Nobody in Major League Baseball, much less commissioner Bud Selig, can be happy about this news. According to “The Daily Ticker,’’ an Internet website that focuses on financial issues, Bloomberg Billionaires is reporting ten teams are worth more than $1 billion, including your New York Mets, who are tied for second with the Dodgers and Red Sox at $2.1 billion.
The Yankees, not surprisingly, are first at $3.1 billion.
The report was announced as Game 1 of the World Series approached, which has to make MLB executives steaming because their stance has been to always cry poverty. The numbers are 35 percent higher than the annual Forbes figures, which MLB never confirms nor deny. Matt Miller, editor of Bloomberg, said the Dodgers’ sale changed the landscape of how franchises are valued.
“ … You have to value all of the assets when it comes to the teams, you can’t just do revenue from ticket sales, concessions and stadium-type deals and merchandising,’’ Miller said. “Really the driver of this is regional sports networks.’’
That brings us to the Yankees’ YES Network and the Mets’ SNY, whose ratings were down by a reported 31.6 percent. However, it is more about than just the number of people who tune in to watch Gary, Keith and Ron. What the Bloomberg report did not reveal was the formula in which a franchise is valued. It is also hard to come up with a number because the news outlet does not have access to the Mets’ books.
Also reportedly worth over a billion are the Cubs ($1.3 billion), Giants ($1.2 billion), Orioles ($1.1 billion), Angels ($1.1 billion), Philadelphia ($1 billion) and Rangers ($1 billion). With the exception of the Red Sox and Cubs, all play in new stadiums. The Angels play in a refurbished stadium, plus in weather-friendly Southern California.
We’re talking about real estate.
The Dodgers’ sale includes the vast acreage for parking outside the stadium, which is what part of the original attraction was for owner Walter O’Malley when he moved the franchise from Brooklyn.
The Yankees’ value, in addition to YES and the new stadium, is the brand, which includes 27 World Series titles and a relationship with Manchester United, arguably one of the world’s most popular soccer teams. The Yankees also have a marketing relationship with the NFL’s Dallas Cowboys.
Meanwhile, the Mets have SNY, Citi Field and the land surrounding the park. There are plans to rid the area of the auto repair shops across the street and replace them with hotels, restaurants and a shopping center. While those plans are on an architects’ drawing pad, they exist and presumably there is value in that, in addition to the proximity of a major subway stop, highway and LaGuardia Airport. When you are listed as an attraction, being close to transportation outlets enhances your value.
The first question is undoubtedly, if they are worth that much, then why don’t they spend more money? It is a logical question, but it must be noted the worth is not simply liquid, and there are different sectors other than the baseball operations where the Mets can’t dip into for player acquisition. It also must be remembered there’s the intangible value of being a professional sports franchise in New York City.