Forbes released their annual estimates of the financial situations for each Major League Baseball franchise. Here are the highlights from around the league:
– The Giants saw their valuation take the biggest jump. In 2013 they were valued at $786 million and this year that valuation increased 27 percent to join the Yankees, Dodgers, Red Sox and Cubs in the billion dollar-plus club. Winning the World Series and selling out your ballpark every day is a great business plan, they should really try to do that again.
– On the flip side, the Astros took the biggest tumble, losing nearly $100 million in value. The rebuilding plan to stink and stockpile prospects might make baseball sense, but it hasn’t done much to increase the team’s value. Their strategy hasn’t hurt the pocketbook, however, with the Astros bringing in $56 million in operating income.
– The median team gained $22.5 million in value, bringing overall median team value to $650 million. With over $7 billion in revenues among the teams and nearly $300 million in income, I think it is safe to say that baseball is pretty healthy — big TV contracts will do that.
Now let’s take a closer look at the local teams.
The Giants ranked fifth in total value, moving up two spots from last year with an increase in franchise value of $214 million. The Giants’ revenue increased 20 percent to $316 million even without a return to the playoffs, and with the higher revenue, operating income climbed to a club record of $53 million according to Forbes.
The Giants are in the top three in both revenue and operating income. With the Giants getting going on their Mission Rock development, they should be well on their way to cementing themselves as one of the richest teams in baseball.
The A’s held steady in 28th place with the value of the team increasing by $27 million. Revenue for the A’s increased to $187 million while income declined ever-so-slightly from $27.5 million to $27.4 million. With the stadium issue still in limbo, the A’s are hamstrung when it comes to the revenue they can produce. As a result, they look to stay near the bottom of the league financially for the foreseeable future.