Inflation or not, price of pro sports teams keeps going up

Inflation isn’t going to hurt the bankrolls of sports team owners.

In fact, it may help.

While the uber-rich will have to pay a little more for their eggs at the grocery store – just like everyone else – inflation isn’t likely to affect the bottom lines at their sports properties.

“I’m resting pretty easy if I’m an owner,” said Tim Clarke, a senior analyst at PitchBook, which researches private financial markets. “That’s how people are viewing assets of the professional sports industry. They’re just not going down.”

Inflation surged this year to levels unseen for four decades, slowing the economy and raising prices for consumers from the checkout line to the gas pump. For the most part, sports are no exception: Rising costs are making it more expensive for fans to go to games, for families who participate in youth sports and for college athletic departments trying to stay on budget.

But the millionaires and billionaires who own sports team won't be feeling the pinch, whether it’s the day-to-day cost of running the business or the sale price when they decide to move on. On the contrary: A franchise can be a safe place to park money and ride out a bear market.

“I do think there is somewhat of a hedge,” said Inner Circle Sports CEO Rob Tillis, who has worked on the sale of dozens of teams in all four major U.S. pro sports and the top international leagues. “I have been doing this for 30 years. We’ve been through lots of business cycles and valuations have been strong. I don’t see that as any different now.”

Most sports owners are also well-capitalized enough to keep their team budgets separate from their outside business and other sources of wealth. So even though rising interest rates have cooled the housing market, that’s unlikely to affect Cleveland Cavaliers and...