The Effect New Owners Can Have on a Team
Phil Knight Founder of Nike at Basketball Hall of Fame
Over the past three decades the price for buying a professional sports team has skyrocketed. This past week a bid for a group to purchase the Portland Trailblazers was reported, featuring Los Angeles Dodgers part owner Alan Smolinisky, and Nike founder Phil Knight. With Smolinisky having success creating structure and winning with sports franchises; if he purchased the Trail Blazers this may be an upgrade in ownership. But this my not always be the case. According to Celebrity Net Worth of the last 10 sports team purchases, nine happened in the 20 years.
10. Toronto Maple Leafs
The Maple Leafs were bought for $1.3 billion by Rogers Communications and BCE Inc., in Dec. 2011. According to the NHL, Rogers and BCE are major competitors in wireless, internet, and cable each own 37.5 percent while Toronto businessman Larry Tanenbaum upped his minority stake to 25 percent.
Results: Since 2011, the Leafs have restructured their front office, their franchise structure, and other parts of their organization. However, the Leafs have not won the cup since 1967 and the team has not reached the final since then.
9. Miami Marlins
The Marlins were purchased in 2017, the headline was Derek Jeter being a part of the ownership group. Primarily led by billionaire Bruce S. Sherman who helped finance the $1.2 billion deal. Jeter put up $25 million of his own money to buy the team.
Since the purchase of the team, Derek Jeter has stepped down as the CEO of the Marlins, according to ESPN in February of this year.
8. Buffalo Bills
The Bills were purchased for $1.4 billion in 2014, by Terry Pegula who found success as a natural gas and real estate mogul.
Results: Since the purchase, the Bills announced plans to build a new stadium. Most plans have it to keep the same authentic outdoor stadium with an open roof. The stadium itself should allow for a better seating construction. The Bills, however, last season lost in the AFC Championship game, which is the farthest they have reached since their 1990s run. That span saw them have a four-year run of being in the Super Bowl, but they lost every single one.
7. Manchester United
Malcolm Glazer purchased a majority stake in the tram in 2005, prior to being owned by Glazer who initially started by just owning 3.17 percent of the company. By 2005, the Glazer family owned 98 percent of the team. The Glazer’s primarily bought the club on debt by taking out loans to purchase stock in the club.
Results: Since the Glazer’s bought the club, they have turned the once European Football giant into a commercial club. Not only have they not invested into a decaying stadium, but they also have not won the Premier League since 2012-13 when legendary manager Sir Alex Ferguson retired. The club’s debt total has also increased as the Glazer’s continuing to take out loans to pay dividends to board members and take money out for themselves. In my opinion, this situation is the worst possible scenario that can happen to the Trail Blazers.
6. Los Angeles Dodgers
A group including Magic Johnson spent over $2 billion on the Dodgers in 2012. The group, which included NBA Hall of Famer Johnson, included this purchase, which ended the ear-splitting Frank McCourt era in LA.
Results: Since the purchase of the Dodgers, this ownership group has done everything, they can have the Dodgers in position to win now and for a very long time. For starters, they shifted away from their old philosophy of signing stars and building around them, instead they have started to draft stars to add to the team after it is ultimately a finished product. This is shown with the signing of Freddie Freeman, and the trade for Mookie Betts.
5. Los Angeles Clippers
LA Forum former Home of the Los Angeles Lakers
Probably the biggest known and publicized purchase of a sports team in recent memory. Having a very hands-on owner and Microsoft co-founder Steve Ballmer who bought the Clippers for $2 billion, the second highest bid for a sports team in U.S. history. The Clippers were primarily for sale due to remarks racist by Donald Sterling, who said racist remarks towards black people coming to Clippers games.
Results: Since the purchase in 2014, Ballmer has bought the Clippers from being much of afterthought in the league, to having two of the top players in the NBA. Ballmer also intends on building the Clippers their own arena. The Clippers owner bought the historic old L.A. Forum for $400 million, which he plans on using as the site for the Clippers new arena.
4. Houston Rockets
Houston Rockets owner
Tilman Fertitta made his dreams come true with the purchase of his dream team in 2017 for a record $2.2 billion. Prior to purchase, Tilman had failed in previous instances as he was out bid in 1997.
Results: The Rockets have been rebuilding since the purchase of the team. However, this is not primarily due to Fertitta as star players wanted out after his purchase due to a desire to compete for a NBA championship.
3. Carolina Panthers
Until 2020, the Panthers were the most expensive franchise ever purchased in 2018. When David Tepper bought the team for $2.3 billion as another owner was facing misconduct for allegations in the workplace.
2. New York Mets
In September 2020, Steve Cohen bought the Mets for $2.4 billion after already owning around eight percent of the franchise. Since the purchase, the organization has been big spenders in free agency and has the ability to become World Series contenders.
1. Chelsea F.C.
According to the Athletic, Dodgers part owner Todd Boehly has officially completed the purchase of Chelsea Football Club which was previous owned by Russian oligarch Roman Abramovich. Due to the ongoing war in Ukraine, Abramovich was forced to sell the club as the club assets were put on hold by the F.A. due to Abramovich’s relationship with Putin.