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.
Barry Jackson of the Miami Herald wrote three weeks ago that the Marlins were probably going to explore an extension this winter with second baseman Dee Gordon. And it sounds like those talks are underway.
Via beat writer Joe Frisaro of MLB.com:
As a guest on MLB Network’s “Hot Stove” show Wednesday morning, Gordon confirmed his camp has been in talks with the Marlins regarding a multiyear deal. A source told MLB.com that the discussions are preliminary and have just recently started.
“My agent is doing the talking,” Gordon said on the show. “They’re just keeping me in the loop. I think it’s going pretty well right now. We’ll see how that goes. I’m just playing the waiting game. We’re going to do the right thing.”
The 27-year-old carries three more seasons of salary arbitration, so there’s no real rush to get something done before next spring. Gordon carries quite a bit of leverage after posting a career-best .333/.359/.418 slash line in 145 games this past season for the Fish. He led all major leaguers in hits (205) and stolen bases (58).
Bud Norris has found a home for his attempt at a bounceback season, signing a one-year deal with the Braves. Jon Heyman of CBSSports.com says it’s worth $2.5 million, which is a huge cut from his $8.8 million salary this year.
Norris had established himself as a solid mid-rotation starter from 2009-2014, but had a brutal 2015 season split between the Orioles and Padres with a 6.72 ERA in 83 innings and a late-season move to the bullpen.
In announcing the signing the Braves referred to Norris as a starting pitcher, so joining the rotation for a rebuilding team gives him a chance to get his career back on track with an eye on hitting the open market as a free agent again next offseason. And if he fares well, the Braves could use him to add a prospect or two at the trade deadline.
The number of people who, if you held a gun to their head, would say that “Rex Brothers” was a game show host and/or local TV news personality from the late 1970s or early 80s is not insignificant. But if you’re a Rockies fan or if spend all day thinking about baseball you know that he’s a reliever who has played in Colorado for the past five years. Now you know him as a reliever for the Cubs:
Brothers — a former Best Shape of His Life All-Star — was pretty good until he hit a brick wall in 2014 and spent most of 2015 in Triple-A. He had something of a bounceback after being called up when rosters expanded in September, but that’s not the sort of thing to excite anyone. He could be useful for the Cubs or just spring training cannon fodder and organizational depth.
Cabrera just turned 18 a couple of weeks ago and pitched a grand total of 14 games in the Dominican Summer League. He’s young and was a $250,000 signee from the Dominican as a 16-year-old so, by definition, he’s a project. Worth giving up Rex Brothers for him if you’re the Rockies, worth risking for some depth in the pen if you’re the Cubs.
Steve Gilbert of MLB.com reports that the Diamondbacks’ new hitting coach is Dave Magadan, who “parted ways” with the Rangers last month after three years filling the same role in Texas.
Magadan also previously was the Red Sox’s hitting coach and his teams have generally done pretty well, including the Rangers scoring the third-most runs in the league this year.
He’ll have plenty of talent to work with in Arizona, as the Diamondbacks scored the second-most runs in the league led by Paul Goldschmidt, A.J. Pollock, and David Peralta. Turner Ward, who had been Arizona’s hitting coach, chose to leave the team two weeks ago.