The New York Yankees failed to qualify for the playoffs this season, but they are still the most valuable franchise in Major League Baseball.
Peter J. Schwartz of Bloomberg reports that 10 teams are valued at more than $1 billion, led by the Yankees at an eye-popping $3.3 billion. The Los Angeles Dodgers, Boston Red Sox and New York Mets also check in above $2 billion.
|1||New York Yankees||$3.28 billion|
|2||Los Angeles Dodgers||$2.10 billion|
|3||Boston Red Sox||$2.06 billion|
|4||New York Mets||$2.05 billion|
|5||Chicago Cubs||$1.32 billion|
|6||San Francisco Giants||$1.23 billion|
|7||Baltimore Orioles||$1.12 billion|
|8||Los Angeles Angels||$1.09 billion|
|9||Philadelphia Phillies||$1.04 billion|
|10||Texas Rangers||$1.01 billion|
|11||Chicago White Sox||$960 million|
|12||Toronto Blue Jays||$950 million|
|13||Washington Nationals||$850 million|
|14||Detroit Tigers||$830 million|
|15||St. Louis Cardinals||$805 million|
|16||Houston Astros||$800 million|
|17||Atlanta Braves||$760 million|
|18||Seattle Mariners||$720 million|
|19||Minnesota Twins||$700 million|
|20||San Diego Padres||$685 million|
|21||Cincinnati Reds||$680 million|
|22||Milwaukee Brewers||$615 million|
|23||Pittsburgh Pirates||$610 million|
|24||Arizona Diamondbacks||$600 million|
|25||Miami Marlins||$595 million|
|26||Oakland Athletics||$590 million|
|27||Colorado Rockies||$580 million|
|28||Cleveland Indians||$575 million|
|29||Kansas City Royals||$540 million|
|30||Tampa Bay Rays||$530 million|
Everything from ticket sales to real estate was considered when coming up with the rankings:
In calculating team value, Bloomberg News examined revenue from ticket sales, concessions, sponsorships and broadcast rights, as well as interests in TV channels, radio stations and real estate.
Revenue from national TV contracts and merchandise is split evenly among the teams, as is the value of MLB Advanced Media, a subsidiary that supplies content to Internet and mobile subscribers.
Although there's clearly a wide gap between the top franchises from big markets to the teams at the bottom, the report states the overall value of MLB teams is more than 35 percent higher than previously expected.
A lot of factors come into play in determining both the team rankings and the overall value. But the common key to raising expectations is taking advantage of media opportunities, Anthony Di Santi of Citigroup said at a recent business summit.
Major League Baseball is catching up to valuations of the National Football League. It’s because they've been exploiting the media opportunities that are available to them on a national level.
What's the most interesting thing about the values?
When you see teams like the Yankees and Dodgers at the top, it becomes easy to understand why those teams can pay out massive contracts to superstars.
On the flip side, teams like the Pittsburgh Pirates, Oakland Athletics and Tampa Bay Rays deserve credit for finding ways to compete with the big-spending clubs despite not having the same type of resource base. That said, even the Rays, who find themselves last in the rankings, are valued at over $500 million. All three of those squads advanced to the League Divisional Series stage of the MLB playoffs.
For what it's worth, the 2013 World Series features the No. 3 Red Sox and the No. 15 St. Louis Cardinals.
All told, the overall numbers are a positive for Major League Baseball.