SBD/18/Franchises

FORBES' MLB TEAM REVENUE LIST DRAWS IRE FROM SOME TEAMS

          FORBES releases its study on the franchise valuations
     and operating incomes of each MLB franchise in its current
     issue and the data shows that 14 MLB teams lost money in
     '98.  Badenhausen & Sicheri report that the Mets, Dodgers
     and Red Sox "each lost more than" $5M in '98 because "they
     were big donors" to MLB's revenue sharing plan, which "in
     essence ... punishes teams trying to give fans a better
     product and rewards cheapskate owners."  Badenhausen &
     Sicheri: "Although fans of low-revenue teams didn't get
     better teams to cheer for, the owners made out quite
     nicely."  MLB divides its national TV and licensing revenue
     equally among all teams -- a total of $16.5M per team last
     year --  but in '98, the top 13 revenue-generating teams
     paid $100M to the 15 lowest revenue teams.  The Yankees
     contributed $13M under the plan, while the Expos netted $13M
     and the A's, Reds and Pirates each received $6M.  MLB
     Commissioner Bud Selig, asked how much more revenue should
     be shared: "I have a figure in mind, but I don't want to say
     what it is."  The following lists FORBES' estimation on MLB
     teams current values, '98 revenues, operating income and
     percent change in value from '98 (FORBES, 5/31 issue).  


                 
RK TEAM CURRENT
VALUE
'98
REVENUES
'98
OPERATING
INCOME
% +/-
VALUE
FROM '98
1)
Yankees
$491M
$175.5M
$23.0M
36%
2)
Indians
$359M
$149.7M
$19.0M
12%
3)
Braves
$357M
$142.7M
$16.4M
19%
4)
Orioles
$351M
$140.5M
$8.5M
9%
5)
Rockies
$311M
$124.6M
$19.5M
3%
6)
D'Backs
$291M
$116.3M
$22.5M
n/a
7)
Rangers
$281M
$108.1M
$500K
11%
8)
Dodgers
$270M
$107.9M
- $11.7M
14%
9)
Red Sox
$256M
$106.9M
- $7.6M
12%
10)
Mets
$249M
$99.7M
- $5.2M
29%
11)
Astros
$239M
$82.5M
- $3.7M
26%
12)
Mariners
$236M
$81.3M
- $8.6M
-6%
13)
Devil Rays
$225M
$93.7M
$20.6M
n/a
14)
Cubs
$224M
$93.1M
- $7.9M
10%
15)
Giants
$213M
$73.3M
- $6.4M
13%
16)
Cardinals
$205M
$97.8M
$1.6M
18%
17)
Padres
$205M
$78.9M
- $8.0M
27%
18)
Angels
$195M
$88.5M
- $200K
24%
19)
White Sox
$178M
$74.1M
$200K
-17%
20)
Reds
$163M
$54.4M
$600K
20%
21)
Blue Jays
$162M
$73.4M
- $9.5M
15%
22)
Brewers
$155M
$55.5M
- $8.8M
22%
23)
Marlins
$153M
$69.5M
$8.6M
-4%
24)
Tigers
$152M
$54.2M
- $4.5M
11%
25)
Phillies
$145M
$66.0M
$4.5M
11%
26)
Pirates
$145M
$51.7M
$2.6M
9%
27)
Athletics
$125M
$56.7M
$3.3M
6%
28)
Royals
$96M
$53.5M
- $10.9M
-11%
29)
Twins
$89M
$46.8M
- $7.1M
-5%
30)
Expos
$84M
$46.5M
$5.6M
-4%
LEAGUE AVERAGE
$220M
$88.9M
$1.9M
11%

 

 

NOTES: Revenues include those that "accrue to the team from the stadium, broadcasting, licensing and merchandise." Operating income is "revenues less player costs, selling, general and marketing expenses, stadium operations, coaches and player development costs and travel," with the figures "adjusted for revenue sharing." Forbes then "assigns a multiple that ranges from 3.0 to 1.8" which is a function of the team's stadium, debt and the city's demographics. The values are "enterprise values -- the value of the business before deduction of debt outstanding" (FORBES, 5/31 issue).
Return to top
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug