Sports Teams' Real Estate Empire: A Billion-Dollar Boost to Team Values

Strategic Insights -

The intersection of sports and real estate has become a booming industry, with professional sports teams accelerating their investments in mixed-use developments, generating new revenue streams and justifying the skyrocketing prices of teams. In Atlanta, the $5 billion Centennial Yards project, led by the Atlanta Hawks' owner Tony Ressler, is one of the most ambitious, featuring over 2,000 apartments, 1,800 hotel rooms, 900,000 square feet of retail space, and a 5,300-seat music venue. This trend is not unique to Atlanta; sports teams across North America are investing in real estate projects, with 37 developments of at least $1 billion each in various stages of planning, according to a white paper by ROAR, RBC, and Klutch Group.

Key Takeaways:

  • The number of real estate developments led by professional sports teams has accelerated in recent years, with 37 projects of at least $1 billion each in various stages of planning.
  • Centennial Yards in Atlanta, led by the Atlanta Hawks' owner Tony Ressler, is one of the most ambitious, with a $5 billion estimated value and over 2,000 apartments, 1,800 hotel rooms, 900,000 square feet of retail space, and a 5,300-seat music venue.
  • Sports owners can enhance their team's brand and generate goodwill through redeveloping underused land, as seen in the San Francisco Giants' Mission Rock development, which includes 28 acres of parks and open space, as well as office towers and 1,200 apartments.
  • The cost of team ownership has skyrocketed, with the Boston Celtics sold for $6.1 billion and the Los Angeles Lakers valued at $10 billion.
  • Leases at 40 stadiums are expected to expire from 2030 to 2039, offering opportunities for redevelopment, which could represent $100 billion in potential sports-adjacent mixed-use developments.
  • Mixed-use developments can pivot focus depending on market needs, allowing for flexibility in revenue streams.
  • Opposition to these developments has slowed progress, with examples seen in Atlantic Yards in Brooklyn and Salt Lake City.
  • The Atlanta Braves' mixed-use development, The Battery, has been successful in attracting residents and businesses, despite initial concerns.

Statistics:

  • 37 projects of at least $1 billion each in various stages of planning, led by professional sports teams.
  • Centennial Yards in Atlanta is estimated to be worth $5 billion.
  • 2,000 apartments will be part of the Centennial Yards project.
  • 1,800 hotel rooms will be included in the Centennial Yards project.
  • 900,000 square feet of retail space will be part of the Centennial Yards project.
  • 5,300-seat music venue will be part of the Centennial Yards project.
  • 40 stadiums have leases expiring from 2030 to 2039, offering opportunities for redevelopment.
  • $100 billion in potential sports-adjacent mixed-use developments.
  • The San Francisco Giants' Mission Rock development includes 28 acres of parks and open space.
  • 1,200 apartments will be part of the Mission Rock development.

Sources:

  • The New York Times article: "A Billion-Dollar Boost to Team Values"
  • ROAR's white paper: "Sports-Adjacent Mixed-Use Developments"
  • RBC and Klutch Group's partnership: "Sports-Adjacent Mixed-Use Developments"
  • The Atlanta Hawks' investment in Centennial Yards
  • The Atlanta Braves' investment in The Battery