Chase Field on June 9, 2013: An Arizona Diamondbacks vs San Francisco Giants
Traffic cop at the intersection of money and sports
By Mike Ozanian| Forbes
The unprecedented amount of red ink spilled by Major League Baseball in 2020 did not prevent team values from increasing to an all-time-high average of $1.9 billion this year, 3% more than a year ago.
On top are the New York Yankees, worth $5.25 billion, 5% more than last year. The Yankees are one of three North American teams (along with the Dallas Cowboys, at $5.7 billion, and the New York Knicks, at $5 billion) worth at least $5 billion.
A strong demand for baseball teams—particularly in big markets—pushed up valuations. The New York Mets had an operating loss of $125 million last season, yet in October, Steve Cohen purchased the team for $2.42 billion, within 1% of our 2020 valuation and a record amount for a baseball team. The Boston Red Sox posted an operating loss of $70 million in 2020, but according to MLB executives, the team is being valued at more than $3.4 billion as part of the pending sale of an 11% stake in its parent, Fenway Sports Group.
