quibron-t rx lithium carbonate tablets wiki atarax from canada can you buy proventil canadian pharmacy glucophage 500mg side effects buy deltasone online amazon nome generico moduretic otc allegra cost where can i buy zoloft tablets minocycline dose for sinus infection purchase neurontin gabapentin buy tenormin 100mg online ranitidine no prescription atlantica online nitroglycerin one man one jar wikipedia overseas pharmacy no prescription tegretol nizoral pills online in the usa neurontin 100mg uses buy lady era with e check rosuvastatin calcium brands india vente de snovitra super power au quebec buy allegra capsules fast dipyridamole delivery what does generic lasix look like ordering lipitor canada comprar tofranil portugal purchase 1 rx accutane mg prilosec paypal what is aldactone prescribed for ordering kamagra gold here in canada buy aciclovir uk cream prescription haldol injection dosage metronidazole side effects nhs how to purchase desyrel online citalopram overdose how much birth control pills cleocin gel long term side effects of azulfidine cheap ciplox free delivery diflucan price walmart levitra plus medication side effects generic form of differin side effects of zofran pill citalopram drug class can you buy ethionamide over the counter cloridrato de amantadina mecanismo de ac,a~o diflucan thrush infant all types of viagra pills canali tv italiani in streaming live mircette retail price como comprar live buy biaxin cheap generic cost of skelaxin 800 mg nolvadex canada legal canadian pharmacy online northwest what is aspirin made of the plant what is arjuna question for krishna how to take brand amoxil mg drugstore buy deltasone dove posso comprare il ginseng xeloda tablets capecitabine pcos 100mg clomid success comprar famvir original cheap celebrex usa online generic biaxin alli pills online ireland clonidine medication overnight delivery brand viagra birth control online australia prednisone medication uses doxycycline acne treatment side effects propecia pas cher lille what is lisinopril for buy lasix online overnight what is chloroquine made of cialis versus viagra side effects lynoral order abilify maintena label viagra shoppers buy hoodia gordonii nz meclizine woldwide shipping buy hong kong generic zaditor fluoxetine 20mg capsules reviews how to take clomid uk side effects of vytorin 10-40 mg over the counter fertility pills canada noroxin women buy buying zaditor using paypal atorvastatin rosuvastatin dose best price for real luvox himalaya purim price in india donde puedo comprar benicar what are the side effects of taking too much ventolin methotrexate psoriasis how long order ethionamide cheap cheap prilosec zanaflex comprar where to find doxycycline cleocin cream reviews can you buy erythromycin in ireland amoxil left out overnight voveran buy online ireland schumacher ginseng llc shopping ordering alesse medication astelin for daily use canada brand trial erection packs 1 for sale purchase xbox live redeem code online best place to order brand levitra in us cafergot migraine price of augmentin without insurance carafate suspension price remeron spain where do i buy dutas generic cipro antibiotic $10...$100 where to buy prilosec drugs online online pharmacy no prescription needed cozaar cymbalta suppliers overseas illegal drug identifier pill betapace online in usa long term effects of prednisone psychosis three main types of drugs signs and symptoms of asthma in children the online drugstore retino-a cream 0,05 buy aciclovir prescription overnight citalopram 40 mg buy prometh with codeine cough syrup dosage buy amantadine overseas no rx cialis in canada us pharmacy online trandate best generic tofranil review cheap brand viagra buy online can order chloramphenicol online what is fml forte made of para sirve medicamento implicane cheapest isoniazid in the uk furosemide weight loss lexapro 10 mg anxiety donde comprar trimox does actos cause weight gain claritin ingredients antihistamine rx lotrisone cream seroquel from uk tadalafil 5mg para que serve increasing fertility in men naturally what is bupropion for medication viagra professional sale generic cheapest where can i buy primatene mist in canada yasmin alibhai-brown daily mail nizoral shampoo rxlist what is ciplox 500mg for doryx dr 100 mg where keppra female cialis online meds comprar tadapox original en madrid phenergan drugstore what is alavert d-12 is cleocin gel legal in uk etodolac pct buy mometasone furoate monohydrate nasal spray side effects purchase cheap zovirax cream acyclovir online most reliable place to buy micardis online cordarone western australia order free sample of viagra where can you buy zovirax cold sore online pharmacy uk geriforte para q se usa el atarax buy cialis mg online pharmacies colchicine buy sominex singapore donde puedo comprar snovitra super power buying zyrtec in manchester buy hydrochlorothiazide from mexico online floxin online overnight delivery view topic fincar supplier in uk free or low cost tinidazole micardis telmisartan tablets side effects motrin canada overnight delivery relafen 750 uses viagra super active ships from india lithium carbonate without rx indian generics online pletal astelin nasal spray uses prilosec price cvs free coupon for tenormin how come newhealthyman address doesnt work buy parlodel perth australia arimidex price canada vigrande forum doxycycl hyc 50 mg for acne ranitidine syrup india generic pills for lipitor buy atarax bulk buy celexa capsules speman forte price minocin shortage 2012 compazine australia can you buy benadryl over the counter in germany amoxil shortage 2012 what is doxycycline tablets for cytotec medication generic for phenergan premarin hrt side effects buy inderal 100 sumycin for dogs buy generic uk paypal zestoretic synthroid overnight shipping cheap what is a normal depakote blood level mestinon timespan rxlist cipro dose for gonorrhea tadacip cost canadian eldepryl without prescription miami what is arthritis what are owl pellets best place to buy amaryllis bulbs where to bystolic zithromax pills for sale bactrim ds prescription online can prevacid capsules be opened generic from anacin canadian health care mall phone number exelon pharmacy order safe buy terramycin online cipralex side effects nhs purchase chloromycetin lowest price phrmacia,mx.com what is cyklokapron tablets for purchase sustiva vermox brands india can a woman get a prescription for viagra what is himcolin pills used for boots medication training online careshield acyclovir dose encephalitis overseas pharmacy no prescription asacol what does kd stand for in adalat generic adalat mylan prices generic myambutol usa pharmacy onde comprar nootropil nexium weight gain viagra sublingual medication order generic claritin flomax generic names purchase lipitor in usa costco pharmacy sominex price rumalaya daily use reviews buy over the counter lynoral online buy kamagra cheap online generic viagra cytotec tablets from buy cheapest entocort tablets uk caverta 50 mg ranbaxy generic tadacip india canadian alliance of physiotherapy regulators address dapoxetine ukmi overseas pharmacy no prescription rosuvastatin nitrofurantoin capsules slow release metformin dosage generic sustiva no prescription half price mobic alli orlistat buy online accutane second course results buy combivent online amazon xenical vendita in italia why hoodia is illegal for sale in the uk how to buy cialis online from canada purchase propranolol on line in india buy female fertility drugs online keftab generic name what is nitrofurantoin mono/mac for retin-a ge no prescription compare prices where is rita ora from originally walgreens pharmacy propecia diclofenac gel now lesofat dosage seroflo overseas buy promethazine w codeine lotrisone rx diclofenac sr 100mg tablets topamax without a prescription isoptin retard 120 mg where to buy zoloft with visa celebrex delivery london online sale of tinidazole can you get pregnant while on depo provera shot amantadine looking for content and code jobs cost of celebrex at target reviews on lisinopril buy zenegra online usa zyban on line no script is there a shortage of lasix web based prescriptions levitra plus canada how much keflex for uti aciphex generic release date buy vasodilan online amazon lopid to buy from europe side effects of lamictal odt betnovate 40 mg dose baclofen refills best concetraption allegra strategies project cafe 11 cheap hydrochlorothiazide buy online generic tretinoin 0,05 inderal online pay paypal vytorin prescription coupon generic viramune no prescription finast pill shortage compare prices trandate female cialis coupon code methotrexate sale what are ciplox tablets used for zovirax lawsuit settlements can you only get flomax on prescription online sale of micronase side effects of avalide how expensive is clomid without insurance cialis online non prescription canadian pharmacy voltaren brand positioning generic name for aciclovir is lexapro generic medicine intrathecal clonidine mechanism of action buy cheap biaxin dosage pamelor dosage instructions tamoxifen citrate pills buy phenergan pills aristocort from canada purinethol delivery london fluoxetine order metformin pills online in the australia dosis de antiflu des jr comprare alligatore elimite discounted ciproxin dose children prednisone six day pack side effects ringworm medication for children best legal online site to buy viagra generic liv 52 no prescription cialis no brasil does generic cialis work reviews best generic prevacid sites requip xl side effects viagra in india for men risperdal legal us eutirox 50 prospecto www azithromycin tablets 250 mgs com nome generico do voltaren silagra for purchase without a prescription bupropion uk proscar medication what is the standard dose for levitra abana pharmacy requip australia price evecare overnight delivery we buy any car sales buy nitrofurantoin 80 mg online pharmacy has best price zocor yasmin boland libra where to buy accutane no prescription cheap leflunomide arava cost why did alli speed go to spain sinemet tablets from buy oregon state football schedule 2013 cyklokapron uk online flovent side effects toddlers grand order calanthe tenormin 25 mg dosage pharmaceutical sales jobs london trazodone recreational usage does thyroid medication make you gain weight order atrovent tablets compazine prescription coupon what does actos do for you cheap calan forcat holidays all inclusive bupron sr with paypal payment original celexa online order seroquel online without rx 80 mg of nexium zithromax dosage for uti how to take allopurinol for gout buy serevent capsules order xenical pills cheap lamisil prescription viagra jelly tablets uk cheap tinidazole sale uk fluoxetine generic vs prozac buy erexin-v new zealand online zolpidem tartrate buy online diamox rx difference between cialis and levitra to buy antabuse over the counter provera insurance checklist probalan price online pharmacy uk colospa clavamox antibiotic resources for benzac vpxl generic release date does buspar work for social anxiety ordering brand cialis online pharmacies buy vpxl what does haldol feel like to buy compazine buy proventil without prescription generic cialis trial pack pharmacy topical clindamycin pregnancy category buy viagra in dublin revatio for men in usa express care pharmacy phoenix lowest priced voltaren inderal 20mg tab vytorin side effects impotence there generic lopressor diovan tablets for purchase lukol cheap price speman order on web vasotec cost comparison where to buy viagra in london ontario is generic kytril effective clonidine prices at costco buy doxycycline without rx where to buy alligator clips canada show shuddha guggulu online forum resources for flovent has tegretol retard been discontinued purchase zenegra online buy quibron-t tablets online side effects of vytorin 10 80 buy mestinon 60 mg most reliable place to buy aldactone online himplasia cheap kroger pharmacy prices can you open exelon capsules buy minipress bulk can you order propranolol online pharmacy no script needed best place buy female viagra where can i buy serevent dosis pediatrica del aciclovir purchase amantadine erythromycin common cold buy midamor online no prescription united states where can i get olanzapine discount etodolac mg para que sirve el prednisone 20 mg diovan without prandin tablet sale nasal imitrex dose compare prices elocon online medicine store usa zestril paypal mometasone inhaler generic costco pharmacy urispas price online generic diflucan korean red panax ginseng reviews safe procardia buy natrol acai coupons bystolic to buy in the usa without a prescription levitra super active online overnight shipping effexor xr usa sale epivir-hbv online usa no prescription buy viagra jelly bulk zocor peak sales styplon mail order nexium side effects long term use femara medicine infertility danazol lawsuit order paroxetine on line canada penegra tablets uses side effects of prednisone for small dogs famvir for men in usa will there generic abilify prednisolone 5mg side effects in pregnancy sarafem drug schedule cafergot tablets 150 mg generic aygestin uk paypal serratiopeptidase with diclofenac sodium side effects effect clomid ovulation test buy medrol 16mg did generic levaquin become available phenamax suppositories buy can buy azulfidine online suppliers of chloromycetin in us get actos las vegas what family of drugs is lithium get cialis sublingual toronto how long does withdrawal from seroquel last list of banned drugs in india 2012 pdf can aspirin cause weight gain how to order vytorin online morning sickness drug thalidomide babies kamagra lawsuit canada buy generic hyzaar with bonus buy seroflo in india online nymphomax without rx order eldepryl tablets low cost actos cheap genuine viagra super active online what is beconase aq tablets asacol usa benzac drug oversea order brand cialis online no prescription order combivent inhaler wellbutrin xl side effects headaches what drug category is finpecia how to buy pain pills on the street why has cardura been discontinued can you buy propecia australia astelin drugstore.com buy seizure medication without prescription order doxazosin online no prescription with a amex arimidex com patient assistant cheap generic benicar phone in order for nootropil pulmicort flexhaler coupons petzl myo rxp lithium matrix blue pill red pill script diclofenac dose for adults generic diltiazem no prescription prilosec for sale online azithromycin tablets 250mg side effects buy tenormin in australia canadian terramycin tablet trental 20 mg roxithromycin from mexico over counter medicine similar nexium side effects of arimidex for breast cancer safe place order zebeta antivert dosage motion sickness paxil 40 mg generic arimidex coupons discounts content management system examples buy glucophage online with mastercard ephedraxin shop acquistare il viagra in farmacia senza ricetta prazosin buy on line buy lioresal inhaler canada gsk augmentin online snovitra super power comprar buy birth control pill over the counter colospa with american express discount code for liverpool fc store order acai berry max cleanse black and decker 20v lithium hedge trimmer reviews aciphex reviews side effects cefixime tablets for purchase moduretic order online how much will omnicef cost shallaki online in us getting eurax in australia side effects of procardia rx without prescription from usa cost of xenical uk sports direct clothing fexofenadine hydrochloride 180 mg side effects buy actoplus met inhaler canada lipitor side effects in men raloxifene hydrochloride tretinoin 0,025 max dose buy cheap norvasc propranolol and birth control pills cheap uk buy cephalexin ranbaxy lipitor recall gyne-lotrimin legal us meticorten prednisona efectos secundarios accutane pills sweat cialis pills for sale canada; cheapest trandate to buy flonase no prescription compare prices what allergies does allegra treat hives cialis 30 lu tablet tadalafil 100 mg cinsel gu"c, art?r?c? where to buy online abilify without abana non perscription countries generic actos drugs dosage buy dapoxetine in singapore when is the best time of day to take omeprazole ayurslim online order cheapest brand advair diskus generic dulcolax switzerland amoxil online ranitidine rx dose viagra for sale cheap cheapest eulexin tablets side effects bactrim ds not working for uti beconase aq online pay paypal tetracycline brands in india ventolin with no perscription health canada rumalaya liniment synthroid oral tablet 75 mcg information proventil generic albuterol where can you buy valtrex over the counter pharmacy genuine alligator skin wallet generic bystolic in usa is silagra a prescription drug order tadalis online without rx zestril dosage instructions cheap ampicillin mg prescription liquid pariet review wellbutrin sr dosage rx list buy procardia boots pharmacy generic name for altace buy accutane online canada free shipping order cialis super active on line uk where can i buy gasex how much atarax should i take to sleep cialis sublingual sale 5mg canadian novo-rabeprazole 10 mg buy dostinex online safely propecia costs propecia online pay paypal buy tinidazole mg online keflex uk next day delivery where to get clothes like alli simpson where to astelin avapro dose sizes valtrex buy online uk buy metformin for daily use buy viagra plus discount order elimite infestation normal results for clomiphene citrate challenge test canadian allied forces caf buy zovirax cream us buy brand levitra lowest price hyzaar drug info arimidex generic usa comprar zithromax en argentina how to get aristocort drug generic name for lisinopril naltrexone price comparison buy minocycline no prescription generic elimite for sale on line
Home Maury Brown Inside the Numbers: A 6-Year Look at the Forbes Valuations

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 1108 guests online

Atom RSS

Inside the Numbers: A 6-Year Look at the Forbes Valuations PDF Print E-mail
User Rating: / 0
PoorBest 
Written by Maury Brown   
Sunday, 27 April 2008 23:00
A Biz of Baseball Exclusive

Each year, Forbes magazine releases its valuation of the 30 clubs within Major League Baseball. And, each year, fans, analysts, and certainly owners, debate the figures with an intensity that might rival a Lou Pinella missed call meltdown. Owners, with some rare exceptions, will say that the valuations are a bunch of hooey (that’s putting it kindly). Of, course, when the numbers work in their favor, you can get someone like George Steinbrenner on record, as he did last year when he said, "I am gratified at the Forbes valuation of the Yankees. We are continuing to build a worldwide brand for the people of New York and Yankee fans everywhere."

Others, such as Marlins president David Samson, would say otherwise. "Every year I continue to be surprised at the absolute inaccuracy that a so-called reputable magazine is willing to print," Samson said after this year's valuations were released. As we will present, if David Samson thinks that the figures for the Marlins are way off, that doesn’t mean that the Marlins aren’t pulling in a decent profit; it just means that the figures may not be completely in-sync with their accounting methods.

How Forbes renders their figures is what differs from MLB’s. Asked why those within MLB continue to say that the Forbes valuations are off, senior editor, and co-author of the valuations Kurt Badenhausen offers up their methodology for the financial estimates of a private industry that guards their money matters vigorously.

“We have been doing this at Forbes for 11 years,” Badenhausen said. “We talk to teams, investment bankers, consultants and other baseball people to help estimate all revenue and expense items as well as the current values of the franchises. There are a lot of ways to calculate these numbers with various holding companies, media properties and other businesses.”

As a specific example on the how MLB’s figures and Forbes’ figures may differ, Bandernhausen cites one baseball’s more lucrative revenue streams: MLB Advanced Media, which includes MLB.com.

“We have MLB’s revenues at $5.5 billion for 2007,” adds Bandernhausen. “MLB says they are more like $6.075 billion, but they are including $450 million or so of MLBAM revenue (whereas each team only got $2 million last year) and from events like the All-Star game. We include non-baseball stadium revenues from things like concerts and other events for those teams that control their stadiums. On the other hand, we deduct interest payments on debt that teams incurred from building new stadiums. Those two things roughly offset each other. We only look at revenues and expenses that the teams incur and baseball has clearly never been healthier from a financial standpoint.”

Another example involves the Seattle Mariners.

As part of the agreement for public funding of Safeco Field, the Mariners are required to release a financial statement to the State of Washington. The Washington State Major League Baseball Stadium Public Facilities District (PFD) owns Safeco, and their annual report shows that the Mariners made $17.8 million in profits.

Forbes lists the Mariners as posting operating income for 2007 at $10.1 million. Why the $7.1 million discrepancy?

“Our Mariners number is actually closer than the $7.7 million when you factor in depreciation, amortization, signing bonuses, non-ballpark expenditures and capital expenditures which we do,” explains Badenhausen. “I believe the number was closer to $15 million. Our operating income is an EBITDA number (Earnings Before Interest, Taxes, Depreciation and Amortization). The $5 million difference is based on different revenue and expense calculations and estimates.”

So, it’s clear that how valuation figures are calculated can be different. Thus, it’s not wholly untrue that MLB’s figures differ from Forbes, but then, it’s a matter of how the sides are calculating figures. As former MLB COO Paul Beeston said infamously, "I can turn a $4 million profit into a $2 million loss and I can get every national accounting firm to agree with me."

With the differences, I’m not about to quibble with the amounts, per se. The following is more of a look in trends in the valuations within MLB. Looking at the data historically can show us which clubs are valuating upward more thanInside the Forbes Valuations inflation – a sign that ownership is working to maximize the value of the franchise, a new stadium has come online, paying down debt, or other activities that will increase the value of their holdings, on top of the growth that MLB in general is witnessing.

In some instances, when coupled with total player payroll figures, they can show holes in the revenue-sharing system. Overall, the most obvious news is owners are making money, and lots of it. Using the overblown cliché, they are hitting the ball out of the park. There may be disparity between the amounts of revenue clubs are pulling in, but no owner could claim with a straight face that they aren’t making money these days. It’s just that some clubs are making more than others are. As Badenhausen rightly said, “After listening to baseball owners cry poverty for 25 years, the outcries have been relatively few the last couple of years because baseball is in what like Bud Selig likes to call a ‘Golden Age’.”

Select Read More to see a detailed breakdown of the Forbes figures

Before we delve into the historical trends over the last six years, here are some details based around the annual research by Michael Ozanian and Kurt Badenhausen from this year’s valuations (see http://www.forbes.com/baseball/):

  • Total gross revenues for the 30 clubs has increased by 7.7 percent from last year to $5.5 billion (as opposed to the $6.075 billion reported by MLB)
  • The average team is now worth $472 million, 9.5 percent higher than last year and 143 percent more than when Forbes first calculated team values in 1998.
  • The increase in gross revenues has outpaced expenditures in player payroll. This year, 56 percent of revenues were spent on player payroll compared to 66 percent just five years ago.
  • Paid attendance continues to be a driving factor for the incredible increases for MLB. Within that, interleague continues to be exceptionally popular. Last year, interleague averaged 34,900 fans per game, 15 percent more than intraleague contests.
  • The Mets, currently ranked second with a value of $824 million, will also get a new stadium that should push their value close to $1 billion before long. Citigroup, beleaguered by the housing market meltdown, is still planning to pay the Amazins $400 million over 20 years for the stadium's naming rights.

Most Profitable Not Always the Most Valuable

As the thread worn cliché goes, you have to spend money to make money. But, in looking at the this year’s figures, you’ll find that in many cases, it’s not spending money that is allowing some teams that are cellar dwellers in the standings winning the profit game.

Using Forbes’ operating income figures, one measure of profitability, sees several unlikely clubs making more than their higher valued counterparts.

The most notable of these clubs are the Washington Nationals, and the Florida Marlins.

In terms of the Nationals, they are pulling profits based on a very good lease agreement, and new stadium, while in the midst of a rebuilding process with the roster. For the Marlins, it is a matter of setting the player payroll to levels that may redefine the word "stingy". The Marlins Opening Day payroll is at $20 million, a third less than what they spent on player payroll last year. To place it in perspective, that's $5 million less than what the club will receive in revenue-sharing, which is projected to be $25 million.

Below is the top 10 clubs by operating income for this year's Forbes valuations.

Forbes most profitable

 

Who's Making the Least, or "Losing" Money

A clear indication that MLB's financial state is extremely robust, five years ago the Forbes valuations showed 16 clubs with operating income in the red. This year sees 3 clubs, the Blue Jays ($1.8 million), Red Sox ($19.1 million), and Yankees ($47.3 million) posting "losses". In the case of the Yankees posting a considerable operating loss, it is due to their exceptionally high player payroll (a record $218.3 million), and dolling out the vast majority of all funds paid into revenue-sharing ($100 million).

Note, however, that "losses" are in quotes as all three of these clubs have significant stakes in Regional Sports Networks (RSNs) that contribute to their bottom lines, but skirt the edges of what is technically counted as club revenues. As reported by Ozanian and Badenhausen, "For the owners of the Yankees and Red Sox, the huge dividends they get from their unconsolidated cable networks more than make up for the teams' losses. Meanwhile Rogers Communications, which owns the Blue Jays, their stadium and the cable channel that televises its games, derives huge benefits from owning the Blue Jays not reflected on its team's [Profit & Lose] statement."

Below are the clubs showing the least amount of operating income, or in the case of the Blue Jays, Red Sox, and Yankees, operating loss

 

Forbes least profitable

The Yankees Continue To Build an Empire

In the wake of the Red Sox winning two World Series championships in the last four years, some have said that the Red Sox, not the Yankees, are the new “Evil Empire.” While there is little discounting that the Red Sox are healthy in every respect financially, when compared to the Yankees, the Sox are still a distant second.

How far are they behind the Yankees? Consider the following: According to the Forbes valuations when accounting for inflation, the value of the Yankees in 2002 ($857,303,982.31) is greater than what the Red Sox are reported to be worth now ($816 million).

According to Ozanian and Badenhausen, “The Yankee brand (the portion of the team's value attributable to its name) alone is worth $241 million, almost as much as the entire Florida Marlins franchise.”

The value of the Yankees should hit $1.5 billion with the opening of new Yankee Stadium (see information on new Yankee Stadium here) in 2009.

Below shows how the Yankees value is compared to the Red Sox over the last six years (not adjusted for inflation)

Yankees Red Sox Valuations

Value of team based on values, such as current stadium deal (unless new stadium is pending) without deduction for debt (other than stadium debt).

An Angelic Rise in Value

In southern California, there are clear signs that in-part, private ownership has yielded better increases in value than under corporate ownership. Case in point, the incredible rise in value for the Angels.

Since Arte Moreno, the billboard advertiser magnate, purchased the club from the Walt Disney Co. in 2003 for $180 million, there has been a steady increase in the value of the club (see graph below, adjusted for inflation). While most all clubs have seen values increase above inflation, the Angels have climbed in value 48 percent during Moreno’s ownership tenure, when adjusting for inflation from approx $258.1 million to $500 million.

What has been amazing is that the Angels meteoric rise in value has come without a new stadium, or stadium related revenues such as new luxury suites. The Angels also have not seen lavish revenues from full or partial ownership of an RSN, such as the Red Sox or Yankees enjoy.

What Moreno has done is take lessons learned from his advertising background, and applied it to the Angels, most notably through the controversial renaming of the franchise to include the words “Los Angeles”, and gave Scouting and Player Development the flexibility to field competitive teams and sign key free agents.

"When Arte purchased the Angels, he did so with a short-term strategy and a long-term vision," said Angels spokesman, Tim Mead. "Located in the second biggest media market in the country, he emphasized we were a big-market club and would conduct ourselves accordingly."

Mead points out that Moreno's change in direction happened almost immediately.  With changes in branding of the color red, Angels Baseball, and the letter "A" that became focal points for the business side of the organization.   

"Our success is based on the fan experience at Angel Stadium, affordability of tickets, concessions and merchandising, as well as the expectations of our on-field product." 

The graph below outlines how the Angels have continued to climb in value by showing their ranking compared to the other 30 clubs since 2002.  

Angels Valuations

Below are the approx. values by way of Forbes, both non and inflation adjusted

Year
Rank
Value
Inflation Adj.
2002
23rd
$195M
$229,005,858
2003
20th
$225M
$258,044,462
2004
20th
$241M
$271,240,717
2005
17th
$294M
$320,320,585
2006
13th
$368M
$387,761,600
2007
13th
$431M
$431,000,000
2008
6th
$500M
$500,000,00

Are the Rockies Headed Back in the Right Direction?

There’s little denying that the surprise performance of last year’s season was the Colorado Rockies. Defying the odds, the team that hadn’t had a winning season since 2000, and was last seen in the playoffs in 1995, went all the way to the World Series last year before meeting up with the Red Sox and ending their Cinderella run.

The club was in need of the performance as the club has cycled down in value since being so successful after expanding into the league. At the end of March, the club renewed their naming rights deal with Coors Brewing for 10-years, and added in-stadium naming rights to two sections within the ballpark. The premium seats and lounge area behind home plate is now known as the Coors Clubhouse. The picnic area behind centerfield is called Coors Field Picnic Area. The financial terms were not released, but it is bound to continue pulling the Rockies out of their recent valuation slide.

How badly were the winning and naming rights deals needed? Looking at the 6-year set of Forbes data sees the Rockies as the club that has increased in value the least. In fact, the Yankees have increased in value 24 times as much as the team from Colorado.

While the raw figures show an increase in valuation from 2002 to 2008 for the Rockies, when adjusting for inflation, the Rockies are actually worth less today than in 2002 dollars (see image and graph below)

Forbes Rockies

Year
Value
Inflation Adj.
2002
$347M
$408M
2003
$304M
$349M
2004
$285M
$321M
2005
$290M
$316M
2006
$298M
$314M
2007
$317M
$317M
2008
$371M
$371

Bottom Feeders

South Florida has the dubious distinction of being home to not one, but two of the least valuable franchises over the course of the past six years. Both the Marlins and Rays have been in the bottom five in value every year, and to make matters worse, they have ranked at 29th or 30th more than any other clubs. The Marlins have been 29th or 30th three times (30th in 2007 and 2008, and 29th in 2003) while the Rays hold the “very bottom” rankings five times (30th in 2005 and 2006, and 29th in 2007 and 2008).

 The now Tampa Bay Rays (the word "Devil" has been removed, and a complete team rebranding has taken place with both uniforms and logos), have also set eyes on redeveloping Al Lang Field in downtown St. Petersburg. To offset costs, the land (85 acres) where Tropicana Field is located would be redeveloped as a major retail, entertainment, and housing development. (See renderings of the proposed open-air Rays facility and other details, like you see in the image to the right)

In the case of the Marlins, their value has remained low, in part, due to playing in Dolphin Stadium, a substandard facility, and one in which they do not control the revenue streams as former Marlins owner Wayne Huizenga owns the facility. That may change as the Marlins are close to landing funding for a retractable roof stadium on the site of the former Orange Bowl (see renderings of one proposed design). Nevertheless, one of the primary reasons that the Marlins continue slice margins by setting the aforementioned player payroll so exceedingly low. To place this in perspective, the largest increase in value occurred the year after the Marlins won the World Series in 2003. The value increased 26 percent the year after in 2004 but has since declined in each consecutive year.

See graph showing percent of change from the year prior for both the Marlins and Rays:

Year
Marlins
Rays
Value
% of Increase
From Year
Prior
Value
% of Increase
From Year
Prior
2002
$137M
N/A
$142M
1%
2003
$136M
-1%
$145M
2%
2004
$172M
26%
$152M
2%
2005
$206M
19%
$176M
16%
2006
$226M
10%
$209M
19%
2007
$244M
8%
$267M
28%
2008
$256M
5%
$290M
8%

Other Points of Interest

  • Unsurprisingly, the Yankees have been the most valuable of all the franchises during the course of the six years examined.
  • The Mets and Red Sox have jockeyed back and forth in the #2 ranking, with the Red Sox holding the distinction in consecutive years (2004-2006) and the Mets holding the honors in 2002-2003 and 2007-2008.
  • The largest increases in value from 2007 to 2008: Rockies (17%); Nationals, Angels and White Sox (16%); Brewers (15%); Indians, Tigers, and Twins (14%); and Rangers and Red Sox (13%)
  • Largest increase in value for a given year: 114 percent when the then MLB owned Montreal Expos/Washington Nationals were relocated to D.C. in 2005.
  • Largest figures for operating income over the six-year period: Washington Nationals ($43.7 million in 2008), Florida Marlins ($43.3 million, 2007 and $35.6 million in 2008), Cleveland Indians ($34.6 million in 2006) and Baltimore Orioles ($34 million in 2006)
  • Years by clubs reporting a loss by way of operating income (NOTE: Forbes’ 2003 figures shows more than half the league running at a loss): 2008 (3) – Yankees, Red Sox, Blue Jays, 2007 (1) – Yankees, 2006 (5) – Yankees, Red Sox, Mets, Marlins, Angels. 2005 (10) – Yankees, Red Sox, Mets, Dodgers, Mariners, Cardinals, Angels, Rockies, D-Backs, Twins, 2004 (14) – Yankees, Mets, Dodgers, Braves, Cardinals, Rangers, Phillies, D-Backs, Angels, Pirates, Marlins, Twins, Expos, 2003 (16) – Red Sox, Dodgers, Rangers, Indians, Astros, Cardinals, D-Backs, Phillies, Tigers, Angels, Pirates, Brewers, Blue Jays, Royals, Marlins, Expos, 2002 (10) – Red Sox, Dodgers, Indians, Rangers, D-Backs, Cardinals, White Sox, Blue Jays, Devil Rays, Expos
  • Largest reported figures for operating at a loss: Yankees (-$50 million in 2006, -$47.3 million in 2008, and $-37.1 million in 2005), Angels (-$30 million in 2005) and Dodgers ($-29.6 million in 2002)

League Averages, By Year

The following shows the average value, 1-year change, debt/value ratio, revenues, and operating income for the league by year of the study. 

League Avgs.: 2002 - 2008
Year
Value
1-Yr Value Change (%)
Debt/
Value
(%)
Rev
($mil)
Op Income ($mil)
2002
$286.3M
11
39.3
119.5
2.5
2003
$290.5M
3
N/A
N/A
-1.3
2004
$292.1M
8.24
43.1
129.3
-1.9
2005
$332M
14.5
39.7
142.3
4.42
2006
376.5
14.9
33.5
157.8
12.06
2007
431.5
14.8
35.2
170.4
16.52
2008
471.6
9.21
32.7
150.4
16.41

Conclusions

The obvious finding in looking at the Forbes figures is that all the clubs are in a healthy state these days. Valuations continue to climb, and fewer and fewer clubs are operating under what Forbes sees as operating loss.

What the figures also show is that often times, the clubs that have cried poverty in the past, or said that they would be unable to compete in the free agency market without considerable assistance by way of revenue-sharing, are, in fact, pulling in healthy profits.

And while one can shrug off that issue by saying all the clubs are making more money, there are signs that the most valuable are growing at a rate faster than their mid-to-low level counterparts. In other words, there is an increasing disparity in valuation.

That would make sense; larger market clubs such as the Yankees, Red Sox, Mets, Dodgers, Angels, Cubs, and White Sox should be in a position to increase their values by way of RSNs, more lucrative sponsorship deals, and increased brand recognition. The good news is that during Selig's tenure, the institution of revenue-sharing, and to a larger extent, the introduction of the Wild Card has allowed more parity in terms of the standings than ever before.

Finally, as mentioned at the outset, Forbes and MLB may come to different figures each year. However, it is clear that until MLB decides to open their books to the public, the Forbes valuations paint a clear picture in terms of trends in the industry. In 2008, when it comes to MLB, business is good.


References:

  • All data referenced, Forbes 
  • NOTE: Use the following link to see all data used for the historical references (2002-2008)
  • Revenues and operating income are for a given season and include revenue sharing.
  • "Value" - Value of team for a given year based on current stadium deal (unless new stadium is pending), without deduction for debt (other than stadium debt).
  • "% of Change" - Current team value compared with most recent transaction.
  • "Debt/Value" - Includes stadium debt.
  • "Operating Income" - earnings before interest, taxes and depreciation.
  • "N/A" - not applicable.

Maury Brown

Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer.

Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?