augmentin dose iv child can desyrel get you high how much will ranitidine cost where purchase viagra soft sumycin dosage instructions order diclofenac sodium pharmacy cost of parlodel without insurance does allegra work better than claritin can you buy mifepristone in the uk augmentin 875 rxlist glyburide dosage and administration how to import viagra sublingual paxil prescription cheap metformin tablets what type of medication is biaxin mobic drugs arthritis exelon online from canada to buy order zaditor carbozyne online in usa is forzest a prescription drug best place to buy rhinocort purchase bupropion pills punbb hosting forums kosovarja viewtopic vermox without insurance bystolic shortage 2012 get viagra super active toronto augmentin uses medication suppliers of lithium in us top 10 drugstore makeup brands crickley hall where is it filmed where to buy nolvadex online uk online pharmacy orlistat cheap lantus canada plendil tablets 2.5 mg cipro hc otic suspension generic albuterol sulfate dosage for toddlers lipo weight loss injections side effects weight gain after getting off depo provera discount alli tablets trazodone in canada coreg tablets 40mg tomoxetin no script is there any difference between finasteride and propecia venden alli mexico where aleve sinemet overnight delivery erythromycin ethylsuccinate for children maxalt 10mg price maxalt uk next day delivery kamagra from indonesia lean promethazine prices albendazole 100mg tablet liv sale of business contract what does ginseng look like in the woods amaryl pharmacy mail order where can i buy cheap viagra online haridra cheap where to buy allegra shoes women;s buy pletal quick where to buy cheap generic reglan buy pariet online no prescription bupropion (brand name wellbutrin) can i get a yeast infection from cipro what does digoxin dose cipro and other medications viagra sublingual best online non prescription pharmacy celexa tablets uk rumalaya now co uk cost of leukeran estrace back order what is levothyroxine sodium premarin cheapest what is amoxil forte has anyone purchased cialis online mobic price walgreens canadian health and care mall scams prevacid over counter 30 mg glucophage echeck order levaquin purchase uroxatral pills buy over the counter levlen online mail order generic proventil better than micronase keflex online no prescription canada best generic aciclovir review zoloft alcohol hangover canadian pharmacy online lopressor tricor without a prescription from canada can you get clomid from your gp rabeprazole sodium uk purchase peptides tamoxifen estrogen where can i buy nitroglycerin ointment ondansetron hcl+online+pharmacy online pharmacy uk isoniazid orlistat free shipping i pill ashwagandha website purchase flonase spray motilium pharmacy minipress suppositories buy zyprexa price list hytrin shelf life buy torsemide cheap buy cheap pfizer viagra online cheap purim sale uk cheap genuine anafranil online buy aleve quick best generic exelon sites can i make cialis jelly what is glucophage xr used for prednisone pictures of pills how much is permethrin cream is there a cvs pharmacy in canada free januvia coupons viagra soft discount voucher the canadion pharmacy pills rabeprazole cheap generic aciphex gia thuoc ciprobay 500mg best non prescription back pain medicine suhagra shopping synthroid vs levothyroxine weight loss estrofem 2mg buy lamictal discount medications where to get lioresal pct atrovent from usa retino-a cream 0,025 online bestellen cozaar dosage administration how to use acai berry for weight loss original zebeta online best place to buy synthroid online cheap procardia low acivir pills drugstore best viagra prices online pill brand levitra discount voucher buy clomid online now buy probalan uk online sale of zebeta revia new zealand generic name for nitroglycerin robaxin phone orders order levitra no prescription viagra online order aciclovir on line canada orlistat is a medication approved by the fda for weight loss that reduces fat tricor medication where to buy voltaren 100mg buy online where can i get cialis in canada buy differin lowest price can you get free sample viagra super active baby in utero synthroid medication hypothyroidism weight allopurinol side effects erectile dysfunction site serieux pour achat viagra buy provera online no prescription nexium side effects wikipedia sinequan medication online cialis soft order by phone glycomet india allegra d mail order drug yagara online price is there a generic medication for strattera acticin over the couter lanoxin from usa revatio 20 mg wirkung celexa 40 mg canada cheap diet pills work fast mobic 7.5 mg used prednisolone from plasma paroxetine suppliers overseas azax- 500 azithromycin tablets ip generic aygestin usa pharmacy flagyl 400mg and alcohol finpecia suppositories buy can you buy myambutol phenergan with codeine drug class speman online sales safe place order desyrel protonix coupons rebates bactrim acne medicine diclofenac sodium 75mg sr tablets hyzaar maximum dosage buy prednisolone 20mg med cab lioresal online repeat prescriptions uk kesan pil perancang postinor 2 how to get viagra in spain how to by wellbutrin sr online coming off topamax weight gain order innopran xl tablets indian allies of the french phentermine online no prescription cheap benadryl allergy ultratab tablets 100 count generic carafate buy canada buy nitroglycerin online reviews i pill colospa website ventolin purchase buy online pharmacy phentermine side effects of reductil sibutramine how long does it take for 5mg of lexapro to leave your system venlor overnight shipping cheap buying yasmin in manchester omeprazole 20 mg price what does digoxin toxicity look like canadian rx what is a z pack prescription what is pliva 433 pill clomid hcg iui success stories safe prednisone dosage for dogs remeron reviews webmd tetracycline canada anafranil woldwide shipping abilify dosage side effects esomeprazole no presciption arava coupon code ultimate alliance 2 pre-order bonuses buy prescription medication online uk skip hop zoo pack canada what does amitriptyline treat can buy diakof online patient reviews on citalopram vermox worm medicine children prescription free viagra canada viagra purchase online in india a good web page to buy proscar with no script pcos late ovulation on clomid hydrea without insurance is viagra sold over the counter in the u s american norvasc drug market order robaxin price comparison viagra levitra cialis is serevent a prescription drug can i order aleve no prescription in the usa ceftin where to purchase amitriptyline canadian pharmacy eldepryl from usa viagra mail order canada topiramato sertralina emagrece uk version of eulexin donde comprar lioresal en venezuela best site to buy lotensin what are the side effects of taking claritin d effexor on line in the usa atacand rx benicar perth australia avodart generico en mexico famvir to buy in australia buy terramycin cats generic viagra professional 100mg can you buy drugs online buy pyridium online from canada canadian pharmacy colospa viagra pills for sale uk cost of renagel without insurance viagra professional drugstore.com can i buy aricept in canada purchase zantac cheap cheapest serophene tablets uk natural erection pills gnc buy propecia online nz lexapro sales 2009 can you buy things with your paypal balance levaquin purchase in canada no prescription kamagra 100 gold buy elimite 40 maxalt pills sweat side effects of wellbutrin xl clozaril purchase in canada no prescription purchase snovitra super power pills ampicillin fda approved to buy without prescription buy over the counter dilantin online paroxetine generic india cialis tadalafila 20 mg equine drug sales rep haldol iv dose delirium zyprexa to buy in the usa without a prescription generic lipothin worldwide pharmacy colchicine tulasi for men sale in uk ordering risperdal furosemide interactions with other drugs alli reviews yahoo answers buy uk prescription diamox online what does a zoloft pill look like suhagra noprescrition needed canada online pharmacy buy glucotrol xl ciprofloxacina per cistite india aciphex cialis sale south africa cipla where to buy cafergot online mexico where do i suhagra in canada buy lozol in india online stilnox online bestellen drugstore 5 off 15 kamagra gold to buy from europe cordarone in canada periactin stores prescription cialis 20mg tablets uk torsemide lasix equivalent dose how to take cardura mg canadian 24 hr pharmacy i pill cholestoplex website canadian pharmacy boots pharmacy placement 2013 remeron now trileptal shoppers drug mart synthroid buy online us ic valacyclovir hcl 1 side effects buy geriforte syrup online usa zoloft reviews weight gain lincocin drugstore.com gyne-lotrimin without prescription aleve in canada what does abilify do to your body hydrochlorothiazide to buy from europe can you buy cheap zestril best site to buy femara do you need a prescription for viagra in ireland mobic prescription drug ciprofloxacin eye drops for pink eye can you plus in ireland canadian buy levitra online valtrex dose for suppression therapy where to buy tadapox in canada safely amitriptyline sleep apnea age to buy claritin d canada rx shop winter springs buy dramamine visa cipralex weight gain or loss ou acheter misoprostol cytotec buy giant allium bulbs order atarax online no presctiption no prescription for methylprednisolone 4mg dose pak 21 yasmin coupons can you buy altace drugs interactions buy periactin tablets uk cheap pharmaceutical machinery manufacturers in china list of tesco stores selling shatavari vicodin and flexeril high best online canadian pharmacy no prescription reviews amantadine supplier in uk finpecia maximum dosage myambutol maximum dosage anafranil shortage buy norvasc online no prescription us clomid buy on line colchicine next day delivery half price mevacor generic actos 145 mg buyers of chloromycetin canada xeloda colon cancer reviews viagra sublingual for sale where purchase suhagra desyrel 100 non prescription hyzaar pharmacy are online canadian pharmacies safe genuine cialis sublingual best price online generic cialis no prescription where to buy cheap generic promethazine durex water pills reviews buy vermox online in ireland zocor prices cvs januvia buy online canada zoloft buy online uk cost of imitrex at walgreens can you order fertomid can order cefixime canada suhagra for sale australia can you buy viagra over the counter in ireland 100mg cheap amaryl uk buy adalat oros blood prazosin women buy fertility drugs for women buy acai without a prescription from canadian pharmacy prazosin over counter purchase brand amoxil in canada best diet pills on the market haldol 10 mg iv alesse pill canadian cheap viagra super active free delivery order effexor xr on line uk propecia women side effects buy altace online at canada pharmacy order strattera rx prednisone dosage asthma exacerbation how much is eurax tablets can i use makeup while on accutane can you only get synthroid on prescription how to buy combivent online tamoxifen mg india free or low cost metformin where can i buy auto-rx cleaner lowest priced synthroid buy tinidazole tablets viagra soft buy uk safe buy nolvadex online periactin sciroppo costo online sale of cordarone purchase generic benadryl brand clozaril for sale levlen birth control pill side effects buy differin paypal side effects of famvir famciclovir indocin side effects headache kamagra now co uk review buy ginseng greece buy elocon online in usa maxifort seeds for sale buy celadrin cheap gout medication colchicine what doses does imitrex come in phone in order for menosan xenical where to buy uk lopid barato about cipla pharma company online sale of arimidex moduretic direct pharmacy wellbutrin costa rica how to take acai mg what does prometrium do in pregnancy tegretol 200 mg uses buy misoprostol pills online over counter male performance enhancement aristocort medicine children online diclofenac overnight delivery what does tamoxifen treat generic omnicef in usa overseas pharmacy no prescription strattera provera pill shop discount code buy avodart cheap prescription medication canadian buy diarex discount compare prices parlodel is it safe to order doxycycline generic proscar australia buy lithium online no prescription us is diflucan available in india maximum recommended dosage of cialis best price for real dipyridamole best price for triamterene do acai tablets help with weight loss zestoretic cost in canada common blood pressure medication uk fertomid 100mg success rate canadian baclofen tablet which uk site to buy keftab what does clomid look like zebeta 100mg cheep fosamax discount card combivent metered dose inhaler do people abuse skelaxin side effects of dilantin withdrawal diclofenac potassium and thiocolchicoside capsules tegretol medication side effects is there a drug comparative to vermox buy zyvox antibiotic asacol shipping overseas is nexium a prescription drug esomeprazole prazosin reviews and dosage mobic indications and usage letrozole cancer medication precio del redustat en mexico gulf of mexico alliance 2010 where to buy cheap generic bentyl how to buy tricor flonase generic release date where purchase cialis sublingual how long does it take for propecia to take effect alli by mail via send motilium dosage for syrup viagra las angeles evecare canada head office cephalexin price walgreens purchase diovan on line in mexico minocycline hydrochloride tablets uses fertomid order in the us empty gelatin capsules canada altace tablets price celexa on the internet nitroglycerin pills for sale colchicine us companies only metronidazole flagyl 500 mg tablet bayer healthcare 2011 revenue can you buy pyridium buy alli 200 etodolac woldwide shipping hydrea weight gain solu medrol 1000 mg iv what does phenergan side effects can i make erexin-v colchicine 0.5 mg tablets where to methotrexate mometasone cream side effects buy fml forte greece buy leukeran canada pharmacies cefixime what are the side effects of long term use of coumadin where to buy meloxicam for dogs prescription drug augmentin us online pharmacy no prescription cordarone metoprolol what is propranolol mg used to treat amaryl women buy elavil where to get zyrtec syrup silagra no rx cost of artane Purchase singulair 5mg online can you get messed up on depakote web prescriptions webprescriptions medescribe co uk cheapest place get claritin mail order bactrim ventolin inhaler over the counter australia cheapest place to get propecia generic femara manufacturer side effects of nitrofurantoin 50mg aciclovir pharmacies in does zanaflex cause weight gain bactrim ds online betnovate rd cream is used for cost of citalopram in canada generic eulexin usa pharmacy ou acheter une recharge mobicarte hyzaar plus midamor from europe what is the max dose of trazodone for sleep prednisone 20 mg tablet picture purchase tinidazole cheap pharmacy trichomoniasis brand name luvox online sale doxycycline natural pills to increase fertility serpina shelf life forum baclofene aubes the best foundation for dry skin 2013 side effects of clavamox for kittens avodart overseas buy diflucan singapore buy brand advair diskus online usa suppliers of retin-a 0,05 in us buy generic epivir-hbv online order minocycline online no prescription suhagra 500 over counter viagra soft cheap entocort buy over the counter augmentin online roxithromycin tablets spc cost of tretinoin 0,05 without insurance acivir pills order in the us better than effexor xr xenical comprar por internet evecare maximum dosage cost of v-gel without insurance over the counter claritin for children generic tadalis sx switzerland licensed pharmacy prednisolone safe prograf buy generic from glucotrol xl order zantac online uk how much does alli pills cost generic prevacid discontinued purchase finasteride propecia buy zantac canada safe to buy generic kamagra from usa buy flagyl er from india toradol pills side effects how much skelaxin does it take to overdose cheapest indocin in the uk what dosage of prednisone causes side effects ventolin sale canadian lowest priced ventolin pharmarcy rx what is the prescription drug requip over the counter medicine prinivil purchase strattera in australia seroflo brands india buy clomid 40 where to buy snovitra super power drugs online sominex direct pharmacy cialis generico 5 mg buy alli uk boots drugs zyloprim for sale online cost of yasmin generic levitra plus pharmacies best viagra india buy retin-a ge online overnight atrovent nebulizer medications amoxil mist canada buy freshwater fish online australia elimite cream over the counter nexium store generic lowest voltaren paypal longs drugs online shopping buy cialis soft tablets canada how to take malegra fxt orlistat reviews forum generic best online pharmacy generic vantin midamor online shipping can you get brahmi pariet visa +buy cafergot no perscription zebeta australia price buy hoodia pills online is it safe to order entocort free samples of viagra canada azithromycin online uk cost of viagra in ireland galaxy lithium australia ltd buy avalide without a script how much will diclofenac gel cost planned parenthood order birth control online innopran xl medicine online cialis coupons discount buy zovirax paypal accepted nhs viagra prescriptions accutane long term results how much is cipro tablets how to buy clomid on the internet what does wellbutrin xl 300 mg look like very cheap tamoxifen mail-order skelaxin avapro generic equivalent generic orlistat supplier acquisto singulair sicuro online zetia to buy do i need a prescription for medrol premarin discontinued ordering avapro usa digoxin lasix drug interactions aciphex dosage administration
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 955 guests online

Atom RSS

Inside the Numbers: A 6-Year Look at the Forbes Valuations PDF Print E-mail
User Rating: / 1
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?