The Harsh Reality of Owning a Professional Sports Team: Passion Over Profit

Owning a professional sports team is often seen as the pinnacle of wealth and power—a dream for billionaires who want to be part of something bigger than themselves. Fans assume that owners are raking in millions, cashing in on ticket sales, sponsorships, and TV deals while making little effort to improve the team. But the truth is far more complex: most professional sports teams lose money, and even the most successful franchises often struggle to turn a profit.

Mark Cuban’s recent sale of the Dallas Mavericks is a prime example. After 23 years as majority owner, Cuban admitted he made money in only two of those years. He invested heavily in players, kept ticket prices low for fans, and absorbed financial losses year after year. His story is not unique. Across football (soccer), basketball, American football, baseball, hockey, and even Formula 1, the same pattern exists—owners spend more than they earn, hoping that one day the franchise’s value will grow enough to justify the investment.

Why do sports teams struggle to be profitable?

From skyrocketing player wages to unpredictable revenue streams, let's break down the harsh financial reality of sports ownership, using examples from multiple sports around the world.

1. Player Salaries & Operating Costs Are Out of Control

The biggest expense for any team is player wages. In many leagues, salaries consume 60-80% of revenue, leaving little room for profit. Owners often have to inject personal funds just to keep operations running.

NBA (Basketball) – Mark Cuban & the Mavericks

Cuban spent aggressively to build a competitive team, absorbing financial losses along the way.

The NBA luxury tax penalizes teams that exceed the salary cap, forcing high-spending owners to pay massive fines. Cuban kept ticket prices lower than even some college teams, prioritizing accessibility over profit. Despite investing hundreds of millions, he made money in only two of 23 years before selling a majority stake in 2023.

Premier League (Football/Soccer) – Chelsea’s Billion-Dollar Losses

When Roman Abramovich sold Chelsea in 2022, reports showed the club had lost over $1 billion under his ownership.

Chelsea spent heavily on players, regularly exceeding £200 million per season on transfers and wages. Even with sponsorships and TV deals, the club relied on Abramovich’s personal wealth to stay afloat.

NFL (American Football) – High Revenues, But Not Always Profitable

The Washington Commanders sold for $6.05 billion in 2023, but former owner Dan Snyder faced financial struggles for years.

The NFL shares revenue more equally than other leagues, but some franchises still lose money due to poor management or declining fan engagement.

2. Revenue Streams Are Unpredictable

Even teams with massive fan bases don’t always turn a profit. Ticket sales, sponsorships, and TV rights generate revenue, but these streams fluctuate based on performance, location, and economic factors.

MLB (Baseball) – The Oakland Athletics’ Attendance Crisis

The Oakland A’s have posted some of the lowest attendance figures in MLB, leading to financial losses.

The team is relocating to Las Vegas, hoping for better revenue opportunities.

NHL (Hockey) – Arizona Coyotes’ Financial Struggles

The Arizona Coyotes have faced arena disputes, low attendance, and ownership instability for years.

In 2009, the NHL had to take over the team to prevent it from folding.

Formula 1 – Teams That Bleed Money

Williams Racing, a legendary F1 team, was forced to sell after financial losses became unmanageable.

Even dominant teams like Mercedes and Ferrari depend on corporate backing, as the cost of running an F1 team exceeds $300 million per season.

3. Owners Constantly Inject Their Own Money

Many teams rely on their owners’ personal wealth to stay afloat. Unlike a traditional business, where profits sustain operations, sports teams often depend on deep-pocketed investors.

European Football – FC Barcelona’s Debt Crisis

Barcelona had over $1 billion in debt by 2021, despite being one of the biggest clubs in the world.

To stay competitive, the club sold off future TV rights and assets just to afford salaries.

Paris Saint-Germain (PSG) – Backed by Billionaires

Qatar Sports Investments has spent billions on players like Messi, Neymar, and Mbappé, often operating at a loss.

Without external funding, PSG would struggle financially despite its global fanbase.

4. If Teams Lose Money, Why Do Owners Keep Buying Them?

Despite financial losses, owning a sports team is still attractive for a few key reasons:

1. Prestige & Passion

Many owners see their teams as legacy projects rather than money-making ventures.

Mark Cuban, Roman Abramovich, and Steve Ballmer (owner of the LA Clippers) are all passionate fans who prioritized winning over profits.

2. Franchise Value Appreciation

Even if a team loses money yearly, its value increases over time.

The Dallas Mavericks were worth $285 million when Cuban bought them. He sold for $3.5 billion.
The New York Yankees (MLB) and Dallas Cowboys (NFL) have skyrocketed in value despite inconsistent profitability.

3. Tax Benefits & Business Opportunities

Owning a team offers tax write-offs and business networking advantages.

Many billionaire owners use their teams as branding tools for their other business ventures.

5. Fans Need to Understand the Reality

Fans often demand big-money signings, better stadiums, and constant investment—but they rarely see the financial strain owners endure. Unlike other businesses, sports teams don’t generate sustainable profits.

Mark Cuban’s Exit is a Warning Sign

Cuban grew tired of being villainized by fans who didn’t understand the financial realities of ownership. He absorbed massive losses, paid salaries, and invested in the team—only to be attacked online when things didn’t go perfectly.

The Harsh Truth: Owning a Team is Not a Get-Rich Scheme

Owners inject their own money into a team.
Most teams operate at a loss or break even at best.
A team’s value may grow over time, but that only matters if the owner sells.

Final Thought: Sports Teams Fuel Millions of Dreams—at the Owner’s Expense

Many owners are losing money every year to keep their teams alive.

They’re funding the dreams of players and fans while emptying their own pockets.

Owning a sports team isn’t about making money—it’s a labor of love, one that often comes at an immense personal cost.