Forbes Valuations Of Major League Baseball Clubs

For those that didn't know, Forbes recently released their Forbes Valuations of the 30 Clubs in MLB.  I'm not going to delve into the legitimacy of their numbers, we will just assume that the data presented is well-researched and correct.  Here is a look at their 2010 report to give you an idea of their format and what they report:

Rank Team  Current
Value
($mil) 1 
1-Yr Value
Change %
Debt/Value
(%) 2
Revenues
($mil)
Operating
Income ($mil) 3
1 New York Yankees      1,600 7 89 441 24.9
2 Boston Red Sox          870 4 28 266 40
4 Los Angeles Dodgers          727 1 58 247 33.1
5 Chicago Cubs          726 4 80 246 25.5
3 New York Mets          585 -6 81 268 26.2
6 Philadelphia Phillies          537 8 33 233 14.5
7 Los Angeles Angels of Anaheim          521 2 7 217 12
8 St. Louis Cardinals          488 0 56 195 12.8
9 San Francisco Giants          483 3 26 201 23.5
10 Chicago White Sox          466 3 9 194 26.4
11 Houston Astros          453 2 12 189 7.1
12 Texas Rangers          451 11 105 180 4.7
13 Atlanta Braves          450 1 0 188 1.5
14 Seattle Mariners          439 3 23 191 10.5
15 San Diego Padres          408 2 49 157 32.1
16 Minnesota Twins          405 14 25 162 25
17 Cleveland Indians          391 -2 28 170 10.1
18 Washington Nationals          387 -5 65 184 33.5
19 Colorado Rockies          384 3 21 183 20.1
20 Arizona Diamondbacks          379 -3 38 172 -0.6
21 Baltimore Orioles          376 -6 40 171 19.4
22 Detroit Tigers          375 1 56 188 -29.5
23 Milwaukee Brewers          351 1 34 171 10.2
24 Kansas City Royals          341 9 15 155 8.9
25 Cincinnati Reds          331 -3 12 166 17.8
26 Toronto Blue Jays          326 -8 0 163 13.1
27 Florida Marlins          317 15 32 144 46.1
28 Tampa Bay Rays          316 -1 19 156 15.7
29 Oakland Athletics          295 -8 30 155 22.1
30 Pittsburg Pirates          289 0 35 145 15.6

 

There are some footnotes that you can find an explanation for at the link above, the Google Doc, or my workbook: Forbe's Valuations
.

 

The workbook looks at 2006 - 10, while the Forbe's link goes back further.  Here's a look at the Rays Current Value in millions for each of the years I looked at:

Team 2006 2007 2008 2009 2010 Avg.
Tampa Bay Rays       209       267       290       320       316       280

 

Let's see that in terms of Y-Y growth as well as 2006 - 10 growth:

Team 2006-07 2007-08 2008-09 2009-10 2006-10
Tampa Bay Rays 28% 9% 10% -1% 34%

It should be noted that the Rays checked in with the 4th highest growth rate from 2006 - 10, trailing only Minnesota (48%), the Chicago Cubs (39%), and the Los Angeles Dodgers (35%).  That shouldn't be completely surprising since we did have the lowest team value at the start of this analysis at $209M.  Here's a look at every team's Current Value growth in the same format:

Team 2006-07 2007-08 2008-09 2009-10 2006-10
Minnesota Twins 33% 14% 9% 14% 48%
Chicago Cubs 32% 8% 9% 4% 39%
Los Angeles Dodgers 31% 10% 4% 1% 35%
Tampa Bay Rays 28% 9% 10% -1% 34%
Milwaukee Brewers 22% 15% 5% 1% 32%
Chicago White Sox 21% 16% 2% 4% 30%
New York Yankees 17% 9% 15% 7% 29%
Los Angeles Angels of Anaheim 17% 16% 2% 2% 27%
Boston Red Sox 17% 13% 2% 4% 25%
Oakland Athletics 25% 11% -1% -8% 25%
Kansas City Royals 18% 7% 4% 9% 24%
Detroit Tigers 22% 14% -9% 1% 23%
New York Mets 22% 12% 11% -36% 21%
Arizona Diamondbacks 11% 12% 3% -3% 18%
Colorado Rockies 6% 17% 1% 3% 17%
Florida Marlins 8% 5% 8% 14% 17%
Toronto Blue Jays 20% 2% 0% -8% 16%
Cincinnati Reds 12% 10% 1% -3% 16%
San Francisco Giants 12% 8% -5% 3% 13%
Philadelphia Phillies 8% 5% 3% 8% 13%
Texas Rangers 3% 13% -2% 11% 13%
Pittsburg Pirates 10% 7% -1% 0% 11%
Atlanta Braves 13% 9% -10% 1% 11%
St. Louis Cardinals 7% 5% 0% 0% 9%
Cleveland Indians 3% 15% -4% -2% 9%
San Diego Padres 4% 5% 4% 2% 8%
Baltimore Orioles 10% 1% 1% -6% 7%
Houston Astros 6% 5% -4% 2% 7%
Seattle Mariners 2% 7% -9% 3% 3%
Washington Nationals 2% 3% -12% -5% -3%

I also looked at this in much the same way from the Revenue-side.  Here's the Rays:

Team 2006 2007 2008 2009 2010  Avg. 
Tampa Bay Rays 116 134 138 160 156    140.8

 

And the Revenue-growth rate for all teams, where the Rays checked in at 22nd:

Team 2006-07 2007-08 2008-09 2009-10 2006-10
New York Yankees 9.0% 8.3% 14.7% 17.6% 59.2%
Minnesota Twins 14.9% 13.7% 6.0% 2.5% 42.1%
New York Mets 11.3% 8.3% 11.1% 2.7% 37.4%
Chicago Cubs 10.1% 8.6% 11.7% 2.9% 37.4%
Tampa Bay Rays 15.5% 3.0% 15.9% -2.5% 34.5%
Kansas City Royals 5.1% 6.5% 9.2% 8.4% 32.5%
Philadelphia Phillies 4.0% 4.9% 12.5% 7.9% 32.4%
Los Angeles Dodgers 11.6% 6.2% 7.6% 2.5% 30.7%
Milwaukee Brewers 9.9% 9.7% 9.5% -1.2% 30.5%
Los Angeles Angels of Anaheim 12.0% 7.0% 6.0% 2.4% 29.9%
Boston Red Sox 13.6% 12.4% 2.3% -1.1% 29.1%
Detroit Tigers 16.4% 1.8% 7.5% 1.1% 28.8%
Washington Nationals -0.7% 6.3% 20.3% 0.0% 26.9%
Colorado Rockies 4.1% 11.9% 5.3% 2.8% 26.2%
Chicago White Sox 10.2% 11.6% 1.6% -1.0% 23.6%
Cincinnati Reds 6.6% 10.3% 6.2% -2.9% 21.2%
Florida Marlins 2.5% 4.9% 8.6% 3.6% 21.0%
Toronto Blue Jays 15.4% 1.9% 7.5% -5.2% 19.9%
Arizona Diamondbacks 6.2% 7.1% 7.3% -2.8% 18.6%
St. Louis Cardinals 11.5% 5.4% 0.5% 0.0% 18.2%
Texas Rangers 1.3% 11.0% 2.3% 2.3% 17.6%
San Francisco Giants 7.6% 7.1% -0.5% 2.6% 17.5%
Pittsburg Pirates 9.6% 1.5% 3.6% 0.7% 16.0%
Oakland Athletics 9.0% 5.5% 3.9% -3.1% 15.7%
Cleveland Indians 5.3% 14.6% 0.0% -6.1% 13.3%
Baltimore Orioles 1.3% 5.1% 4.8% -1.7% 9.6%
Atlanta Braves 6.4% 8.7% -6.5% 1.1% 9.3%
Houston Astros 6.4% 4.9% 0.5% -2.6% 9.2%
Seattle Mariners 1.7% 6.6% -2.6% 1.1% 6.7%
San Diego Padres 1.3% 4.4% 4.2% -9.8% -0.6%

One thing that I have not looked at as in-depth is the Debt/Value ratio, where the Rays are consistently under 20%, something you can't say for all the teams.  Anyone care to hypothesize on why our management doesn't leverage our capital as much as most of the other teams?  I hope you enjoyed this and I really hope that someone that is more financial-astute takes the time to see what other information they can glean out of these spreadsheets that I've created.

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