In what is arguably the best investment MLB owners have ever made, the original investment in MLB Advanced Media (MLBAM) has now been paid back in full, and the owners are now receiving dividends on the sports digital media juggernaut. As reported by Eric Fisher of the Sports Business Journal:
The 30 clubs each received dividends on their original, 2000 investment to form baseball’s interactive arm for the second consecutive year, with the total outlay of about $80 million to start MLBAM now having been returned, amounting to nearly $3 million per team.
MLBAM, after some significant hurdles initially in both operations and reputation, now stands as an unqualified leader in the digital media and overall sports industries. Revenue for the company has soared in recent years, surpassing $450 million this year. Annual profits, until last year, had been reinvested in the company, and future profits may also be returned to further build the company.
Fisher further reports that dividend payments were made for 2006 and 2007 on “an individual basis with no future commitments attached.”
Added Houston Astros owner Drayton McLane, “It’s been a great investment.”
Maury Brown is the founder and president of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football and The Biz of Basketball (The Biz of Hockey will be launching shortly). He is also an author for Baseball Prospectus, Basketball Prospectus and is an available writer for other media outlets.
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