Is Colorado Considered “Small-Market” for Sports Franchises? Here’s How Much Colorado’s Professional Sports Teams are Worth
Colorado is home to a thriving professional sports scene, with teams in the NFL, NBA, NHL, MLB, and MLS. From the Denver Broncos‘ success on the football field to the Colorado Avalanche thrilling fans on the ice, each franchise carries a unique history and passionate fan base.
Still, Colorado pales in comparison to juggernaut sports markets like LA, New York, and Philadelphia. Understanding franchise valuations is crucial in the modern sports industry. These figures go beyond just team worth—they influence:
- Revenue Streams – Higher valuations attract sponsorships, media deals, and merchandise sales.
- Investments & Ownership – Billionaires and investment groups seek teams with strong financial growth.
- Fan Engagement – Winning teams often see increased attendance, jersey sales, and TV ratings.
Franchise values fluctuate based on team performance, market size, and media contracts. Whether you’re a die-hard fan or a business-minded investor, knowing how these valuations work provides key insights into the financial world of professional sports.
How Franchise Values Are Calculated
Franchise valuations aren’t just arbitrary numbers—they’re based on financial models that account for cash flow, market trends, and comparable sales. Two primary methods determine a team’s worth:
Income Approach
This method estimates a team’s future earnings and discounts them to their present value. It’s commonly used for businesses with predictable revenue streams like:
- Ticket Sales – Season ticket holders and single-game purchases.
- Broadcasting Deals – TV and streaming rights generate long-term revenue.
- Merchandise & Concessions – Sales at stadiums and online stores.
A team with stable cash flow projections will often see higher valuations under this approach.
Market Approach
This model compares the franchise to recently sold teams in the same league. It relies on:
- Revenue Multiples – Ratio of total revenue to sale price.
- Market Demand – Buyer interest in specific teams or locations.
If similar teams have sold for record-breaking amounts, a franchise’s valuation increases.
Factors Influencing Valuations
Several external factors impact a team’s worth:
| Factor | Impact on Valuation |
| Media Revenue | Broadcasting deals boost income. |
| Sponsorships | Brand partnerships increase visibility. |
| Gate Receipts | Strong attendance means higher revenue. |
| Market Size | Larger cities drive more fan engagement. |
| Team Performance | Championships elevate brand value. |
A winning team in a major market with strong sponsorship deals will command a premium valuation.
How much are the Denver Broncos worth?
As of 2024, here’s how much the Broncos were valued at:
- Valuation: $5.5 billion (2024)
- Ownership: Greg Penner and Rob Walton
- Championships: 3 Super Bowl titles
The Broncos are worth the most of any Colorado sports franchise, owing their substantial valuation largely to the NFL’s lucrative broadcasting agreements. Along with steady fan support, these contribute to strong revenue streams. The team last won a Super Bowl in 2016, the final year of Peyton Manning’s career.
Source: Forbes – Denver Broncos
How much are the Denver Nuggets worth?
Following the franchise’s first ever NBA title in 2023, the Denver Nuggets are valued at an all-time high:
- Valuation: $4.06 billion (2024)
- Ownership: Stan Kroenke
- Championships: 1 NBA title
Since defeating the Miami Heat for their first NBA championship, the Nuggets have seen a remarkable 122% increase in brand value.
With a perennial MVP contender in Nikola Jokic, the Nuggets have also seen rising national interest and merchandise sales. In 2024, they were the NBA’s fastest-growing brand.
Sources: Yahoo Sports – NBA Team Valuations, WebWire – Denver Nuggets Brand Growth
How much are the Colorado Avalanche worth?
After the Denver Nuggets, the Avalanche are the owners of Colorado’s most recent major sports championship, winning the Stanley Cup last in 2022. That was their third championship, along with titles won in 1996 and 2001. The Colorado Avalanche’s consistent success have earned them a healthy franchise valuation:
- Valuation: $1.7 billion (2024)
- Ownership: Stan Kroenke
- Championships: 3 Stanley Cup wins (1996, 2001, 2022)
Source: Forbes – Colorado Avalanche
How much are the Colorado Rockies worth?
Despite having never won a World Series, the Rockies still enjoy strong attendance numbers at Coors Field in Denver. Owned by the Monfort brothers, here’s their franchise worth:
- Valuation: $1.48 billion (2024)
- Ownership: Charles & Richard Monfort
- Championships: None
Source: Statista – Colorado Rockies Franchise Value
How much are the Colorado Rapids worth?
While MLS is a much newer league compared to the likes of MLB, the NFL, and the NBA, soccer is among the fastest-growing sports nationwide. The Rapids were one of MLS’ 10 original clubs and were established on Oct. 17, 1995.
- Valuation: $415 million (2025)
- Ownership: Stan Kroenke
- Championships: 1 MLS Cup
Like the Denver Nuggets and the Avalanche, the Colorado Rapids are owned by billionaire Stan Kroenke. Other franchises Kroenke owns include the Los Angeles Rams (NFL) and Arsenal F.C. (English Premier League).
Source: Forbes – Most Valuable MLS Teams
How Do Colorado Teams Compare to National Averages?
Colorado’s professional sports teams exhibit a range of valuations when compared to their respective league averages. Here’s a breakdown of each team’s financial standing and their exact ranking within their league.
Keep in mind that league average valuations are often inflated by a few teams worth far more than their competitors- where each Colorado team ranks in the league is probably a better indicator of how they actually stack up.
NFL Teams
- Average NFL Team Valuation: $5.7 billion (2024)
- Denver Broncos’ Valuation: $5.5 billion
- Ranking: 22nd out of 32 teams (nbcdfw.com)
The Denver Broncos’ valuation places them slightly below the NFL average, ranking 22nd among the 32 teams. While they benefit from a loyal fan base and strong media deals, larger-market teams with higher revenues surpass them in valuation.
NBA Teams
- Average NBA Team Valuation: $4.4 billion (2024)
- Denver Nuggets’ Valuation: $3.9 billion
- Ranking: 17th out of 30 teams ((hoopshype.com)
The Denver Nuggets’ valuation is below the NBA average, ranking 17th among the 30 teams. Despite their recent championship, they trail behind larger-market franchises like the Golden State Warriors and New York Knicks, whose valuations exceed $8 billion.
NHL Teams
- Average NHL Team Valuation: $1.9 billion (2024)
- Colorado Avalanche’s Valuation: $1.7 billion
- Ranking: 19th out of 32 teams (cnbc.com)
The Colorado Avalanche are valued just below the NHL average, ranking 19th in the league. Their recent championship success has positively influenced their market value, though they still trail behind top franchises like the Toronto Maple Leafs.
MLB Teams
- Average MLB Team Valuation: $2.4 billion (2024)
- Colorado Rockies’ Valuation: $1.5 billion
- Ranking: 23rd out of 30 teams (sportspro.com)
The Colorado Rockies’ valuation is below the MLB average, placing them 23rd among 30 teams. Despite consistently high attendance, factors such as market size and limited postseason success contribute to their lower valuation.
MLS Teams
- Average MLS Team Valuation: $721 million (2025)
- Colorado Rapids’ Valuation: $400 million
- Ranking: 27th out of 29 teams (fieldlevelmedia.com)
The Colorado Rapids’ valuation is well below the MLS average, ranking 27th out of 29 teams. While soccer’s popularity is growing in the U.S., the Rapids’ smaller market and lower revenue streams impact their financial standing.
Why are Colorado franchises valued lower?
While team valuations ebb and flow, in the end these 3 factors are largely responsible for the financial disparity between Colorado’s professional sports teams and the highest-valued franchises:
Market Size
Denver’s mid-sized market plays a crucial role in franchise valuations. While the city has a passionate sports fan base, it lacks the national exposure and corporate sponsorship opportunities of larger markets like New York or Los Angeles. This limits media revenue, sponsorship deals, and brand reach, affecting overall team worth.
Team Performance
Winning directly impacts a team’s valuation. Championships drive ticket sales, merchandise revenue, and sponsorship interest. The Denver Nuggets and Colorado Avalanche have seen valuation boosts due to popular players and recent title wins, while teams like the Colorado Rockies struggle financially without postseason success.
Stadium Ownership and Revenue Streams
Owning a stadium adds long-term financial stability, providing revenue from naming rights, concessions, and non-sports events. Teams that lease their stadiums, like the Denver Broncos, face higher operational costs and limited revenue control, which can negatively impact valuations compared to bigger franchises that own their venues.
Conclusion
Colorado’s professional sports teams vary significantly in valuation, influenced by factors like market size, team performance, and revenue streams. The Denver Broncos lead all Colorado teams with a $5.5 billion valuation, while the Colorado Rapids rank among the lowest in MLS at $400 million.
However, many of these teams’ valuations have grown significantly in recent years, and continued success should drive further increasing franchise worth.
FAQs
What methods are used to value professional sports teams?
Two primary approaches determine a team’s valuation:
- Income Approach – Projects a team’s future earnings and discounts them to present value. This includes revenue from ticket sales, broadcasting deals, and sponsorships.
- Market Approach – Compares a franchise to recently sold teams in the same league, using revenue multiples and comparable sales to estimate worth.
Teams with consistent revenue streams and strong market demand tend to have higher valuations.
Why is the Denver Broncos’ valuation higher than other Colorado teams?
The Denver Broncos are valued at $5.5 billion, making them the most valuable franchise in Colorado. The NFL’s massive media rights deals bring in billions annually, benefiting all teams.
Additional factors include:
- Large fan base – Consistently high attendance and engagement.
- Historical success – Multiple Super Bowl wins elevate the brand.
- Strong sponsorships – Lucrative corporate partnerships and advertising deals.
How does team performance affect franchise value?
Winning drives fan interest, sponsorship revenue, and ticket sales. Teams that consistently perform well financially benefit from:
- Championship wins – Higher merchandise sales and TV ratings.
- Playoff appearances – Increased national exposure and advertising deals.
- Star players – Boost team marketability and endorsement deals.
Does owning a stadium impact a team’s valuation?
Yes, stadium ownership provides financial stability and multiple revenue sources, including:
- Naming rights deals – Companies pay millions for branding.
- Non-sports events – Concerts and other events generate additional income.
- Concessions and parking – Directly controlled by the team, increasing profits.
Teams that lease stadiums have higher operating costs and less financial control.
Why are the Colorado Rapids valued lower than other Colorado teams?
At $400 million, the Colorado Rapids rank among the lowest in MLS. Contributing factors include:
- Lower TV revenue – MLS broadcasting deals are smaller compared to other leagues.
- Smaller market – Less national exposure than bigger-market teams.
- Limited sponsorships – Fewer corporate partnerships compared to NFL, NBA, and MLB teams.
Despite soccer’s growing popularity, MLS teams still trail behind other major U.S. leagues in financial value.
