Rumors are growing that Jeff Bezos wants to buy the Denver Broncos and here’s how little money that actually would be for him.
The Denver Broncos are currently valued at 3.2 billion dollars.
Jeff Bezos is worth 202 billion.
1.6% of Jeff Bezos net worth would be able to buy an NFL team.
Jeff Bezos in 2015 had a reported net worth of 38 billion.
Bezos has in the last six years gained an average of 2.4 billion every month.
The Broncos would only take him 5-6 weeks in wealth gains to buy.
And that’s 202 billion in net worth post his divorce. He lost a third of his wealth to Mackenzie Scott in his divorce with her in 2019. If they stayed together, the Broncos would only take him a single months wealth gain to buy.
Big question though is asking if sports teams are worth it or not.
The Broncos made 470 million in 2019 for revenue, being it’s highest year ever before a 100 million dollar 2020 crash in COVID.
Buying the Broncos at 3.2 billion would be paying 6.8x revenue to value.
Funny thing on this.
Amazon made 386 billion in revenue in 2020.
Market cap is 1.7 trillion.
Amazon is worth 4.5x the revenue.
The multiple on a sports team isn’t that much higher over Amazon, but NFL teams run an average profit of 8%.
Amazon runs a profit of 5.4% currently.
This actually means the sports investment isn’t really even that insane. Hell, compared to most tech companies, NFL teams are selling at more sane rates.
Bezos buying an NFL would also join a pretty big tradition of people in tech getting rich and deciding to own a team.
Former Microsoft CEO, Steve Ballmer bought the LA Clippers.
Microsoft co-founder Paul Allen bought the Seattle Seahawks.
Mark Cuban, once he sold Broadcast .com, worked to close a deal with Ross Perot to buy the Dallas Mavericks in 2000.
Does this happen though?
The Denver Broncos were owned by Patrick Bowlen who passed away in 2019 and since, the equity is held in a trust for his kids. They’ve publicly said no plans to sell it, but the trust isn’t run by them and the team doing it is privately exploring options.
Bezos would likely have to pay something like 5-6 billion for that and if that happens, it’ll likely put the entire NFL at a massive growth in value per team.
It also could probably set a new standard for sports team valuations as the ultimate thing multi billionaires need to own. This could make it so someone like Michael Jordan who holds the vast majority of his net worth in the Charlotte Hornets could end up even wealthier off valuations.
Last point, every NFL team combined is worth 93 billion. He could buy each one and it’d be less money than his wealth gains between 2017-2020. Pretty cool.