Pandemic Pain, But Not Panic
When the Boston Red Sox finally took the field for a delayed Opening Day in 2020, Fenway Park was eerily quiet. Trump’s Tariffs Rattle the Market .No fans, no concession lines, and no foot traffic in the streets outside—just the lingering effects of a global pandemic that had shuttered sports venues across the world.
The financial fallout was severe. The Red Sox saw their revenue drop nearly 71%, from $519 million in 2019 to $152 million, while the league average fell from $346 million to $122 million, according to Forbes estimates.
Yet even amid this unprecedented disruption, the underlying value of sports franchises held firm. Major League Baseball team values rose 3% from 2020 to 2021 and 9% the following year. The Red Sox surged even more, increasing in value by 5% and then 13%, reaching an estimated $3.9 billion in 2022—and now valued at $4.8 billion, the third-highest in the league.
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A Long-Term View Pays Off
“If you look at 2008 or during Covid in 2020, you had to fasten your seatbelt and know that in the short run you’re going to take a financial hit,” says Tom Werner, chairman of Fenway Sports Group, which owns the Red Sox, the NHL’s Pittsburgh Penguins, and Premier League club Liverpool FC. “But that’s part of being an investor, right? Everything took a financial hit during Covid, and you just have to ride it out and be patient.”
That patience is now facing a new test, this time from economic uncertainty stirred by President Donald Trump’s aggressive trade policies. The S&P 500 has slipped 4% in 2025 so far—down 15% before a recent rally sparked by Trump’s decision to pause most tariffs. JPMorgan economists see a 60% chance of recession this year; Goldman Sachs pegs the odds at 45%.
But unlike most investors, sports franchise owners appear largely insulated from the broader market turbulence.
Why Sports Franchises Defy Downturns
Despite high operational costs, team valuations have shown remarkable resilience during economic slumps. Since Forbes began tracking franchise values in 1998, the average team in the four major North American leagues has appreciated roughly 2,000%—more than double the return of the S&P 500 over the same period.
Following the 9/11 attacks, values rose 20% from 2000 to 2002. They edged up again during the 2008 financial crisis and held steady through 2009.
That trend is even clearer in the Ross-Arctos Sports Franchise Index, which has tracked quarterly data since 1960. Across 255 quarters, the index has declined only 39 times—and just 16 since 1976. It’s fallen in consecutive quarters only three times and never for more than three straight quarters. The index reports a compound annual growth rate of 13%—far outpacing the S&P 500’s 7% return.
Stability Through Scarcity and Contracts
So why are sports teams so resilient? Much of their stability comes from locked-in revenue streams, including long-term contracts for media rights, sponsorships, and premium seating.
During the 2023–24 NBA season, teams averaged $45 million from luxury suites and other premium seating—12% of total revenue. National media rights are even more significant: 35% of revenue in the NBA and 60% in the NFL, with TV deals extending into the 2030s.
Another factor: exclusivity. With just 124 franchises across the four major leagues, scarcity drives up demand—especially among deep-pocketed buyers. “Over the long term, the scarcity and fun value will always be up and to the right,” says Dallas Mavericks minority owner Mark Cuban.
Not Recession-Proof, But Recession-Resistant
Werner cautions against calling sports franchises “recession-proof.” During Covid, the Red Sox posted an EBITDA loss of $70 million, a stark reversal from an $89 million profit the previous year. Nonetheless, even distressed sales have yielded big returns.
When former New Orleans Hornets owner George Shinn sold the team to the NBA for $318 million in 2010 due to financial struggles, he still walked away with nearly 10 times his original investment. Today, the franchise—now the Pelicans—is worth an estimated $3.05 billion under owner Gayle Benson.
Fan Loyalty Endures Economic Strain
Economic volatility doesn’t always shake fan enthusiasm. From 2003 to 2013, the Red Sox sold out 820 consecutive home games—even through the 2008 crisis. More recently, in April 2025, 35,000 fans packed Fenway Park for an 11 a.m. Patriots Day game.
“It’s one thing if Taylor Swift comes into your market once every two years—you can sell out 100,000 tickets,” Werner says. “The extraordinary thing about the Red Sox is that the game was on at 11 a.m., and 35,000 people figured out a way to get to Fenway Park. That’s really a testament to the relationship that this particular sports team has in New England.”
Challenges Remain on the Margin
While core valuations remain strong, the real financial pressure shows up in game-day operations—ticket sales, concessions, and merchandise. With consumer spending slowing and GDP shrinking 0.3% in Q1—the first decline in three years—sports owners may need to brace for softer revenue on the margins.
Jobless claims are rising, driven partly by cost-cutting measures from Elon Musk’s Department of Government Efficiency, and the Conference Board’s consumer expectations index has dropped to its lowest point since 2011.
Still, sports remain a primary escape for millions. “People need a distraction,” says Marc Ganis, president of consulting firm Sportscorp. “And the primary distraction we have in our country is sports.”
Or as Werner puts it: “Obviously, you need to have eggs on the table. But people, I think, are still going to go to their home games—and certainly they’re going to be watching on television.”
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Frequently Asked Questions
Why focus on sports team owners in an article about tariffs?
While tariffs and trade policy typically impact industries like manufacturing and tech, this article highlights how some sectors—namely, professional sports franchises—remain relatively immune to short-term market volatility. Sports team owners provide a lens into long-term asset stability in contrast to Wall Street’s turbulence.
What does the title mean by “unfazed”?
“Unfazed” means unaffected or undisturbed. Despite economic uncertainty caused by Trump’s tariff policies, sports team owners are not seeing a corresponding drop in the value of their franchises. The title suggests that, unlike stock investors, they are calm and secure.
How do tariffs normally impact the economy?
Tariffs—taxes on imported goods—can raise costs for businesses and consumers, disrupt supply chains, and contribute to inflation or slower economic growth. They can also trigger retaliatory measures from trade partners, further unsettling financial markets.
What is the connection between Trump’s policies and the stock market drop?
Trump’s tariffs have introduced uncertainty and increased costs for many industries, prompting a negative reaction from investors. This has led to a 4% decline in the S&P 500 so far in 2025, as of the time of writing.
Are sports teams really “recession-proof”?
Not entirely. While core asset values often hold or rise, team operations (like game-day revenue) can be hit hard, as seen during the COVID-19 pandemic. Owners also face temporary losses, but long-term appreciation of franchise value tends to offset those risks.
Why mention historical downturns like 2008 or COVID-19?
To show precedent: even during extreme downturns, sports franchises have proven resilient. These moments give context to how owners might fare in the current environment shaped by Trump’s economic policies.
Is the title politically biased?
No. The title objectively references a factual policy development (Trump’s tariffs) and its measurable impact (market volatility), while contrasting that with the relative stability seen in sports franchise ownership.
Conclusion
While President Trump’s tariff policies have sent ripples through financial markets and heightened fears of a potential recession, sports team owners stand on solid ground. Their unique position—anchored by long-term contracts, limited supply, and deep cultural roots—has allowed them to consistently weather economic storms that destabilize other sectors.
That doesn’t mean they’re immune to short-term financial pain. Operating losses, particularly during disruptive events like the Covid-19 pandemic, can be significant. Yet over time, franchise values have continued to appreciate—outpacing traditional investment benchmarks like the S&P 500.