Newspaper article THE JOURNAL RECORD

Value of Sports Franchises Declines over Last 12 Months

Newspaper article THE JOURNAL RECORD

Value of Sports Franchises Declines over Last 12 Months

Article excerpt

At $200 million, the New York Yankees maintained their position as the most valuable franchise in sports, according to an annual survey by Financial World magazine.

Lofty as the value is, the figure declined $25 million in 12 months. Many franchises showed a similar pattern, a symptom of soaring player costs and uncertainty over labor problems and how far television revenues will fall when future national contracts are negotiated.

According to the magazine, the total market value of the 102 pro baseball, football, basketball and hockey teams decreased 2.3 percent from a year ago. In 1991, it estimates that 23 teams lost money (largest operating loss: $11.4 million for the Milwaukee Brewers).

While the 102 teams revenues rose 16 percent last year to $4.3 billion, operating income fell 10 percent to an estimated $560 million.

The magazine found that salaries are racing ahead of revenues in major league baseball and the National Football League. In baseball, salaries increased 51 percent in 1991, outpacing a revenue gain of 12 percent. …

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