Sports Franchise Valuations
It is no secret that sports franchise valuations have expanded rapidly. In fact, according to the Ross-Arctos Sports Franchise Index (RASFI), values have compounded at 13.0% per annum since the 1960’s—outperforming other broad asset classes, with less volatility. Importantly, secular growth drivers, such as media rights renewals, live entertainment trends in premium sports, and long-term wealth accretion, may support higher sports franchise valuations into the future.
RASFI vs. Major Asset Classes Over the Long-Term (1960 – 2025)
Key Takeaway: Ross-Arctos Sports Franchise Index (RASFI) is comprised of the four largest North American sports franchise leagues (NFL, NBA, MLB, and NHL).
Salary Caps
Salary caps in sports leagues are tied to league revenues, and therefore, tend to rise as franchise values increase. Accordingly, the NFL salary cap for 2025 has risen to $279.2 million—a year-over-year increase of 9%; moreover, other major sports leagues are following trend, with the NBA and NHL salary caps expected to rise in 2026 to $187.9 and $83.5 million—a year-over-year increase of 10% and 5%.
History of Salary Caps for Major Sports Franchises (2015 – 2025)
Key Takeaway: Salary Caps for the three major sports franchises are trending higher; however, it is clear the NFL is on a higher growth trajectory.
Player Contracts
Major sports leagues have not traditionally been a platform for individual players to generate outsized wealth, due to short careers, large rosters, and hard salary caps; however, as salary caps rise—contracts for top tier talent may rise in concert. In other words, an already-lucrative industry may be on a growth trajectory that can now compensate individual star athletes—which can provide them with substantially more power and wealth.
Endorsements
Additionally, trends that have reshaped music, film, and digital culture appear to now be playing out in sports—and professional athletes, with already outsized cultural caches, are well-positioned to monetize their name, image, and likeness through potentially lucrative endorsement deals.
Poor Track Record of Wealth Stewardship
Professional athletes appear primed to capitalize on lucrative contracts, and endorsements deals; however, it is not about how much you can earn—but what you can keep. Historically, unique financial circumstances of pro-athletes have too often led to bankruptcy, and in several cases squandered fortunes.
- Lack of Financial Literacy
- Early Financial Peak
- Family and Personal Relationships
- Injuries
History of Professional Athletes and Squandered Fortunes
Key Takeaway:The ex-athletes referenced now have to worry about supporting themselves, and their families, when basic planning precautions could have prevented their financial ruin.
Professional Athlete Advisory: The Case for Disruption
Today’s top talent is dually focused on maximizing their contract value directly tied to the game, as well as leveraging their influence to build careers, businesses, and platforms, that reach beyond the game; and to memorialize this trend, Patrick Whitesell, who previously cofounded WME, has recently taken over WME’s NFL division in a spinoff to form WIN Sports Group—which is a sports agency combining elite representation with strategic support across brand, business, media and long-term career development.
Importantly, Whitesell states the ambition he has seen reshape music, film, and digital culture is now playing out in sports; and as such, an already-lucrative industry may be undergoing changes that provide pro-athletes with much more power, and wealth. Indeed, it appears there has never been a more important time to help professional athletes think, and act, like owners; however, this will require the support of a more sophisticated advisor-team—who can tailor the multi-family office model to address complex tax and financial matters for the next generation of professional athletes.
Multi-Family Office Model Tailored for the Next Generation of Pro-Athletes Chart
Key Takeaway:The athlete-advisory landscape is evolving to treat on-field performance, and brand-potential, with equal-weight—helping to ensure athletes are supported in the moment, and positioned for the long-term; thus, the multi-family office model may have to be re-adapted to address risks of the modern athlete.
Download the full article to see our comprehensive case study, providing hypothetical facts for an athlete selected as the first pick in a professional sports franchise draft— including the following tax and financial planning strategies tailored for the next generation of professional athletes.
- Game Plan: Wealth Forecasting, Plan Assembly, and Capital Allocation
- State Income Tax Planning: “Jock Tax” and Residency
- Endorsement Planning: Loan-out Corporation
- Asset Protection and Estate Planning:Shielding High-Profile Athletes from Creditors and Estate Taxes
- Disability Planning: Insuring the Risk of Earnings Loss Due to Injury
- Investment Management: Portfolio Construction for Pro-Athletes
- Charitable Planning: Pro-Athlete Philanthropy
- Family Office:Next Generation Planning for Professional Athletes
In Conclusion: Positioning for the Next Generation of Professional Athletes
Indeed, the next generation of professional athletes are focused on turning contract, brand, and business opportunities into lasting career value—which may be sustainable due to secular growth drivers in live sports supporting more lucrative salary compensation, and endorsement deals.
Accordingly, the landscape of athlete-advisory is evolving rapidly to treat on-field performance, and brand-potential, with equal-weight—helping to ensure athletes are supported in the moment and positioned for the long-term.
Against this backdrop, it appears there has never been a better time to help professional athletes think, and act, like owners; however, it may require the support of a sophisticated multi-family office advisor-team to manage their increasingly unique, and complex, tax and financial matters.
Arctos Insights White Paper – Introduction to RASFI Sports Asset Class Returns Over the Long Term vF_0.pdf
https://www.sportsbusinessjournal.com/Articles/2025/05/12/whitesell-launching-win-sports-group-with-eye-on-making-football-players-global-stars/
This material is for your general information. The discussion of any estate planning alternatives and other observations herein are not intended as legal or tax advice and do not take into account the particular estate planning objectives, financial situation, or needs of individual clients. This material is based upon information from various sources that VentureMFO believes to be reliable, but VentureMFO makes no representation or warranty with respect to the accuracy of completeness of such information. Views expressed herein are current only of the date indicated, and are subject to change without notice. Forecasts may not be realized due to a variety of factors, including changes in law, regulation, interest rates, and inflation.
