment gone mad?" — The Economist
Calibrated Deals:
Financial Drivers Assumptions & Diligence
Purchase Price (Enterprise Value)$10.00B
National/Local Media Broadcast ($M/yr)$240M
Arena & Matchday Yield ($M/yr)$195M
Sponsorship & Merchandising ($M/yr)$135M
Player Payroll + Luxury Tax ($M/yr)$210M
Arena & Team Ops Opex ($M/yr)$265M
Media CAGR / Growth Rate (%)6.5%
PE / Sovereign Hurdle IRR (%)12.0%
Enterprise Value Decomposition: Fundamental DCF vs Mona Lisa Premium D3.js Live Financial Waterfall
Implied Cash Yield
0.95%
$95M EBITDA
Trophy Scarcity Premium
48.5%
$4.85B Over DCF
Rev Multiple
17.5x
$570M Total Rev
Req Capital Apprec.
11.05%/yr
To Hit Target IRR
Exit Multiple vs Media Growth Sensitivity Required Terminal Appreciation Rate to Meet Hurdle

*Cells show annual capital appreciation required. Green indicates low appreciation burden (<8%), Yellow medium (8-11%), Coral severe (>11% required to justify price).

Peer Comp & Historical Deal Benchmark Comparable Multiple Matrix
Franchise Deal Year EV ($B) Rev ($M) EV/Rev Trophy Premium
Diligence Verdict: Mona Lisa Collectible Dynamics dominate traditional cash flow yield.
Model version: DCF-MonaLisa-v1.4 • Auto-saved in browser
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