Our friends over at Bloomberg have a fantastic article up, with a comprehensive analysis and visualization of every team in baseball leading to a team dollar valuation. They examined team value, the regional sports network, merchandising, food, parking, sponsorships, tickets, just about everything under the sun. Unsurprisingly, the Yankees come in first at $3.28 billion, followed by the Dodgers, Red Sox, Mets, and Cubs.
Before we start peeking behind the curtain, let’s have some fun with the numbers. Warning: this will be fun mostly for Yankees fans. Here are the owners who have seen the largest increase in value for their clubs (all dollar values in millions):
Largest Increases in Franchise Value
Change in Value
|New York Yankees||8.7||1973||3280||3271.3|
|New York Mets||391||2002||2050||1659|
|Boston Red Sox||700||2002||2060||1360|
|San Francisco Giants||100||1992||1230||1130|
Back in 1973, George Steinbrenner paid less than $10 million for the New York Yankees. Since then, they’ve become easily the most valuable franchise in the sport – and one of the most valuable properties in sports – accruing more than $3 billion in value in the forty years that have passed. It’s easier to see precisely how ridiculous this is when the property is looked at from a percent increase in value:
Largest Percent Increases in Franchise Value
%Change in Value
|New York Yankees||8.7||1973||3280||37601.15%|
|Chicago White Sox||20||1981||960||4700.00%|
|San Francisco Giants||100||1992||1230||1130.00%|
The Yankees are 37,000% more valuable than they were in 1973. The world’s total economic output is 370% greater than it was in 1970. That means the Yankees are growing 100 times faster than the world in general. Steinbrenner did pretty well for his $8.7 million. On a yearly basis, the top five looks the same as the above table, except the Giants beat the Twins at an average growth of 53.8% per year against 51.4% for Minnesota. The Yankees once again demolish the field at an average growth rate of 940% per year. Invest a dollar today, get $9.40 back in 365 days. That’s a pretty great return on investment.
How about the teams who aren’t doing so well?