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.

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.

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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.