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.”
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