Yankees Once Again Top Forbes’ MLB Franchise Valuations

MLB team valuations increased by 14.7% to an average of $431.5M, according to FORBES’ Badenhausen, Ozanian & Settimi, who report the 30 MLB teams last season earned a combined operating income of $496M (in the sense of earnings before interest, taxes, depreciation and amortization), compared to an operating loss of $57M three years ago. The Yankees once again led the way, while the Mets jumped over the Red Sox to rank second, increasing the overall value of the franchise by 22%. The following presents FORBES’ valuations for the 30 MLB teams (FORBES, 4/19 issue).

FORBES' '07 MLB FRANCHISE VALUATIONS
RK	TEAM	VALUE ($M)^	1-YR %+/-	DEBT/VALUE^^	REV. ($M)	OPER INC. ($M)^^^
1	Yankees	$1,200	17%	79%	$302	-$25.2
2	Mets	$736	22%	83%	$217	$24.4
3	Red Sox	$724	17%	33%	$234	$19.5
4	Dodgers	$632	31%	67%	$211	$27.5
5	Cubs	$592	32%	0%	$197	$22.2
6	Cardinals	$460	7%	53%	$184	$14.0
7	Giants	$459	12%	32%	$184	$18.5
8	Braves	$458	13%	0%	$183	$14.8
9	Phillies	$457	8%	38%	$183	$11.3
10	Nationals	$447	2%	56%	$144	$19.5
11	Astros	$442	6%	12%	$184	$18.4
12	Mariners	$436	2%	23%	$182	$21.5
13	Angels	$431	17%	8%	$187	$11.5
14	Orioles	$395	10%	38%	$158	$17.1
15	White Sox	$381	21%	10%	$173	$19.5
16	Padres	$367	4%	48%	$160	$5.2
17	Rangers	$365	3%	73%	$155	$11.2
18	Indians	$364	4%	27%	$158	$24.9
19	Tigers	$357	22%	59%	$170	$8.7
20	Blue Jays	$344	20%	0%	$157	$11.0
21	D'Backs	$339	11%	68%	$154	$6.4
22	Rockies	$317	6%	28%	$151	$23.9
23	Reds	$307	12%	13%	$146	$22.4
24	A's	$292	24%	31%	$146	$14.5
25	Twins	$288	33%	31%	$131	$14.8
26	Brewers	$287	22%	42%	$144	$20.8
27	Royals	$282	18%	14%	$123	$8.4
28	Pirates	$274	10%	37%	$137	$25.3
29	D'Rays	$267	28%	15%	$134	$20.2
30	Marlins	$244	8%	36%	$122	$43.3
	AVERAGES	$431.5	14.7%	35%	$170.4	$16.5

NOTES: ^ = Value of team based on current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt). ^^ = Includes stadium debt. ^^^ = Earnings before interest, taxes, depreciation and amortization.

Forbes Places Yankees As Most Valuable Team In MLB

REAX: The Pirates “acknowledged making a profit in 2006, but they firmly rejected [Forbes’] estimate that their operating income ... was $25.3[M].” Pirates Chair Bob Nutting said, “The information reported in Forbes is simply inaccurate.” Neither Nutting nor Pirates CEO Kevin McClatchy have announced how much profit the team made. Forbes spokesperson Elizabeth Wasden said the magazine stands by its figures (PITTSBURGH POST-GAZETTE, 4/21). Officials from the Twins and Hennepin County, where the team is planning a new ballpark, disputed the magazine’s analysis of the ballpark. Twins President Dave St. Peter said the Twins “have long placed very little stock in Forbes’s annual attempt to play with fantasy baseball numbers” (STAR TRIBUNE, 4/21). Marlins President David Samson called the report, which indicated the Marlins had the highest operating income at $43.3M, “irresponsible.” He added that the team “did not make a profit despite having a major league-low” payroll of $21M in ’06. Samson: “They look at revenue sharing numbers and the team’s payroll and take the difference and see profit without looking at our expenses” (South Florida SUN-SENTINEL, 4/21).

RICH MAN, POOR MAN: With Forbes estimating the Yankees generated an operating loss of $25M in ’06, Forbes Associate Editor Kurt Badenhausen said, “Only in baseball could the most valuable team also be the only one to lose money” (ST. PAUL PIONEER PRESS, 4/20).