credit card reform act 2014 wiki does the itunes store need credit card credit card swipe for home computer how to apply credit card from sbi peoples credit card info credit cards that are easy to obtain pay sams credit card walmart avoid credit card cloning low limit credit card for bad credit apply first saving credit card mileage plus credit card offers pay sear credit card online closing credit card accounts credit score bowflex credit card interest rate using credit card paypal without account credit cards credit score 550 paypal vs credit card protection lowest interest credit cards in usa chase credit card with disney rewards hsbc portable credit card machine what is a judgement from a credit card company standard chartered credit card reviews india credit card balance transfer apr calculator considered high apr credit card starter credit cards students no credit marathon credit card payment center best intro apr credit card first national credit card legacy visa ripoff best credit card debt solution how do i update my credit card info on itunes credit card chargeback time limit hypercom credit card machine not printing does paypal verify credit card address top up credit card from post office virtual terminal credit card delete credit card details groupon continental chase credit card perks credit card foreign transaction fee bank america new millenium credit card online credit card instant approval canada citibank credit card american airlines when is it best to pay credit card bill best credit card india 2010 is the chase amazon credit card good southwest credit card cancellation fee credit card negotiation letter sample credit card holders leather women cant add prepaid credit card paypal natwest credit card international number buy car credit card canada where can i buy prepaid credit cards in ottawa bad credit store cards bank of america chip credit card amazon credit card account sign in approval credit card calculator payment interest use paypal newegg without credit card york university credit card payments first national credit card legacy visa phone number citibank credit card foreign exchange rate first four digits mastercard credit card credit card banks make money credit card numbers that work with security codes free prepaid credit card with no monthly fees us dollar credit cards in canada lic premium online payment through citibank credit card rbs credit card services co uk cell phone credit card reader canada swipe credit card iphone 4 citibank choice credit card application form top credit card processors 2012 credit card balance transfer offers life loan paying 2 credit cards amazon bank america credit card payment login bank of america credit card account online credit card flash drive - 8gb average credit card debt per person 2011 southwest airlines visa business credit card get credit card credit score 500 if your credit card declined does affect your credit score negotiate credit card debt sample letter department store credit cards low credit scores credit card mileage bonuses hotel credit card offers prepaid credit cards no credit check canada credit cards banks india british airlines visa credit card what credit card has the best rewards apply first credit card canada hsbc teamsters credit card natwest credit card contact number services partners federal credit union credit card payment how to get a credit card company to lower my interest rate cenex credit card payment citifinancial credit cards for bad credit american airlines miles credit card mypoints visa credit card intuit credit card processing canada low rate student credit card fidelity credit card processing secured credit cards from bank of america hdfc bank platinum plus credit card reward points catalogue platinum plus credit card review first national credit card application pay tax with credit card website i need a loan to pay off my credit cards military star card exchange credit central at&t credit cards university credit card fees bank of new york credit card best credit card sign up bonus miles offers bluegreen rci credit card credit card payment systems llc minimum credit score for credit card canada cash credit card out make small credit card holder post office preloaded credit card no credit cards for people under 21 tesco clubcard credit card best way to consolidate credit card debts 1st bank to introduce credit card in india capital one joint credit card credit card machine cell phone adapter visa credit card helpline number hsbc premier credit card uk capital one journey credit card application lucky credit card american express credit card application southwest airlines free flight credit card reclaim credit card payment protection insurance 1st financial bank usa credit card o balance transfer credit cards poor credit secured credit cards to start credit does secured credit card build credit history prepaid travel credit card virgin credit card miles how to send money from credit card to debit card can you rent a car with a prepaid credit card in toronto american express prepaid credit cards reviews westpac credit card travel insurance policy how to change credit card paypal my credit card account number bank america credit cards frequent flyer miles no annual fee rei visa credit card login household credit card apply marshalls credit card status use paypal accept credit cards online what is the best airline credit card rewards number of credit cards issued in australia freeze credit card in ice hhonors credit card american express how to get a european credit card in the us hdfc credit card investment plans best rewards credit card 2010 us credit cards for business dubai first credit card statement can you pay chase credit card bank chase credit card cash advance without pin pay with 2 credit cards best buy clear credit card free fake credit card numbers and cvv2 credit card companies offer joint accounts iphone credit card reader application apply for unsecured credit cards with bad credit best mastercard credit cards canada credit card check java code online shopping credit card number ge money bank credit cards phone number citi aadvantage credit card logon quick and easy credit card approval hdfc credit card gold coin credit card scams in chicago case-mate id credit card slim case for iphone 4 / 4s how long to pay off credit card chart credit card balance transfers uk shell credit card secure login sunoco credit card application can a credit card company garnish my wages in georgia can international students get credit card in uk law credit card collection philippines wamu credit cards log online access my credit card cc metro style flash drive cheap credit card conveniently how can i get preapproved for a credit card what is an annual fee on a credit card mean partners first business credit card my credit card interest tax deductible secured canadian credit cards credit card with air miles comparison gemoney bank credit card login mobile credit card swipe machine standard chartered credit card malaysia redemption bin credit card number funny quotes credit card debt cancel victoria;s secret credit card online canceling a credit card affect score credit card debt repayment stories best no transfer fee credit cards create itune account without credit card 2012 cimb credit card online password real credit card numbers with cvv and expiration date online credit card payment for citibank india rebuilding your credit secured credit card accept credit card payments my website remove credit card amazon uk how to find cvv on credit card credit cards with best rewards programs 2011 credit cards use hsbc best skymiles credit card offers credit card number generator with cvv and expiration date 2011 better settle debt credit card company collection agency jcpenney credit card number credit card with no interest for 18 months natwest world credit card review payment using credit card paypal where do i go to pay my shell credit card online credit card offers for minors first progress platinum secured mastercard credit card best secured bank credit cards top 5 credit card rewards programs does secured credit card build credit canada procedure applying credit card sbi citi credit card sears what to know about credit cards disney credit card with points use my bridgestone credit card first savings credit card citibank credit card payment centers philippines baby r us credit card hdfc mastercard credit card offers what is my citibank credit card account number google play update credit card square credit card reader fees younkers credit card customer service number check credit card application status navy federal capital one secured credit card online banking how to pay via paypal with credit card credit card act advertising rules unsecured major credit cards for bad credit bank of america visa credit card online payment cimb credit card centre fax number credit card machine printer tape chase mastercard credit card login credit and debit card processing fees best credit card rewards scheme slate chase credit card log sunoco credit card accountonline bbva compass credit card bill pay where is the credit card number on a visa debit card visa credit cards college students blue dog credit card processing guaranty bank credit card processing credit card number list with cvv visa credit card apr cash advances hsbc credit card phone banking number pc richards credit card phone number 0 interest credit card tesco online access my credit card ashley stewart best credit card purchase rates apply canadian tire credit card online citizens bank small business credit card fake credit card number and security code make payment my orchard credit card nba platinum credit card amex platinum cashback credit card review sbi card credit cards faces pages credit card otp login fast way to reduce credit card debt citi credit card payment mailing address credit card transfer balance 0 apr change credit card pin hsbc ipad credit card reader app sams credit card at walmart credit card cvc2 number miles and more credit card travel insurance indusind bank american express costco credit card canada compare credit cards offers in india accepting credit card payments at craft fairs usaa college start credit card application discover credit card signup bonus small business credit cards cash back test visa credit card number cvv2 can use debit card credit online virgin credit card application time onepass plus credit card review how to pay off a 10000 credit card debt best 0 balance transfer credit cards 12 months uk passport renewal credit card form square credit card reader app pay my gape credit card bill online pay my lloyds tsb credit card online arco gas no credit card bitcoin credit card uk are credit-card balances considered money why or why not wells fargo credit card picture why was my credit card denied in paypal hdfc credit card terms and conditions can i upgrade my capital one credit card fast response credit card applications o balance transfer credit cards canada apply online for wells fargo credit card credit card debt lawyer california best credit card rewards program 2011 citi visa credit card customer service citi credit card application status phone number need card now have bad credit score high limit credit cards for excellent credit php credit card format pc richards credit card ge jp morgan select credit card review aspca credit card hdfc bank credit card credit card best rewards program 2011 ann taylor credit card site credit card surcharges legal uk credit card starting with 36 valid credit card visa number wallets prevent credit card scanning how to get 1 month free trial netflix without credit card hsbc premier credit card rewards program need credit card bad credit home depot credit card contact number fake credit card websites will magnetic money clip ruin credit card 1st financial bank credit card log in can your wages be garnished for credit card debt in georgia check credit card balance online hdfc marriott reward business credit card manhattan credit card singapore standard chartered do you need a credit card to rent a car 2011 best credit card for travel points mophie marketplace credit card reader for intuit gopayment review royal bank scotland credit card application form catos credit card how can i pay my rent with a credit card create hdfc credit card online account travel reward credit cards canada comparison what credit cards help build credit axis bank credit card statement get dates citi bank american airlines credit card providian bank credit card bad credit best way use your credit card build credit gulf oil credit card visa credit cards poor credit allied bank mastercard credit card application credit card processing company comparisons my credit card access case mate id & credit card holder for iphone 3g 3gs wells fargo value city furniture credit card credit card debt consolidation loans unsecured intuit automatic credit card billing authorization form credit card amazon bank america barclays credit card india online payment visa credit card covers car insurance cash advance from credit card without pin phone insurance through credit card ana credit card visa best balance transfer credit cards for average credit credit card cash bonuses legalsounds not accepting credit cards takes goodyear credit cards zero percent balance transfer credit cards 2011 virgin black card credit card review capitol one credit card sign in credit card agencies mumbai how to lower credit card interest rate bank of america need fake valid credit card number stolen bank of america credit card debt forgiveness first direct credit card interest rate sears credit card sign on jcpenney rewards credit card customer service fake working credit card numbers itunes does us bank have secured credit cards how is purchase interest on credit cards calculated can i go over my capital one credit card limit southwest airlines rapid rewards credit card 50000 best credit card programs best credit cards small business rewards need abn amro credit card online payment can you use credit card money order credit card programs credit unions what are balance transfers on a credit card wachovia platinum credit card payment how do i stop getting credit card offers from chase credit card best rewards 2012 visa rechargeable credit card hilton hhonors amex surpass credit card how to change credit card information on playstation store pink credit card wallet best buy credit card annual fee gap credit card payment login netflix foreign credit card should pay off credit card student loan first how much to offer credit card companies to settle debt best way to pay off credit cards to improve credit score credit card protection plan hsbc credit card checksum msdn credit card issuers ranking prepaid credit card for kids canada credit card for college students american express ing credit card canada credit card cash back bonus good credit card first time user credit card for bad debt uk apply for credit card with bad credit hsbc sears credit card online best credits cards for college students free flight credit cards activate us bank visa credit card home depot business credit card rewards 0 apr credit cards for 24 months first data wireless credit card reader napa auto care easy pay credit card lloyds air miles credit card review best buy online multiple credit cards boa pay online credit cards best credit cards apply bad credit names of credit cards brand name where can i pay my target credit card how credit card cloning works nordstrom credit cards login hsbc credit card rewards philippines ivy tech credit card fifth third credit card customer service phone number credit card type free credit card debt consolidation best prepaid credit cards bj;s barclay credit card log in no credit card shopping online best credit card to use on cruise ships hdfc platinum credit card reward points value credit cards for starters virgin money credit cards uk a free credit card number that works credit cards bad credit no fees deposit credit card law in uae uob credit cards singapore promotions pay amazon credit card payment can i pay lowes credit card with gift card best credit cards for balance transfer my first premier credit card consolidate credit cards low interest leather iphone 4 case credit cards sears credit card payment locations best credit card for medical bills cvc credit card number chase credit card awards chase bank lostpedia credit card phone number how to get rid of high interest credit card debt starwood preferred guest credit card promotion credit cards for military veterans toys r us store credit card credit card advertising compliance shell credit cards welcome to shell credit cards..url how do i accept credit cards on my iphone credit card debt written off on death chase united credit card first credit cards invented pay tire choice credit card statefarm credit card reviews citibank credit card toll free number india aventium credit card customer service number first premier bank credit cards for bad credit star credit card printer how to switch from bank account to credit card on paypal polo ralph lauren wallet burnished credit card case with money clip application credit card bank america mbna american express credit card uk quick trip credit card pay online student credit cards for bad or no credit students chase amazon credit card application status credit card no foreign transaction fee uk ge farm fleet credit card can i pay rent with credit card hsbc costco credit card online credit card for people with no credit history phone number activate wells fargo credit card rechargeable credit cards uk pay my chase toys r us credit card apply online business credit card paypal credit cards credit card counseling services dallas credit card icons set virtual terminal credit card processing free credit card rewards no annual fee credit card college student india barclays online credit card application costco canada credit cards accepted best cash back credit card canada 2010 credit card transaction settlement process what is credit card skimming can;t find security code on credit card mtvu credit card points good grades best no fee credit card canada 2011 virgin credit card points shop credit card number with cvv2 generator balance on credit cards credit score manage my chase credit card online time get refund credit card ge money universal credit card cost credit cards merchant obama credit card donor scandal
Home Pete Toms LWIB: How the Business Model of MLB Club Ownership Has Changed, Postseason TV Notes, Tidbits

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 620 guests online

Atom RSS

LWIB: How the Business Model of MLB Club Ownership Has Changed, Postseason TV Notes, Tidbits PDF Print E-mail
User Rating: / 23
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Tuesday, 26 October 2010 13:23

Last Week in Bizball by Pete Toms

This week in “Last Week in BizBall”, how the business model of franchise ownership in MLB has changed, postseason TV notes and tidbits.

HOW THE MODEL OF FRANCHISE OWNERSHIP HAS CHANGED

LWIB,  the SportsBusiness Journal published a piece by Richard Walden, head of sports finance for JP Morgan, examining the value of franchises in the “big 4”.  Mr. Walden compared the value of the last 4 franchise sales in each league with their “historical average” using “compound annual growth rate” (CAGR)  as the measuring stick.  The CAGR for the last 4 franchise sales in MLB is 12%, down slightly from its historical average of 13%.  The NHL saw the second lowest drop in CAGR at 9%, down slightly from its historical average of 11%.  The NFL (15%, down from 34%) and the NBA (6%, down from 28%) have seen significantly diminished CAGR in their most recent sales, however the NFL still leads in overall CAGR.  Mr. Walden also notes that, despite dour economic times, the past year saw franchises in each of the “big 4” command a record setting sale price.  (Cubs, Warriors, Canadiens and Dolphins)

What is driving the growth in franchise values?  After all, MLB attendance has declined three consecutive seasons.  National TV ratings for regular season MLB have flatlined.  The 2010 MLB All Star Game drew it’s worst TV ratings ever.  As Mr. Walden astutely points out, the business model of franchise ownership has changed significantly.  While “butts in the seats” remains crucially important, it is increasingly less so, even in MLB which easily sells the most tickets of any of the “big 4”.  From Mr. Walden:

Most of the historical data for sales have represented a “pure play” sale in which a buyer was obtaining a franchise within the chosen league and was betting primarily on the on-field play of the team and its share of national revenue. Sales agreements were relatively straightforward and, other than some typical adjustments for timing of cash inflows and outflows (such as timing of season-ticket sales), the headline price was a pretty good indicator of the actual purchase price for the subject franchise.

Mr. Walden notes that in recent sales, “non-franchise assets”, such as investments in regional sports networks (RSNs), real estate and future development rights, have been key to the escalating values.  Most often today, a franchise sale involves a whole lot more than just the team.

Earlier this month LWIB examined the growth in RSN revenues in MLB, with a particular focus on the recently concluded blockbuster deal for Texas Rangers local TV rights ($1.6 billion over 20 years).  Lee H. Berke, CEO of LHB Sports, Entertainment & Media, Inc., wrote in this week’s SportsBusiness Journal that, “….YES and NESN often receive the headlines, but over the past decade alone, team RSNs have successfully launched in New York, Chicago, the Bay Area, Baltimore/Washington, Denver and Cleveland to the point where over 25 [percent] of the teams in Major League Baseball and the NBA own or co-own their respective regional network.” This trend of growth in RSN revenue is expected to continue as the Cubs, Pirates, Padres, Dodgers and Astros have all been subjects of industry speculation concerning the future of their local TV deals.  (Either launching new RSNs or auctioning off their rights to same for large sums)  There is no better example of the shift in value of MLB ownership than the Yankees.  Some believe that the Yankees do not turn a profit but their real value to owners Yankee Global Enterprises (YGE) is control of their media content.  George Steinbrenner famously leveraged ownership of the Yankees to launch the RSN YES Network, which is reportedly worth $2 - $3 billion.

Mr. Walden also points out that the real estate - or development rights - surrounding a stadium/arena is an increasingly important factor in franchise sales.  The new Cubs owners plans for their franchise include developing real estate adjacent to Wrigley Field, with the long discussed “Triangle Building” the centrepiece.  The inclusion or exclusion of parking lots around the Rangers ballpark in Arlington were a contentious issue in the recently concluded auction of that franchise.  The divorce trial of Dodgers owners the McCourts revealed long term plans for the franchise to develop real estate surrounding Dodger Stadium.  The Giants are part of a group which has development rights to waterfront property very near AT&T Park.  The proposed development is known as Mission Rock.

Should fans be concerned that the model of franchise ownership in MLB is changing?  Traditionally the path to increasing revenues was winning.  Winning teams sold more seats at higher prices as well as more beer, hot dogs, caps and shirts.  But more and more clubs have lucrative, guaranteed, long term local media revenues (whether via subscriber fees from franchise owned RSNs or rights fees from same) which don’t fluctuate with team performance.  Nor is developing real estate around ballparks tied to team performance but rather the health of the local economy and credit markets.  As the “leaked financial docs” have proven, an inferior on the field product is no impediment to profitability in today’s industry.  At the same time, increased revenue sharing has diminished the financial rewards for fielding a superior team.  MLB, via Major League Baseball Advanced Media, has also centralized revenues from the relatively new sources of digital media and secondary ticketing.  MLB appears healthy, franchise values and revenues continue to grow but for different reasons than in the past.  Fans should hope that the owner of “their” team is more concerned with winning than profiting because the former has never been less important to the latter.  Again, from Mr. Walden:

Winning on the field just ain’t what it used to be, and if you are scanning the headlines to see what a team is worth, you better look deep into the fine print and away from the league standings if you want to see the drivers of true value.

SELECT READ MORE TO SEE POSTSEASON TV NOTES, PLUS THIS WEEK'S TIDBITS

POSTSEASON TV NOTES

With the World Series soon to start, so is the annual round of complaining from baseball pundits that the games start and end too late.  The punditry proclaim every year at this time that MLB is losing a generation of fans because the games air too late for kids to view them.  The aging demographic of baseball fans is a legitimate problem for MLB but the start and finish time of World Series games isn’t a factor.  Or so I conclude after reading this column by John Ourand in the SportsBusiness Journal.  Mr. Ourand’s piece includes numbers from Nielsen Co. which conclude that kids watched the 4 division series on TBS in far greater numbers for prime time games than afternoon games.  (including the late afternoon games which air after school in the east)  Mr. Ourand interviewed Mike Mulvihill, Fox Sports VP programming and research, for the piece.

…Mulvihill said, televised baseball is not the best way for the sport to latch onto young fans. He said Fox has participated in research and focus groups that show kids are more likely to become baseball fans if they play the game and attend major league games.

“We are, at best, a distant third to those two activities,” Mulvihill said. “Over the years, there’s been so much criticism leveled at us and other networks that have had the postseason for starting games in prime time. What we’re increasingly coming to understand is that television is a relatively small factor in turning kids onto the game.”

And for all you crotchety, middle aged fans falling asleep during the late innings this World Series (including me), for the last time, ratings peak when the game ends around 11:30 PM ET.

Will Fox broadcast the World Series in HD?  This (HT Fang’s Bites) TV pundit wrote LWIB that Fox didn’t broadcast the NLCS in true HD, but instead in “widescreen” format.

Now before you say I'm seeing things. Fox has actually said during each broadcast that the games are being presented in a "widescreen" format. (The network even referred baseball viewers to foxsports.com/widescreen for more information.)

What is a "widescreen" format? Once upon a time when Fox did not broadcast NFL games in high-def, it upconverted the SD picture so it would fit the entire widescreen of a high-def set. The picture would be slightly improved, but it would fall far short of an HD image. Fox called the picture "digital widescreen."

I suspect that for some reason -- perhaps costs, perhaps a lack of available HD cameras during the NFL season -- that Fox is trying to slip a "digital widescreen" picture past its viewers this week.

But the scary thing is that Fox has the exclusive rights to carry next week's World Series.

Let's hope that the network brings their high-def cameras then.

The Sports Video Group reported that Fox Sports has recently started delivering all their NFL and MLB coverage in a 16:9, widescreen aspect ratio.  I’ve no idea what that means or if it has anything to do with the “widescreen” format mentioned above, but some of you may understand it.

TIDBITS

  • Ed Sherman of Crain’s Chicago Business points out that the hiring of Mike Quade as Cubs manager fits with owner Thomas Ricketts plan to “…lower outlay for baseball operations this year,..” Mr. Sherman doesn’t argue that this is the sole reason Mr. Quade got the job but it probably didn’t hurt.  According to Mr. Sherman, Mr. Quade come relatively cheap both in terms of salary (approx $1 million per year) and length of contract (2 years).  As Mr. Sherman points out, Quade represents a significant saving over his predecessor who commanded upwards of $4 million per year.  Mr. Sherman suspects that it would have cost Mr. Ricketts $5 million plus per year to lure Joe Girardi to Wrigley Field (although he wrote that before the Yankees were eliminated)
  • The October 26 broadcast of Real Sports on HBO will include a piece titled “Miami Ballpark”  From the press release courtesy of Fang’s Bites:

The Florida Marlins, two-time World Series winners since their launch in 1993, are the latest Major League Baseball team to build a ballpark of their own. Scheduled to open in 2012, the stadium is a 37,000-seat, retractable-roof venue costing $642 million and largely paid for by Miami-Dade County. A public outcry erupted in August after leaked financial reports indicated the ballclub turned a $50-million profit at the same time they were seeking public financing. REAL SPORTS host Bryant Gumbel heads to South Florida to cover this hot-button story and examine the concerns raised by public officials who say their viewpoint has changed in light of this new information.

Last week, LWIB brought attention to big changes in Independent baseball.  Four franchises have departed the Northern League in favour of the American Association.  That leaves the Northern League with 4 franchises and an uncertain future.  LWIB, Ballpark Digest reported that one of the remaining 4 franchise might move to the Frontier League and a second may fold.


Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?