The Denver Broncos were sold for $4.65 billion in 2022, two years ago. The Washington Commanders sold for slightly more than $6 billion last year.
It is still less than the $10 billion that Miami Dolphins owner Stephen Ross was reportedly recently offered for his club and stadium, even though it is good money if you can make it.
Not insignificantly, for the rights to the Miami Grand Prix, which is essentially held in the parking lot of the stadium.
Although I wasn’t present at the 2022 Formula 1 race, it sounded like a huge success. Over three days, almost a quarter of a million people attended. An further 2.6 million individuals observed the show. The anticipated economic impact of the event on the community was $350 million.
But even so, there were some issues, particularly for those who purchased more expensive tickets. Ross thus invested more than $100 million in the construction of a permanent paddock-club structure next to the stadium as well as several pedestrian bridges to facilitate visitors’ exploration of various areas of the complex.
That was very effective. In 2023, the three-day event sold more tickets than all of the Dolphins’ home games combined.
Dolphins president Tom Garfinkel stated, “The ticket revenue for the race is about 25 percent more than the entire Dolphins season.” (Based on some quick maths, the revenue from race tickets alone probably exceeded $180 million.)
This is partially due to Ross and Garfinkel’s acceptance of the “festivalization” of sports. The campus is yours to explore. You can attend concerts; Ed Sheeran is on the schedule this year. You may treat yourself to luxury for more than $15,000. There are thirty distinct bundles altogether. Hundreds of food sellers. live sales. Pools and boats. Beach bars. Games. Promotional events.
When I attended the event the previous year, a lot of people seemed to think that the action on the track was just a side attraction. In what other place might I give Jeff Bezos a warm nod?
This year’s race is expected to draw a record 300,000 spectators, as some analysts predict it will generate roughly $1 billion in economic stimulus for the region.
Ross received a $10 million bid for the Dolphins, the stadium, and the Formula 1 event for the same reason. The Dolphins alone had an estimated net value of $5.7 billion last year, a 24 percent increase over the previous year. Ross declined the $10 billion offer, demonstrating how much the Formula 1 race has clearly added to the organisation overall.
Why not make a sale? One reason is that the value of sports franchises keeps rising; what is worth $10 billion today could be worth $10 billion tomorrow. However, it is evident that Ross sees room for expansion as a result of his ability to transform a football stadium into a multifunctional space and a sporting event into a festival.
The Dolphins organisation has accomplished “one of the great sports business success stories of the last decade,” according to consultant and SportsCorp founder Marc Ganis. It’s the conversion of the entire enterprise into what is likely the most prosperous, multifaceted, regional sports entertainment enterprise in the nation and globally.”
