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DBRS Morningstar: 2023 Sports Finance Outlook: Par for the Course with Some Hazards Along the Way
[January 26, 2023]

DBRS Morningstar: 2023 Sports Finance Outlook: Par for the Course with Some Hazards Along the Way


In this commentary, we discuss our expectations for sports franchise and stadium ratings in 2023.

Key highlights include:

  • Broadcasting contracts will continue to support long-term league and franchise credit profiles.
  • Sports franchise sales are expected to continue to reach new heights.
  • Stadium operating costs are expected to increase, pressuring stadium financing credit metrics.
  • A combination of increased construction costs and higher interest rates will challenge credit ratings on debt financings associated with new stadium construction and renovation projects.

"In 2023, we expect sports franchise and stadium ratings to be relatively insulated from the macroeconomic climate, based on the strong attachment that fans have with sports brands," said Michael Goldberg, Senior Vice President of Sports Finance. "As a result, our outlook for the sector is neutral."

To read the full report and access the data, click here: https://www.dbrsmorningstar.com/research/408795/2023-sports-finance-outlook-par-for-the-course-with-some-hazards-along-the-way

The DBRS Morningstar group of companies consists of DBRS, Inc. (Delaware, U.S.)(NRSRO, DRO affiliate); DBRS Limited (Ontario, Canada)(DRO, NRSRO affiliate); DBRS Ratings GmbH (Frankfurt, Germany)(EU CRA, NRSRO affiliate, DRO affiliate); and DBRS Ratings Limited (England and Wales)(UK CRA, NRSRO affiliate, DRO affiliate). DBRS Morningstar does not hold an Australian financial services license. DBRS Morningstar credit ratings, and other types of credit opinions and reports, are no intended for Australian residents or entities. DBRS Morningstar does not authorize their distribution to Australian resident individuals or entities, and accepts no responsibility or liability whatsoever for the actions of third parties in this respect. For more information on regulatory registrations, recognitions and approvals of the DBRS Morningstar group of companies, please see: https://www.dbrsmorningstar.com/research/225752/highlights.pdf.



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