The way Forbes magazine adds it up, the Buffalo Bills (http://www.bizjournals.com/search/bin/search?q=%22Buffalo%20Bills%22&t=buffalo) are worth $708 million, up 11 percent from last year.
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>As impressive as that figure is, the magazine, in its Sept. 5 issue, says the Bills are 25th most valued franchise in the 32-team National Football League (http://www.bizjournals.com/search/bin/search?q=%22National%20Football%20League%22&t=buffalo).
Forbes annually ranks the value of each team. In 2000, the Bills were valued at $365 million, 21st overall. Team revenues are placed at $173 million, compared with $114 million five years ago. Operating income -- earnings before interest, taxes, depreciation and amortization -- is $36.1 million, nearly triple from $13.5 million in 2000.
The Washington Redskins again have the highest valuation at $1.26 billion, compared to $741 million five years ago. The lowest valued NFL franchise is the Minnesota Vikings at $658 million.
I wonder what valuation method Forbes uses to get $708 million? The valuation method I like to use (6 times average free cash flow (average of last three years before sell date)+available cash+accounts receivable-accounts payable), which would probably value the Bills at least half the Forbes valuation. If the Bills own Ralph Wilson Stadium, Forbes probably used an asset-based valuation. But I am unsure if the Bills own the Stadium? I think they lease it???