imitrex marque gУЉnУЉrique vs augmentin 600 mg pret pilules de contrУДle des naissances et plavix levitra 10 mg preis accutane vente en ligne acheter cialis 10mg uk allopurinol 100 mg en espanol viagra vs d'autres pilules ventolin 2 5 mg lexapro prix en baisse 80 mg de protonix est un mУЉdicament d'ordonnance propranolol pas cher vytorin du canada singulair У croquer de 4 mg effets secondaires viagra coУЛt en singapour acheter pas cher bystolic clomid 150 mg et ovidrel les coУЛts pour le viagra pas cher orlistat comprimУЉs crestor 10 mg coУЛt le mУЉthotrexate trouble du tissu conjonctif commander amitriptyline en ligne cialis 5mg aprУЈs prostatectomie chloramphenicol acheter royaume-uni combien coУЛte gУЉnУЉrique flomax coУЛt le bupropion hcl 150 mg vous haute oУЙ u peut acheter nolvadex le plus bas coУЛt de cialis gУЉnУЉrique promethazine pilules mУЉlangУЉes avec de vicodin ce n'propranolol pilules ressembler У gУЉnУЉrique female viagra examen gУЉnУЉrique advair hfa acheter cialis en ligne nous prednisolone mylan 20 mg solupred bactrim ds la posologie en mg ne evista venir sous forme gУЉnУЉrique metoprolol 50 mg bid escitalopram 10 mg 28 comprimidos bucodispersables oУЙ acheter kamagra en ligne diflucan 250 mg pret imitrex У partir de canadian pharmacy crestor 10mg effets secondaires de la rosuvastatine plavix prix le moins cher lipitor 80 mg bivirkninger propranolol hcl accord 10mg qu'est-ce que robaxin 750 mg, comparativement У viagra ordonnance suisse voltaren 50 mg ja alkoholi augmentin 620mg viagra vente en canada micardis hct carte de rУЉduction la ciprofloxacine aristo 250 mg preis benadryl ultratab 25 mg directions ai-je besoin d'une ordonnance pour acheter du viagra en ligne legit sites pour acheter nolvadex effets secondaires amaryl 2 mg levitra royaume-uni vente singulair pilules pour les allergies comment sevrer le nourrisson de lexapro 20 mg co-diovan 320/12.5 mg minocycline 50 mg de chlorhydrate de propranolol 40 mg generico tricor coupons de rУЉduction benicar hct est-il un gУЉnУЉrique avez-vous besoin d'une prescription zovirax en canada hyzaar 50 mg 12,5 mg differin tuteur pharmacie singapour motrin tabletas 400 mgs esidrex 25 mg d'hydrochlorothiazide fosamax gУЉnУЉrique УЉquivalent cytotec pilules instructions la trУЉtinoУЏne crУЈme carte de rУЉduction oУЙ puis-je obtenir xenical pilules trazodone 100 mg tablette pour l'insomnie quand prendre du cialis 20mg moins cher cialis gУЉnУЉrique lloyds pharmacy viagra 50mg generico do remedio aciclovir ventolin prix canada benadryl iv coУЛt coУЛt de gУЉnУЉrique diovan hct ordonnance prilosec et de l'alcool biaxin 500 mg prix acheter cephalexin en ligne pour les chiens doxycycline prix de walmart combien coУЛte viagra des coУЛts У la kaiser combien robaxin 500mg coУЛt aciclovir generico comprimido zoloft 25 mg tous les deux jours acheter celexa canada pouvez-vous prendre 2 50mg de viagra shoppers drug mart viagra gУЉnУЉrique oУЙ acheter lipitor en singapour rugby meclizine hcl mУЂcher 25mg lipitor gУЉnУЉrique examens descendre У 75 mg effexor effets secondaires de la finasteride 1mg combien de fois pouvez-vous prendre imitrex 100mg la vigueur de 300 mg viagra or plavix 75 mg comprimУЉ prix en inde depo provera 150 mg quando tomar bystolic 20 mg comprimУЉs synthroid gУЉnУЉrique de comblement prednisolone ophthalmic coУЛt peut cialis 20 mg par jour acheter gУЉnУЉrique viagra en ligne durant la nuit est clindamycin pilules bon pour l'acnУЉ serophene 50 mg reviews puis-je acheter viagra de la pharmacie methotrexate 2.5 mg pour le psoriasis plavix coУЛt par pilule 10mg paxil et la grossesse gУЉnУЉrique lamisil coУЛt ordonnance topamax du canada abilify 2mg france celebrex prix costco zantac 150 vente metoprolol zot stada 50 mg pharmacie en ligne metoprolol quelle date avez-singulair gУЉnУЉrique aller doxycycline merck 100 mg risperdal 1 mg ml solucion oral claritin 10 mg effets secondaires allegra prix costco viagra oУЙ acheter philippines oУЙ acheter du viagra У la nouvelle-orlУЉans acheter lamisil cream en ligne comment rУЉdiger une ordonnance pour keflex lisinopril 20mg onglet wock zovirax costo mexico prix de cialis vs viagra cipro 1000 mg dose aider avec plavix coУЛt forme gУЉnУЉrique de aciphex nizoral shampooing 2 en vente la prednisone У la dose pack 40 mg oУЙ acheter clomid en ligne nexium 40 mg n2 acheter la recherche clomid effets secondaires de phenergan 10mg lexapro 20 mg/ml gotas paroxetine 20 mg comprimУЉs allopurinol 300 mg tab pas pris 30 mg zyrtec gУЉnУЉrique prevacid solutab 30 mg l'utilisation de la ciprofloxacine 500mg zovirax pilules pour les boutons de fiУЈvre d'examens pfizer lipitor 10 mg lexapro retrait de 10 mg У 5 mg obtenir cialis prescription zyban 150 mg comprimУЉ 60 fiyatФБ viagra prescription de l'ontario effets secondaires metoprolol tartrate 100mg de la rue prix pour viagra 100mg est seroquel utilisУЉ pour traiter le trouble bipolaire cialis 5mg uk singulair 10 mg toux quand est devenu gУЉnУЉrique nexium xenical orlistat 120 mg adalah quel est le coУЛt de lexapro sans assurance effexor 75 mg la grossesse commander du viagra en ligne europe ventolin evohaler 100 microgrammes prix voltaren prix canada ordre cialis en ligne au canada zyrtec dosage 20mg le plus bas prix nexium le phosphate sodique de prednisolone de la solution orale de 25 mg/5 ml prednisone 60 mg pendant 5 jours effets secondaires substitut bon marchУЉ pour advair acheter pas cher proscar en ligne nolvadex tamoxifen pour la vente royaume-uni neurontin 60 mg doxycycline 100mg pour l'homme acheter minocycline 100mg en ligne acheter tamoxifen en ligne en australie prednisolone 5 mg ysp prednisone 250 mg usp acheter singulair gУЉnУЉrique en ligne 2,5 mg de mУЉthotrexate pletal 100 mg comp oУЙ commander zithromax propranolol 80 mg nhs rue prix zoloft 100mg tegretol troubles de la personnalitУЉ pilule de viagra costume zyloprim acheter en ligne topamax 100 mg preisvergleich kegunaan obat metformin hcl 500 mg lipitor canada mУЉdicaments viagra gУЉnУЉrique formulaire phenergan 1mg crestor 10 mg canada meilleur prix plavix 75mg farsix furosemide 40 mg canadienne en ligne viagra ventes metoprolol tarte de 25 mg effets secondaires venastat orlistat 120mg arava gУЉnУЉrique nom canadienne des mУЉdicaments d'ordonnance cialis minocycline coУЛt canada flonase gУЉnУЉrique autorisУЉ zyprexa 10 mg vademecum crestor acheter royaume-uni combien solutabs prevacid coУЛt cymbalta vs effexor coУЛt gУЉnУЉrique doxycycline images prix du viagra gУЉnУЉrique en inde accutane prescription d'expiration n'abilify le trouble bipolaire ranitidine 150 mg avis combien lamisil pilules coУЛt orlistat prix philippines combien advair coУЛt sans assurance asda acheter ventolin gУЉnУЉrique des mУЉdicaments similaires pour cymbalta effexor xr gУЉnУЉrique pour les bouffУЉes de chaleur qu'est-ce que augmentin pilules pour naltrexone hcl prix wellbutrin gУЉnУЉriques pour cesser de fumer zyrtec 10 mg d'examen diltiazem 120 mg de surdosage acheter propecia 1 mg uk moins cher levitra canada puis-je acheter dramamine au royaume-uni phenergan 25 mg prix thuoc zocor 10mg pouvez-vous injecter de la prednisone pilules voltaren 75 mg pour les maux de dos meilleur prix wellbutrin xl 300mg doxycycline hyclate 100mg capsules pour les chiens walmart ordonnance prix du levitra prometrium 200 mg fiv doxycycline 100mg forte cialis 800mg examens zovirax 2 mg en ligne meilleur site pour acheter kamagra finasteride 5mg perte de cheveux, coupe effets secondaires de amitriptyline hcl 50 mg fluoxetine hcl 20 mg effets secondaires combien de temps faut-il pour wellbutrin xl 150 mg de travailler acheter chloramphenicol collyre pour chats les armures thyroУЏde vs synthroid prix bupropion 100mg onglet 1000 mg metformin 100 mg clomid diflucan 150 mg plm pas cher furosemide l'isotrУЉtinoУЏne prescription uk ce qui va de 25 mg de viagra ne est-il un gУЉnУЉrique prevacid solutab plavix 75 mg acheter acheter gУЉnУЉrique tretinoin gel puis-je prendre de 75 mg de zoloft celexa 20 mg dose dapoxetine pilules examens 100mg viagra vs 50mg 25 mg zoloft libido provera 5 mg gain de poids paroxetine sandoz 30 mg viagra 100mg popis n'hydrochlorothiazide affecter le contrУДle des naissances pilules 50mg viagra ne fonctionne pas propecia prescription en ligne remeron 45 mg reviews 5mg de lexapro et de l'alcool provera 5mg induire pУЉriode coУЛt par pilule zoloft la promУЉthazine la codУЉine actavis pour la vente provera 10 mg fiv prilosec 20 mg ne fonctionne pas lexapro 20 mg info paroxetine hydrochloride 20 mg comprimУЉs norvasc 5mg onglet propranolol 10 mg indication oУЙ acheter gУЉnУЉrique allegra acheter doxycycline en amУЉrique du sud lanoxin 0,25 mg comprimУЉs erythromycin 500 mg filmtabl le plus bas prix diovan gУЉnУЉrique УЉquivalent У benadryl indikasi propranolol 10 mg moins cher levitra gУЉnУЉrique est cialis 5 mg fort finasteride gУЉnУЉrique costco pas cher gУЉnУЉrique paxil ne lamictal xr venir dans le gУЉnУЉrique provera 10 mg cena est disponible de faУЇon gУЉnУЉrique flomax qu'est-ce que le crestor 5 mg pour flomax compresse 700 mg est propecia sur le comptoir au canada lorsque aciphex gУЉnУЉrique disponible acheter cytotec en ligne, malaisie l'utilisation de cefadroxil comprimУЉs ip 500mg cialis 20mg tadalafil prix precio aldactone 25 mg les enfants qui est У croquer benadryl gУЉnУЉrique 40 mg di cialis la clindamycine 150 mg untuk jerawat comment arrУЊter canadiennes viagra spam propecia gУЉnУЉrique coupons wellbutrin nom gУЉnУЉrique acheter du viagra plus en ligne quel est le nom gУЉnУЉrique pour maxalt medicamento clopidogrel 75mg costo viagra 100mg da nom gУЉnУЉrique dilantin abilify coУЛt cigna pas cher advair inhalateur cytoxan 500 mg cozaar 50 mg effets secondaires combien de temps pour prendre provera 10mg orlistat 60 mg forum ce n'kamagra pilules n' pas cher diflucan doxycycline 200 mg par jour ne lamictal affectent les pilules de contrУДle des naissances escitalopram qualigen 10 mg filagra gУЉnУЉrique viagra manfaat provera 10 mg d'acУЉtate de mУЉdroxyprogestУЉrone pouvez-vous acheter aciclovir comprimУЉs marque gУЉnУЉrique de orlistat plavix mail order zyprexa zydis 20 mg comprimУЉ oratane isotretinoin 10mg effets secondaires viagra vs levitra coУЛt les effets secondaires du furosemide 20 mg effets secondaires celebrex 200 mg valtrex prix par pilule tijuana, pharmacie viagra cephalexin 500mg prix en inde acheter propecia 1mg acheter vermox en ligne usa viagra coУЛt en allemagne kamagra jelly 5mg pas cher propecia en ligne canada cymbalta 60 mg de l'utilisation rУЉcrУЉative pfizer lipitor gУЉnУЉrique dose d'orlistat generico la ciprofloxacine acteur 250mg chimiste directe viagra 100mg acheter nizoral cream 2 acheter viagra leicester colchicine 1 mg comprimУЉs co jest prednisolone 5mg viagra 25 mg fiyati acheter cytotec УЉtats-unis precio cipro xr 500 mg mУЉdicaments sur ordonnance paxil coumadin gУЉnУЉrique les noms de combien coУЛte gУЉnУЉrique augmentin sans assurance canada viagra en ligne У bas prix bupropion sr 200 mg la perte de poids doxycycline monohydrate 100mg prix celebrex carte de rУЉduction 2014 zyrtec et le trouble d'anxiУЉtУЉ pharmacie en ligne cialis etats-unis onglet allegra prix imuran 25 mg УЁra des solutions de rechange gУЉnУЉriques pour bystolic ce sera 1mg de la clonidine n' kroger lipitor gУЉnУЉrique qu'est-ce que augmentin 875-125 mg utilisУЉ pour dosage amoxil 500 mg comment arrУЊter zoloft 150 mg allopurinol bgr 100mg meilleur prix pour nexium propranolol pharmacie royaume-uni l'УЉrythromycine 5 mg/g pommade pour les yeux zolpidem-neuraxpharm 5mg viagra pilules disponibles У mumbai coУЛt de surveiller clomid cycle doxycycline, 100 mg prix mercure de la drogue de mУЉdicaments sur ordonnance metformin viagra cialis levitra acheter en ligne oУЙ acheter nizoral shampooing У new york cymbalta 60 mg pilule d'identification quand avez-proscar gУЉnУЉrique aller 2000 mg de metformine perte de poids oУЙ acheter topamax apotex lipitor gУЉnУЉrique allegra 180 mg coupons ne celexa affecter le contrУДle des naissances pilules cymbalta coupon de rУЉduction effets secondaires amitriptyline 50 mg chlorhydrate de clonidine .1 mg acheter doxycycline livraison gratuite costco pharmacy imitrex gУЉnУЉrique plavix prix chez walmart provera 5 mg opinie cialis disponible au canada la tУЉtracycline salep canadien de la pharmacie prilosec adalat retarder 20 mg comprimУЉs acheter forte en ligne viagra royaume-uni prix de xenical У dubaУЏ cephalexin comparaisons de prix lipitor atorvastatine calcique 20 mg effexor 75 mg et perte de poids coУЛt de nexium 40 mg augmentin 500 mg durУЉe augmentin xr 2000 mg nexium gУЉnУЉrique disponible methotrexate prix en afrique du sud effexor 250 mg photos de comprimУЉs de viagra examen systУЉmatique de la coУЛt-efficacitУЉ de la varУЉnicline vs le bupropion pour cesser de fumer zantac prix de l'irlande acheter synthroid en ligne usa ne zithromax interfУЉrer avec le contrУДle des naissances pilules kegunaan lisinopril 5 mg clomid 150mg 3-7 comment obtenir paxil prescription walmart prix accutane moins cher en pharmacie pour zofran viagra vente en malaisie costo lexapro mexique micardis 40 mg coУЛt de l'australie topamax 200 mg coУЛt combien astelin spray nasal coУЛt qual o nome do viagra generico da ems la metformine У libУЉration lente canada cialis generico in farmacia forum pfizer viagra vs viagra gУЉnУЉrique cymbalta gУЉnУЉrique effexor ce qui est glucophage xr 750 mg le viagra acheter en ligne au pakistan viagra des coУЛts des mУЉdicaments combien valtrex prescription coУЛt paroxetine 40 mg par jour augmentin coУЛt gУЉnУЉrique zoloft ou le paxil trouble panique zygenerics paroxetine forme gУЉnУЉrique de prilosec otc moins cher xenical orlistat clonidine hcl 0,1 mg retrait achat paroxetine en ligne oУЙ acheter accutane philippines fosamax poursuite au canada adalat xl 30 mg quel mg ne strattera venir topamax gУЉnУЉrique pilule image prix en pharmacie pour nexium clopidogrel sandoz 75 mg/tab etodolac coУЛt augmentin 500 mg en espanol ciprofloxacine 500mg capsules combien lipitor coУЛt au walgreens lipitor prescription de l'aide prix le moins cher pour premarin oУЙ acheter arimidex en australie glucophage 500mg thuoc coУЛt-utilitУЉ de la comparaison de l'escitalopram et la sertraline dans le traitement du trouble dУЉpressif majeur la z boy allegra prУЉsident prix meilleur moment pour prendre escitalopram 10 mg 3e tour de clomid 50mg effets secondaires de l'orlistat 120mg augmentin 625mg les maux de dents finasteride 1 mg comprimУЉs aciclovir - antivirax 200 mg gУЉnУЉrique finasteride 5mg prix pas cher cialis quotidien (tadalafil) en ligne vente cialis 5 mg generico viagra en chili allegra d costco gУЉnУЉrique vytorin 10/80 mg bactrim comprimУЉs de 80 mg-400 mg puis-je prendre 2 trazodone 50 mg novo viagra generico finasteride 1mg coУЛt furosemide gУЉnУЉrique УЉquivalent kemadrin 5mg forme gУЉnУЉrique d'allegra prednisone 10 mg la goutte la naltrexone et le trouble de la personnalitУЉ limite quelle est la forme gУЉnУЉrique de plavix aller hors wellbutrin 300 mg oУЙ puis-je acheter promУЉthazine la codУЉine sirop puis-je acheter aciclovir comprimУЉs sur le comptoir du royaume-uni pouvez-vous acheter cialis en УЉmirats arabes unis je vais prendre clomid 150mg gУЉnУЉrique proscar costco coУЛt moyen de l'hydrochlorothiazide 40 mg de prednisone, У un moment comment commander valtrex en ligne viagra generico de l'alcool nexium 40 mg tablet fiyat methotrexate 2.5 mg tablette coУЛt prix cialis vs viagra prix de la rue de amitriptyline tetracycline 500 mg qid effets secondaires de nitrofurantoin mono 100mg aciclovir suspension de 250 mg nizoral crema cat costa prix de abilify 2mg cialis 5 mg 28 tabletek maux de tУЊte gУЉnУЉrique de wellbutrin lexapro gУЉnУЉrique canada pharmacie pas cher gУЉnУЉrique clopidogrel ciprofloxacin 500 mg prendre avec de la nourriture
Home All Articles 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 766 guests online

Atom RSS

Inside the Numbers: A 6-Year Look at the Forbes Valuations PDF Print E-mail
User Rating: / 14
PoorBest 
Articles & Opinion
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?