Wednesday, March 25, 2015
Baseball is dying, man.
If Major League Baseball traded on a stock exchange it would be worth $36 billion. The average baseball team TISI +0.62% is now worth $1.2 billion, 48% more than a year ago, the biggest year-over-year increase since we began tracking team values in 1998. A record 15 MLB teams are now worth at least $1 billion, up from five in 2014.
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 teams (Spanish soccer team Real Madrid, worth $3.44 billion, is the most valuable in the world)....
Television money is driving the sport’s top line growth. In 2014, broadcasting and cable money accounted for $2.88 billion, or 37% of baseball’s $7.86 billion of revenue. Just five years earlier, television proceeds were $1.73 billion, or 29% of the sport’s $5.91 billion of revenue. During the past five years, mega cable deals for the Dodgers, Seattle Mariners and Los Angeles Angels of Anaheim have kicked in, and last season MLB began new national broadcasting deals with ESPN, Fox and TBS that will pay a total of $12.4 billion over eight years–more than double the previous contracts.
Wednesday, December 10, 2014
This never would have happened if baseball had a salary cap.
With 2014 soon coming to a close, Bud Selig and Major League Baseball can look back and say, “It was a very good year.” The league will see approx. $9 billion in gross revenues for the 2014 calendar year, a new record. Adjustments are still be calculated that could push the league slightly over the threshold with the value being described as “right there” in relation to $9 billion. That figure is up from $8 billion just last year, a staggering increase of 13 percent.
The reason for the increase? The league saw revenues double for new broadcast deals with their national network partners FOX, ESPN, and TBS that added an additional $788.3 million a year to the league’s coffers. Add that to additional local media rights deals such as the Los Angeles Dodgers (between $7 billion and $8 billion annually that sees over 30 percent distributed as revenue sharing), and multi-billion dollar deals for the Rangers, Angels, Mariners, Padres, Phillies, and soon-to-be Astros (the club is mired in restructuring their CSN Houston deal), and you get a significant bump. Throw in that MLB Advanced Media, who not only pulls in hundreds of millions streaming MLB games, but supplies backend streaming services to the likes of ESPN, WWE, CBS March Madness, and just announced today, will provide the backend infrastructure for HBO’s planned streaming service. As noted in our “The Biggest Media Company You’ve Never Heard Of,” MLB Advanced Media, alone, could see revenues of over $1 billion annually.
Posted: December 10, 2014 at 10:10 AM | 22 comment(s)
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