Why SoCals sports teams are becoming billionaire trading cards

For decades, owning a professional sports franchise was the ultimate billionaire’s trophy.Now it might be the ultimate billionaire’s trade.Over the past month, Southern California has suddenly become ground zero for a remarkable ownership carousel, with three marquee franchises changing hands thanks to astronomical valuations and unusual circumstances.The latest domino fell on Tuesday, when Los Angeles Rams owner Stan Kroenke agreed to purchase a controlling stake in the Los Angeles Angels from Arte Moreno in a deal valuing the franchise at an MLB-record $4 billion.It followed the San Diego Padres $3.9 billion sale to José E.Feliciano and Kwanza Jones and another stunning Lakers transaction, with Josh Kushner and Bob Iger agreeing to purchase control of the NBA’s glamour franchise from Mark Walter at a professional sports-record valuation of roughly $12 billion.Three Southern California franchises.

Three staggering price tags.And potentially another one lurking.Walter’s broader business empire has come under federal scrutiny involving loans connected to his insurance businesses, raising questions about whether additional asset sales could follow.Considering Guggenheim Baseball Management controls the Los Angeles Dodgers, the possibility of the best team in baseball going up for sale also is enough to make your head spin.But this isn’t some bizarre SoCal coincidence.Sports ownership is changing.Private equity companies want a piece of sportsThere was a time when families bought sports teams and kept them for generations.Jerry Buss bought the Lakers, Kings and the Forum for $67.5 million back in 1979.

That’s a growth of 178x the original investment in less than 50 years.For comparison, general consumer prices in the U.S.

have increased by roughly 5.8 times over the last five decades.But it’s not just Southern California that is selling sports franchises.Mark Cuban bought the Dallas Mavericks for $285 million in 2000.He sold control in 2023 for an ev...