Cubs Valuation: Is It Right?
In the past we’ve heard about the value of the Cubs and other MLB teams from Forbes, but now Bloomberg has released its own financial rankings list and the Cubs come in at $1.32 Billion. Is that right? Does it sound too high or too low? It’s hard to tell, and since their financial situation didn’t sound so rosy 2 months ago it might be the morale boost that the team needs.
The Cubs come in 5th on the valuation list and apparently they do not yet exploit the media opportunities that are available to them. This means that they could be worth even more in the future, and when their WGN-TV contract expires at the end of the 2014 season they can cash in on other, better offers before the expiration of the CSN Chicago deal expires in 2019. There is a lot of money to be made if the Cubs can kick up their attendance levels, find a good coach and enjoy sustained success. At the moment this ranking is really good for the team’s confidence and it’s kind of the baseball equivalent of hitting the jackpot at iPadcasino.ca as the rewards can change player’s lives in the future.
According to Bloomberg the average valuation of teams in the MLB is around $1 billion, with 10 teams topping that figure by a substantial amount. This is 35% higher than previous estimates but it may in fact be accurate when you look at the stats. Finally MLB teams are catching up to NFL valuation figures and it’s about time that the values where equalized. If valuations continue to increase and the Cubs manage to stay in the top 5 I’ll be a happy camper, and I know I’m not the only one.
So, if this is the right valuation for the Cubs and they are 5th on the list whose at number 1? No surprise here, the New York Yankees took the top spot and where valued at $3.3 billion. They are the kind of franchise most MLB teams try and emulate, and considering the Cubs are only 4 spots away we think that’s a pretty good result. Now the question is, can they do better?
I’d love to hear what your thoughts are on these new valuations.