23 April 2009

Forbes: A's worth $319 million (-$4M)

This year's Forbes valuations are out, and the A's are down 1% from last year, which to me is surprising. I expected a bigger drop due to lower local revenue, but total team revenue actually rose from $154 to $160 million. This season's the big test, as MLB is expected to take a broad hit, including the possibility of lower TV revenues if not redone TV contracts. If a drop in valuation is going to occur, it'll be a year from now.


Anonymous said...

What will be the effect on the A's net worth with a solid ballpark plan in place? Another pertinent question, what location (SJ or Oakland) would result in a higher valuation?

Marine Layer said...

I thought that the A's rise in valuation 2 years ago was due to Cisco Field. Fremont's come and gone with no effect. Cisco is still signed on, so that may be preventing the slide. At this point I'd have to say the effect is minimal until someone starts building. That's how it worked for the Yanks and Mets.

Anonymous said...

Any idea of what the revenue sharing component is for the A's and how it compares to the other small market teams---didn't see this in any of the financials-

Anonymous said...

What data is available for franchise value increases for all of the teams who have built new ballparks under Selig?

Is it a 2x or 3x EBITDA calculation or is it something else? Does that change in the upperward direction when a team builds a new park?

monkeyball said...

Besides the surprisingly low drop in franchise value (one would think the combination of the economy slumping, the RE/dev sector cratering, and the ongoing slow-=motion debacle of the Fremont FAIL would have knocked it down a couple more points), I found it interesting to note that the A's were the seventh-most profitable franchise in MLB last year.

Anonymous said...

You make profit easily when you spend little.

Anonymous said...

And get subsidized by the rest of the league.

Jeffrey said...

Wow. I go to Disneyland for a few days and the whole world changes.

What is important to note about the franchise values:

1. New TV Contract for local market.
2. Large percentage of value is from league sources (43%) while small percentage is from the stadium (18%)

Those two factors are key to long term success of the A's. Consider that the Reds and Brewers make a smaller percentage of their overall revenue from league sources while the Giants make more from their stadium than the league.

With a new stadium in the right place the A's could be more comparable to the Giants and less like the Reds and Brewers.

I imagine that would be a large section of any Blue Ribbon report.