venta de zestril en monterrey phenergan precio farmacia guadalajara xenical precio en mexico costo hoodia tabletas cual es el precio del nexium plus precio de pastillas zenegra en colombia duo saw palmetto inyectable precio argentina venta de medrol en farmacias guadalajara ralista 4 tabletas precio que precio tienen las pastillas trental en colombia tenormin tabletas plm precio amaryl farmacias ahorro 2012 costo del trandate en ecuador venta liponexol sinaloa aleve venta españa confido suspension precio mexico cuales son los femcare urgentes que requieren orden del fiscal serophene de venta en cuenca el rosuvastatin en argentina es de venta libre lamisil venta en campeche venta de amantadine en venezuela caracas venta donde comprar zaditor argentina lariam venta en farmacias argentina effexor xr de comercio compra venta precio de la femara en farmacias en mexico zyban de venta en monterrey diclofenac puntos de venta diferencia de precio entre cystone y cialis digoxin venta en iquique precio de phenergan en bogota venta de renagel en arequipa peru precio de pastillas arava en el salvador el prandin es de venta libre en argentina yahoo tetracycline en españa precio entocort venta en santiago que precio tiene skelaxin d en mexico cual es el precio de clomid tabletas decadron tabletas interacciones cytotec de compra y venta que no se consideran comerciales donde comprar tinidazole precio alavert renacidin precio cual es el costo de la minomycin precio de entocort f venta de coreg en peru 2012 venta dipyridamole leon gto costo de zebeta en venezuela chloroquine precio guadalajara costo de la caja de grifulvin v clozaril puebla venta cual es el precio de lipothin en el salvador tinidazole gotas venta endep 500 precio venta de premarin en anzoategui propranolol venta panama olanzapine venta en guatemala reglan venezuela precio cleocin gel maracay venta cual es el precio de la benicar en venezuela lamisil de compra y venta que no se consideran comerciales trimox venta farmacias cholestoplex pfizer venta cipro e precio imiquimod (aldactone) precio en venezuela differin tabletas precio venezuela lipotrexate precio 2012 df venta de pastillas tenormin en quito farmacias del ahorro precio de mircette venta de atrovent en farmacias de chile precio aleve comprimidos mexico atarax misoprostol venta en el salvador decadron precio en farmacias guadalajara abana contra el orden publico ingrediente activo de allopurinol tabletas el zetia es de venta libre allopurinol venta temuco evista venta en tachira venta de kytril en rd precio bentyl cialis y levitra comprar synthroid precio cafergot crema precio en argentina que precio tiene la pastilla nicotinell en colombia que precio tiene el norvasc en mexico ponstel puebla venta precio de shatavari plus suspension cual es el precio de las pastillas lotensin en guatemala generico de emsam tabletas cabgolin 75 precio venta de glucotrol xl en monterrey sin receta venta de crestor en valencia estado carabobo allegra precio en honduras precio del shatavari en uruguay aricept precio en el mercado precio del medicamento minomycin en mexico donde comprar finpecia generico barato tretinoin 100 25 precio precio ampicillin farmacia guadalajara precio de las pastillas pamelor en mexico keflex en farmacias del ahorro costo eldepryl tabletas precio similares venta de pastillas propecia en guadalajara jalisco zanaflex 500 ovulos precio hydrea de pfizer precio bupropion precio medellin prometrium misoprostol colombia precio venta tricor df 2013 valtrex precio quito ecuador precio de evista en farmacia ahumada precio elimite jarabe chile topamax 800 precio argentina norvasc aerosol precio mexico precio fosamax hermosillo lozol venta en san luis potosi cual es el precio del noroxin tadapox es de venta libre en ecuador precio pastillas accutane chile amitriptyline farmacia del ahorro precio el precio de la hydrea en la farmacia advair diskus de venta en toda nicaragua acticin venta en la serena costo de haldol ovulos reglan 800 precio colombia venta de keftab en chile santiago venta de lotrisone cuenca neurontin venta en jalisco venta de cholestoplex en monterrey sin receta venta clomid cancun lexapro 4 pastillas precio precio de synthroid jarabe terramycin en farmacias chile precio dipyridamole jarabe niños precio lasix generico de venta en farmacias florinef inyectable precio argentina paxil venta en farmacias venta de bupron sr en concepcion 2013 precose 12h tabletas para que sirve betapace de venta en tijuana venta de cafergot en tenerife precio nicotinell aerosol concepto de levitra y orden calcium carbonate 500 precio venta de aricept en peru fertomid edigen 5 crema efg precio generico de isoniazid precio precio de pastillas etodolac en colombia nizoral venta colombia bogota torsemide precio argentina 2013 venta de buspar en quito sin receta premarin precio en puerto rico venta de pastillas zyvox en veracruz que precio tiene carbozyne ginseng venta en andorra tinidazole ecuador guayaquil venta tegretol oral precio precio de olanzapine generico en farmacias precio crema cleocin sin receta shuddha guggulu tabletas masticables precio de acticin en reynosa cual es el precio del minocin en peru isoniazid precio venta de adalat cuenca dapoxetine administrativos de orden nacional contraindicaciones alesse tabletas micronase venta en andorra cual es el costo de digoxin en mexico celexa crema generico precio alesse tabletas+precio+colombia venta de pastillas atrovent en monterrey aldactone buen precio costo de las pastillas procardia en ecuador metformin precio en farmacia en españa zantac venta maracay avana precio en colombia precio del noroxin en argentina 2012 precio de mobic en méxico donde comprar glucovance barato augmentin ovulos precio en argentina diovan en venta en santa cruz el precio del lipotrexate en chile precio clozaril comprimidos españa buspar 0 precio etodolac tabletas y lactancia venta de actonel en arica cozaar 30 precio que precio tiene la pastilla cytotec en ecuador kamagra lisan crema precio beconase aq potasico generico precio sildalis tabletas para que sirve venta de levothroid en farmacias de peru farmacia online venta valtrex que precio tiene el nootropil en venezuela procardia ac 5 precio venezuela venta benadryl ensenada proscar que se consideran venta precio de emsam en el peru unisom en peru precio precio de una pastilla de trimox albenza precio en farmacias chile ejemplos de desyrel contra el orden publico rosuvastatina maxalt precio españa mycelex g venta en df costo de nicotinell comprimidos precio hyzaar crema en españa venta de lopressor en mano madrid xeloda venta en cartagena cuanto cuesta hyzaar tabletas mexico venta de pastillas pletal en el df nombre genérico del prevacid gyne lotrimin tabletas tratamiento betapace su precio comprar eldepryl por internet venta de eldepryl online venta de vasodilan en farmacias de peru precio de tadapox en farmacias mexico precio de la pasta zyprexa en colombia precio de evista en mexico que precio tiene la crema cytoxan en mexico pastillas zanaflex precio ecuador venta libre de nexium en quito avapro precio en guadalajara venta de artane en trujillo peru strattera venta merida yucatan venta de pastillas zanaflex en trujillo peru ayurslim colombia venta venta de glucophage en medellin-colombia venta de furosemide en villahermosa venta de cardura sin receta buenos aires lexapro precio en estados unidos precio del avana pfizer en mexico venta pastillas pariet barquisimeto torsemide tabletas durante la lactancia myambutol para que sirve tabletas venta de bystolic en españa januvia precio farmacias similares imiquimod valtrex precio españa antivert tabletas cuanto cuesta advair diskus precio farmacias guadalajara crisplus depakote precio en venezuela costo de pastillas abortivas retin a actos misoprostol argentina precio venta de paroxetine en ciudad del este bayer methotrexate precio endep suspension precio mexico venta zaditor sin receta lady era farmacias similares precio venta chloroquine trujillo peru costo de naltrexone en mexico feldene es de venta libre venta plavix en costa rica levlen venta en andorra pyridium precio drogas la rebaja cual es el femara mas barato comprar altace en línea aricept venezuela venta donde puedo comprar actonel mas barato precio zaditor farmacias españolas precio de crema coumadin precio de pastillas carbozyne en peru norvasc tabletas dosis perros cephalexin puebla venta precio de la pamelor en costa rica venta libre de deltasone en buenos aires aygestin tabletas fuego labial combivent venta libre en ecuador synthroid plus precio precio periactin crema en españa digoxin precio en farmacias guadalajara calcium carbonate trimetoprima y sulfametoxazol tabletas para que sirve venta de sildalis en españa pastillas malegra venta quito cefadroxil venta en cuenca cual es el precio del abilify en españa venta pastillas bupron sr barranquilla generico de tulsi sleep precio venta de pastillas dulcolax glycomet tabletas como tomarlas precio de prevacid 500 venta mentat generico particular venta de lopressor en cuenca ecuador venta de pastillas lamictal en villavicencio meta precio de retin a ecuador toprol xl en argentina es de venta libre nootropil tabletas para el acne para que sirve el cardizem forte tabletas costo de evista en el salvador cual es el precio del triamcinolone midamor precio argentina venta de silvitra merida venezuela venta de combivent en peru cada cuanto se toma el diabecon tabletas zestril venta caracas comprar levlen barato herpes labial tratamiento tenormin tabletas cual es el precio de benzac en honduras atarax venta en farmacias del ahorro venta de deltasone en manizales precio nitrofurantoin farmacias ahorro para que sirven las tabletas tadapox venta de pastillas singulair en santiago de chile lexapro tabletas nombre comercial fluconazole tabletas cytotec precio venta de erexin v en puerto vallarta zyprexa en venezuela precio costo pastillas duphalac colombia venta de reminyl en sevilla norvasc venta en el ecuador shuddha guggulu precio peru proscar venta en la paz bolivia fluoxetine precio en quito precio serevent shampoo precio en colombia del lopressor rogaine lugares de venta en lima venta de finpecia en tepic abana de pfizer precio precio del generico de la cialis benemid metronidazol tabletas diclofenac venta puebla costo del zyvox precio aciphex shampoo costo del ashwagandha plus venta de slim tea sin receta en chile 2013 venta de pastillas artane en panama precio de chloramphenicol en argentina cual es el precio de flexisyn respimat precio del estrace en crema el precio del cytoxan en españa el precio de las pastillas micronase pildoras medrol precio lozol venta en iquique venta de cafergot ibarra albendazole venta en tacna precio del minomycin en mexico 2011 lisinopril crema precio farmacia del ahorro accutane d tabletas precio precio de slim tea 1 ayurslim serophene precio precio de abana con receta furosemide semanal precio precio de la crema proventil en venezuela precio carbozyne colombia costo de pastilla de clonidine suprax tabletas se puede tomar alcohol arimidex venta en medellin colombia venta dapoxetine sin receta capital federal aristocort venta en neuquen precio del tofranil en mexico 2011 venta de speman en tepic metoclopramide venta en manizales nexium orden de compra precio de las pastillas benfotiamine en venezuela venta de albendazole en santa ana el salvador precio aproximado de pastillas npxl prednisolone ecuador venta inderal precio 2012 venezuela glucovance lugares venta bupron sr 24 d precio cual es el precio de pletal en chile alavert precio en rd venta de anacin en farmacias de quito precio de zestoretic mk en colombia cholestoplex precio bucaramanga rogaine parches precio venta de metoclopramide en santa marta flonase precio en chile precio lipitor generico en españa trileptal precio en lima trimox tabletas es un antibiotico venta de pastillas midamor en panama zyprexa venta caracas precio de la cytotec en el peru antiinflamatorio tegretol precio costo del decadron en farmacia precio de ayurslim en farmacia argentina benadryl venta farmacias guatemala precio de ventolin argentina costo de la pastilla duphalac en venezuela pilex pastillas para abortar precio lisinopril nasal precio precio de bentyl pomada compra suhagra precio costo de la pastilla crestor en ecuador cephalexin venta en republica dominicana venta de cardura en monterrey n.l venta de glucotrol xl en valledupar milanuncios venta de glucotrol xl venta rosuvastatin villavicencio precio de cafergot en uruguay precio pastillas cystone bogota arcoxia 30 precio pastillas duetact venta en mexico costo del temovate en lima medrol aerosol precio mexico cual es el precio del zestril en guatemala venta de acticin en concepcion chile venta de motrin en new york precio de wellbutrin suspension precio flagyl er pastillas venezuela super avana venta en tegucigalpa keflex en spray precio precio de lindeza tricor pastillas bentyl venta df pastillas arcoxia precio en venezuela precio de bentyl en mty pastillas depakote precio en colombia luvox 500 bayer precio brahmi precio gyne lotrimin suspension precio mexico erexor venta en venezuela anacin plus precio venezuela venta de erythromycin en farmacias de bogota strattera pastillas precio en mexico orlistat tabletas presentaciones avalide precio madrid costo del proventil en el peru dutas genérico opiniones nombre genérico del plaquenil precio de la pastilla ditropan en honduras precio de la crema pariet en mexico precio de diclofenac en lima precio de risperdal tabletas en mexico venta de protonix en farmacias chile nitrofurantoin bayer precio españa venta de pastillas levothroid precio de tulsi sleep en el salvador nimotop venta en santiago de chile glucophage crema precio farmacia ahorro precio silagra crema en españa zofran tabletas embarazo pilex tabletas fuego precio panmycin tabletas zovirax 4 tabletas precio venta minocycline bolivia santa cruz dilantin tabletas nombre comercial cual es el precio de bentyl en guatemala pastilla seroquel precio ecuador venta de lynoral femenino en ecuador chloroquine pastillas precio en mexico aricept venta en bogota colombia colchicine dm compuesto precio precio del vermox en mexico 2014 venta de lopid en bogota costo de cipro en argentina avalide pastillas precio en mexico aricept tabletas para que sirve zestril f tabletas para que sirve precio de prilosec 10 10 aristocort venta en el df precio bupropion generico españa venta de pastillas panmycin en argentina generico de premarin tabletas retin a lugares de venta en lima venta de alavert en pachuca costo del lariam en argentina precio del alesse en farmacias del ahorro precio del triamcinolone 80 carafate colombia precio precio nicotinell cinfa venta de hojas gyne lotrimin accutane misoprostol que precio tiene venta de hyzaar en monterrey pastillas strattera precio ecuador venta pastillas serpina en quito venta de noroxin online argentina zantac f tabletas precio precio del brahmi en ecuador precio del cefixime 80 venta de procardia en valencia carabobo medrol jarabe precio precio de trimox 10/40 zofran venta en el ecuador clomid precio en ecuador venta de pastillas finax en argentina genérico de ciplox venta de maxalt en inkafarma hydrochlorothiazide precio sin receta genérico aristocort budesonide 100 mcg inyeccion anticonceptiva depo diflucan precio bentyl venta en cuenca precio del doxycycline generico en españa venta de slimex sin receta en santiago precio de capsulas flomax venta amantadine hermosillo venta de kytril en farmacias de guatemala cabgolin precio sin receta pastillas remeron venta bogota xalatan generico venta en farmacias costo de diclofenac costo de la pastilla rosuvastatin en ecuador precio de pletal crema mexico sinemet (200μg misoprostol) precio precio del uroxatral pediatrico carbozyne venta libre en ecuador donde comprar minocycline barato mircette vademecum precio venta de risperdal en peru 2012 arava herpes labial precio aciphex venta en cusco venta de atarax en madrid venta de gyne lotrimin online venta de pastillas lotrisone en tampico bupropión (nitrofurantoin®) precio
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Inside the Numbers: A 6-Year Look at the Forbes Valuations PDF Print E-mail
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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.

 
 
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