Estimating the Market Value of Sports Facilities

Posted by Natasha Leone on December 31st, 2020

It’s very common that information regarding the price of private properties isn’t available to the public. These prices are fairly difficult to gauge, as several factors come into consideration when understanding how much a building is actually worth.

Not just the venue and its physical condition, but the outside, the performance of the associated team and other social and financial problems have to be considered. Here are a few factors to look into when estimating a sports venue’s market price:

Physical Depreciation

It’s one of the most common factors to consider when estimating the value of any property. Its effective age is considered along with its useful life to determine its depreciation. The useful life of a property is determined by how long in the future can it be of use, i.e. be capable of holding large crowds and events in the future. Effective age is based on the physical condition of the property, which is evaluated by observing the wear and tear around the venue.

Cost Approach

Take a look at the venue in the current state. Does it have all the facilities it needs to compete against other arenas in its brackets? It should have parking, proper accommodation for the players, sufficient space for branding and merchandising.

If it has the things you need, then you have to look into fewer factors, but if there’s already a shortage of features, you’ll have to consider the cost of working upon the existing model. By lowballing the price and spending the extra money on repairs, renovation and further construction, you could get a good deal out of the purchase.

External Factors

These are a bit tricky and require a lot of research and data to evaluate thoroughly. A critical factor in determining whether buying a particular sports venue is to know whether the locals are interested in coming to the venue at all, as ticket prices are a huge factor in bringing in money. You’ll have to figure out the entertainment spending of the locals, their average age group, the success of the home team in that specific sport as loyalty is a crucial factor in attracting patrons.

Every sports venue owner and manager wants to get the best price out of their facility. The biggest problem with getting a quote for your venue is the lack of discretion in the market. If you’re looking to sell tennis courts or racquet courts, get in touch with EKM Sports. Privacy of information is our guarantee, and we’d be glad to buy tennis facility or racquet facility off you.