This excerpt out of Chapter 18: Finance explains how the money for leagues, teams, athletes, and coaches ﬂows in from many different revenue streams. Fans, broadcasters, and companies all contribute funds in a wide variety of ways. The contributions can be everything from ticket and player jersey sales to sponsorships and broadcast rights fees
When you look at the Forbes top 50 most valuable franchises you ﬁnd three soccer teams with worldwide appeal, Real Madrid (worth $3.3 billion), Manchester United ($3.165 billion), and Barcelona ($2.6 billion) at the top of the list. The New York Yankees ($2.3 billion), Dallas Cowboys ($2.1 billion), and New England Patriots ($1.635 billion) are next on the list and represent marquee teams in American sports. For team sports in established leagues or conferences, the popularity is translated into cash through broadcast rights fees, merchandise, and other revenue generating operations such as ticket sales and other game-day operations.
For individual sports such as golf, tennis, or auto racing, an entity such as the PGA, USTA, or NASCAR will serve as a unifying body to provide competitive structure, scheduling, and payments for performance, in addition to maintaining rules related to competition or punishment for violation of those rules.