Forbes: Yankees worth an estimated $3.2 billion

(Presswire)
(Presswire)

Once again, the Yankees have been ranked as the most valuable franchise in baseball. Forbes released their annual franchise valuations yesterday, and New York claimed the top spot with an estimated value of $3.2 billion. This is their 18th consecutive year atop the Forbes rankings. The Dodgers are a distant second with an estimated value of $2.4 billion.

The Yankees generated an estimated $508M in revenue last year — the Dodgers were again second at $403M — again the most in baseball, though their $8.1M operating income ranked only 22nd out of the 30 clubs. The Cardinals ($73.6M), Cubs ($73.3M), and World Series champion Giants ($68.4M) had by far the highest operating incomes. From the write-up:

The New York Yankees are worth the most, $3.2 billion, and are tied with the NFL’s Dallas Cowboys as the most valuable U.S. sports team (Spanish soccer club Real Madrid, worth $3.44 billion, is the most valuable in the world). The Yankees have been the most valuable baseball team each of the 18 years Forbes has valued MLB franchises since 1998. During the 2014 season, the Bronx Bombers generated a record $508 million of revenue after deducting PILOT bond payments of $78 million and the $90 million the team contributed to baseball’s revenue-sharing system. The team raked in over $100 million in local television rights payments, and Derek Jeter’s last season in pinstripes goosed ticket and merchandise sales.

The franchise value is up from $2.5 billion last year, according to Forbes. The Yankees were valued at $2.3 billion in 2013, $1.85 billion in 2012, $1.7 billion in 2011, and $1.6 billion in 2010. The huge jump in franchise value from 2013 to 2014 was thanks in part to baseball’s new national television deals, as well as the team’s deal to sell part of YES to News Corp.

Despite their continued reign atop the franchise valuations — to be fair, Forbes is only estimating — Hal Steinbrenner is content to throw away his team’s inherent market advantage by reducing payroll to get under the luxury tax threshold in two years or so. I understand why he wants to do it, luxury tax is wasted money, but as a fan I don’t like it all. The Yankees aren’t taking full advantage of the New York market and their on-field product both is and will continue to suffer.

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Forbes: Yankees, YES Network among most valuable brands in sports

Forbes published their #brand value rankings yesterday, and, unsurprisingly, both the Yankees and the YES Network rate very highly. Despite a second straight postseason-less year, the Yankees saw their brand value increase from $443M to $531M in 2014, the highest among all pro sports teams. Real Madrid is second at $484M. YES was the seventh highest business brand, going from $625M to $680M. It’s behind companies like Nike and Adidas, among others.

According to the write-up, the team’s brand value “captures the name recognition and incremental earnings power that comes with winning 27 World Series. But it omits the portion of the team’s media, ticket and concession revenue that any team playing in the Bronx would get, and also excludes the $26 million that each of the 30 MLB teams took in from broadcasters Fox , TBS and ESPN in 2013.” Earlier this year Forbes valued the Yankees at an estimated $2.5 billion, making them the fourth most valuable sports franchise in the world.

Once again, Yankees led AL in attendance in 2014

For the 12th consecutive season, the Yankees led the American League in attendance in 2014, according to Maury Brown. The Yankees drew 3,401,624 fans this summer, third most in baseball behind the Dodgers (3,782,337) and Cardinals (3,540,649). The Giants (3,368,697) and Angels (3,095,935) were the only other teams to draw 3M+ fans. The Indians (1,437,393) had MLB’s worst attendance.

The Yankees averaged 41,995 fans per game this season, up from 40,489 last year but down from 43,733 from 2012. Brown says total MLB attendance has dropped 1.5% since 2012 and the Yankees are a bit higher than that (3.9%). They averaged 45,839 fans per game during the first three years of the new Yankee Stadium and 42,072 in the three years since. With no Mariano Rivera or Derek Jeter farewell tour to prop up attendance, the Yankees could take a big hit next year if the team’s on-field performance doesn’t improve dramatically.

Update: Manfred elected next commissioner of MLB

6:08pm: Manfred has been elected the 10th commissioner in baseball history, according to multiple reports. Bill Shaikin says the final vote was 30-0. Apparently the other eight teams didn’t flip, they just realized they wouldn’t win. Randy Levine told reporters the Yankees were strong Manfred supporters from the start.

5:00pm: Via Jon Heyman: MLB COO Rob Manfred fell one vote short of being elected MLB’s next commissioner at the quarterly owners’ meetings today. He received 22 of 30 votes with the other eight going to Red Sox chairman Tom Werner. MLB executive Tim Brosnan voluntarily dropped out of the running earlier today. Bud Selig is retiring in January.

The owners are currently working to resolve the situation, according to Heyman. The Yankees were said to be supporting Manfred due to his relationship with the players’ union. Werner is considered an old school type who is likely to attempt to strong-arm the union into getting a favorable deal for the owners when the current Collective Bargaining Agreement expires following the 2016 season. That would greatly increase the chances of a work stoppage. Selig has made it clear he wants Manfred to replace him, but it appears there is still some politicking to be done.

Davidoff: Yankees likely to support Rob Manfred for next commissioner

Via Ken Davidoff: The Yankees are likely to support MLB COO Rob Manfred as baseball’s next commissioner. Manfred is up for the job along with MLB executive vice president of business Tim Brosnan and Red Sox chairman Tom Werner. Richard Sandomir and Michael Schmidt note Brewers owner Mark Attanasio and Rays owner Stuart Sternberg were also interviewed for the job but not nominated. Manfred and Werner are considered the favorites with Brosnan lagging behind.

Davidoff says the Yankees figure to support Manfred because of his relationship with the players’ union and the belief that he’ll be able to keep both big and small market teams happy going forward. Manfred spearheaded MLB’s investigation into Biogenesis and testified against Alex Rodriguez during his appeal, though I highly doubt that has anything to do with the team’s willingness to support him. Supporting Manfred is all about what Yankees ownership believes is best for their billions of dollars, not a grudge against A-Rod.

The owners will vote on the next commissioner this Thursday at the quarterly meetings, and a candidate needs 23 of 30 votes to be elected. There’s a chance no one will be elected on Thursday and the search for Bud Selig’s replacement will continue for another few weeks. Selig is retiring in January.

Surprise! Tanaka sells more tickets than any other starter in MLB

From the obvious news department: ticket sales receive the highest bump in games started by Masahiro Tanaka than any other pitcher in baseball, according to Brian Costa. Data released by StubHub says sales on the secondary market increase 73% when Tanaka is on the mound. Justin Verlander (69%) is second and Jeff Samardzija (68%) is third. The drop-off to the fourth place pitcher is pretty big — Chris Sale is at 29%.

When the Yankees signed Tanaka over the winter, it was obvious his appeal extended beyond his on-field impact. The Yankees know firsthand how marketable and profitable international players can be, especially Japanese players after having megastars like Hideki Matsui and Ichiro Suzuki spent time in the Bronx. Just how much extra cash they make due to these players is unknown but I’m sure it’s substantial. That 73% bump in ticket sales is just a piece of the revenue-generating Tanaka pie.

Forbes ranks Yankees as 4th most valuable sports franchise in the world

Forbes published their list of the 50 most valuable sports franchises in the world yesterday, with the Yankees coming in fourth at $2.5 billion. They trail only European soccer clubs Real Madrid ($3.44 billion), Barcelona ($3.2 billion), and Manchester United ($2.81 billion). The Dallas Cowboys are fifth at $2.3 billion and the Dodgers are sixth at $2 billion.

“The Yankees are the most valuable non-soccer team in the world with a worth of $2.5 billion,” writes Kurt Badenhausen. “TV is driving the value of the Bronx Bombers. Fox exercised its option to increase its ownership of the Yankees’ regional sports network, YES, to 80% earlier this year (Yankees Global Enterprises, which is majority owned by the Steinbrenner family retains 20%). As part of the deal, the programming rights fee for the Yankees starts at $105 million (including the amortized value of a $400 million upfront payment) and will hit $350 million a year by 2042.”

The Yankees were ranked as the most valuable franchise in baseball by Forbes for the 17th consecutive year back in March. Forbes estimated the team’s value at $2.3 billion in 2013, $1.85 billion in 2012, $1.7 billion in 2011, and $1.6 billion in 2010, so it’s going nowhere but up despite the mediocrity on the field for the last season and a half. I can’t imagine what the asking price would be if the Steinbrenners ever decided to sell the Yankees. Maybe $4 billion?