Real Madrid alone is more than $5B ? Maybe you mean to say league association is worth 5B ? That seems too high the association does not have lot of margins they pass through most of their revenue to the clubs .

The last domestic TV deal they signed recently was worth $6B for 5 seasons or so, which is what you are proposing they buy.

In enterprise value terms that $1B/year growing 6 %YoY is worth a lot more than $5B.

In contrast Cloudflare has a $2.5B revenue albeit growing much faster but also has much smaller earnings or free cash flow, I.e. money they are not spending to make their current revenue.

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hunterpayne 2 days ago | parent [-]

Here are RMs financials...https://www.realmadrid.com/en-US/news/club/latest-news/notic...

They make about $25m a year in profit. Cloudflair actually looses a small amount of money on 2.5x the revenue. However, Cloudflairs market cap is about 100x that of RM's and that's because they have a growing business, in a growing industry and can easily become profitable when needed. That's probably not possible for RM and their very pricey lineup of players.

	▲	manquer 2 days ago \| parent [-]
		It is not the comparison to make, which is why I focused on the league’s tv revenue which is what is relevant , i only bought up Madrid’s valuation to ask where is Laliga ‘s $5B coming from. Real Madrid owns the Bernabeu a valuable piece of real estate in the heart of Madrid and many other assets the Real Madrid brand is very monetizable . Sports team have been consistently growing businesses in every major sport in both Europe and US. Comparing a sports team and SaaS company is hardly going to be apples to apples with different asset , revenue, brand and monopoly and strategic profiles. —— The risk to the league due to piracy is the value of the television deal. The buyer paying $1B/yr (DAZN) is the reason for this enforcement. If Cloudflare wants to buy this problem away that is what they need — The $1B deal growing 5-6% YoY and get into the streaming business . Prime alone is expected to spend $4B on live sports rights this year. It is very expensive space with everyone from Apple to Google and Netflix to sovereign funds going deeper every year . The streaming revenues otherwise aren’t expected to be massively grow so this is the content play that is least risk - compared to investing in say 4-5 blockbuster movies or tv series this is far more predictable and consistent revenue stream.