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April 24, 2009
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Franchises

MLB Franchise Values Up Overall, But Ten Clubs See A Drop

 
MLB has "never been stronger," as franchise values "increased an average of 1% over the past year to $482[M], an all-time high," according to Ozanian & Badenhausen in FORBES' annual valuations. Fueled by "more ticket sales and television money, league revenue increased 5.5%" to $5.8B, and operating income rose 1.8% to $501M -- "another record." However, the "overall results are skewed by a handful of teams with great stadiums and cable television deals." Ten franchises "saw their values decline during the past year, the most since 2004." The net result is a "widening gap between the teams at the top and the ones at the bottom." The Yankees, who saw their value increase 15% to $1.5B, again top the list. The team "pulled in $80[M] -- by far the most in baseball -- from their rights fee with the YES Network in 2008." The Mets, who are second on the list, saw their value rise 11% to $912M. Meanwhile, the Tigers are "bleeding money," as the team's value dropped 9% to $371M. The Indians value "slipped 4%," to $399M (FORBES.com, 4/22).

RANK TEAM
VALUE
REVENUE
INCOME
1 Yankees
$1.5B
$375M
-$3.7M
2 Mets
$912M
$261M
$23.5M
3 Red Sox
$833M
$269M
$25.7M
4 Dodgers
$722M
$241M
$16.5M
5 Cubs
$700M
$239M
$29.7M
6 Angels
$509M
$212M
$10.3M
7 Phillies
$496M
$216M
$16.3M
8 Cardinals
$486M
$195M
$6.6M
9 Giants
$471M
$196M
$22.4M
10 White Sox
$450M
$196M
$13.8M
11 Braves
$446M
$186M
$4.7M
12 Astros
$445M
$194M
$17M
13 Mariners
$426M
$189M
$3.8M
14 Nationals
$406M
$184M
$42.6M
15 Rangers
$405M
$176M
$17.4M
16 Padres
$401M
$174M
$22.9M
17 Orioles
$400M
$174M
$27.2M
18 Indians
$399M
$181M
$19.5M
19 D'Backs
$390M
$177M
$3.9M
20 Rockies
$373M
$178M
$24.5M
21 Tigers
$371M
$186M
-$26.3M
22 Twins
$356M
$158M
$26.8M
23 Blue Jays
$353M
$172M
$3M
24 Brewers
$347M
$173M
$11.8M
25 Reds
$342M
$171M
$17M
26 Rays
$320M
$160M
$29.4M
27 A's
$319M
$160M
$26.2M
28 Royals
$314M
$143M
$9M
29 Pirates
$288M
$144M
$15.9M
30 Marlins
$277M
$139M
$43.7M

LACKING CREDIBILITY? In S.F., John Shea wrote teams "generally don't cooperate with Forbes." Therefore, "any increase or decrease in a team's value is based on the magazine's estimates the previous year" (S.F. CHRONICLE, 4/23). In DC, Tim Lemke wrote Nationals President Stan Kasten "railed against Forbes and similar publications with similar rankings after I had asked his thoughts on the latest numbers from Team Marketing Report." Kasten "doesn't put a lot of stock in these things and doesn't pay a whole lot of attention to them." Kasten "declined to comment on the record about the Forbes valuations," though it is "safe to say he did not back off his past criticism of them" (WASHINGTONTIMES.com, 4/22). In St. Petersburg, Marc Topkin noted Forbes estimated the Rays franchise "has gone up to $320[M], a 10[%] increase over last season that is third largest in the majors." But the Rays said that the increase "doesn't matter." Rays President Matt Silverman: "It is based on their own proprietary metrics. We don't and have never understood them. ... Since the team isn't for sale, the number has very little relevance" (ST. PETERSBURG TIMES, 4/23).


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