The image of a professional sports company is associated with its track record and its athletes. Revenue is generate from various sources that may or not be associated with the sport.
The sources of revenue associated with the sport are: TV, radio, iradio, tickets, fans, sponsors, advertising, seat sales, royalties, athletes, parking, etc …, and non-sport associated revenues are: shows, rentals, etc ….
The value of these companies is very associated with mood and momentum, which change due to human behavior (panic, fear, euphoria, greed, etc …).
The DCF – Discounted Cash Flow is the best method to valuate these companies with an adequate discount rate and projection period that depends on the company’s penetration on its sport.