How did Phillies’ franchise value jump after year of progress?
The Phillies made serious progress on the field in the last calendar year. How has it reflected in the value of the franchise?
Forbes released their annual MLB team value rankings Wednesday morning, setting the value of each MLB franchise and analyzing the finances of the league as a whole. How did the Phillies, who made significant improvements on and off the field in the last year, improve in value?
Out of all 30 teams, Philadelphia ranks as the ninth-most valuable at $1.85 billion. This value is about $70 million more than the average franchise according to Forbes.
For reference, the Yankees are the most valuable team at $4.6 billion, while the Marlins are the least valuable at $1 billion. The Mets are the sixth-most valuable MLB team at $2.3 billion. They are the only team in the division more valuable than the Phils.
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When broken down into segments, the market the team plays in carries the most value at $808 million. The next-biggest share, $498 million, comes from league revenue sharing. Forbes valued Citizens Bank Park at $300 million, and the team brand is worth $244 million.
The value of the team increased by about $200 million from 2018, a nine percent increase.
This increase was the 12th-largest increase in the last year. Several clubs valued in the bottom third of the league saw the most significant increases in value like the Brewers, Rays, Rockies, and Indians.
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Philadelphia had the second highest operating income of any team at $94 million behind only the Dodgers. They have made around that much money each year the last three years after losing money or barely breaking even between 2012 and 2016. Large contracts like Roy Halladay’s, Cliff Lee’s and Ryan Howard’s brought down operating incomes significantly. The club’s operating income in the next year will likely drop off after the splashes they made in free agency this year.
Operating income soared 38% after a drop in 2017, with the average jumping from $29.0 million to $39.7 million per team. Forbes cited new luxury tax rules bringing down total player spending as a significant reason for the increase in profits.
While average revenues on average increased by 4.8% to $330 million per team, player costs stayed about the same at $157 million.
Next. Phillies power rankings: Top-3 team in the league?. dark
Forbes did a wonderful job breaking down the financials of the league and I highly suggest reading the full article and the individual breakdowns of the team’s financials if it’s up your alley.