The Indianapolis Colts are in the Super Bowl. But are they worth it?
According to Forbes magazine, the Colts, one of the National Football League?s winningest teams over the past five years, ranks a less-than-impressive 22nd in terms of financial worth of the league?s 32 teams. With an estimated value of $837 million according to 2005 financial data, they fall far short of their Super Bowl rivals, the NFC champion Chicago Bears, who are 10th with a value estimated at $945 million.
The Washington Redskins lead the list at $1.423 billion; the Ravens are ninth with a $946 million value. Last place? The Minnesota Vikings, who are listed at $720 million.
According to the Indianapolis Business Journal, Robert Irsay acquired the Los Angeles Rams in 1972 for $19 million, and then swapped franchises with Carroll Rosenbloom, owner of the Baltimore Colts. Irsay sweetened the deal with $3 million in cash. He ? and Mayflower ? moved the Colts to Indianapolis in 1984.
University of Baltimore economist Robert Clinch estimated that Irsay?s original $22 million investment would translate to approximately $80 million in today?s market.
Today, the league has many revenue-sharingagreements.
“Teams are worth much, much more,” Clinch said. “Look at how much ticket prices have gone up.”
When it comes to spending, Colts fans also fail to measure up. Indianapolis posted a 2005 revenue of $167 million, tied for third lowest in the league, beating only the Arizona Cardinals and New Orleans Saints. The Ravens earned $201 million.
Still, the Colts franchise has remained a solid investment for the Irsays ? Robert?s son, Jim, now owns the team. According to Clinch, the rate of return on Irsay?s 1972 investment in the Colts is a little better than 12 percent, the same average rate as the stock market during the same period.
