Mar
28

Forbes: Yankees now worth $2.3 billion

By

Forbes released its annual MLB valuations yesterday, and for the umpteenth consecutive year (actually 16th), the Yankees rank as the sport’s most valuable franchise. Their $2.3 billion valuation is a) higher than any other club in U.S. sports, b) $700M higher than the second most valuable club (Dodgers), and c) more than double the fourth most valuable club (Cubs). It’s also up considerably from 2012 ($1.85B), especially with regards to 2011 ($1.6B) and 2010 ($1.5B). You can thank the YES Network and the new Yankee Stadium for that.

“The Yankees sold some of their interest in the YES Network as part of Fox’s purchase of 49% of the regional sport network in late 2012 and as part of the deal the team’s rights fee from YES will increase from $85 million this season to $350 million in 2042,” wrote the publication, meaning the team’s value is going nowhere but up. Forbes estimates the Yankees’ revenue at $471M and their operating income at just $1.4M, but Yankee Global Enterprises is far more profitable due to its other holdings. The team technically operated at a loss for about a decade before the new Stadium opened.

The Athletics, up 46% from 2012, saw their value increase more than any other club in the last year. At $450M, the Rays are the least valuable franchise in the sport while the Cubs ($32.1M) and Angels ($-12.9M) had the largest and smallest operating incomes, respectively. Revenue sharing throws a big wrench into those calculations, however. Baseball will be getting a big financial boost in 2014 when its new agreements with FOX and TBS kick in, doubling the money each team receives from national television broadcast.

Categories : Asides, News

11 Comments»

  1. Andrew says:

    Let me be the first to say cheap greedy disloyal sell the team if George was alive fire Cashman etc etc, thanks bye

  2. EndlessJose says:

    Crazy how the Angels are getting $200 million a year for their games and the Dodgers might be getting over $300 million and yet the Yankees are getting a small $85 million.

    I just don’t understand why so little money for their games.

    • Need Pitching & Hitting (but mostly hitting) says:

      fwiw, I believe those figures are AAV. Likely they’ll get less in early years of the deal and more in later years.
      Yankees current deal scales up to over $350M/year by the end, iirc.
      Another consideration is the Yankees still had years remaining on their last deal (I believe the $85M figure for this season was part of the last deal). It also doesn’t factor in what essentially amounted to a $400M signing bonus for the Yankees new deal.

      That said, it does seem that overall, compared to those and some other deals, the Yankees rights fees are disproportionately low.

      Hard to know for sure without all of the exact details of each deal to make a fair comparison though.

  3. jjyank says:

    Kinda feel bad for the Rays. Good team, well run, and still the least valuable team in the game. I guess it’s the location? Just a bummer for the franchise though.

  4. Gonzo says:

    Who the funk was the last team that was #1 that wasn’t the Yankees?

  5. Nsalem says:

    An uneducated guess my be the Braves because they had national exposure and lots of TV money due to TBS. I think the Dodgers and Red Sox always carried high value.

  6. RetroRob says:

    Local TV revenue, concessions and other merchandise are hidden from revenue sharing by the creation of the YES Global Enterprises. Even the reported $85M for local TV revenue is made up. That’s simply what the Yankees have decided to show on the books. They should be generating over $250M in local TV revenue right now based on viewership and…they are. It’s all hidden.

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