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).
