NFL Teams Outpace Global Soccer Giants in Valuation, Dallas Cowboys Lead at $10.1 Billion

NFL franchises are routinely valued higher than some of the world's most popular soccer clubs, a disparity highlighted by a recent observation from The New York Times' @TheAthleticFC. The tweet posed the question, "How is it possible when teams like Real Madrid and Manchester United play more games? Here's why." This trend persists despite soccer's immense global reach and the higher number of matches played by top European teams.

Recent valuations underscore this financial gap, with the NFL's Dallas Cowboys leading all sports franchises at an estimated $10.1 billion, according to Forbes' 2024 rankings. In contrast, Real Madrid, consistently ranked among the most valuable soccer clubs, stands at $6.75 billion, while Manchester United is valued at $6.6 billion. The Forbes list for 2024 indicates that 29 NFL franchises are among the top 50 most valuable sports teams globally, significantly outnumbering the seven soccer clubs on the list.

A key factor contributing to the higher valuations of NFL teams lies in the leagues' differing revenue multiples. Forbes reports that NFL valuations carry an average multiple of 9 times revenue, reflecting strong investor confidence and prospects for future growth. In comparison, European soccer clubs valued by Forbes average a multiple of 5.1 times revenue, suggesting a more conservative market outlook despite their substantial revenues.

The financial structure of the NFL, characterized by robust revenue-sharing models, lucrative media rights deals, and the absence of relegation, provides a stable and predictable income stream for its teams. This contrasts with European soccer, where clubs face challenges such as significant debt, restrictive ownership requirements, and the constant threat of relegation, which can impact financial stability. Furthermore, fan resistance to ticket price increases across Europe can limit revenue growth.

Despite these differences, European soccer clubs continue to see appreciation in value, with teams like Arsenal and Newcastle United experiencing significant year-over-year growth. Upcoming events such as the expanded Club World Cup and the 2026 FIFA World Cup, both set to be held in North America, are anticipated to further boost interest and potentially valuations for soccer globally. Real Madrid, for instance, became the first soccer team to cross $1 billion in annual revenue in the 2023-24 season, a milestone previously achieved only by the Dallas Cowboys in the sports world.