Interesting Infographic from Bloomberg Re: Team Values

721 Views | 10 Replies | Last: 12 yr ago by TXAggie2011
Dallasag02
How long do you want to ignore this user?
AG
http://www.bloomberg.com/infographics/2013-10-23/mlb-team-values.html

Bloomberg just released an article and chart showing team values for 2013. The Yankees are still the most valuable franchise (at $3.2B), with the Rangers clocking in at 1.01B and 10th place. Shocking how a winning team and a good TV deal equates to return on investment. Davis and Simpson got a hell of a deal (and Ryan cashed out at a great time).

As much as a disaster as Comcast has been in Houston, the Astros' regional network is valued 10th most valuable in the league. [Edit: now that I look at it, that's 10th out of 13. Not as great as it seemed, but still not as bad as it could be given all the trouble.]

The attached article mentions that baseball franchise values are actually closing the gap with their football counterparts due to MLB's capitalization on media deals. I know "baseball is dying" and all, but the pure dollar figures certainly aren't what's suggesting it.

I guess the question remains, are these skyrocketing values hiding a much bigger problem for baseball's future or is the potential threat from other sports overblown? I tend to think it's a little of both.

Just somewhat interesting off-season fodder I guess.

[This message has been edited by Dallasag02 (edited 10/23/2013 4:12p).]
TXAggie2011
How long do you want to ignore this user?
AG
quote:
(and Ryan cashed out at a great time).


Nolan lost money on the Rangers.
Dallasag02
How long do you want to ignore this user?
AG
Says who? Hard to believe he'd be that dumb.
Say Chowdah
How long do you want to ignore this user?
AG
HOLY SHEET! DA02 is back!!!!! Where you been man?
TXAggie2011
How long do you want to ignore this user?
AG
The word is Ryan didn't participate in cash calls over the past few years and thus his stake in the club was decreased.
Dallasag02
How long do you want to ignore this user?
AG
Man, that's surprising with an asset doing what it was doing. Unless I guess he didn't have it to pitch in.

Sucks for Nolan if true.
TXAggie2011
How long do you want to ignore this user?
AG
I doubt anyone who was in this for the short-term, planned or not, walked away with much. The value has gone up, but the process of buying and getting the club back up on its feet still requires/d quite a bit of cash injections.

Forbes says they've generally been making money, but last year, lost about 9 million, EBITDA.

They took on X hundred million in debt, I imagine interest payments eat up a big chunk of any earnings they may have.
Dallasag02
How long do you want to ignore this user?
AG
Yeah, it just makes it that much stranger that he would not just resign, but sell if he didn't come out ahead. Things mustve been really strained for the guy to just lose money on purpose.
TXAggie2011
How long do you want to ignore this user?
AG
I should note I've also read that he got away with a lot of cash incentives in contract that mitigate a lot of his losses.

I certainly think things were quite strained. Other guys gave up on it much earlier than Nolan did, and probably without the incentives Nolan had.

Hot mess in a red...uniform? I don't know, but maybe they can all go drink some hot toddy together with Shelby.
mhayden
How long do you want to ignore this user?
I imagine Nolan "lost money" on the Rangers in much the same way that baseball owners for years cried about how they were losing money.

You can do some great things with creative accounting.
culdeus
How long do you want to ignore this user?
AG
Sports franchise values are exploding because of Netflix and cable cutters. It's the only compelling programming cable outlets can put on TV and force you to buy 1000 channels to watch Angie Stevens 6 nights a week.

TXAggie2011
How long do you want to ignore this user?
AG
If he didn't participate in further capital investments- and those are pretty normal early on in these things even when the club is successful (see Man United mess)- then its pretty straitforward he'd lose some of his share of the club.

I want to say their purchase was pretty debt heavy, it wouldn't take huge rises on the equity side to start to push non-participants out.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.