Most valuable MLB franchises –
“A strong demand for baseball teams—particularly in big markets—pushed up valuations.”
The following written content by Mike Ozanian
The unprecedented amount of red ink spilled by Major League Baseball in 2020 did not prevent team values from increasing to an all-time-high average of $1.9 billion this year, 3% more than a year ago.
On top are the New York Yankees, worth $5.25 billion, 5% more than last year. The Yankees are one of three North American teams (along with the Dallas Cowboys, at $5.7 billion, and the New York Knicks, at $5 billion) worth at least $5 billion.
A strong demand for baseball teams—particularly in big markets—pushed up valuations. The New York Mets had an operating loss of $125 million last season, yet in October, Steve Cohen purchased the team for $2.42 billion, within 1% of our 2020 valuation and a record amount for a baseball team. The Boston Red Sox posted an operating loss of $70 million in 2020, but according to MLB executives, the team is being valued at more than $3.4 billion as part of the pending sale of an 11% stake in its parent, Fenway Sports Group.
A surging stock market—the S&P 500 is up 57% over the past year—has also been bullish for team values by creating wealth for potential buyers and increasing the revenue multiples teams are appraised at. The tracking stock for the Atlanta Braves, which also includes a mixed-use real estate project, recently closed at $27.74, 46% higher than a year ago. The baseball team lost $67 million in 2020. Read more from Forbes.
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