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Friday, March 25, 2022

Forbes: Baseball’s Most Valuable Teams 2022: Yankees Hit $6 Billion As New CBA Creates New Revenue Streams

On the local level, cable television deals have a lot to do with baseball’s pecking order. While teams in the bottom third of Forbes’ ranking are lucky to get $60 million a year in local cable television rights fees, the Yankees raked in $135 million in cable money last season. The Los Angeles Dodgers, the second-most-valuable baseball team at $4.08 billion, led MLB with $189 million in cable TV fees.

All of the boosts to revenue will help teams recover from the past two seasons: an abbreviated 2020 without fans at ballparks and a full 2021 when most teams did not allow full capacity until July. In 2019, the last season before the start of the Covid-19 pandemic, teams’ operating income (earnings before interest, taxes, depreciation and amortization) averaged $50 million. In 2020 and 2021, those figures were –$60 million and $22 million, respectively. In other words, after pocketing operating income of $1.5 billion in 2019, MLB has lost $1.14 billion during the past two seasons combined. To help keep their balance sheets afloat, owners over the past two years have added more than $2 billion of debt (excluding holding company borrowings) and injected about $1.5 billion of equity, according to sports bankers.

The recovery is most evident with the Texas Rangers, who jumped 15% in value from last year, the most in baseball, to $2.05 billion. The Rangers had the misfortune of opening their new ballpark, Globe Life Field, in 2020, when the pandemic prevented fans from attending. But last season they had the fourth-highest average attendance in baseball and the highest in the American League (26,050). New ballparks tend to get top-shelf prices, and the Rangers are tied with the San Francisco Giants with the eighth-highest average general ticket price ($39) and have the fifth-highest premium seat price ($198) in baseball.

 

RoyalsRetro (AG#1F) Posted: March 25, 2022 at 08:16 AM | 9 comment(s)
  Beats: revenues

Sunday, January 16, 2022

The history of baseball’s revenue streams

This player-dominated league was in turn replaced by the owner-dominated National League of Professional Baseball Clubs (i.e., the modern National League). Ticket prices were standardized at 50 cents, or roughly $11.50 today. This was slashed in half when the NL merged with the rival American Association in 1891 (read: bullied them out of existence), although any lost revenue was more than accounted for by the new rules permitting teams to schedule games on Sunday and sell alcohol to fans — not to mention the immense benefit to the bottom line that a monopoly on professional baseball represented.

Ticket sales, concessions, and stadium merchandise: for most of the history of Major League Baseball, these were the main sources of revenue for baseball teams, all of which relied on attendance. That said, since the 1890s, teams have forged strong relationships with local media companies — first telegraph companies were called on to send play-by-play data across the telegraph wire, then radio stations began to broadcast games live in the 1920s (with the first World Series broadcast nationally in 1922). Everything changed, however, when television entered the scene.

The New York Yankees sold their television rights to WABD (modern-day WNYW) in 1947 for $75,000 — the modern day equivalent of $937,674.89 — setting the stage for the modern-day regional network rights that have become lucrative investments for teams today, particularly in large markets. These deals have become so lucrative that when the Yankees purchased FOX’s share of the YES Network in 2019, that share cost $3.47 billion.

RoyalsRetro (AG#1F) Posted: January 16, 2022 at 03:51 PM | 7 comment(s)
  Beats: radio, revenues, television

 

 

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