Via Maury Brown, we learn that Forbes this week released their annual Business of Baseball report. Why is this relevant to us Yankee fans? Well, because the team is worth $1.3 billion, tops in the league by nearly $500 million.
Forbes’ list of baseball franchises shows the Yanks atop a list of the usual suspects. At $1.306 billion, the Yanks’ valuation puts them ahead of the Mets ($824 million), Red Sox ($816 million), Dodgers ($694 million), Cubs ($642 million) and Angels ($500 million). The Marlins and Rays at $296 million and $250 million respectively hold up the list from the bottom.
While the Yankees’ worth increased by nine percent over 2007, no Major League team saw their value decline. The Orioles and Blue Jays saw one and two percent grown respectively, but it is safe to say that baseball as a business is booming.
On the revenue front, the Yanks have a clear advantage over their competitors. Astheir franchise breakdown shows, the team draws in $171 million worth of gate receipts alone. Factoring in unparalleled attendance numbers, brand management and concession sales, the Yanks are rolling in the dough to the tune of $327 million in 2007 revenue. The Red Sox took in $262 million. Those figures for the Yanks should only increase as the Yanks move across the street to their high-falutin’ new digs next season.
Interestingly, the Yanks — along with the Red Sox and Blue Jays — operated at a net loss. The AP tells us why:
The Yankees were listed by Forbes as having $327 million in revenue last year and a $47.3 million operating loss, up from a $25.2 million loss on revenue of $302 million the previous year. Forbes’ revenue figure is after deducting revenue sharing payments, which the Yankees estimate at about $92 million. The team also paid approximately $24 million in luxury tax, which is reflected in the operating loss.
Now, as far as I understand it, these valuations do not include YES Network estimates and revenues, all of which feed the Yankee Empire. From what we’ve heard over the last few months, the YES Network could in fact be worth more than the Yankees. Considering that George Steinbrenner and his group of investors bought the team from CBS in 1973 for a measly $10 million — approximately $48 million in 2008 — that is a pretty stellar investment all around.