Appreciation

Appreciation refers to the increase in value of an asset over time.

In sports finance, appreciation most commonly applies to real estate, franchises, equity investments, collectibles, and long-term ownership stakes held by athletes, teams, or ownership groups.

Unlike income (salary, bonuses, endorsements, etc.), appreciation is typically unrealized until the asset is sold, refinanced, or leveraged.

Making it a core concept in long-term wealth building rather than short-term cash flow.

How Appreciation Applies in Different Leagues

NCAA / NIL Athletes

For NCAA and NIL athletes, appreciation represents the earliest form of true wealth building.

While NIL income provides cash flow, assets acquired during college, such as real estate, equity, or brand ownership can appreciate quietly in the background long before a professional contract is signed.

Use Cases

• Real estate purchased using NIL income
• Equity stakes in startups or local businesses
• Long-term asset building during college years
• Brand value appreciation tied to performance and visibility

Example

A top NIL basketball player earns $800,000 over two seasons and purchases a condo near campus for $450,000.

By the time they declare for the draft, the property is worth $540,000 due to market conditions and development.

The increase in value is appreciation, even though the athlete has not sold the property.

For NIL athletes, appreciation often represents early wealth creation, not income replacement.

Assets acquired during college can compound long before a professional contract is signed.

NFL

NFL players often use appreciation to extend wealth beyond relatively short playing careers.

By converting earned income into appreciating assets, players shift from paycheck-dependent wealth to long-term net worth growth that continues after retirement.

Use Cases

• Players purchasing primary residences or investment properties
• Ownership stakes in private businesses post-career
• Franchise valuations increasing league-wide

Example

An NFL player buys a home in Dallas for $2.5 million in 2018.

By 2024, the property is worth $3.6 million due to market growth and steady development.

The $1.1 million increase is appreciation, not income.

NBA

In the NBA, appreciation is closely tied to real estate, equity investments, and franchise ownership.

With global media growth driving valuations higher, appreciation often becomes a larger contributor to net worth than annual salary over time.

Use Cases

• Real estate portfolios in major metros (LA, NYC, Miami)
• Equity stakes in startups or media companies
• Team valuations driven by media rights growth

Example

An NBA owner purchases a franchise for $1.1 billion. Eight years later, the team is valued at $3.5 billion. The increase reflects appreciation driven by TV deals, global growth, and league expansion.

MLB

MLB players benefit from appreciation due to longer career spans and the ability to invest patiently.

Real estate, land, and minority ownership stakes allow value to compound steadily without relying on peak earning years alone.

Use Cases

• Long-term real estate investments in lower-tax states
• Minority ownership stakes in teams or related ventures
• Land appreciation around stadium developments

Example

An MLB player invests in commercial property near a spring training facility. As surrounding development increases, the land value rises significantly despite stable rental income.

NHL

For NHL players, appreciation often outweighs cash flow.

Franchise values and long-held assets grow primarily through league stability, expansion, and media exposure rather than annual profits.

Use Cases

• Franchise appreciation tied to U.S. media exposure
• Canadian real estate appreciation in major cities
• Long-term ownership assets with low annual cash flow

Example

An NHL franchise purchased for $250 million is later valued at $900 million due to expansion fees, league stability, and media growth, almost entirely appreciation-driven.

MLS / International Soccer

In soccer, appreciation is driven by league expansion, global audiences, and increasing media rights.

Expansion fees, ownership stakes, and club valuations often rise rapidly, making appreciation a primary wealth driver for investors and former players.

Use Cases

• Expansion franchise appreciation
• Player ownership stakes post-retirement
• International club valuations rising with global exposure

Example

An MLS expansion team enters the league at a $325 million fee and is valued at $700 million within several years due to league growth and media partnerships.

Combat Sports

Combat sports athletes frequently rely on appreciation rather than steady income.

Equity stakes, brand ownership, and intellectual property can grow significantly over time, even when annual payouts are inconsistent.

Use Cases

• Equity ownership in promotions
• Brand appreciation rather than steady income
• Intellectual property value of fight brands

Example

A fighter takes equity in a promotion instead of upfront pay.

As the promotion grows, the equity appreciates substantially even without annual distributions.

Golf / Individual Sports

Individual athletes often build wealth through appreciating assets tied to land, businesses, and personal brand value.

Appreciation allows long-term wealth accumulation independent of tournament results or seasonal income.

Use Cases

• Real estate and land holdings
• Private equity investments
• Personal brand and IP appreciation

Example

A golfer acquires land for a private course project. Over time, zoning changes and demand significantly increase the land’s market value.

Racing / NASCAR / F1

In racing, appreciation is fundamental to team ownership and charter systems.

As media rights, sponsorship demand, and global exposure increase, team and charter values often rise far faster than annual operating income.

Use Cases

• Charter systems and team equity
• Media rights-driven valuation growth
• Long-term asset holding strategies

Example

An F1 team purchased for $200M is later valued at over $1 billion as global interest, sponsorships, and media rights expand.

Why Appreciation Matters

Appreciation is how athletes and owners build real wealth beyond salaries.

While income is taxed immediately, appreciation allows value to grow tax-deferred and can be accessed strategically through refinancing, structured sales, or estate planning.

Most high-net-worth individuals generate long-term wealth not through earnings alone, but through appreciating assets held over time.

Related Terms

• Depreciation
• Capital Gains
• Asset Allocation
• Equity
• Net Worth

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• Which Adds More Value to TKO Holdings: UFC or WWE?

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Each of us should please our neighbors for their good, to build them up.
– Romans 15:2