Phillies 10th in Sportico’s 2021 MLB Valuations at $2.28B

The Philadelphia Phillies were among the highest spenders this past offseason, committing more than $150 million to J.T. Realmuto, Didi Gregorius, Archie Bradley, Matt Moore, and Jose Alvarado combined. Not to mention, plenty of other acquisitions were made to improve a club that finished one game out of the postseason during the 60-game 2020 season.

For a John Middleton-led franchise that saw a $265 million revenue loss from 2019 (pre-COVID) to 2020 (COVID-impacted), according to Sportico, fans can only praise Managing Partner John Middleton for wanting to keep the team competitive.

The sports business site Sportico also recently released 2021 Major League Baseball season valuation rankings for each of the league’s 30 teams.

The Phillies have the 10th-highest MLB team valuation at $2.28 billion, trailing the New York Yankees ($6.75 billion), Boston Red Sox ($4.8 billion), Los Angeles Dodgers ($4.62 billion), Chicago Cubs ($4.14 billion), San Francisco Giants ($3.49 billion), New York Mets ($2.48 billion), Los Angeles Angels ($2.46 billion), Atlanta Braves ($2.38 billion), and St. Louis Cardinals ($2.36 billion).

The Miami Marlins rank last in MLB with a $1.12 billion valuation. The average MLB team is worth $2.2 billion, while all 30 teams have a $66 billion combined valuation, according to Sportico.

The Phillies current fair-market value exceeds $2 billion alone.

The Phillies’ $2.28 billion total value represents the franchise’s current fair-market value ($2.22 billion), combined with the values of team-related businesses and real estate holdings ($60 million).

Sportico defines the following as team value and team-related businesses and real estate value, respectively:

"Team Value: MLB franchise valuation, derived from metrics by which baseball team transactions occur, including aggregating local and national revenues and factoring in a team-specific multiplier. This represents the fair-market value of the team itself, excluding related businesses held by its owners. It includes the value of each franchise’s 3.23% interest in MLB Advanced Media, the league’s digital arm, which is acquired/dispossessed in tandem with the sale of a team.Team-Related Businesses and Real Estate Holdings: The value of a franchise or franchise owner’s equity in team-related businesses—that is, both those on the team’s balance sheet and held in distinct corporate entities—as well as government-assessed real estate related to venue, practice facilities, and adjacent developments. Examples include: the Boston Red Sox parent entity’s 80% interest in the New England Sports Network (NESN); and holdings through the Atlanta Braves’ six subsidiaries of all or a portion of 31 parcels of land adjacent to its ballpark."

More than seven years ago, the Phillies agreed to a $2.5 billion, 25-year local television deal with what was then Comcast SportsNet Philadelphia. Also part of the deal, the Phillies acquired an equity stake in the network, as well as received advertising revenue.

Among the Phillies’ real estate holdings includes their shared baseball academy with the Minnesota Twins in the Dominican Republic. The $18 million, 85,000-sqaure foot academy spans on a 45 acre land.

These are just two of the examples that factor into the Phillies being among the top-valued franchises in Major League Baseball.

This is interesting information to file away in fans’ heads, as the Phillies continue to make payroll decisions before and during the upcoming season.