The $12.5 billion Lakers deal is a bet that sports TV will keep booming. The NFL may test that.
Business Insider examines the $12.5 billion valuation of the LA Lakers, questioning if the trend of skyrocketing sports media rights deals is sustainable. Industry experts suggest that while the NFL remains a dominant force, future growth in media contracts may face significant headwinds.
Why it matters
This analysis highlights a potential shift in the sports business model, where record-breaking team valuations may no longer be supported by guaranteed exponential growth in TV rights revenue.
Luke Hales/Getty; Mark Baker/AP; Getty Images; BI Prices for TV sports deals almost always go up. That's the rationale for Bob Iger and Josh Kushner paying a record amount for the LA Lakers. But over at the NFL — the dominant force in TV — there are signs that the rise won't go on forever. Bob Iger and Josh Kushner plan to buy the Los Angeles Lakers at a record-setting price of $12.5 billion . The best argument for that price: The value of sports TV deals is the one thing that keeps going up, even as the rest of TV contracts. But even though that's been true for years, it doesn't mean it will always be true.
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