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Jeff 30
Those team values are absurd and unsubstantiated. The Dodgers deal is an outlier in that they owned the stadium & all the land around it. They also have a multi-billion dollar TV deal pending with Fox, and are in the second biggest market.
Rumor has it that they ended up paying over $600 Million more than Cohen’s group. the Astros just sold for $680 Million (not counting the discount), and I find it hard to believe that the Dodgers are really worth $1.5 BILLION more than that.
I’d bet that team values range from around $400 Million (for the Rays or Athletics maybe) to $2 Billion (Yankees). Forbes places the Dodgers value at $1.4 Billion (Oakland a’s at $321 Million), and Maury Brown suggests that these numbers are fairly reliable when valuing clubs.
Anthony Marenna
I think you overvalue the land aspect of the deal, first and foremost. The real reason the Dodgers were an outlier when compared to previous MLB team sales is that McCourt was able to hold the sale under the protection of a bankruptcy judge. The development of the pool of buyers and the “bidding” process were able to proceed with hardly any interference from the Commissioner’s office and the community of MLB owners.
With that said, you are correct that they are an outlier. What you don’t consider is that irrelevant of the circumstances, this is a still a market-setting transaction. Other teams looking to make a massive sale are bound to make adjustments to create similar circumstances. For instance, (and although I don’t know the economics of team-owned broadcast networks), the Yankees do not have to offer their broadcasting rights to the YES network. Another factor that far outweighs land ownership is the franchise itself, the history and the fan base, the merchandising, the international reach of the brand. When you consider those factors, the degree to which the Yankees and the Red Sox, for instance, were valued above the Dodgers by Forbes, is much easier to understand. It creates a situation where at least certain teams can hold out until qualified buyers who can pass the political process of MLB ownership approval are willing to increase their ante perhaps far beyond what the Guggenheim group paid for the Dodgers.
Jeff 30
It’s certainly very complicated. Personally I think that the future value of the land surrounding the stadium has immense value (and that’s why McCourt wanted to have partial rights). All this talk of high-end retail or NFL stadiums shows just how valuable it *could* be.
That said, there’s a lot of things impacting valuation. For example, should Peter Angelos sell the Orioles (not suggesting he is, just an example) the value would be hurt because the team does not own OPACY. However, Angelos would likely include his controlling interest in MASN, making the Orioles a more intriguing purchase. Since the two are separate entities however, there’s nothing suggesting that Angelos would have to sell them both as a package deal.
I actually think this might hurt baseball. Not the new owners of the team (i think having Kasten there is terrific for LAD fans), but in that i creates a ridiculous precedent for future sales. I guess we’ll find out when/if the Padres get sold…
Anthony Marenna
I agree that the land is IMMENSELY valuable. My point is that it is already factored into the Forbes valuation.
Jeff 30
Ah ok. Got it.
TDKnies
Good for Blanco having a legit shot at making the Giants’ major league roster. Always liked him when he was with the Braves. Average might not be great and his power doesn’t even exist, but he’s posted exceptional walk rates throughout the minors and a walk rate a tad below 13% in over 800 big league plate appearances. His BABIP was like 100 points below his career average last year which is why his batting average was so God-awful. If it goes back up to around .330 like it was during his two good seasons in the majors (and most of his minor league seasons), he can actually be a good lead-off type hitter.
gmenfan 2
Nice to finally see some legitimate speed on the Giants as well.
elscorchot
yea, i agree. it makes sense that he would not even try with the marlins, who are stacked in the of right now.
rsanchez1
Well, at least Mets fans have one thing going for them.
UltimateYankeeFan
Reports are that Hamels is either very close to re-signing with the Phillies or may actually have worked out a new contract with them already and both are just waiting to announce it.
If that is indeed the case that can only be good news for Matt Cain. Instead of being the 2nd best FA pitcher at the end of the season he jumps to the head of the class and probably gets himself a few more dollars in the process.
With his deadline being opening day for a deal with the Giants it’s getting close to crunch time.
dc21892
Chances are they are waiting like the Red Sox did last year with Adrian Gonzalez so it doesn’t penalize them for this years salary.
UltimateYankeeFan
They don’t have to wait with the NEW CBA. The rule has been changed. Hamels 2012 salary is locked and loaded and won’t change.