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Chart of the Week

The World’s 50 Most Valuable Sports Teams

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The World's 50 Most Valuable Sports Teams

The World’s 50 Most Valuable Sports Teams

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Every team’s general manager starts off with the same goal: to build a franchise that contends for championships year in and year out.

However, with the nature of the business being what it is, the odds are stacked against any team trying to achieve this. Out of close to 30 teams in most leagues, only one franchise can come out on top with a championship. And with unprecedented parity in most major leagues, every management decision is a crucial one. One smart draft choice or trade can put a team in a position to win, but a single mistake can also make a team a perennial bottom dweller.

Owners have a similar perspective, but they also want to build a franchise that is worth money in the long-run. To do that, they need to consider factors outside of winning: merchandise sales, sponsorships, costs, and other business decisions need to be made. They need to figure out how to capture the imagination of fans, and how to salvage the value of a franchise even when they are losing most games.

Today’s chart, using data from Forbes, is a hat tip to the teams that are lucky enough to count themselves among the most valuable in the world. Further, we also look at how the list has changed over time, and what happens to the valuations of franchises that are fortunate to be contenders on an ongoing basis.

What Makes a Team Valuable?

Multi-billion dollar sports teams don’t just grow on trees.

Instead, the massive value assigned to teams like the Dallas Cowboys or Manchester United is the culmination of a variety of important factors: market size, fan appeal, sport economics, international cross-over potential, profit, success, history, and many others.

Here’s a Top 10 List of the world’s most valuable sports teams – and how that list has changed since 2010.

Ranking of the Most Valuable Sports Teams over time

The ranking list has a few big takeaways on what is needed to become a valuation monster:

Market size matters:
New York and Los Angeles do very well for valuation, even without many recent championships. These places are home to millions of fans, as well as massive amounts of dollars to be made from sponsors and media rights.

Recent success helps:
The Patriots have made seven Super Bowl appearances since 2000, cementing the franchise as one of the most valuable sports teams in the world.

Recent failures hurt:
The Redskins haven’t won a playoff series since 2005 (Wildcard) – and partially as a result, they have fallen out of the Top 10 ranking for the most valuable sports teams in 2017.

History is a factor:
Manchester United hasn’t won the EPL in the last few years, but the club’s history speaks for itself. The Yankees have been mediocre in the last five years, but fans know they’ll be back eventually.

Sport economics are key:
Why are there so many NFL teams on the Top 50 list? The economics just work better, and it translates to team valuations.

Cross-over appeal:
What’s unique about Manchester United, the Yankees, or the Patriots? You’ll see people wearing their gear all around the world – they have rare cross-over appeal to international markets, and this means more dough.

Championships and Team Value

It’s clear that winning has a role in team value – but how big of a difference can it make?

Next, we’ll look at how value has changed for teams that have been particularly successful in recent years, like the Golden State Warriors, New England Patriots, and Chicago Blackhawks.

Golden State Warriors
The Warriors franchise is worth +622% more than it was back in 2010, thanks to recent success. The team has made the finals in each of the last three years – and they’ve taken home the Larry O’Brien NBA Championship Trophy twice.

Golden State Warriors

New England Patriots
Like other perennial champions, the Pats have their fair share of detractors. Team owner Robert Kraft likely doesn’t care though – his team is now worth $3.4 billion, a 150% increase in value since 2010. They also have the hardware to show for it.

New England Patriots

Chicago Blackhawks
Despite a storied history as an “Original 6” team in the NHL, the Blackhawks found themselves in a bit of a funk in the 2000s. That all changed in 2006 and 2007, when the Blackhawks drafted Jonathan Toews and Patrick Kane – and now the team has won three Stanley Cups since 2010.

Chicago Blackhawks

Recent winning streaks do help – and championships translate to other value categories as well. Winning builds the team’s history and brand, converts bandwagon fans, and helps teams create an international presence.

Or as the late Al Davis often said, “Just win, baby.”

One Team Towns

To finish, here’s a final visualization that highlights the valuations of franchises in “One Team Towns” – cities in North America that each hold only one of the Big Four (NFL, NBA, MLB, NHL) franchises.

One Team Towns

Of course, once the Raiders move to Las Vegas after their current lease expires, this map will change once again.

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Chart of the Week

Visualizing the Countries Most Reliant on Tourism

With international travel grinding to a halt, here are the economies that have the most to lose from a lack of tourism.

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Visualizing the Countries Most Reliant on Tourism

Without a steady influx of tourism revenue, many countries could face severe economic damage.

As the global travel and tourism industry stalls, the spillover effects to global employment are wide-reaching. A total of 330 million jobs are supported by this industry around the world, and it contributes 10%, or $8.9 trillion to global GDP each year.

Today’s infographic uses data from the World Travel & Tourism Council, and it highlights the countries that depend the most on the travel and tourism industry according to employment—quantifying the scale that the industry contributes to the health of the global economy.

Ground Control

Worldwide, 44 countries rely on the travel and tourism industry for more than 15% of their total share of employment. Unsurprisingly, many of the countries suffering the most economic damage are island nations.

At the same time, data reveals the extent to which certain larger nations rely on tourism. In New Zealand, for example, 479,000 jobs are generated by the travel and tourism industry, while in Cambodia tourism contributes to 2.4 million jobs.

RankCountryT&T Share of Jobs (2019)T&T Jobs (2019)Population
1Antigua & Barbuda91%33,80097,900
2Aruba84%35,000106,800
3St. Lucia78%62,900183,600
4US Virgin Islands69%28,800104,400
5Macau66%253,700649,300
6Maldives60%155,600540,500
7St. Kitts & Nevis59%14,10053,200
8British Virgin Islands54%5,50030,200
9Bahamas52%103,900393,200
10Anguilla51%3,80015,000
11St. Vincent & the Grenadines45%19,900110,900
12Seychelles44%20,60098,300
13Grenada43%24,300112,500
14Former Netherlands Antilles41%25,70026,200
15Belize39%64,800397,600
16Cape Verde39%98,300556,000
17Dominica39%13,60072,000
18Vanuatu36%29,000307,100
19Barbados33%44,900287,400
20Cayman Islands33%12,30065,700
21Jamaica33%406,1002,961,000
22Montenegro33%66,900628,100
23Georgia28%488,2003,989,000
24Cambodia26%2,371,10016,719,000
25Fiji26%90,700896,400
26Croatia25%383,4004,105,000
27Philippines24%10,237,700109,600,000
28Sao Tome and Principe23%14,500219,200
29Bermuda23%7,80062,300
30Albania22%254,3002,880,000
31Iceland22%44,100341,200
32Greece22%846,20010,420,000
33Thailand21%8,054,60069,800,000
34Malta21%52,800441,500
35New Zealand20%479,4004,822,000
36Lebanon19%434,2006,825,000
37Mauritius19%104,2001,272,000
38Portugal19%902,40010,197,000
39Kiribati18%6,600119,000
40Gambia18%129,6002,417,000
41Jordan18%254,70010,200,000
42Dominican Republic17%810,80010,848,000
43Uruguay16%262,5003,474,000
44Namibia15%114,6002,541,000

Croatia, another tourist hotspot, is hoping to reopen in time for peak season—the country generated tourism revenues of $13B in 2019. With a population of over 4 million, travel and tourism contributes to 25% of its workforce.

How the 20 Largest Economies Stack Up

Tourist-centric countries remain the hardest hit from global travel bans, but the world’s biggest economies are also feeling the impact.

In Spain, tourism ranks as the third highest contributor to its economy. If lockdowns remain in place until September, it is projected to lose $68 billion (€62 billion) in revenues.

RankCountryTravel and Tourism, Contribution to GDP
1Mexico15.5%
2Spain14.3%
3Italy13.0%
4Turkey11.3%
5China11.3%
6Australia10.8%
7Saudi Arabia9.5%
8Germany9.1%
9United Kingdom9.0%
10U.S.8.6%
11France8.5%
12Brazil7.7%
13Switzerland7.6%
14Japan7.0%
15India6.8%
16Canada6.3%
17Netherlands5.7%
18Indonesia5.7%
19Russia5.0%
20South Korea2.8%

On the other hand, South Korea is impacted the least: just 2.8% of its GDP is reliant on tourism.

Travel, Interrupted

Which countries earn the most from the travel and tourism industry in absolute dollar terms?

Topping the list was the U.S., with tourism contributing over $1.8 trillion to its economy, or 8.6% of its GDP in 2019. The U.S. remains a global epicenter for COVID-19 cases, and details remain unconfirmed if the country will reopen to visitors before summer.

Travel and tourism contribution to GDP in absolute terms

Meanwhile, the contribution of travel and tourism to China’s economy has more than doubled over the last decade, approaching $1.6 trillion. To help bolster economic activity, China and South Korea have eased restrictions by establishing a travel corridor.

As countries slowly reopen, other travel bubbles are beginning to make headway. For example, Estonia, Latvia, and Lithuania have eased travel restrictions by creating an established travel zone. Australia and New Zealand have a similar arrangement on the horizon. These travel bubbles allow citizens from each country to travel within a given zone.

Of course, COVID-19 will have a lasting impact on employment and global economic activity with inconceivable outcomes. When the dust finally settles, could global tourism face a reckoning?

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Chart of the Week

Zoom is Now Worth More Than the World’s 7 Biggest Airlines

Zoom benefits from the COVID-19 virtual transition—but other industries aren’t as lucky. The app is now more valuable than the world’s seven largest airlines.

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zoom vs major airlines valuation

Zoom Is Now Worth More Than The 7 Biggest Airlines

Amid the COVID-19 pandemic, many people have transitioned to working—and socializing—from home. If these trends become the new normal, certain companies may be in for a big payoff.

Popular video conferencing company, Zoom Communications, is a prime example of an organization benefiting from this transition. Today’s graphic, inspired by Lennart Dobravsky at Lufthansa Innovation Hub, is a dramatic look at how much Zoom’s valuation has shot up during this unusual period in history.

The Zoom Boom, in Perspective

As of May 15, 2020, Zoom’s market capitalization has skyrocketed to $48.8 billion, despite posting revenues of only $623 million over the past year.

What separates Zoom from its competition, and what’s led to the app’s massive surge in mainstream business culture?

zoom-search-interest

Industry analysts say that business users have been drawn to the app because of its easy-to-use interface and user experience, as well as the ability to support up to 100 participants at a time. The app has also blown up among educators for use in online learning, after CEO Eric Yuan took extra steps to ensure K-12 schools could use the platform for free.

Zoom meeting participants have skyrocketed in past months, going from 10 million in December 2019 to a whopping 300 million as of April 2020.

Zoom vs. Airlines stock chart

The Airline Decline

The airline industry has been on the opposite end of fortune, suffering an unprecedented plummet in demand as international restrictions have shuttered airports:

The world’s top airlines by revenue have fallen in total value by 62% since the end of January:

AirlineMarket Cap Jan 31, 2020 Market Cap May 15, 2020
Southwest Airlines$28.440B$14.04B
Delta$35.680B$12.30B
United$18.790B$5.867B
International Airlines Group$14.760B$4.111B
Lufthansa$7.460B$3.873B
American$11.490B$3.886B
Air France$4.681B$2.137B
Total Market Cap$121.301B$46.214B

Source: YCharts. All market capitalizations listed as of May 15, 2020.

With countries scrambling to contain the spread of COVID-19, many airlines have cut travel capacity, laid off workers, and chopped executive pay to try and stay afloat.

If and when regular air travel will return remains a major question mark, and even patient investors such as Warren Buffett have pulled out from airline stocks.

Airline% Change in Total Returns (Jan 31-May 15, 2020)
United-72.91%
International Airlines Group-72.16%
American-65.76%
Delta-65.39%
Air France-54.34%
Southwest Airlines-56.35%
Lufthansa-48.08%

Source: YCharts, as of May 15, 2020.

The world has changed for the airlines. The future is much less clear to me about how the business will turn out.

—Warren Buffett

What Does the Future Hold?

Zoom’s recent success is a product of its circumstances, but will it last? That’s a question on the mind of many investors and pundits ahead of the company’s Q1 results to be released in June.

It hasn’t been all smooth-sailing for the company—a spate of “Zoom Bombing” incidents, where uninvited people hijacked meetings, brought the app’s security measures under scrutiny. However, the company remained resilient, swiftly providing support to combat the problem.

Meanwhile, as many parts of the world begin taking measures to restart economic activity, airlines could see a cautious return to the skies—although any such recovery will surely be a “slow, long ascent”.

Correction: Changed the graphics to reflect 300 million daily active “meeting participants” as opposed to daily active users.

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