Forbes has released its annual franchise valuation package. In short: it’s good to own a ballclub:
The average Major League Baseball team rose 16% in value during the past year, to an all-time high of $605 million. In 2011, revenue (net of payments to cover stadium debt) for the league’s 30 teams climbed to an average of $212 million, a 3.4% gain over the previous season.
Obviously some teams do better than others, but that’s pretty healthy growth. And where is all of that value and dough coming from? Local TV:
Rights fees paid by cable television channels are behind the growth in team values. Aggregate cable television revenue for baseball’s 30 teams has increased to $923 million from $328 million over the past 10 years.
And that’s only going to increase — to as high as $1.5 billion by 2015, Forbes estimates — as new deals for the Angels, Rangers, Astros, Padres and Dodgers kick in.
Driving all of this is your DVR, which has devalued advertising for most programming, but which largely doesn’t impact live sports because people really like to watch live sports live. That has sent rights fees skyrocketing as Fox, Comcast and others have been willing to pony up big to show content with commercials people will actually watch. This is almost an almost exclusively local phenomenon too, as national rights have not been up for bid for a while and won’t be until next year.
Which, by the way, is another reason why anyone slamming baseball this fall over its abysmal national ratings and claiming that the sport is in trouble compared to the NFL has no idea what they’re talking about.
According to Jorge Castillo of the Washington Post, Nationals infielder Danny Espinosa declined to attend the team’s annual Winterfest because of his dissatisfaction with management following their trade for outfielder Adam Eaton.
A source told Castillo that Espinosa’s unhappiness stemmed from a belief that the acquisition would jeopardize his starting role in 2017. With Eaton in center field, Trea Turner will likely return to his post at shortstop, leaving Espinosa out in the cold — or, as the case may be, on the bench. The move shouldn’t come as a big surprise to Espinosa, however, as Nationals’ GM Mike Rizzo spoke to the possibility of trading the infielder or reassigning him to a utility role back in early November.
Offensively, the 29-year-old had a down year in 2016, slashing just .209/.306/.378 with 24 home runs in 601 PA. Defensively, he still profiles among the top shortstops in the National League, with eight DRS (Defensive Runs Saved) and 8.3 Def (Defensive Runs Above Average) in his seventh year with the club.
Espinosa will reach free agency after the 2017 season.
The Red Sox might be trying to move the wrong pitcher, according to the Boston Globe’s Nick Cafardo. Cafardo revealed that while the Sox have been trying to market right-hander Clay Buchholz, more teams would be interested in trades involving southpaw Drew Pomeranz.
The club appears reluctant to deal Pomeranz, especially because his price tag comes in at a cool $4.7 million to Buchholz’s $13.5 million in 2017. Those who have already expressed interest in the veteran hurlers, including the Twins, Mariners and Royals, also seem put off by Buchholz’s salary requirements as he enters his 32nd year.
Health could be another factor preventing teams from jumping to make trade offers, as Cafardo quotes an AL executive who believes the “medicals on both Pomeranz and Buchholz probably aren’t that great.” Neither pitcher suffered any major injuries during the 2016 season, though Pomeranz missed just over a week of play due to forearm soreness.
Pomeranz outperformed his fellow starter in 2016, pitching to a 3.32 ERA and career-best 9.8 K/9 through 170 2/3 innings with the Padres and Red Sox. He got off to an exceptionally strong start in San Diego, where his ERA dropped to 2.47 through the first half of the year before the Padres dealt him to Boston for minor league right-hander Anderson Espinoza. Buchholz, on the other hand, struggled with a 4.78 ERA and saw a decline in both his BB/9 and K/9 rates as he worked out a career-low 1.69 K/BB through 139 1/3 innings with the Sox.