The first article in our new Stadium Watch series is an Op/Ed piece written by Jacksonville attorney Daniel Nunn, Jr.
JACKSONVILLE – (Florida Sports Wire) – City funding for a stadium is an enormous wealth transfer to owner Jacksonville Jaguars owner Shad Khan, as NFL teams are valued at 30 to 45 times EBITDA cash flow (earnings before interest, taxes, depreciation and amortization.
A leaked investment proposal for the Washington Commanders suggests that a new stadium and a sportsbook — a company that accepts bets on sporting events — could add up to $80 million to $100 million to the Jaguars’ annual cash flow.
Even at $50 million, the new stadium would increase the net worth of the team by $1.5 billion. That helps explain why the Chicago Bears are building a stadium at their own expense and suggests that Khan would still benefit even if he fully funded the new stadium.
Daniel B. Nunn, Jr., is a Jacksonville-based attorney specializing in mergers and acquisitions. This article originally appeared on Florida Times-Union. This guest column is the opinion of the author and does not necessarily represent the views of the Times-Union.