Sports Business Journal: Price Points - Could the Pandemic Finally Reverse the Trend of Soaring Franchise Valuations?

June 15, 2020

O’Melveny sports industry group co-chair Chuck Baker is quoted in this article, which explores franchise valuations amid the COVID-19 pandemic. Noting the coronavirus fallout has introduced some financial downturns, team values have withstood tremendous pressures before, including from 2008 to 2010 in the last recession, Sports Business Journal reported. “One of the reasons teams have held their value is we have a closed system and there’s scarcity. You have efficient pricing from supply and demand,” said Baker. “There’s limited supply and a lot of demand, because people realize the compounding annual growth rates of these assets and that they’re good to own as non-correlated assets in your portfolio, not just trophies.”