Money Bag

Team values shoot up an average of 16%

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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.

Report: Indians acquire catcher Jonathan Lucroy from the Brewers

MILWAUKEE, WI - MAY 31:  Jonathan Lucroy #20 of the Milwaukee Brewers rounds the bases after hitting a home run in the second inning against the St. Louis Cardinals at Miller Park on May 31, 2016 in Milwaukee, Wisconsin. (Photo by Dylan Buell/Getty Images)
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The Indians have acquired catcher Jonathan Lucroy from the Brewers, Ken Rosenthal of FOX Sports reports. Lucroy still has to waive his limited no-trade clause, and the two teams are reviewing medicals before the deal is finalized.

The Brewers are reportedly receiving four players in the deal, three of which are currently known: catcher Francisco Mejia, shortstop Yu-Cheng Chang, and outfielder Greg Allen. The fourth as yet unknown player is a “lesser prospect,” per Rosenthal.

Lucroy, 30, leaves the Brewers having hit .300/.360/.484 with 13 home runs and 50 RBI in 375 plate appearances. He earned his second All-Star nomination, representing the National League at Petco Park nearly three weeks ago. Lucroy represents a huge upgrade behind the dish for the Indians, who have gotten a major league-worst .501 OPS from their catchers this season. Lucroy is owed the remainder of his $4 million salary for this season and the Indians will have a $5.25 million club option for 2017 with a $250,000 buyout.

Mejia, 20, was regarded as the Indians’ sixth-best prospect by MLB Pipeline. He spent most of the season with Single-A Lake County, batting .347/.384/.531 in 259 plate appearances. That led to a promotion to High-A Lynchburg near the end of June. Mejia, a switch-hitter, is currently on an impressive 42-game hitting streak in the minors.

Chang, 20, hit .273/.347/.493 with 12 home runs and 69 RBI in 419 PA with Lynchburg. He has experience playing third base as well as shortstop, but because he doesn’t have a strong arm, he projects better at shortstop going forward. MLB Pipeline rated him as the Indians’ 12th-best prospect.

Allen, 23, was considered the Indians’ 22nd-best prospect by MLB Pipeline. A switch-hitter, he batted .298/.424/.402 with 24 extra-base hits, 31 RBI, 93 runs scored, and 38 stolen bases in 432 PA for Lynchburg before being promoted to Double-A Akron last week.

Report: Padres trade Matt Kemp to the Braves for Hector Olivera

SAN DIEGO, CA - JUNE 06:  Matt Kemp #27 of the San Diego Padres talks in the dugout prior to the start of the game against the Atlanta Braves at PETCO Park on June 6, 2016 in San Diego, California.  (Photo by Kent Horner/Getty Images)
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Update (7:01 PM EDT): David O’Brien of the Atlanta Journal-Constitution reports the deal has been completed.

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ESPN’s Keith Law reported on Saturday evening that a bad contract swap involving the Braves’ Hector Olivera and the Padres’ Matt Kemp was “getting close.” Olivera has been pulled off the field, per Bob Nightengale of USA TODAY. Joel Sherman of the New York Post reports that only a last-second medical would kill the deal at this point, and that the Padres will be sending money to the Braves.

Kemp, 31, will have $64.5 million remaining on his contract through 2019 after this season, but the Dodgers will pay $3.5 million annually over those remaining three years, so the $64.5 million is really $54 million. The veteran has compiled a .262/.285/.489 triple-slash line with 23 home runs and 69 RBI in 431 plate appearances for the Padres this season.

Olivera, 31, will have $28.5 million remaining on his contract through 2020 after this season. The outfielder was handed an 82-game suspension, beginning on May 26, for his involvement in a domestic dispute on April 13. The suspension is up on August 2. He has a .501 OPS in 21 major league at-bats this season and a .278 OPS in 37 PA at Triple-A.

Dennis Lin of the San Diego Union-Tribune reports that the Padres will consider designating Olivera for assignment. The trade is all about the salary dump for the Padres, as they’d rather give outfield playing time to prospects Hunter Renfroe and Manuel Margot.