Methodology.
SportsCapIQ is committed to source transparency and analytical rigor. This page documents how data is collected, how implied valuations are calculated, and how confidence is labeled across all articles, the deal database, and research reports.
Where the data comes from
Every data point in the Deal Database, the articles, and the reports is sourced from publicly available information. Primary sources are prioritized over aggregators. The standard hierarchy:
League announcements, official transaction press releases, regulatory filings (SEC for public companies and registered funds), court documents, and direct statements from teams.
Sportico, Bloomberg, Reuters, AP, ESPN, The Athletic, Sports Business Journal, Front Office Sports, and select financial outlets when their reporting is corroborated.
Where reported figures are unavailable, modeled estimates are used and clearly labeled. Revenue estimates default to Sportico and Forbes franchise valuation data.
When sources conflict, the discrepancy is noted in the entry and the most credible source is cited as primary.
How implied valuations are calculated
Implied valuation
The implied valuation of a franchise is calculated by dividing the reported transaction price by the stake percentage acquired:
Example: if a 10% stake in a franchise sells for $500M, the implied valuation is $5.0B. This calculation does not account for governance discounts, minority discounts, control premiums, or differential rights between common and preferred equity. Where these structural factors are known to materially affect the price, they are flagged in the article or database entry.
Revenue multiple
The revenue multiple is calculated by dividing the implied valuation by an estimated annual revenue figure:
Revenue estimates are drawn from Sportico, Forbes, and league financial disclosures. Where revenue data is unavailable for a specific franchise, the league average is used as a proxy and noted.
Limitations
Implied valuations from minority stakes are inherently approximations. Real franchise transactions include considerations not captured by simple price-to-stake math: voting rights, future capital call obligations, liquidity restrictions, dividend rights, and side agreements. SportsCapIQ presents implied valuations as one analytical input, not as a verified fair market value.
How confidence is labeled
Every data entry — in articles, the database, and reports — is labeled with one of four confidence scores:
- HighOfficial transaction announcement, league-approved deal, regulatory filing, or direct primary-source confirmation.
- MediumCredible reporting from at least two independent outlets, but no official primary source. Reliable but unverified.
- LowModeled estimate based on proxies, single-source reporting, or assumptions where primary data is unavailable. Used for analysis but flagged.
- RumorUnconfirmed market chatter or unverified reporting. Tracked separately to avoid contaminating the comp set.
The confidence label is visible on every database entry and every implied valuation cited in articles or reports.
What this publication will not do
- SportsCapIQ does not accept payments, sponsorships, or compensation for coverage of any individual, team, league, fund, or transaction.
- SportsCapIQ is not affiliated with any team, league, investment firm, family office, or financial institution.
- SportsCapIQ does not publish predictions of stock prices, recommendations to buy or sell securities, or investment advice of any kind.
- SportsCapIQ does not republish or re-host private financial information that was not made public through credible reporting or filing.
- Sources are credited in full at the end of every article. Any unsourced claim is treated as the author's analysis or opinion and labeled as such.
Corrections
Errors will be corrected promptly. If you spot a factual or analytical error in any article, database entry, or report, please email raj.keswani@vanderbilt.edu. Corrections will be made to the original piece and noted at the bottom of the affected article with the date of the correction.
Disclaimer
All content on SportsCapIQ is published for informational and educational purposes only. Nothing on this site should be construed as investment, legal, tax, or financial advice. The author is not a licensed investment advisor.
Readers should conduct their own research and consult qualified professionals before making any financial, investment, or business decisions based on the analysis published here.