Sticking with Forbes, we link for your pleasure its annual list of baseball franchise valuations. You’ll be shocked to learn that the continued uncertainty at backup catcher and fifth starter has not negatively impacted the value of the New York Yankees. They’re still number one. When you combine the team’s revenues with it’s interest in the YES Network and its Legends Management arm which manages the ballpark, the Yankees — as an overall enterprise, not just the team itself — are worth an astounding $5.1 billion. Yeah, I think they’ll be able to keep Sabathia if he opts out of his contract this fall.
But it’s not just the Yankees. Overall, the state of franchise valuation is strong:
The average MLB franchise is now worth $523 million, an all-time high and 7% more than last year. All of the league’s teams rose in value except for three: the New York Mets, San Diego Padres and Cleveland Indians. The increase in team values is the result of greater revenue for teams playing in new stadiums, like the New York Yankees (up 6% in value to $1.7 billion) and Minnesota Twins (up 21% to $491 million) as well as the Florida Marlins (up 13% to $360 million), who are scheduled to move into their new stadium in 2012.
And I would presume that the Mets valuation will slingshot back up if and when the team is sold to more solvent ownership.
People always wonder why someone would want to buy a Major League team given the big salary obligations and, for many teams anyway, the lowish annual revenues. The answer is appreciation of the asset which — in addition to being an ego-gratifying little jewel to own — happens to appreciate at a nice steady rate even during economic downturns.
Franchise appreciation and subsequent sale is where the real money is. Unless you’re in Cleveland and San Diego, anyway. And unless you have franchise crippling debt.
Andrew Baggarly of the Mercury News reports that the Giants have signed catcher Nick Hundley. It’s a major league deal worth $2 million.
Hundley, who is 33, but who seems like he’s been in the bigs for about 27 years, hit .260/.320/.439 with 10 homers in 83 games for the Rockies last season. Obviously he will be the backup given the presence of Buster Posey.
Major League Baseball has experienced inconsistent progress in its efforts at promoting diversity and social responsibility in recent years despite making it a league priority. Today it has announced several changes in its leadership structure in these areas, with Commissioner Manfred saying, “As the sport of Jackie Robinson and Roberto Clemente, we have a responsibility to uphold and honor their legacies, especially in ensuring that our sport and business practices are as inclusive, diverse and socially-conscious as possible.”
To that end:
- Billy Bean has been promoted to Vice President and Special Assistant to the Commissioner. This is a newly-created and elevated position in which Bean will continue his efforts at promoting human rights issues important to Major League Baseball, with a particular focus on LGBT and anti-bullying efforts. He has done such work since 2014 as its Ambassador for Inclusion, but putting him at the vice presidential level and having him answer directly to Commissioner Manfred increases his profile and that of his mission;
- Renée Tirado, has been promoted to Vice President of Talent Acquisition and Diversity & Inclusion. Tirado had previously served as Senior Director of Recruitment. She will direct the implementation of recruitment plans and procedures to support MLB’s staffing objectives and will oversee MLB’s Diversity Pipeline Program. As you may recall, Major League Baseball has struggled mightily in these effort in recent years, and has admitted as much; and
- Melanie LeGrande has been promoted to Vice President of Social Responsibility. She previously served as MLB’s Director of Community Affairs. Her job will be to develop and enhance the initiatives that support MLB’s position in the community and oversee MLB’s community investments, nonprofit/non-governmental organization partnerships, large-scale disaster relief efforts and employee volunteer engagement.
Manfred said, “the promotions of Billy, Renée and Melanie reflect our commitment to have strong, innovative leadership in place that aligns our industry objectives with a desire to be effective corporate citizens.”
While all of these are current employees who have served in roughly similar roles. A business’ organizational chart says much about how much that business values various functions and initiatives. In keeping with Manfred’s comments, that all three of these people have been promoted to the vice presidential level is a strong signal from MLB about what it wants.
Now all it has to do is follow through and get what it wants.