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Chron: Astros rank 11th in value in MLB, Forbes reports

Discussion in 'Houston Astros' started by Rockets34Legend, Apr 8, 2005.

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  1. Rockets34Legend

    Rockets34Legend Contributing Member

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    http://www.chron.com/content/chronicle/sports/

    Astros' worth increases
    Team ranks 11th in value in MLB, Forbes reports
    By DAVID BARRON

    The Astros increased in value last year to $357 million, making the team the 11th most valuable franchise in Major League Baseball, according to estimates by Forbes Magazine.

    The magazine estimated that the Astros' value rose 12 percent from 2003. It estimated the team's 2004 revenue at $155 million, which ranked 10th in the majors, and operating profit before interest, taxes, depreciation and amortization at $9.6 million, 11th-highest in MLB.

    The Yankees remain the most valuable franchise in baseball at $950 million, followed by the Red Sox at $563 million, according to Forbes' estimates, which were released Thursday. They were the only MLB teams in 2004 with revenues totaling more than $200 million — $264 million for the Yankees and $201 million for the Red Sox.

    Forbes senior editor Michael Ozanian estimated that the 30 MLB teams increased in value last year by an average of 15 percent, thanks in part to the then-Montreal Expos' announced move to Washington, D.C., which the magazine says more than doubled the franchise's value.

    Teams averaged $4.4 million in operating profit before interest, taxes, depreciation and amortization, Ozanian said.

    Pam Gardner, the Astros' president for business operations, referred questions to MLB spokesman Rich Levin. Levin said he had not seen the estimates but said, "If the past is any indication, the accuracy has never been there (in the Forbes list)."

    The Astros went from ninth in value on last year's list to 11th this year, passed by the Phillies, whose value rose to $392 million after moving into a new stadium, and the Cardinals at $370 million.

    Ozanian said the Astros' acquisition of Roger Clemens and Andy Pettitte boosted ticket revenue from $38 million in 2003 to $54 million in 2004.
     
    #1 Rockets34Legend, Apr 8, 2005
  2. Plowman

    Plowman Contributing Member

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    MLB spokesman Rich Levin predictably poo pooing the estimates...Drayton - I'm losing money....no we couldn't increase the payroll during the first couple of years in the stadium..and,no,we're not opening the books.Do the math!
    The Franchise is worth 357 and he bought it at what?
     
    #2 Plowman, Apr 8, 2005
  3. MadMax

    MadMax Contributing Member

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    The franchise is worth what a willing buyer will pay. I don't want to say that has nothing to do with income streams, because that's not true. But it's not a sole function of income streams.

    Do you think the Astros would sell for $357 million?? In April 2003, Moreno bought the Anaheim Angels for around $180 million. I'm having a hard time believing the value of that franchise in Los Angeles is 1/2 the price you'd get for the 'stros. The Dodgers sold for around $400 million.


    If they had their very own media outlet, I could see this price. Having a hard time seeing it without that.
     
    #3 MadMax, Apr 8, 2005
  4. Svpernaut

    Svpernaut Contributing Member

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    The net worth INCLUDES the stadium... thus the reason the Phillies went up so much this past year.
     
    #4 Svpernaut, Apr 8, 2005
  5. DallasThomas

    DallasThomas Contributing Member

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    Max, Anaheim may have been a pretty big TV market then, but they haven't nearly the brand-recognition or following that the Astros have. Maybe after the World Series win, but not when they bought it at that price.
     
    #5 DallasThomas, Apr 9, 2005
  6. Rocketman95

    Rocketman95 Hangout Boy

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    I'm pretty sure they were sold after the World Series win.
     
    #6 Rocketman95, Apr 9, 2005
  7. MadMax

    MadMax Contributing Member

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    Pretty big? How about HUGE???? It's LA.

    As for fan support, they drew 3.3 million fans last year. More than the 'stros.

    He bought the team RIGHT after winning the World Series. He bought the team in April/May 2003 after the Angels won the 2002 World Series.

    I doubt seriously that the market value of the Astros is truly as high as reported on this list. I don't doubt that some accountant could make it look that way. But I doubt seriously that's what it would actually sell for. Maybe if they had their own tv network.
     
    #7 MadMax, Apr 11, 2005
  8. No Worries

    No Worries Contributing Member

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    Ozanian said the Astros' acquisition of Roger Clemens and Andy Pettitte boosted ticket revenue from $38 million in 2003 to $54 million in 2004.

    If the Astros had not fired Williams and had not made the miraculous play off run, I suspect their revenues would have been closer to $38M than $54M.
     
    #8 No Worries, Apr 11, 2005
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